Entrepreneurship Business Planning and Strategy 3

Question 1

What is a 'go-to-market strategy'?

Accepted Answer

A plan for entering a new geographic market with a product or service

Answer

A go-to-market strategy defines how a company will launch a product, reach target customers, and achieve a competitive advantage upon entry.

Question 2

What is a milestone in a business plan?

Accepted Answer

A specific, measurable goal with a deadline used to track progress

Answer

Milestones are specific, time-bound achievements entrepreneurs use to track progress toward broader business goals.

Question 3

What does 'burn rate' refer to in a startup context?

Accepted Answer

The rate at which a startup spends its cash reserves each month

Answer

Burn rate is the speed at which a startup consumes its cash before becoming cash-flow positive.

Question 4

What is 'runway' for a startup?

Accepted Answer

The period of time a company can operate before running out of cash

Answer

Runway is the amount of time a startup can continue operating at its current burn rate before it runs out of money.

Question 5

What is 'product-market fit'?

Accepted Answer

When a product satisfies strong demand in a specific target market

Answer

Product-market fit means your product effectively meets the needs of a clearly defined market, resulting in strong organic customer adoption.

Entrepreneurship Practice Test