Question 1

The entrepreneurial team owns all or the majority of the stock in a ____.

Accepted Answer

A)  publicly held company
B)  privately owned corporation
C)  governmental operation
D)  sole proprietorship
E)  strategic partnershipF) C) and D)
G) A) and B)

Question 2

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup.

Accepted Answer

A) True 
 B)False

Question 3

What are the functions of the board of directors?

Accepted Answer

Select and hire or fire the CEO. Approve...

Question 4

Working boards are crucial in the startup phase.

Accepted Answer

A) True 
 B)False

Question 5

Because they tend to be fairly expensive, consultants are best used for ____.

Accepted Answer

A)  technology startups
B)  human resources
C)  critical one-time advice or problem solving
D)  employee leasing
E)  repetitive tasksF) A) and B)
G) A) and C)

Question 6

If a new venture is a corporation, a board of directors is required.

Accepted Answer

A) True 
 B)False

Question 7

Briefly discuss how attorneys can supply a wealth of support for the new venture.

Accepted Answer

Advise the entrepreneur on the selection...

Question 8

____ are more likely to make the mistake of putting structure on the organization before its time.

Accepted Answer

A)  Personal advisors
B)  Founding teams
C)  Startup teams
D)  High-tech teams
E)  Virtual teamsF) B) and C)
G) A) and D)

Question 9

Briefly discuss the important factors in composing the founding team.

Accepted Answer

​ Homophily - founding team members' cha...

Question 10

A board member who is a founder, employee, or retired manager of the firm is a/an ____.

Accepted Answer

A)  inside board member
B)  outside board member
C)  personal advisor
D)  officer
E)  chair of the boardF) A) and C)
G) C) and E)

Question 11

The Law of Agency defines the terms employee and independent contractor ____.

Accepted Answer

A)  on issues of taxation
B)  on issues of education
C)  in securing a loan
D)  in securing private consultants
E)  in securing grantsF) A) and E)
G) None of the above

Question 12

When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____.

Accepted Answer

A)  important contacts in the industry
B)  a personality compatible with the rest of the board
C)  exploitive behavior
D)  good problem-solving skills
E)  honesty and integrity to engender a sense of mutual trustF) None of the above
G) C) and D)

Question 13

Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team?

Accepted Answer

A)  Consultants
B)  PEOs
C)  Manufacturing support
D)  Sales support
E)  Board of advisorsF) A) and B)
G) B) and E)

Question 14

A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____.

Accepted Answer

A)  creative founders
B)  young entrepreneurs
C)  experienced professionals
D)  scientists and technical experts
E)  venture capitalistsF) A) and B)
G) A) and C)

Question 15

Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____.

Accepted Answer

A)  labor unions
B)  independent contractors
C)  co-operatives
D)  secret partnerships
E)  silent partnershipsF) A) and E)
G) None of the above

Question 16

In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors and those of a board of advisers.

Accepted Answer

A) True 
 B)False

Question 17

The single most important factor in the success or failure of founding teams is:

Accepted Answer

A)  Achievement
B)  Education
C)  Intelligence
D)  Communication
E)  None of these choicesF) B) and E)
G) C) and D)

Question 18

Attorneys can provide the new venture with a wealth of support, which includes all the following except ____.

Accepted Answer

A)  assisting in complying with federal, state, and local laws
B)  preparing financial statements
C)  advising and preparing documents for intellectual-property rights acquisition
D)  negotiating and preparing contracts
E)  apprising the entrepreneur of the latest tax reform legislation and helping minimize the venture's tax burdenF) A) and D)
G) A) and C)

Question 19

An accountant can help a growing business in all of the following except ____.

Accepted Answer

A)  auditing
B)  bookkeeping
C)  preparing documents for acquisition of intellectual-property rights
D)  preparing taxesE) B) and D)
F) C) and D)

Question 20

Discuss the advantages and disadvantages associated with virtual teams.

Accepted Answer

Advantages: access to the most qualified...

Exam 8: Calculating Startup Capital Requirements

Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____.

Correct AnswerverifiedShow Answer

____ are more likely to make the mistake of putting structure on the organization before its time.

Correct AnswerverifiedShow Answer

A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____.

Correct AnswerverifiedShow Answer

When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____.

Correct AnswerverifiedShow Answer

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup.

Correct AnswerverifiedShow Answer

A board member who is a founder, employee, or retired manager of the firm is a/an ____.

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages associated with virtual teams.

Correct AnswerverifiedAdvantages: access to the most qualified...View AnswerShow Answer

Working boards are crucial in the startup phase.

Correct AnswerverifiedShow Answer

The single most important factor in the success or failure of founding teams is:

Correct AnswerverifiedShow Answer

Briefly discuss how attorneys can supply a wealth of support for the new venture.

Correct AnswerverifiedAdvise the entrepreneur on the selection...View AnswerShow Answer

Attorneys can provide the new venture with a wealth of support, which includes all the following except ____.

Correct AnswerverifiedShow Answer

The entrepreneurial team owns all or the majority of the stock in a ____.

Correct AnswerverifiedShow Answer

Because they tend to be fairly expensive, consultants are best used for ____.

Correct AnswerverifiedShow Answer

An accountant can help a growing business in all of the following except ____.

Correct AnswerverifiedShow Answer

What are the functions of the board of directors?

Correct AnswerverifiedSelect and hire or fire the CEO. Approve...View AnswerShow Answer

Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team?

Correct AnswerverifiedShow Answer

In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors and those of a board of advisers.

Correct AnswerverifiedShow Answer

The Law of Agency defines the terms employee and independent contractor ____.

Correct AnswerverifiedShow Answer

Briefly discuss the important factors in composing the founding team.

Correct Answerverified​ Homophily - founding team members' cha...View AnswerShow Answer

If a new venture is a corporation, a board of directors is required.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Advantages: access to the most qualified...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Advise the entrepreneur on the selection...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Select and hire or fire the CEO. Approve...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Homophily - founding team members' cha...
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Correct Answer
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