Family corporate venturing primarily involves _____.

		family holding companies or businesses that have formal new venture creation and/or acquisition strategies, plans, departments, or capabilities
		startup money from family member or business with a formal written agreement for market-based ROI and or repaym
		stand-alone professional private equity or venture capital fund controlled by family and/or using family-generated capital
		an entrepreneur with no legacy assets/existing business, but who formally launches a new business with family and/or intending to involve family

QUESTION 2

What is the most vital aspect of crafting a harvest strategy?

		Capital
		Timing
		The offering
		Skills

QUESTION 3

In a management buyout, which of the following is a problem that the managers buying out the owners and running the company typically face?

		Lack of capital
		Lack of expertise
		Issues with the legal structure
		Issues with employee retention

QUESTION 4

Which of the following harvest options is most likely to produce the most cash for a founder at the time of sale?

		IPO
		MBO
		Outright sale
		Strategic alliance

QUESTION 5

For many would-be entrepreneurs, _____ is the most attractive harvest option of all in terms of value.

		merger
		acquisition
		public offering
		strategic alliance

QUESTION 6

Which harvest option can force a leadership team to focus on short-term profits and performance results?

		Management buyout (MBO)
		Employee Stock Ownership Plan (ESOP)
		Initial Public Offering (IPO)
		Strategic Alliance

QUESTION 7

Which of the following is an advantage of being a public company?

		Focus on short-term profits and performance results
		Access to long-term capital
		Guaranteed operating confidentiality
		Unsusceptibility to the risk of insider trading

QUESTION 8

Which of the following characteristics does not distinguish an entrepreneur from a traditional manager?

		Risk tolerant
		Central command and control
		Opportunity driven
		Front-line, customer driven

QUESTION 9

Which of the following is not an example of a family-owned business?

		Cargill
		Ford
		Proctor and Gamble
		Walgreens

QUESTION 10

Which of the following is not a cause for growth problems?

		Top management team (TMT) members typically consolidate their power as firms grow.
		Companies must be managed through routines and policies as they grow.
		Managing suppliers and customers become challenging.
		Loss of key personnel occur as companies become more bureaucratic.