Question 1

If you decide to start a venture, you should notify your current employer as soon as possible.

Accepted Answer

It is important to inform your current employer about your decision to start a venture as soon as possible to avoid any conflicts of interest or breaches of contract. This also allows for open communication and sets a professional tone.

Question 2

Co-founders of a start-up should work on every task and decision together.

Accepted Answer

Co-founders should leverage their individual strengths and divide tasks and decisions based on expertise, although key decisions may require collaboration.

Question 3

Fast, dramatic growth can be a mistake for a business.

Accepted Answer

Fast growth can cause a business to become too reliant on external funding, stretch its resources too thin, and overlook critical internal issues. It is important for a business to grow at a sustainable pace to ensure long-term success.

Question 4

Certain personalities are better suited for entrepreneurship than others.

Accepted Answer

The answer of Certain personalities are better suited for entrepreneurship...

Question 5

A talented entrepreneur should be able to substitute for an experienced management team.

Accepted Answer

A talented entrepreneur may have vision and drive, but an experienced management team brings diverse skills, knowledge, and expertise that are crucial for handling complex business operations and challenges.

Question 6

Your team members can help you to evaluate feedback from outside sources.

Accepted Answer

Your team members can offer different perspectives and insights to help evaluate feedback from outside sources, making them valuable resources.

Question 7

It is more common for teams to self-destruct because of personal conflicts than for lack of funding.

Accepted Answer

While lack of funding can certainly be a factor in a team's failure, personal conflicts and disagreements among team members are often the root cause of team self-destruction. These conflicts can lead to poor communication, lack of trust, and ultimately an inability to work together effectively to achieve the team's goals.

Question 8

The size of your organization is inversely correlated to the amount of revenue your business can derive

Accepted Answer

The statement is false. The size of the organization does not determine the amount of revenue a business can derive. There are many factors that contribute to revenue, including market demand, pricing strategy, product quality, and marketing efforts. A smaller organization with a strong product or service and effective marketing can generate significant revenue, while a larger organization with a weak market position or poor strategy may struggle to generate revenue.

Question 9

Over 95% of entrepreneurs in the US report that their team members are the main source of seed financing.

Accepted Answer

Most entrepreneurs in the US typically rely on personal savings, family, friends, or angel investors for seed financing, rather than their team members.

Question 10

Entrepreneurship is hard work but most entrepreneurs become millionaires in five years.

Accepted Answer

This statement is false. While some entrepreneurs may achieve millionaire status within five years, it is not a guarantee and certainly not typical. Entrepreneurship involves a lot of hard work, risk, and uncertainty, and success can take much longer than five years to achieve, if ever.

Question 11

Entrepreneurs who are overly conscious of their own weaknesses are more likely to fail

Accepted Answer

Being overly conscious of one's own weaknesses can lead to a lack of confidence, indecision, and an excessive focus on mitigating risks rather than seizing opportunities, which can hinder the success of an entrepreneur.

Question 12

You can't build a successful team unless you understand your strengths and the best place for you at the company.

Accepted Answer

Understanding your strengths and the best role for you within a company is crucial for building a successful team, as it allows you to contribute effectively and align your skills with the team's goals.

Question 13

The Myers-Briggs personality type indicator can accurately predict an individual's likelihood for success in an entrepreneurial endeavor.

Accepted Answer

There is no conclusive evidence to suggest that the Myers-Briggs personality type indicator can accurately predict an individual's likelihood for success in entrepreneurship. Success in entrepreneurship depends on various factors such as the ability to problem-solve, handle uncertainty, take risks, and adapt to changing circumstances, which cannot be accurately measured by a personality test. Moreover, the reliability and validity of the Myers-Briggs test have been widely criticized by researchers. Therefore, it is not recommended to use the Myers-Briggs test as a sole predictor of entrepreneurial success.

Question 14

Early stage companies tend to be hierarchal.

Accepted Answer

Early stage companies tend to be more flat in their organizational structure, with less emphasis on hierarchy and more collaboration between team members. This allows for greater agility and flexibility in responding to market changes and opportunities.

Question 15

After you have started a business, it is a bad idea to combine your new job with working fulltime elsewhere.

Accepted Answer

Combining a new business with a full-time job can be a strategic way to maintain financial stability while growing the business, as long as one can manage the workload and time commitment effectively.

Question 16

In the early years, it is critical for firms to focus on revenue-generating employees, instead of support staff.

Accepted Answer

In the early years, the main focus of a firm should be to generate revenue and grow the business. Therefore, it is critical for firms to prioritize hiring revenue-generating employees, such as salespeople or marketers, over support staff like administrative assistants or HR personnel. As the business grows, support staff will become more necessary, but in the early stages, revenue generation should be the primary focus.

Question 17

If the business is your idea, it is best if you are the CEO.

Accepted Answer

Having the idea for a business does not necessarily mean you have the skills, experience, or desire to be an effective CEO. Leadership, management, and industry expertise are crucial for that role.

Question 18

Analysis of your resume will help you decide what other team members your firm needs.

Accepted Answer

Analyzing your resume can help you understand your own skills and experiences, allowing you to identify what complementary skills or roles might be needed in your team to fill any gaps.

Question 19

A business superstar is unlikely to possess all the business skills needed for long term success.

Accepted Answer

No one person can possess every business skill needed for success over a long period of time. Business is multifaceted and requires a diverse set of skills, such as leadership, financial management, marketing, and strategic planning. Even the most accomplished business leaders must recognize their own limitations and surround themselves with a knowledgeable and skilled team to ensure long-term success.

Question 20

Hiring a salesperson is more attractive than increasing support staff in regards to revenue generated.

Accepted Answer

Hiring a salesperson can directly generate revenue by bringing in new business, while increasing support staff may improve customer satisfaction and retention, but it may not directly lead to increased revenue.

Quiz 6: Building the Founding Team