CBS Business Growth & Development 3

Question 1

When a company enters a foreign market by selling products through a local distributor without establishing a local presence, this is known as:

Accepted Answer

Indirect exporting

Answer

Indirect exporting uses intermediaries such as local distributors or agents, requiring minimal investment and local knowledge from the exporting company.

Question 2

The primary purpose of a go-to-market (GTM) strategy during a product launch is to:

Accepted Answer

Outline how the company will deliver its value proposition to target customers and achieve competitive advantage

Answer

A GTM strategy specifies the target market, value proposition, pricing, channels, and messaging needed to successfully introduce a product and win customers.

Question 3

A company experiencing 'churn' is dealing with:

Accepted Answer

Customers canceling subscriptions or stopping purchases over a period

Answer

Churn rate measures the percentage of customers who stop doing business with a company in a given period, and high churn is a critical impediment to sustainable growth.

Question 4

Which growth hacking technique involves allowing users to access a product for free while charging for premium features?

Accepted Answer

Freemium model

Answer

The freemium model offers a basic version at no cost to drive user acquisition, then monetizes through upgrades to premium tiers with additional features or capacity.

Question 5

A company's 'burn rate' is most directly relevant to which aspect of growth planning?

Accepted Answer

Understanding how long current cash reserves will sustain operations

Answer

Burn rate tracks how quickly a company spends its cash reserves, which directly determines its runway—how many months it can operate before needing additional funding.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS Business Growth & Development 3