Startup Design
T or F, locating a site for a new business should initially take into account the area of country.
True
T or F, a supply chain creating a recipe for a bakery's product is a stage of the supply chain for that bakery.
True, all stages both upstream and downstream of moving a businesses product from design to delivery to the final customer are elements of the supply chain.
T or F, as a company grows, the cost of hiring an employee is becoming so high that many companies are solving the problem by hiring headhunters.
False, headhunters are typically used to hire employees. One way to reduce the cost is to outsource or use subcontractors.
True or False, Angel Investors are called that because they typically provide funding before friends and family.
False, angel investors typically provide funding after the investor, friends and family.
T or F, for an entrepreneur hiring initially for his startup company, the entrepreneur should research the company on Glassdoor's website.
False, the entrepreneur as a startup most likely does not have any input from employees on Glassdoor. She or he should look at or to subcontractors, advisors and board members.
T or F, Tesla's use of a complex automation system as the company started up its manufacturing of Model 3 automobiles has been a major success and contributed to Tesla's stock going up.
False, use of the complex and automation during production as noted in class has been a disaster.
T or F, Once an organization has passed the rapid or high growth stage, it will have reached the stable growth and maintenance of market share stage.
True.
When speaking of a startup company, the "runway" is:
a. a takeoff strip for airplanes and jets
b. how long your company can survive if your income and expenses stay constant.
c. the amount of expenses a company has for one year.
d. none of the above
b. how long your company can survive if your income and expenses stay constant.
T or F, most startups outsource everything except their core-management function.
F, while outsourcing is used by many startups, it is not the case for most.
True or False, airlines that share route information and market branding of inter-airline connections to facilitate travelers connections within countries is a form of strategic alliance.
True, this is a way for two or more airlines to grow more rapidly.
T or F. Early in the operation of a startup, it is important to identify a qualified lawyer to handle any potential product liability claims.
True.
A form of startup capital managed by professionals is?
a. Angel Investor convertible notes
B. Private venture capital
C. Common stock
D. Corporate bonds
B. Private venture capital
T or F, one of the challenges that distributed organization with strategic partners or distributed organizations with employees is keeping everyone connected.
True, having employees in a distributed organization has some advantages such as keeping overhead down but the major disadvantage is the face-to-face communications
T or F, a vendor's distance from the production site is a factor to consider when choosing a vendor.
True, the distance most likely will impact the cost of transportation.
T or F, Fuhu is a startup that has been consistently mentioned as a top 10 startup over the last five years.
False, while Fuhu was mentioned in the top 10 in 2013, it went bankrupt in 2016.
T or F, Anti-dilution provisions ensures that the selling the stock at a later date will increase the economic value of the venture capitalist's (VCs) investment?
False, anti-dilution assures that the selling of the stock at a later date will not decrease the value of a VC's investment.
Building a company that looks like any other company from the outside but is distributed across both geography and a network of independent suppliers, companies and customers is typically referred to as a:
A. Venture Capital Fund
B. Strategic Alliance
C. Virtual Enterprise
D. Franchise
C. Virtual Enterprise
True or False, Product or project focused organizations normally are highly centralized so that they can respond better to market demands.
False, project focused organizations or highly decentralized.
True or False, Amazon entering into the online book business is an example of horizontal integration.
False, when Amazon entered into the online book sales market that was it's first business with no horizontal or vertical integration at first.
T or F Hiring as few employees as possible is a form of bootstrapping?
True, many times, the greatest single expense of a business is payroll.