True or False 1 The creation of value requires commitment by

True or False 1. The creation of value requires commitment by the firm and must be customer driven. 2. Startup firms typically do not have slack resources. 3. In venture capital typically all of the parties involved have money at risk. 4. The success rate of venture capital backed entrepreneurial firms is 80 percent. 5. Speed is important to the ability to successfully turn a firm around.

Solution

1) True

It is very essential to be customer driven in order to create value

2) True

The startup firms have resource constraint and thus doesn\'t have slack resource

3) True

The parties part of Venture capital all have equal risk of money

4) True

The Venture capital helps to ensure greater control and monitoring over firms activities and thus have high success ratio

5) True

If the firm wants to turn around things, speed is very crucial. Without speed, it is not possible for firm to do things quickly