Deck 5: Assembling the Team: Acquiring and Utilizing Essential Human Capital

Question 1

If a new business is started as a corporation,many countries legally require the business to have a board of directors..

Answer 1

True

Question 2

For success,an entrepreneur needs a wide range of information and skills,which is very likely to be present when all members of the founding team are highly similar to one another in important ways.

Answer 2

False

Question 3

Relevant previous entrepreneurial experience tends to increase the probability that a new firm will be successful.

Answer 3

True

Question 4

Research shows that there is a causal relationship between the number of employees in a new business and its profitability.

Question 5

When choosing a partner to start a new business,it is better to chose one based on similarity rather than complementarity..

Question 6

Permanent employees are associated with fixed costs and temporary employees are associated with variable costs.

Question 7

The resources brought by an entrepreneur to a new venture that is launched includes human capital and social capital.

Question 8

The more similarities that exist between employees and their managers,the lower the ratings that employees will most likely receive from the managers.

Question 9

Research has shown that the more the founders of a business have networks and mentors,the more likely it is that their new business will be successful.

Question 10

When dealing with the similarity and complementarity approach related to co-founders starting a business,it is best to focus primarily on complementarity with respect to knowledge,skills,and experience,but bring similarity into the picture with respect to personal characteristics and motives.

Question 11

Social capital refers to the knowledge,skills,talents,and abilities of the founders and employees of a business.

Question 12

When dealing with the similarity and complementarity approach related to co-founders starting a business,it is best to focus primarily on similarity with respect to personal characteristics and motives rather than on complementarity of knowledge,skills,and experience.

Question 13

By hiring friends and family members,entrepreneurs are able to acquire human resources quickly,without costly searches.

Question 14

In situations where flexibility and speed of acquiring new sets of knowledge and expertise are crucial,permanent employees may be very beneficial,as opposed to temporary employees.

Question 15

Equity is also known as distributive justice..

Question 16

Since businesses that are just started are small,it is recommended that they not have a board of directors..

Question 17

The success of any new venture depends on which of the following?

A) Knowledge.
B) Skills.
C) Social networks.
D) Talents.
E) All of the above are important.

Question 18

Conflict between team members can be very useful.

Question 19

The best measure of success of a new business is the number of employees it has by the end of its second year.

Question 20

Corporations are usually required by law to have a board of directors;unincorporated new businesses are required by law to have a board of advisers.

Question 21

A person who is in better physical health

A) will have more health problems when experiencing high stress.
B) will have fewer health problems when experiencing high stress.
C) will show lower commitment to the organization.
D) will be a better communicator.
E) is more likely to enroll in employee assistance programs.

Question 22

In the "Big Five," the extent to which individuals are creative,curious,and have wide-ranging interests versus being practical and have narrow interests is referred to as

A) extraversion-introversion.
B) agreeableness.
C) motives.
D) emotional stability.
E) openness to experience.

Question 23

The higher entrepreneurs are in conscientiousness,the more likely their new ventures will

A) survive.
B) fail.
C) not be competitive.
D) be very competitive.
E) be none of the above.

Question 24

An entrepreneur finds that he is having difficulty "getting everything done." Work is interfering with family things. Attending children's events at school is taking time away from work and spouse,etc. This entrepreneur is feeling

A) equity.
B) clear role definition.
C) cognitive appraisal.
D) financial assessment.
E) stress..

Question 25

Assume that you are on a team with several other students and the team is preparing an assignment for this course. Say that you believe that you put in more effort and time than did other team members. However,each person will get the same grade on the assignment. Therefore,you feel that there is a difference between what you "put in" and what you will "get out." You are feeling

A) self-serving bias.
B) inequity.
C) criticism.
D) role clarity.
E) cognitive appraisal.

