CMA Final · Entrepreneurship and Startup · Idea to Action
A founder has an idea for a mobile app that helps small kirana stores manage credit given to customers. Before building the full product, she releases a basic version with only the core ledger feature to 20 shops to observe usage. Which concept does this approach best represent?
This is a minimum viable product. The founder launches a stripped-down version with only the core feature to a few real users to test demand and gather feedback cheaply before investing in the full product, which reduces the risk of building something customers do not want.
- AMinimum viable productCorrect
- BInitial public offering
- CBackward integration
- DLeveraged buyout
Explanation
Releasing a basic version with only core features to a small set of real users to test demand and learn is the definition of a minimum viable product. An IPO is a public share issue, backward integration is about controlling suppliers, and a leveraged buyout is an acquisition financed by debt. None of these describe early product testing.
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