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.

---

Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions and distributions to noncontrolling interests.

Controlling Interest

Owning a sufficient portion of equity in a company to control its management and operations through voting rights or stock ownership.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profit or loss.