Deck 10: Resource Requirements

Question 1

When choosing a banker or lender,at the end of the day,having the very best bank will be more important than having an excellent banker.

Answer 1

False

Question 2

Directors of a company can be held personally liable for its actions and those of its officers.

Answer 2

True

Question 3

Marshaling maximum resources is otherwise colloquially known as bootstrapping.

Answer 3

False

Question 4

Effective entrepreneurs set aside time for purely random activities-things done with no specific problem in mind.

Question 5

When choosing a consultant,an entrepreneur should expect a short-term relationship as the consultant is a third party for the venture.

Question 6

Extending accounts receivable is one of the primary sources of working capital for many startups and growing firms.

Question 7

Courts have held that even if a director of a company can prove that he or she acted in good faith,the director cannot be excused from liability.

Question 8

When seeking out advisors and specialists,entrepreneurs should involve them at an early stage and be skeptical of their credentials and advice.

Question 9

In a study of boards,and specifically venture capitalists' contributions to them,entrepreneurs tended to value financial expertise over operating experience.

Question 10

Intellectual honesty to an entrepreneur means realizing what he or she knows and what he or she needs to know.

Question 11

One advantage of owning resources during the startup is that it puts the entrepreneur in a better position to commit and de-commit quickly.

Question 12

Consultants should not be employed by a startup to compensate for a lower level of professional experience in the team.

Question 13

The best place to start in selecting an attorney is with acquaintances of the lead entrepreneur,of members of the management team,or of directors.

Question 14

Effective entrepreneurs are able to check network density,so as to avoid too many overlaps,while still attaining solidarity and cohesiveness.

Question 15

A board of advisors is an especially good alternative to a board of directors because they are authorized to make legal decisions.

Question 16

Entrepreneurs in high-potential startups should secure resources enough for the task at hand and a cushion against adversity.

Question 17

Whenever possible,effective entrepreneurs seek to control rather than own the resources they need.

Question 18

As is the case with legal and accounting professionals,it is easy to judge consultants solely on the basis of their fees.

Question 19

During the chaotic startup phase of a venture,entrepreneurs should outsource the legal aspects of decisions and agreements to an expert attorney.

Question 20

Since a board of advisors is designed to dispense advice rather than make decisions,its liability is limited.

Question 21

The approach of seeking to control the resources needed rather than owning them results in:

A) less capital.
B) less flexibility.
C) increased risk.
D) increased sunk costs.

Question 22

Describe the use of other people's resources (OPR)as an approach for entrepreneurs.

Question 23

According to Art Spinner,in order to develop a productive relationship with one's board of directors,one should never set up a(n)____.

A) compensation committee
B) audit committee
C) executive committee
D) corporate social responsibility (CSR)committee

Question 24

How can new venture entrepreneurs without law degrees save money on legal work?

Question 25

A financing strategy will probably encompass a combination of both _____ and _____ capital.

Question 26

According to the strategic principles identified by Paola Dubini and Howard Aldrich,effective entrepreneurs are more likely than others to:

A) undertake actions to decrease their network density.
B) undertake actions to reduce network diversity.
C) avoid carrying out random activities.
D) discriminate between production and symbolic ties.

Question 27

Why are members of a board of advisors not exposed to personal liability like formal board directors?

Question 28

Effective entrepreneurs are more likely than others to undertake actions toward increasing their network density and ____.

Question 29

Which of the following legal issues should be of least concern to an entrepreneur building a high-growth venture?

A) Employee plans
B) Federal and state regulations
C) Mergers and acquisitions
D) Tax shelters

Question 30

The ______ requires companies to file paperwork with the Securities and Exchange Commission faster,to create a more transparent means of collecting and posting financial data,and to test their procedures for posting accurate,timely information.

A) International Organizations Immunity Act
B) Interest Equalization Act
C) Sarbanes-Oxley Act
D) Smoot-Howley Act

Question 31

What is the best referral system for locating consultants?

Question 32

How can lack of money,employees,equipment and such actually work to the advantage of a startup entrepreneur or a bootstrapper?

Question 33

One price of resource ownership is an inherent ____.

Question 34

If a new venture is organized as a corporation,it must have a board of directors elected by ____.

Question 35

The Sarbanes-Oxley Act (SOX)requires companies to file paperwork with the _____ Commission faster.

Question 36

If an entrepreneur of a higher-potential firm seeking venture capital has aspirations to go public,which of the following accounting firms is a good place to start for accounting expertise?

A) A small,local firm
B) A regional firm
C) A national firm
D) A public firm

Question 37

State the hypotheses concerning networks and entrepreneurial effectiveness.

Question 38

When hiring consultants for a firm,the best referral system is ____.

Question 39

Minimal financing is colloquially referred to as ____.

Question 40

What are the two contradictory suggestions provided by Howard H.Stevenson and William H.Sahlman about using other people resources as an entrepreneur?

Question 41

Discuss the three important factors that an entrepreneur must consider when selecting accountants.