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:

Net Present Value (NPV)

A financial metric used to evaluate the feasibility of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a yearly depreciation charge for the cost of assets.

After-Tax Cost Savings

The reduction in expenses that result from deductions on taxes, essentially the net savings after accounting for tax effects.

Salvage Value

The estimated value at which an asset can be sold at the end of its useful life.