CMAT Innovation and Entrepreneurship 3

Question 1

What is 'intrapreneurship'?

Accepted Answer

Entrepreneurial behavior within an established organization

Answer

Intrapreneurs behave like entrepreneurs within a larger company, innovating and taking risks to develop new products or services.

Question 2

What is 'crowdfunding' as a method of raising capital?

Accepted Answer

Raising small amounts of money from a large number of people, often via the internet

Answer

Crowdfunding platforms like Kickstarter and Indiegogo allow entrepreneurs to raise capital from a large pool of small contributors.

Question 3

What is the 'product-market fit' in startups?

Accepted Answer

The degree to which a product satisfies strong market demand

Answer

Product-market fit means the product meets the needs of the target market effectively, evidenced by strong customer engagement and growth.

Question 4

Which of the following is an example of a B2B (business-to-business) model?

Accepted Answer

A company selling CRM software to enterprises

Answer

B2B companies sell products or services to other businesses; selling CRM software to enterprises is a classic B2B example.

Question 5

What is 'scalability' in the context of a business?

Accepted Answer

The ability to increase revenue without a proportional increase in costs

Answer

A scalable business can grow revenue rapidly while keeping costs relatively flat, improving margins as it expands.

CMAT - Common Management Admission Test Practice Test