MBA Entrepreneurship 2

Question 1

What is 'angel investing' in the startup ecosystem?

Accepted Answer

High-net-worth individuals investing their personal funds in early-stage startups, often providing mentorship too

Answer

Government-funded grants for social enterprises

Answer

Institutional investment from pension funds in public companies

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Crowdfunding from many small individual contributors

Question 2

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

Accepted Answer

A plan specifying how the startup will reach target customers, deliver its value proposition, and achieve competitive positioning at launch

Answer

The logistics plan for international shipping

Answer

The strategy for going public through an IPO

Answer

The plan for acquiring competitors in the market

Question 3

What is 'product-market fit'?

Accepted Answer

The degree to which a product satisfies strong market demand — evidenced by rapid organic growth and customer retention

Answer

Matching your product's color to your target market's preferences

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Ensuring your product meets all regulatory requirements for the market

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Matching your product price to what the market can afford

Question 4

What is a 'term sheet' in startup fundraising?

Accepted Answer

A non-binding document outlining the key terms and conditions of a proposed investment before formal documentation

Answer

A detailed legal contract finalizing an investment

Answer

An invoice for services rendered to a startup

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A government form required for business registration

Question 5

What is 'dilution' in the context of startup equity?

Accepted Answer

The reduction in existing shareholders' ownership percentage when new shares are issued in a funding round

Answer

Reducing the price of a product to gain market share

Answer

The process of paying dividends to existing shareholders

Answer

The effect of debt financing on company valuation

Question 6

What does 'burn rate' measure in a startup context?

Accepted Answer

The monthly rate at which a startup spends its cash reserves before reaching profitability

Answer

The speed at which a startup generates new customers

Answer

The rate of product defects during manufacturing

Answer

The speed of employee turnover in early-stage companies