Entrepreneurship Business Planning and Strategy 2

Question 1

What is a mission statement?

Accepted Answer

A brief description of a company's purpose and values

Answer

A mission statement concisely describes why a company exists, what it does, and the values that guide it.

Question 2

What is a vision statement?

Accepted Answer

A long-term aspirational goal for where the company wants to be

Answer

A vision statement describes the desired future position of the company and inspires stakeholders toward a common long-term goal.

Question 3

What is meant by 'scalability' in a business model?

Accepted Answer

The capacity to grow revenue without proportional cost increases

Answer

A scalable business model can grow sales and revenue significantly without requiring equally large increases in operating costs.

Question 4

What is a business model canvas?

Accepted Answer

A one-page strategic framework describing how a business creates and delivers value

Answer

The business model canvas is a one-page visual tool with nine building blocks that describe a company's value proposition, customers, channels, and revenue streams.

Question 5

What does 'bootstrapping' a startup mean?

Accepted Answer

Funding a business using personal savings without outside investors

Answer

Bootstrapping means starting and growing a business using personal funds or operating revenues rather than external investment.

Entrepreneurship Practice Test

Entrepreneurship Practice Test

Entrepreneurship Business Planning and Strategy 2