Question 26

Recent research concerning the Big 5 found that compared to mangers,entrepreneurs tend to be

A) higher in agreeableness but lower in openness to experience and conscientiousness.
B) higher in emotional stability but lower in conscientiousness.
C) higher in conscientiousness, openness to experience, and emotional stability, but lower in agreeableness.
D) higher in conscientiousness, but lower in openness to experience and emotional stability.
E) none of the above.

Question 27

Which of the following statements are true?

A) Stress is a major cause of burnout..
B) Stress is almost always motivational.
C) If one person has burnout, it tends to not affect anyone else in the same organization.
D) Stress increases commitment to the organization.
E) All of the above are true.

Question 28

An employee has achieved high performance on the job. According to the "Big Five," which dimension would you predict that person exhibited?

A) Emotional stability.
B) Conscientiousness.
C) Openness to experience.
D) Agreeableness.
E) Extraversion-introversion.

Question 29

An entrepreneur who wants to start a business is making a list of the people she know who might have information or contacts that could help her in starting the business. She is assessing her

A) human capital.
B) financial capital.
C) deception capital.
D) social capital.
E) None of the above.

Question 30

Similarities that allow coworkers to feel more comfortable with each other include

A) values.
B) age.
C) gender.
D) ethnic background.
E) all of the above.

Question 31

Which of the following tend to be true about stress?

A) Low levels of stress can increase some types of performance.
B) High stress can lead to many forms of physical illness.
C) Stress is not associated with performance.
D) Statements a and b are true.
E) Statements a and c are true.

Question 32

An entrepreneur started a business and asked several people,all managers in other organizations,to meet with her several times a year. This group of people is know as

A) board of directors.
B) the Big Five.
C) board of advisors.
D) SCORE.
E) interchannel discrepancies.

Question 33

The more similar job applicants are to the persons who interview them,

A) the more likely they are to be hired.
B) the less likely they are to be hired.
C) the more likely they are to be overlooked.
D) the more likely they are to be considered a threat by the interviewer.
E) B and C.

Question 34

Which of the following is important for encouraging strong working relationships between founding team members?

A) A clear initial assignment of roles for team members.
B) Careful attention to the basic issue of perceived fairness.
C) Developing effective patterns and styles of communication among team member.
D) A and B
E) A, B, and C.

Question 35

An entrepreneur knows someone who is in the banking business,someone in manufacturing,a professor at a local university,and the president of the Chamber of Commerce. From the entrepreneur's perspective,this refers to

A) distributive justice..
B) social network.
C) social perception.
D) agreeableness.
E) the Big Five.

Question 36

In order to be successful,an entrepreneur needs a wide range of ________ in the organization.

A) information
B) skills
C) aptitudes
D) abilities
E) All of the above

Question 37

Conscientiousness,one of the "Big Five Dimensions," is

A) the extent to which individuals are hardworking, organized, dependable, and persevering versus sluggish, disorganized, and unreliable.
B) the degree to which individuals are gregarious, assertive, and sociable versus being reserved, timid, and quiet.
C) the extent to which individuals are cooperative, courteous, trusting, and agreeable versus uncooperative, disagreeable, and belligerent.
D) the degree to which individuals are insecure, anxious, depressed, and emotional versus calm, self-confident, and secure.
E) none of the above.

Question 38

Which of the following is NOT one of the "Big Five Dimensions" of personality?

A) Conscientiousness.
B) Extraversion-introversion.
C) Perceiver-judger.
D) Agreeableness.
E) All of the above are part of the "Big Five Dimensions."

Question 39

When people are alike on various dimensions,which of the following usually occurs?

A) They are more comfortable in each other's presence.
B) They feel that they know each other better.
C) They are more confident that they sill be able to predict each others' future reactions.
D) A and C only.
E) A, B, and C will usually occur.

Question 40

The most serious drawback to choosing a partner based on similarity is

A) competition.
B) redundancy.
C) excessive expertise.
D) the tendency to "speak the same language."
E) all of the above.

