Business Planning and Strategy Flashcards
6 cards from real Entrepreneurship practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business Planning and Strategy flashcards as text
What is a mission statement?
Answer: A brief description of a company's purpose and values
A mission statement concisely describes why a company exists, what it does, and the values that guide it.
What is a vision statement?
Answer: A long-term aspirational goal for where the company wants to be
A vision statement describes the desired future position of the company and inspires stakeholders toward a common long-term goal.
What is meant by 'scalability' in a business model?
Answer: The capacity to grow revenue without proportional cost increases
A scalable business model can grow sales and revenue significantly without requiring equally large increases in operating costs.
What is a business model canvas?
Answer: A one-page strategic framework describing how a business creates and delivers value
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.
What does 'bootstrapping' a startup mean?
Answer: Funding a business using personal savings without outside investors
Bootstrapping means starting and growing a business using personal funds or operating revenues rather than external investment.
Which planning tool helps entrepreneurs forecast future revenues and expenses?
Answer: Financial projection
A financial projection estimates future income, costs, and cash flow, helping entrepreneurs plan resource allocation and demonstrate viability to investors.