Wednesday, March 13, 2019

Management Chapter Quiz

Questions for Chapter 6 True/False 1. A talented entrepreneur should be able to substitute for an run acrossd watchfulness group. (False) 2. The size of your organization is inversely correlated to the amount of revenue your logical argument git derive (False) 3. Hiring a salesperson is much(prenominal) attractive than annex support staff in regards to revenue gene commitd. (True) 4. Your group members depose champion you to evaluate feedback from stunnedside sources. (True) 5. Over 95% of entrepreneurs in the US underwrite that their aggroup members argon the main source of seed backing. (False) 6.A stemma sensation is un apt(predicate) to possess any the business skills needed for long end taper success. (True) 7. Analysis of your resume pull up stakes help you decide what other team up members your watertight needs. (True) 8. Entrepreneurs who are everyplacely conscious of their deliver weaknesses are more likely to bump (True) 9. The Myers-Briggs person ality type indicator drive out accurately predict an individuals likelihood for success in an entrepreneurial endeavor. (False) 10. Certain personalities are better suited for entrepreneurship than others. (False) 11. Fast, dramatic growth fag be a mistake for a business. (True) 12.Early stage companies tend to be hierarchal. (False) 13. Co-founders of a bag-up should acidify on every task and decision together. (False) 14. It is more putting surface for teams to self-destruct because of personal conflicts than for lack of storeing. (True) 15. If you decide to start a venture, you should notify your legitimate employer as soon as possible. (True) 16. After you bring forth started a business, it is a bad idea to combine your new melodic phrase with working full cartridge holder elsewhere. (False) 17. If employees own equity in the guild, they unremarkably work harder. (True) 18. In general, founder dole outs should be granted to at least 10 people. False) 19. discover sh ares should be dotd equally surrounded by 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 below commercialize levels. (True) 22. You whitethorn examine an angel investor who will guide you at the early stages of your venture. (True) 23. dislodge resources are poor substitutes for a qualified lawyer. (False) 24. Board members should be further to act in the best interest of the principal owner exclusively. (False) 25. confederation polish is incredibly difficult to change after it has been established. True) Multiple cream 1. harmonize to study by Babson College and London Business School, businesses with growth aspirations plan on employing more than 20 people within the next A) 2 historic period B) 3 Years C) 4 Years D) 5 Years E) N one of the to a higher place (Answer D) 2. How much, according to Robert Morris and Associates, do restaurants generate in l ast income before taxes on average, approximately? A) 2% B) 5% C) 10% D) 13% E) 17% (Answer B) 3. Which of the future(a) is straightforward roughly teams? A) Teams provide constructive feedback for your ideas. B) Teams increase your contact network exponentially.C) Teams increase your revenue. D) Teams provide you with moral support. E) All of the above (Answer E) 4. Which of the following should the founder of the venture do first when deciding whether or not to be the CEO of his play along? A) Ask for his/her friends opinion B) ask at least three personality tests C) Review his/her resume D) cast 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 nigh likely to lance their own businesses? A) Overly conscious of their own weaknessesB) An cleverness for benchmarking their competitors strengths C) Can objectively evaluate his strengths and weaknesses D) Emphasizes his or her strengths E) Oblivious 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, demonstrate? A) How outside financing stomachs to equity B) How expensive lawyers can be C) How working together can affect the relationship of two lifelong friends D) How much the government is voluntary to help infantile entrepreneurs E) None of the above (Answer C) 9. What opportunities can a young community offer its potential team members? A) Growth into higher steering positions B) Above average market salaries C) More attractive social benefits packages D) deposit and stable bloods E) All of the above (An swer A) 10. Which of the following should an entrepreneur do when creating a venture?A) Expropriate her current employers intellectual property B) employment her employers resources for the new venture C) Notify her current employer close to the plan to create a new venture D) Spend all her time working for the new venture E) Live off her savings (Answer C) 12. According to the chapter, which of the following is not an acceptable means of maintaining an entrepreneurs personal cash carry? A) Working full-time and devoting time to the new venture B) Working odd-job(prenominal) 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) New companies often cant pay market rates for salary and wages B) Including nearly equity in the compensation package aligns the employee with the telephoner C) The sen se of monomania boosts morale D) Distributing equity among employees reduces the risk of hostile takeover 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 unremarkably considered a reenforce for sweat equity, except A) Founder shares B) Option poolC) Restricted occupation D) rootage appreciation rights E) Phantom song (Answer A) 15. What are the disadvantages of distributing founder shares equally among all co-founders? A) The lack of a primary shareholder slows down the decision reservation process B) CEO may be doing as much work as CEOs of comparable companies, but have less potential cover C) Such distribution makes unwanted acquisitions easy D) A and B E) A and C (Answer D) 16. Options check the holder the right to A) Increase the number of the attach to shares he is allowed to purchase B) Buy a share in the bon ton at a below-market rateC) Secure a salary increase on a r egular basis D) Sell his stocks on the open market for more than the prevailing market price E) Demand a retort on his contribution to companys equity (Answer B) 17. What attribute characterizes limit stock? A) Does not grant voting rights B) Cost less per share C) Become vested over time D) Has a reduced interest rate E) Higher liquidation priority than unsecured debt (Answer C) 18. Stock appreciation rights of employees shine only if A) The stock price decreases B) Combined with options C) The employees perform well D) The stock price increases E) None of the above Answer D) 19. All of the following is true nigh spectre 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 power E) They lower the dilution heart and soul (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 (Answer E) 21. What is the minimum expected level of lawyers fees? A) $50/ second B) $100/hour C) $150/hour D) $200/hour E) $250/hour Answer C) 22. Inappropriate sources of members for Board of Advisors include A) Shareholders representatives B) Entrepreneurs C) Individual with insights about your target customer D) Your professors E) Venture capitalists (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) accent mark D) Reduced efficiency E) All of the above (Answ er E) 25. You are least likely to resolve an interpersonal conflict in your team by A) flame one of the parties B) Hiring an outside expert who is perceived as a indifferent 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 ended 1. Explain wherefore solo entrepreneurs are generally less successful than team players. a.A team is able to do more than the entrepreneur can on his or her own. b. Solo entrepreneurs suffer from a number of shortcomings, including a limited perspective, teensy 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 hang needed to launch a business 2. What are some of the methods used to identify an entrepreneurs strengths and weaknesses? a. Self-assessment b. Conducting feedback analysis c. run out 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 while you are exploitation your idea you can keep the job if you see 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 reso urces 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 retain 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 practical knowledge a nd experience c. Professional investors such as venture capitalists and angels for network extension and fund raising d. Suppliers for your firm for insights about new customer and market trends 9. why are lawyers and accountants 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 service to you and his contributions are usually as important as those of your team members. . An accountant is a expert business professional who can help you analyze 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. twain 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 frustrate 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 tang b. You can introduce stress-relieving activities, or bonding experiences such as the Friday well-chosen hour, or the lunchtime basketball game c. Counsel your team members to set expectations for their families even before they join your team d. Resolve 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

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