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Unformatted text preview: Business 3215 Principles of Entrepreneurship Practice Self-Test CHAPTER 6 Building A New Venture Team MULTIPLE-CHOICE QUESTIONS Creating a New Venture Team Answer: D Easy Page: 126 1. A __________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm. A. startup cadre B. startup troop C. new venture panel D. new venture team E. startup squad Answer: A Easy Page: 126 2. Jason Kemper is preparing to launch a home security firm. The team of people that will launch Jasons firm are as follows: Jason (CEO), Tim (VP-Finance), Carey (VP-Sales), a six person Board of Directors, a five person Board of Advisors, and Jasons primary investor, who will assume an advisory role. The group of people that will launch Jasons firm is called its: A. new venture team B. new venture panel C. startup squad D. startup cadre E. startup troop Answer: C Medium Page: 127 3. The fact that companies often falter because the people who start the firms cant 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: A. load of newness B. burden of novelty C. liability of newness D. burden of freshness E. millstone of innovation Chapter 6: Building A New Venture Team Answer: E Medium Page: 127 4. Kate Ellington started a software firm two years ago. Unfortunately, the firm failed after 18 months. Kate attributes the failure of her firm to that fact that her employees couldnt adjust quickly enough to their new roles and because her firm lacked a track record with outside buyers and sellers, which made it difficult to form partnerships and make sales. Kates suffered from what research calls the: A. burden of novelty B. millstone of innovation C. load of newness D. burden of newness E. liability of newness Answer: C Medium Page: 127 5. The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because: A. they are underfunded and the founders of the firms dont move quickly enough to put together boards of directors and boards of advisors that can provide them direction and advice B. they underestimate the complexities involved with starting a new business and the firm lacks a track record with outside buyers and sellers C. the people who start the firms cant adjust quickly enough to their new roles and the firm lacks a track record with outside buyers and sellers D. the people who start the firms cant adjust quickly enough to their new roles and they are underfunded E. they underestimate the complexities involved with starting a new business and they dont move quickly enough to establish business partnerships Answer: A Medium Page: 127 6. The Partnering for Success feature in Chapter 6 focuses on the Young Entrepreneurs Organization (YEO), which is a nonprofit organization for business owners under age 40 who are leading companies with sales...
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- Spring '11