DECA Entrepreneurship 3

Question 1

What is the purpose of a non-disclosure agreement (NDA) for entrepreneurs?

Accepted Answer

To protect confidential business information shared with others

Answer

An NDA legally binds parties to keep shared confidential information secret, protecting trade secrets and proprietary data.

Question 2

The 'lean startup' methodology encourages entrepreneurs to:

Accepted Answer

Build, measure, and learn through rapid experimentation

Answer

The lean startup methodology uses a build-measure-learn feedback loop to test assumptions and pivot quickly based on real customer data.

Question 3

Which term describes the minimum version of a product launched to test core assumptions?

Accepted Answer

Minimum viable product (MVP)

Answer

A minimum viable product (MVP) has just enough features to validate key assumptions and gather feedback from early adopters.

Question 4

Gross profit is calculated as:

Accepted Answer

Revenue minus cost of goods sold

Answer

Gross profit equals revenue minus the cost of goods sold (COGS), before deducting operating expenses.

Question 5

What is 'customer acquisition cost' (CAC)?

Accepted Answer

The total cost to gain one new customer

Answer

CAC measures total sales and marketing spend divided by the number of new customers acquired in a given period.

(DECA) Distributive Education Clubs of America Practice Test