Management Chapter Quiz

Questions for Chapter 6 lawful(p)/False 1. A talented enterpriser should be able to rest period for an experienced management police squad. (False) 2. The size of your organization is inversely correlated to the number of revenue your melodic phrase fag derive (False) 3. Hiring a salesperson is some(prenominal) agreeable than increasing support staff in regards to revenue affordd. (True) 4. Your group members depose help you to evaluate feedback from outside sources. (True) 5. Over 95% of entrepreneurs in the US report that their squad members be the main source of informant financing. (False) 6.A business superstar is unlikely to possess all the business skills ask for long term advantage. (True) 7. Analysis of your resume ordain help you break up what other aggroup members your firm need. (True) 8. Entrepreneurs who are everyplacely informed of their induce weaknesses are more likely to fail (True) 9. The Myers-Briggs in-personity type exponent fag end accurately predict an individuals likelihood for achievement in an entrepreneurial endeavor. (False) 10. Certain personalities are better suited for entrepreneurship than others. (False) 11. Fast, striking growth can be a mistake for a business. (True) 12.Early defend companies tend to be hierarchal. (False) 13. Co- generates of a outgrowth-up should work on every working(a) class and decision together. (False) 14. It is more common for squads to self-destruct because of personal conflicts than for lack of funding. (True) 15. If you ensconce to start a fortune, you should notify your actual employer as soon as possible. (True) 16. After you have started a business, it is a bad idea to accept your new job with working fulltime elsewhere. (False) 17. If employees own impartiality in the corporation, they commonly work harder. (True) 18. In general, founder sections should be granted to at least 10 people. False) 19. Founder shares should be distributed equally between all founders. (False) 20. It is a mistake to distribute the entire supply of options to existing employees. (True) 21. Startups should negotiate employee salaries infra market levels. (True) 22. You may find an angel investor who go out guide you at the primeval stages of your gamble. (True) 23. Free resources are poor substitutes for a qualified attorney. (False) 24. tabular array members should be encouraged to act in the best interest of the leash owner exclusively. (False) 25. Company culture is incredibly difficult to change after(prenominal) it has been established. True) Multiple Choice 1. gibe to study by Babson College and London task School, businesses with growth aspirations plan on employing more than 20 people within the next A) 2 old age B) 3 Years C) 4 Years D) 5 Years E) None of the above (Answer D) 2. How much, according to Robert Morris and Associates, do restaurants generate in net income before taxes on average, approximately? A) 2% B) 5% C) 10% D ) 13% E) 17% (Answer B) 3. Which of the followers is true about teams? A) Teams picture constructive feedback for your ideas. B) Teams increase your contact meshwork exponentially.C) Teams increase your revenue. D) Teams provide you with slighton support. E) altogether of the above (Answer E) 4. Which of the following should the founder of the venture do scratch when deciding whether or not to be the CEO of his guild? A) collect for his/her friends opinion B) Take at least three personality tests C) refresh his/her resume D) Work as a hired manager for at least 4 years E) Consult with his/her team members (Answer C) 5. Individuals that possess which of the following traits are most likely to launch their own businesses? A) Overly conscious of their own weaknessesB) An aptitude for benchmarking their competitors strengths C) Can objectively evaluate his strengths and weaknesses D) Emphasizes his or her strengths E) absent-minded to his or her own weaknesses (Answer E) 6. Which of the following personality traits best predicts entrepreneurial success? A) Analytical B) Driver C) Expressive D) Amiable E) None of the above (Answer E) 7. According to Inc. 500, what percent of entrepreneurs start businesses with their friends or family members? A) Less than 5% B) About 10% C) About 20% D) Approximately 40% E) More than 65% (Answer D) 8. What does the movie, Startup. om, test? A) How outside financing contributes to e interjecty B) How expensive lawyers can be C) How working together can affect the relationship of two lifelong friends D) How much the goernment is willing to help young entrepreneurs E) None of the above (Answer C) 9. What opportunities can a young smart set forwarder its potential team members? A) issue into higher management positions B) Above average market salaries C) More attractive social benefits packages D) Secure and stable jobs E) only of the above (Answer A) 10. Which of the following should an entrepreneur do when cre ating a venture?A) Expropriate her current employers gifted property B) Use her employers resources for the new venture C) Notify her current employer about the intention to create a new venture D) surpass all her time working for the new venture E) Live finish up her savings (Answer C) 12. According to the chapter, which of the following is not an grateful means of maintaining an entrepreneurs personal cash flow? A) Working full-time and devoting time to the new venture B) Working part-time and devoting time to the new venture C) Living off personal savings D) Living for his/her spouses income E) All of the above are acceptable Answer E) 13. Which of the following is not a reason for distributing equity among employees? A) advanced companies often cant pay market rates for net and wages B) Including some equity in the compensation package aligns the employee with the company C) The sense of ownership boosts morale D) Distributing equity among employees reduces the risk of h ostile putsch E) Having some equity, he team sticks together during the rough times in the early launch phase (Answer D) 14. None of the following tools are commonly considered a reward for sweat equity, except A) Founder shares B) Option mobC) confine stock D) livestock appreciation rights E) Phantom stock (Answer A) 15. What are the disadvantages of distributing founder shares equally among all co-founders? A) The lack of a primary shareholder slows coldcock the decision making process B) CEO may be doing as much work as CEOs of comparable companies, but have less potential upside C) Such distribution makes unwanted acquisitions easy D) A and B E) A and C (Answer D) 16. Options give the holder the right to A) uniting on the number of the company shares he is allowed to purchase B) Buy a share in the company at a below-market rateC) Secure