Chapter 9

Question 1

A panel of individuals that a corporation’s shareholders elect to oversee the management of a firm.

Answer 1

Board of directors

Question 2

A person on a firm’s board of directors who is also an officer of the firm.

Answer 2

Inside director

Question 3

A term explaining why companies often falter when they launch because the people who start them lack the skills needed to adjust quickly enough to the new roles and because the firm lacks a “track record” with outside buyers and suppliers.

Answer 3

Liability of newness

Question 4

Someone on a firm’s board of directors who is not an employee.

Answer 4

outside director

Question 5

The act of a high-quality individual agreeing to serve on a company’s board of directors, indicating that the individual believes that the company has the potential to be successful.

Answer 5

signaling

Question 6

A chart that depicts the most important skills of a venture and where skills gaps exist.

Answer 6

skills profile

Question 7

A team whose members are diverse in terms of their abilities and experiences.

Answer 7

heterogeneous

Question 8

A team whoe memebrs have areas of expertise that are very similar to one another

Answer 8

homogeneous