Business plan competitions are becoming more popular as a vehicle for enhancing entrepreneurship. A recent winner of the Rice University competition...

Business plan competitions are becoming more popular as a vehicle for enhancing entrepreneurship. A recent winner of the Rice University competition collected more than $400k in prize money. 

A. Give an example of adverse selection, where the wrong ‘type’ of entrepreneur would accidentally be chosen.

B. How could judges screen applicants to avoid your answer to A?