IIC Level 2

. An entrepreneur highlights their impressive EBITDA margin. What does EBITDA stand for, and how does it indicate financial health?

• Exceptional Business Innovation Technology Development Agency; assesses market potential.

• Earnings Before Taxes, Depreciation, and Amortization; measures operational profitability without considering financing decisions

• Entrepreneurial Breakthrough Investment Data Analysis; evaluates funding suitability

• ) Enhanced Brand Traction Through Agile Marketing; signifies customer engagement.

An investor asks about the TAM (Total Addressable Market) for the proposed business. What does this concept signify, and why is it important?

• The environmental impact of the business model; reflects social responsibility

• The potential for technological disruptions; indicates industry competitiveness

• The resources needed for customer acquisition; determines marketing strategies

• The total target audience size; crucial for revenue projections and scalability.

An entrepreneur emphasizes their commitment to a "lean startup" methodology. What does this approach advocate for, and how can it benefit early-stage businesses?

• Building a large team and aggressively pursuing market share to achieve quick growth.

• Investing heavily in marketing and branding efforts to establish brand recognition

• Minimizing operational costs and focusing on customer validation through rapid prototyping and iteration.

• Prioritizing product features and functionalities over market research and customer feedback.

A pitch mentions leveraging "big data" analytics for competitive advantage. What does big data refer to, and how can it be used in business?

• Large and complex datasets that require specialized tools and techniques for analysis and insights generation.

• Highly targeted marketing campaigns based on customer demographics and behavior.

• Innovative software solutions designed to automate business processes and decision-making.

• Real-time customer feedback collected through social media platforms and online reviews.

During negotiations, an investor proposes a "convertible note" as an alternative to traditional equity investment. What does this instrument signify, and what are its key features?

• A performance-based bonus awarded to the startup team upon reaching revenue targets.

• A royalty agreement based on the startup's future sales and profit.

• A loan that automatically converts into equity shares if specific milestones are achieved, usually with a discount or interest.

• A grant provided by a government agency to support early-stage innovation

  What term is used to describe the funds and resources that a startup requires to reach the next significant milestone, such as product launch or market expansion?

• Elevator Pitch

• Runway

• Burn Rate

• Bootstrapping

In 2014, Facebook acquired which popular messaging app for $19 billion, making it one of the largest tech acquisitions in history?

• Telegram

• Snapchat

• WhatsApp

• WeChat

What term describes the strategy where a company focuses on its core strengths and outsources other non-core functions to external specialists?

• Outsourcing

• Core Fusion

• Offshoring

• Core Competency

Which innovative marketing strategy involves creating and sharing online content to attract and engage a target audience?

• Inbound Marketing

• Guerrilla Marketing

• Viral Marketing

• Experiential Marketing

1.      What term describes the stage in a startup's life cycle where it experiences rapid growth in customers and revenue?

• Plateau

• Incubation

• Traction

• Seed Stag