Exam 9: Building a New-Venture Team

Adam Miller is a general partner in a venture capital firm that just funded Gold Coast Software, a software firm in Santa Barbara, California. Gold Coast Software is incorporated, and Adam has taken a seat on the firm's board of directors. In board of directors terminology, Keith is a(n) ________ director.

According to the textbook, studies show that more than one individual starts ________ percent of all new firms.

Networking is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm.

SCORE is a for-profit organization that provides consulting services to small businesses.

A board of directors' three formal responsibilities are to ________.

The members of homogeneous teams are ________ in terms of their ________.

Studies show that more than one individual starts 50 to 70 percent of all new firms.

Next Big Sound, the company profiled in the opening feature of Chapter 9, is a music analytics company. Which of the following statements in incorrect regarding Next Big Sound's co-founders, its personnel policies or the company itself?

Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.

Prior entrepreneurial experience is a poor predictor of future entrepreneurial performance.

The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________.

James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of his firm's board of directors. In board of directors terminology, James is a(n) ________ director.

In the context of boards of directors, a(n) ________ director is a person who is also an officer of the firm.