Which of the Following Statements Is Untrue Regarding Founding Teams

question 64

Multiple Choice

Which of the following statements is untrue regarding founding teams?

• A) The members of heterogeneous teams are diverse in terms of their abilities and experiences.
• B) The members of homogenous teams are very similar in terms of their abilities and experiences.
• C) Teams that have worked together before have an edge.
• D) Studies show that more than one individual starts 50 to 70 percent of all new firms.
• E) It is generally believed that new ventures started by an individual have an advantage over new ventures started by a team.

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Definitions:

Unrecognized Compensation

Compensation earned but not yet provided for in the financial statements, often due to vesting requirements.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified number of common shares of the issuing company.

Diluted Earnings

Represents the earnings per share (EPS) if all convertible securities were converted into common stock.

Dilutive

Referring to a financial action or arrangement, such as the issuance of new shares, that decreases an existing shareholder's percentage of ownership.