Deck 9: The Entrepreneurial Leader and the Team

Question 1

Due to the importance of their technical contribution,highly-skilled founding entrepreneurs should expect an equity ownership of 15-25 percent.

Answer 1

False

Question 2

With failure rates exceeding 60 percent,the high-growth stage is the most perilous stage for new ventures.

Answer 2

False

Question 3

While lawyers and accountants can be of enormous benefit to entrepreneurs,they cannot be counted on as business advisors.

Answer 3

True

Question 4

Entrepreneurial leaders need a sound foundation in "new management techniques" such as capital asset pricing models,beta coefficients,and linear programming.

Question 5

Entrepreneurial leaders are quick to give credit and recognize good performance,and they always accept more than their share of the blame when things don't work out.

Question 6

In what stage do new ventures exhibit a failure rate exceeding 60 percent;that is,in what stage do the lemons ripen?

A) Nascent
B) Startup
C) High-growth
D) Mature

Question 7

The nascent stage can be as short as a few months or can last years.

Question 8

When key people leave before they have satisfied their vesting agreement,a portion of their stock is retained by the company and can be made available to others.

Question 9

In what stage of development are the critical mass of people,market and financial results,and competitive resiliency established?

A) Nascent
B) Startup
C) High-growth
D) Mature

Question 10

Since investors often gauge their equity expectations on previous performance,even young entrepreneurs should strive to hold onto a significant equity stake in the business.

Question 11

Research indicates that if an idea is not turned into a going concern within a year,the chances of a startup fall dramatically.

Question 12

Which of the following sources of influence is least important in rapid growth ventures?

A) Achieving goals
B) Hero making
C) Personal power
D) Resolving differences

Question 13

In rapid-growth firms,power and control are delegated and leadership is shared.

Question 14

Workers joining an entrepreneurial venture can expect to receive more guidance and direction than they would typically find in a more established firm.

Question 15

Democratic structures among the founders such as equal stock ownership are recommended because they foster solidarity and avoid conflict.

Question 16

What stage of entrepreneurial transition is characterized by counterintuitive decision making and structure?

A) Planning
B) Doing
C) Leading
D) Leading Managers

Question 17

What stage of entrepreneurial transition is characterized by an erosion of founders' creativity?

A) Planning
B) Doing
C) Leading
D) Leading Managers

Question 18

At what stage of entrepreneurial transition is there a need for organization and operating policies?

A) Planning
B) Doing
C) Leading
D) Leading Managers

Question 19

What is the most difficult stage for the founding entrepreneur in terms of power and control?

A) Nascent
B) Startup
C) High-growth
D) Mature

Question 20

What are the most challenging times for the founding entrepreneur?

A) Leadership transitions
B) Startup funding
C) Competitive responses
D) Going public

Question 21

What are the five fundamental realities with nearly any new venture?

Question 22

There exists in growing new ventures a common _________ system that is most evident in behavior and attitudes.

Question 23

The ever-expanding number of devices designed to exploit Internet accessibility is having a profound impact on _______.

Question 24

There is a strong connection between the growth potential of a new venture (and its ability to attract capital beyond the team's resources)and the quality of what?

Question 25

Managing for rapid growth involves a ________ orientation not found in mature and stable environments.

A) Planning
B) Growth
C) Leadership
D) Investor

Question 26

Which of the following generally carries the least weight when deciding on the distribution of stock?

A) Risk.
B) Idea.
C) Experience.
D) Responsibility.

Question 27

In rapid-growth firms,power and control are _________ and leadership is ________.

Question 28

The _________ stage is by far the most perilous stage and is characterized by the direct and exhaustive drive,energy,and entrepreneurial talent of a lead entrepreneur and a key team member or two.

Question 29

Name three types of contributions that should be considered when slicing up the equity pie?

Question 30

Cash is king,and there is never enough.
2.You will be out of cash much sooner than you think.
3.Sales are what count most.
4.Talent is the key to success.
5.Equity creation and realization determine the payoff.

Question 31

Investors typically like to see what percent of the fully diluted company set aside for attracting future talent and creating incentives and rewards for high performance?

A) 5-10
B) 10-20
C) 20-30
D) Investors typically do not get involved at this level.

Question 32

The high-growth stage is one of the most difficult periods in the life of a company as new layers of management and processes are adjusted to enable the company to __________.

Question 33

Name two ways entrepreneurs acquire expertise and skills they do not currently possess but which are needed to build their business.

Question 34

A ________ schedule ties the release of stock to a timeframe,usually of at least five and sometimes seven years or more,and to performance.

Question 35

_________ is a critical element of entrepreneurial leadership.It is derived by actively leading,instilling vision and passion in others,and by creating a climate and spirit conducive to high performance.

Question 36

At what stage of entrepreneurial transition do conflicts between founders most often arise?

A) Planning
B) Doing
C) Leading
D) Leading Managers

Question 37

The key to success in high-potential ventures is directly related to the talent and quality of the lead entrepreneur and the _______.

Question 38

The practice of applying entrepreneurial principles within traditional corporations is called ________.

Question 39

Discuss the concept of exerting influence without formal power.

Question 40

The research and development stage of growth is sometimes referred to as the ________ stage.

Question 41

What are some of the challenges that growing ventures can expect to face?

Question 42

In what ways has the Internet enhanced design and business collaboration?