Which of the Following Statements Is Incorrect Regarding Founding Teams

question 42

Multiple Choice

Which of the following statements is incorrect regarding founding teams?

• A) The members of heterogeneous teams are diverse in terms of their abilities and experiences.
• B) Teams that are working together for the first time have an advantage over teams that have worked together before.
• C) The psychological support that cofounders of a new business can offer one another is an important element of a firm's success.
• D) The members of homogeneous teams are very similar in terms of their abilities and experiences.
• E) Studies show that more than one individual starts 50 to 70 percent of all new teams.

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Definitions:

Cross Hedging

A risk management strategy that involves hedging a position in one asset by taking a position in another asset with correlated price movements.

Risk Management

The process of identifying, analyzing, and taking steps to reduce or manage uncertainties and risks to an organization's capital and earnings.

Put Option

An economic arrangement empowering the bearer with the right, albeit without the obligation, to sell a defined amount of a principal asset at a determined price within a set duration.

Call

An option contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.