a compensation increase on a regular basis D) Sell his stocks on the open market for more than the prevailing market price E) occupy a refund on his contribution to companys equity (Answer B) 17. What attribute characterizes restricted stock? A) Does not grant voting rights B) monetary value less per share C) Become vested over time D) Has a cut down interest rate E) Higher liquidation priority than unsecured debt (Answer C) 18. Stock appreciation rights of employees accrue only if A) The stock price decreases B) Combined with options C) The employees coiffure well D) The stock price increases E) None of the above Answer D) 19. All of the following is true about phantom stocks except A) They are expensed over the vesting period B) They give employees the right to own equity C) The company needs cash when phantom stocks are exercised D) They grant the holders additional voting indicant E) They lower the dilution effect (Answer D) 20. Which of the following are not mentioned in the chapter as external team members? A) Board of Directors B) Lawyers C) Accountants D) Angel investors E) Foreign partners (Answe r E) 21. What is the minimum pass judgment level of lawyers fees? A) $50/ time of day B) $100/hour C) $150/hour D) $200/hour E) $250/hour Answer C) 22. Inappropriate sources of members for Board of Advisors take on A) Shareholders representatives B) Entrepreneurs C) Individual with insights about your target guest D) Your professors E) Venture jacketists (Answer A) 23. Which of the following is true about a companys culture? A) A companys culture is relatively easy to change B) As a company grows, it is common for the culture to evolve C) More team members will fit your companys culture over time D) Problems with the team do not arise in companies with strong culture E) All elements of a companys culture constantly change (Answer B) 4. By making your team members work long hours, you put them at risk of A) Burnout B) Family pressure C) Stress D) Reduced efficiency E) All of the above (Answer E) 25. You are least likely to resolve an interpersonal conflict in your team by A) Firing one of the parties B) Hiring an outside expert who is perceived as a neutral party C) Explaining to the parties involved that their arguments reduce the teams efficiency D) Mediating between the parties E) Transferring one of the parties to another team (Answer C) Open cease 1. Explain why solo entrepreneurs are generally less flourishing than team players. a.A team is able to do more than the entrepreneur can on his or her own. b. solely entrepreneurs suffer from a number of shortcomings, including a limited perspective, little moral support, and a small network c. Solo entrepreneurs often fail to get sufficient feedback on their ideas. d. If you build your team wisely you will gain access to a broader range of contacts. e. A team rounds out the skill set needed to launch a business 2. What are some of the methods employ to get word an entrepreneurs strengths and weaknesses? a. Self-assessment b. Conducting feedback analysis c. Talk to people who know you well and whom you respect. . Take a psychological or a personality test. 3. What valuable contributions can your team members bring to your company? a. Professional knowledge b. Money required to start a business c. Resources/contacts d. Managerial skills 4. What are some indicators of the right co-founders and team members for your start-up? a. Everyone can contribute meaningful skills to the business. b. You can work together without personal issues standing in the way. c. Your team members are excited about the venture and its future. 5. Describe the pros and cons of a dual job strategy at the early stages of the venture. a.Pros you have a source of cash for you to live on turn you are developing your idea you can keep the job if you agnise that your new start-up is not progressing well. b. Cons dual jobs mean that you have to work over nights and weekends you cannot use your current companys resources or compete with it until you quit and, simply, your current job limits the time that you can dedicate to the venture. 6. Give examples of compensations used to make your start-up attractive for valuable team members. a. Founder Shares b. Option pool c. Restricted stock d. Stock appreciation rights e. Phantom stock 7.Explain the benefits, to the firm, of a vesting schedule for employee options and shares. a. Vesting basically means that people earn their shares or options over time, usually over four or more years. b. Without a vesting schedule, employees can leave the company soon after being hired and hold up 100% of their options or shares. c. A vesting schedule adds additional incentives for employees to remain with the company for the entire vesting period, usually four or more years. 8. Who should you invite to join the Board of Advisors of your firm and why? a. Professors for their fundamental knowledge b.Current and former entrepreneurs for their applicatory knowledge and experience c. Professional investors such as venture capitalists and angels for networ k extension and fund raising d. Suppliers for your firm for insights about new customer and market trends 9. Why are lawyers and comptrollers considered to be external members of your team? a. Your lawyer will most likely work very closely with you and will know everything about your company. Therefore, it is essential that he offers a highly customized suffice to you and his contributions are usually as important as those of your team members. . An accountant is a trained business professional who can help you crumble the strengths and weaknesses of your companys financial performance. He or she may be able to find ways to improve cash flow, strengthen margins, and identify tax benefits. c. Both lawyers and accountants represent another spoke in your network, as both groups frequently have a long list of business and professional contacts. This can include everything from potential partners, customers, angel investor networks, and venture capital firms. 10. Three major problems your team may face are burnout, interpersonal conflicts and family pressure.Describe how you can prevent and overcome them. a. Listen to each team member, not only about the progress of their assignments, but also about the stresses they may be feeling b. You can introduce stress-relieving activities, or bonding experiences such as the Friday happy hour, or the lunchtime basketball game c. centering your team members to set expectations for their families even before they join your team d. annunciation interpersonal conflicts as quickly as possible or they may escalate to the point where they are destructive mediate, hire an outside expert, or fire one of the arguing parties