CMAT Innovation and Entrepreneurship 1

Question 1

What is a 'business model canvas'?

Accepted Answer

A one-page visual framework to describe a business model

Answer

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?

Accepted Answer

Minimum Viable Product

Answer

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?

Accepted Answer

Eric Ries

Answer

Eric Ries introduced the Lean Startup methodology in his 2011 book, emphasizing build-measure-learn cycles.

Question 4

What is 'disruptive innovation'?

Accepted Answer

An innovation that creates new markets and displaces established competitors

Answer

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'?

Accepted Answer

A privately held startup valued at $1 billion or more

Answer

A 'unicorn' refers to a privately held startup company valued at over $1 billion, a term coined by venture capitalist Aileen Lee.

CMAT - Common Management Admission Test Practice Test

CMAT - Common Management Admission Test Practice Test

CMAT Innovation and Entrepreneurship 1