chapter 9
The ideal number of members on a board of advisers is _____.
5-15 members
Which of the following is NOT a best practice (guideline) when organizing a board of advisors?
A board of advisors should consist of people that the company can brag about.
Which of the following is NOT a way lenders and investors add value to an entrepreneurial venture?
Help generate profits.
Which of the following is NOT a common mistake made in putting together a new-venture team?
Placing qualified friends or family members in management positions.
An example of a nonprofit organization that provides free consulting services to small businesses is _____.
SCORE
Many firms have a board of directors, _____, investors, and other professionals on whom they rely for direction and advice.
a board of advisers
9.1 Explain the concept called liability of newness. A new-venture team is the group of founders, key employees, and _____ that move a new venture from an idea to a fully functioning firm.
advisers
9.4 Explain why a new-venture team might use consultants to obtain advice. A(n) ____ is an individual who gives professional or expert advice.
consultant
In start-up firms, the liability of newness causes ____.
failure
A feasibility study or an industry analysis is typically prepared by a(n) ______ consultant.
generalist
A consultant is an individual who __________.
gives professional and expert advice
The founding team at Orlando, Florida-based Ally's Organics has two women and two men. One of the women has 22-years' experience in marketing, the other is just out of college. Tom, one of the founders, has traveled extensively to various countries as a consultant to manufacturing firms. Ally's Organics' founding team is _______.
heterogeneous
9.2 Describe a new-venture team and discuss the primary elements that form such a team. When team members' areas of expertise are very similar to one another, the team is said to be ________.
homogeneous
The four-member founding team at Newby's Electronics are all 21-22-year old males who graduated from college with accounting degrees. Newby Electronics' founding team is _______ .
homogeneous
Max, the chief marketing officer of Maxwell Orchards, Inc., serves on the company's Board of Directors. Max is a(n) _______.
inside director
A new-venture team is the group of founders, ____, and advisers that move a new venture from an idea to a fully functioning firm.
key employees
By persuading high-quality individuals to join as directors or advisers, a start-up gains _____ that opens doors that otherwise would be closed.
legitimacy
9.3 Identify professional advisers and explain their role with a new-venture team. In many start-ups, _____ become an important part of the new-venture team and fill what some entrepreneurs call "talent holes."
professionals
Prior entrepreneurial experience, ______, and networking are attributes that strengthen the chances of a founder's success.
relevant industry experience
A supply chain expert who offers advice on how to streamline a firm's supply chain is a(n) _______ consultant.
specialist
A lack of a "track record" with outside buyers and suppliers causes a start-up firm to suffer from _____.
the liability of newness
A (n) ________ is a freelancer who provides administrative, technical, or creative assistance to clients remotely from a home office.
virtual assistant
An advisory board is a panel of experts ____________ to provide counsel and advice on an ongoing basis.
who are asked by a firm's managers
To grow his firm, Morales Motors, Juan Morales has decided to set up a board of advisers. Juan wants to approach people in his network but is confused as to what the ideal size of an advisory board is. Juan should know that most boards of advisers have between ________ and ________ members.
5; 15
