MBA Entrepreneurship 3

Question 1

What is 'sweat equity' in entrepreneurship?

Accepted Answer

Ownership stake granted to founders or early team members in exchange for their labor and time rather than cash investment

Answer

Physical exercise programs for startup employees

Answer

Revenue generated from physical product sales

Answer

A bonus structure tied to company performance milestones

Question 2

What is a 'startup accelerator'?

Accepted Answer

A fixed-term, cohort-based program providing mentorship, resources, and small seed investment in exchange for equity to help startups grow rapidly

Answer

Software that speeds up a startup's website performance

Answer

A bank loan program with accelerated repayment terms

Answer

A regulatory fast-track program for new business registrations

Question 3

What is 'intellectual property' (IP) protection most critical for startups?

Accepted Answer

Securing legal rights to inventions, designs, brands, and creative works to maintain competitive advantage

Answer

Protecting the physical office space from unauthorized access

Answer

Protecting customer credit card data from hackers

Answer

Insuring company assets against physical damage

Question 4

What is 'churn rate' and why does it matter for startups?

Accepted Answer

The percentage of customers who cancel or stop using a product over a given period, indicating retention health

Answer

The rate at which new customers are acquired

Answer

The frequency of product feature updates

Answer

The rate of employee hiring during growth phases

Question 5

What is the purpose of a 'cap table' (capitalization table) for startups?

Accepted Answer

A spreadsheet tracking all equity ownership — shares outstanding, ownership percentages, and how they change through funding rounds

Answer

A table listing the company's product pricing tiers

Answer

A financial statement showing quarterly revenue by product category

Answer

A table mapping employee compensation to performance levels

Question 6

What is 'entrepreneurial finance' primarily concerned with?

Accepted Answer

Financing strategies and decisions unique to high-growth startups, including valuation, funding sources, and investor negotiations

Answer

Managing the accounting records of large corporations

Answer

The study of stock market investment strategies

Answer

Corporate tax planning for established publicly traded firms