Question 41

A supervisor is giving feedback to an employee. The performance by the employee is unacceptable so the supervisor tells the employee,"If you don't improve by the next evaluation time,you will be fired." This feedback is

A) destructive.
B) constructive because it is specific.
C) constructive because it gives the employees details.
D) known as social perception.
E) the "Big Five Model."

Question 42

The tendency to attribute successful outcomes largely to internal causes but unsuccessful ones largely to external causes is known as

A) self-serving bias.
B) distributive justice.
C) internal-external excuses.
D) role conflict.
E) interchannel discrepancies.

Question 43

Explain the advantages and disadvantages of having temporary employees rather than permanent employees.

Question 44

A board of directors is not usually legally required for a new business that is not incorporated. Is it a good idea for an entrepreneur to have a board of advisers even if not legally required?

Question 45

Temporary employees

A) reduce fixed costs.
B) increase fixed costs.
C) provide little flexibility.
D) provide a great deal of flexibility.
E) A and D.

Question 46

Assume that you started a business with another person. That person expects you to take charge of the major marketing decisions in the business. However,the person who was hired to lead the marketing area insists that major marketing decisions are to be made by her. This difference in expectations represents

A) human capital.
B) distributive justice.
C) complementarity.
D) role conflict.
E) perceived fairness.

Question 47

Which of the following applies to a business having temporary employees?

A) Temporary employees increase fixed costs.
B) They may have lower commitment than permanent employees.
C) The length of their employment cannot be extended past the original date.
D) They almost always have higher motivation than permanent employees.
E) It is better for a new business to have temporary employees rather than permanent employees.

Question 48

The knowledge,skills,talents,and abilities of the founders and employees of a new business are known as

A) social capital.
B) human capital.
C) financial capital.
D) venture capital.
E) social competence.

Question 49

The ability to get along well with others and form positive relationships is known as

A) extraversion.
B) conscientiousness.
C) social competence.
D) founding team.
E) the adverse effect.

Question 50

An entrepreneur is contemplating what happened during the first year of operations of her business. There were several "good" things that happened and she is sure that these happened because of her business skill. The few negatives,including a competitor that was more aggressive than she anticipated,were attributed to things that she thought she couldn't have seen. Which of the following describes what this entrepreneur is probably doing?

A) Self-serving bias.
B) Microexpressions.
C) Interchannel discrepancies.
D) Conscientiousness.
E) Other-enhancement.

Question 51

Which of the following does NOT describe constructive criticism?

A) Does not contain threats.
B) Is specific.
C) Focuses on the recipient.
D) Is timely.
E) All of the above describe constructive criticism.

Question 52

When someone perceives that the distribution of rewards is unfair,which of the following might they do?

A) Demand a larger share.
B) Reduce their contributions.
C) Withdraw physically.
D) Withdraw psychologically.
E) Any of the above.

Question 53

Discuss similarity and complementarity and the roles that they play in choosing cofounders for a new venture.

Question 54

In a corporation,which is the proper relationship between the two groups mentioned in each selection below?

A) The senior manager selects the members of the board.
B) The shareholders select the senior managers, who then select the board members.
C) The key employees select the shareholders.
D) Shareholders elect the board of directors, who oversee the management team.
E) The board of directors selects the shareholders.

Question 55

What is the "Big Five?"

Question 56

List the different types of nonverbal cues that may be used in communication and discuss how nonverbal cues can be used by entrepreneurs to determine when others are engaging in deception.

Question 57

Co-founders of a new business should have a clear definition of roles,which includes

A) the authority that each will have.
B) the responsibility that each will have.
C) the actions in which each should engage.
D) Only expected actions and authority (a and c) are included in definition of role..
E) All of these (a, b, and c) are included in definition of role.

Question 58

Many companies overcome legitimacy or security issues by using

A) social networks.
B) a self-serving bias.
C) friends and family to work for the company.
D) A and C.
E) A, B, and C.