Which of the following statements is not true regarding the attributes of the founder(s) of a firm?

Entrepreneurship: Successfully Launching New Ventures, 3e (Barringer/Ireland)

Chapter 1 Introduction to Entrepreneurship

Klimit, the company profiled in the opening feature for Chapter 1, plans to make money

on the ski jackets and other apparel products that will use its proprietary technology by:

A) manufacturing the products and selling them via catalogues and the Internet

B) manufacturing the products and selling through large retailers like Gap and Old Navy

C) franchising

D) manufacturing the products and selling them through ski shops and other specialty stores

E) licensing its technology to outdoor gear and apparel companies

Answer: E

Diff: 1Page Ref: 4

Topic: Introduction to Entrepreneurship

2) According to the Global Entrepreneurship Monitor (GEM) 2007 study, about ________ of

adults in the United States are either starting a business or are running a business that has been in

existence for less than 3 1/2 years.

A) 3.8 percent

B) 7.5 percent

C) 9.6 percent

D) 12.0 percent

E) 15.2 percent

Answer: C

Diff: 2Page Ref: 5

Topic: Introduction to Entrepreneurship

3) According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people

in high-income countries are drawn to entrepreneurship for the following reasons:

A) to take advantage of an attractive opportunity, to pursue independence, and to increase their

incomes

B) lack of career prospects, government incentives, and to increase their incomes

C) lack of promotional opportunities in their jobs, to pursue independence, and government

incentives

D) to pursue a personal interest, lack of promotional opportunities in their jobs, and to increase

their incomes

E) to take advantage of an attractive opportunity, lack of career prospects, and government

incentives

Answer: A

Diff: 2Page Ref: 5

Topic: Introduction to Entrepreneurship

1

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Entrepreneurship: Successfully Launching New Ventures, 4e (Barringer/Ireland)

Chapter 9 Building a New Venture Team

1) Scripped, the company profiled in the opening feature for Chapter 9, offers Web-based

screenwriting software. Which of the following statements best reflects Scripped's personnel

policy?

A) Scripped has hired aggressively and now has approximately 40 employees.

B) Its three cofounders are its only employees.

C) Scripped was founded by two UCLA MBA students and quickly grew to 10 employees.

D) Its founder is its only employee.

E) It has avoided building a large staff. Its formal employees consist of its three cofounders and

an individual obtained in a merger.

Answer: E

Diff: 1 Page Ref: 289

Topic: Creating a New Venture Team

AACSB: Reflective Thinking

Objective: Summarize best practices in staffing and team formation

2) A ________ is the group of founders, key employees, and advisers that move a new venture

from an idea to a fully functioning firm.

A) new venture panel

B) startup team

C) new venture team

D) new project team

E) startup cadre

Answer: C

Diff: 2 Page Ref: 290

Topic: Creating a New Venture Team

AACSB: Reflective Thinking

Objective: Summarize best practices in staffing and team formation

3) Jenny Templeton is preparing to launch a home security firm. The team of people that will

launch Jenny's firm are as follows: Jenny (CEO), Brent (VP-Finance), Carrie (VP-Sales), a four-

person Board of Directors, a five-person Board of Advisors, and Jenny's primary investor, who

will assume an advisory role. The group of people that will launch Jenny's firm is called its:

A) startup squad

B) new venture panel

C) new venture team

D) startup cadre

E) startup troop

Answer: C

Diff: 1 Page Ref: 290

Topic: Creating a New Venture Team

AACSB: Reflective Thinking

Objective: Summarize best practices in staffing and team formation

1

Which of the following statements is incorrect regarding founding teams group of answer choices?

Is the group of founders key employees and advisers that move a new venture from an idea to a fully functioning firm?

Is a chart that depicts the most important skills that are needed and where skills gaps exist?

Is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience?