New Venture Creation Entrepreneurship for the 21st Century 10th Edition by Spinelli – Test Bank

1.
(p. 392) Whenever possible, effective entrepreneurs seek to own the resources they need.

FALSE

Difficulty: Easy
Timmons – Chapter 11 #1

2.
(p. 392) One advantage of owning resources during the startup is that it puts the team in a better position to commit and decommit quickly.

FALSE

Difficulty: Easy
Timmons – Chapter 11 #2

3.
(p. 393) Entrepreneurs in high-potential startups seek to have not only enough committed resources for the task at hand but also a cushion against adversity.

FALSE

Difficulty: Easy
Timmons – Chapter 11 #3

4.
(p. 394) When seeking out advisors and specialists, entrepreneurs should involve them at an early stage, and be skeptical of their credentials and advice.

TRUE

Difficulty: Medium
Timmons – Chapter 11 #4

5.
(p. 394) Extending accounts receivable is one of the primary sources of working capital for many startups and growing firms.

TRUE

Difficulty: Easy
Timmons – Chapter 11 #5

6.
(p. 394) Acquiring resources, particularly in the startup and early growth stages of a venture, is an important approach for entrepreneurs.

FALSE

Difficulty: Easy
Timmons – Chapter 11 #6

7.
(p. 395) Effective entrepreneurs avoid losing focus by spending time on purely random activities—things done with no specific problem in mind.

FALSE

Difficulty: Medium
Timmons – Chapter 11 #7

8.
(p. 396) In choosing a board of directors, entrepreneurs tend to value financial expertise over operating experience.

FALSE

Difficulty: Medium
Timmons – Chapter 11 #8

9.
(p. 397) 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

Difficulty: Easy
Timmons – Chapter 11 #9

10.
(p. 396) Quality directors become involved for the learning and professional development opportunities, rather than for the money.

FALSE

Difficulty: Easy
Timmons – Chapter 11 #10

11.
(p. 396) Directors expect to pay for their own expenses that they incur in preparing for and attending meetings.

FALSE