ENFB 4190 Test 1
3 Possibilities for exit of Angel Investors - Correct Answers -- Purchase of stock by
company
- Purchase of stock by new or existing investor
- Company is sold
When is an idea an opportunity? - Correct Answers -When it solves a problem, market
size is large, has an attractive risk/reward ratio
Key to success in finding good opportunities? - Correct Answers -Start with what
customers want-and never lose sight of it
Importance of Team - Correct Answers -• Complementary skill sets
• Understand your own skill sets, understand required skills to run the business
• Greater chance of success
• Grow faster
• Get more money & get it quickly
Managing High Growth - Correct Answers -• Power to control are delegated
• Org. Chart (always out of date in large company, changing frequently, Flat)
• Leadership is shared
• Entrepreneurial transition must take place (going from worker to manager of workers,
to managing managers)
Team Members other than founders - Correct Answers --CFO
-IT
-HR
Three most common outsourced
Board of Directors Functions - Correct Answers -- Hire and Fire CEO if necessary *
- Elect Officers
- Hire and fire management team
- Set salaries of top mgt.
- Benefits and stock options
- Approves budget
- Approves borrowing
- Declares dividends
3 Possibilities for exit of Angel Investors - Correct Answers -- Purchase of stock by
company
- Purchase of stock by new or existing investor
- Company is sold
When is an idea an opportunity? - Correct Answers -When it solves a problem, market
size is large, has an attractive risk/reward ratio
Key to success in finding good opportunities? - Correct Answers -Start with what
customers want-and never lose sight of it
Importance of Team - Correct Answers -• Complementary skill sets
• Understand your own skill sets, understand required skills to run the business
• Greater chance of success
• Grow faster
• Get more money & get it quickly
Managing High Growth - Correct Answers -• Power to control are delegated
• Org. Chart (always out of date in large company, changing frequently, Flat)
• Leadership is shared
• Entrepreneurial transition must take place (going from worker to manager of workers,
to managing managers)
Team Members other than founders - Correct Answers --CFO
-IT
-HR
Three most common outsourced
Board of Directors Functions - Correct Answers -- Hire and Fire CEO if necessary *
- Elect Officers
- Hire and fire management team
- Set salaries of top mgt.
- Benefits and stock options
- Approves budget
- Approves borrowing
- Declares dividends
