CMAT Innovation and Entrepreneurship 1 — Questions and Answers
Question 1: What is a 'business model canvas'?
- A financial projection tool
- A one-page visual framework to describe a business model (Correct answer)
- An organizational chart
- A marketing strategy template
Correct answer: A one-page visual framework to describe a business model
The Business Model Canvas, developed by Osterwalder, is a strategic management template that visualizes a company's value proposition, infrastructure, customers, and finances.
Question 2: What does 'MVP' stand for in the startup context?
- Maximum Viable Plan
- Most Valuable Partner
- Minimum Viable Product (Correct answer)
- Market Validation Protocol
Correct answer: Minimum Viable Product
An MVP (Minimum Viable Product) is the simplest version of a product that delivers value to early customers and enables testing of key assumptions.
Question 3: Who developed the 'Lean Startup' methodology?
- Peter Drucker
- Eric Ries (Correct answer)
- Clayton Christensen
- Steve Blank
Correct answer: Eric Ries
Eric Ries introduced the Lean Startup methodology in his 2011 book, emphasizing build-measure-learn cycles.
Question 4: What is 'disruptive innovation'?
- An innovation that improves an existing product
- An innovation that creates new markets and displaces established competitors (Correct answer)
- An innovation in manufacturing processes
- A patent-protected new technology
Correct answer: An innovation that creates new markets and displaces established competitors
Disruptive innovation, a concept by Clayton Christensen, refers to innovations that initially target overlooked segments and eventually displace incumbents.
Question 5: In venture capital, what is a 'unicorn'?
- A startup that fails within its first year
- A publicly listed tech company
- A privately held startup valued at $1 billion or more (Correct answer)
- A startup backed by government funds
Correct answer: A privately held startup valued at $1 billion or more
A 'unicorn' refers to a privately held startup company valued at over $1 billion, a term coined by venture capitalist Aileen Lee.
Question 6: What is 'bootstrapping' in entrepreneurship?
- Taking a large bank loan to start a business
- Growing a business using only internal cash flows without external funding (Correct answer)
- Launching a business through crowdfunding
- Getting angel investment at an early stage
Correct answer: Growing a business using only internal cash flows without external funding
Bootstrapping means building a company from the ground up using personal savings and revenue without relying on external investment.
CMAT Innovation and Entrepreneurship 1
What is a 'business model canvas'?