Author Question: Next Big Sound, the company profiled in the opening feature of Chapter 9, is a music analytics ... (Read 108 times)

rayancarla1 · **on:** Jul 6, 2018

Next Big Sound, the company profiled in the opening feature of Chapter 9, is a music analytics company. Which of the following statements in incorrect regarding Next Big Sound's co-founders, its personnel policies or the company itself?

A) Next Big Sound has three co-founders.
B) The co-founders have healthy debates, but are able to come to consensus and get along and trust one another.
C) Because the co-founders could not agree who would be the company's CEO, the three share the title of co-CEOs.
D) The idea for Next Big Sound was created at a Startup Weekend event in San Francisco.
E) The firm is in located in New York, New York.

Question 2

Describe the term liability of newness and suggest several ways that a new venture can overcome this handicap.

What will be an ideal response?

Rilsmarie951 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

D

Answer to Question 2

The term liability of newness refers to the fact that companies often falter because the people who start them aren't able to adjust quickly enough to their new roles and because the firms lack track records with outside buyers and suppliers. Assembling a talented and experienced new venture team is one path firms can take to overcome these limitations. In addition, firms able to persuade high-quality individuals to join them as directors or advisers quickly gain legitimacy with a variety of individuals, such as some of those working inside the venture as well as some people outside the venture (e.g., suppliers, customers, and investors). In turn, legitimacy opens doors that otherwise would be closed.