ENFB-4190 Test 1 - Corman – Auburn Questions and Answers

ENFB-4190 Test 1 / Corman – Auburn
Questions and Answers

Benefits of a Startup - Correct Answers -- Be your OWN Boss
- Potential to make a lot of Money
- Output related to work ethic
- Do something you love
- Charity
- Create Jobs
- introduce new Tech

Downsides of a Startup - Correct Answers -- Investors can lose everything
- Time commitment
- Stress
- Personal Loss
- Poor Quality of Life

What is the Primary duty of an officer? - Correct Answers -Enter into contracts on behalf
of the corporation

What is the optimal size for the Board of Directors for a Startup? - Correct Answers -3-5,
no more than 7

By-Laws - Correct Answers -Rules that stockholders/owners create that dictate how the
Board of Directors will be run

By-Laws Decide: - Correct Answers -- # of Board Members
- May need to add seats to entice outside investors
- Term of Office
- Method by which meetings will be held (Robert's Rules of Order)

Stockholder Majority Vote - Correct Answers -Determined by amount of stock held per
person

Drivers of Opportunity - Correct Answers -- Change in Technology
- Changes in Regulations or Laws
- Voids in the market from the Departure of a Primary Competitor