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CMA Final · Entrepreneurship and Startup · The Entrepreneurial Ecosystem

In the language of the startup ecosystem, which role is played by an incubator?

An incubator nurtures very early-stage ventures by giving them workspace, mentoring, and networking support, often before the product is ready for the market. It is not an exchange, a loan underwriter, or a cost auditor, which perform entirely different roles.

  1. AIt nurtures very early-stage ventures by offering workspace, mentoring and networking support, often before the product is market-readyCorrect
  2. BIt lists the shares of mature companies on a recognised stock exchange
  3. CIt underwrites bank loans given to large corporates
  4. DIt audits the cost records of manufacturing companies

Explanation

An incubator supports idea-stage or very early ventures with space, mentoring, and connections. Listing shares is the function of a stock exchange, underwriting loans is a banking function, and auditing cost records is a cost auditor's task. Hence only the first option describes an incubator.

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