ComSt 203 Final
1) The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________.
B) liability of newness
3) The high failure rate among new ventures is due, in part, to the liability of newness, which refers to the fact that new companies often falter because ________.
B) the founders of the firms underestimate the complexities involved with starting a new business and the firms lack a "track record" with outside buyers and sellers
2) Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to the facts that her employees couldn't adjust quickly enough to their new roles and that her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research calls the ________.
C) liability of newness
8) A ________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.
C) new venture team
9) Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its ________.
C) new venture team
12) Which of the following statements is untrue regarding founding teams?
E) It is generally believed that new ventures started by an individual have an advantage over new ventures started by a team.
10) Which of the following was not identified in the textbook as an element of a new venture team?
E) Management team
5) The term "liability of newness" refers to the fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firms lack "track records" with outside buyers and suppliers.
True