MBA Entrepreneurship 1

Question 1

What is a 'business model canvas' used for?

Accepted Answer

A one-page strategic framework for visualizing the nine building blocks of how a business creates, delivers, and captures value

Answer

The Business Model Canvas, developed by Alexander Osterwalder, maps out nine elements — customer segments, value propositions, channels, relationships, revenue streams, resources, activities, partners, and costs — on a single page.

Question 2

What is 'lean startup' methodology?

Accepted Answer

A methodology that emphasizes rapid experimentation, validated learning, and iterative product development to reduce waste

Answer

The Lean Startup method (Eric Ries) advocates building minimum viable products, measuring customer response, and learning from feedback quickly to pivot or persevere with a business idea.

Question 3

What is a 'minimum viable product' (MVP)?

Accepted Answer

A product with just enough features to be released to early adopters to validate a business hypothesis with minimal resources

Answer

An MVP is the simplest version of a product that allows a startup to begin collecting real customer feedback to test core assumptions before investing in full development.

Question 4

What is 'venture capital' (VC)?

Accepted Answer

Private equity investment provided to early-stage, high-growth-potential startups in exchange for equity ownership

Answer

Venture capital firms pool investor money to provide funding to startups with high growth potential in exchange for equity stakes, typically targeting a 10x or greater return at exit.

Question 5

What is 'bootstrapping' in entrepreneurship?

Accepted Answer

Building and growing a business using personal savings and revenue generated by the business without external funding

Answer

Bootstrapping means funding a startup through personal savings, early customer revenue, and reinvested profits rather than seeking outside investment, maintaining full ownership and control.

MBA - Degree Master of Business Administration Practice Test

MBA - Degree Master of Business Administration Practice Test

MBA Entrepreneurship 1