Questions and Answers on Resource Requirements

Satisfactory Essays
Chapter 11 - Resource Requirements
Student: ___________________________________________________________________________
1. Whenever possible, effective entrepreneurs seek to own the resources they need.
True False 2. One advantage of owning resources during the startup is that it puts the team in a better position to commit and decommit quickly.
True False 3. Entrepreneurs in high-potential startups seek to have not only enough committed resources for the task at hand but also a cushion against adversity.
True False 4. When seeking out advisors and specialists, entrepreneurs should involve them at an early stage, and be skeptical of their credentials and advice.
True False 5. Extending accounts receivable is one of the primary sources of working capital for many startups and growing firms.
True False 6. Acquiring resources, particularly in the startup and early growth stages of a venture, is an important approach for entrepreneurs.
True False 7. Effective entrepreneurs avoid losing focus by spending time on purely random activities—things done with no specific problem in mind.
True False 8. In choosing a board of directors, entrepreneurs tend to value financial expertise over operating experience.
True False 9. Outside stockholders can have unrealistic expectations about the risk involved in a new venture, the speed at which a return can be utilised, as well as the size of the return.
True False 10. Quality directors become involved for the learning and professional development opportunities, rather than for the money.
True False 11. Directors expect to pay for their own expenses that they incur in preparing for and attending meetings.
True False 12. Stock in a startup company is a common incentive to attract and reward directors.
True False 13. Directors of a company can be held personally liable for its actions and those of its officers.
True False 14. Courts have held that even if a

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