Skip to content

CMA Final · Entrepreneurship and Startup · The Entrepreneurial Ecosystem

Meera runs a Chennai food-tech startup. She joins a three-month programme run by an accelerator, which gives a small seed investment, intensive mentoring and a final investor demo day. Which feature distinguishes an accelerator from an incubator?

An accelerator runs a fixed-duration, cohort-based programme, often with seed money, mentoring and an investor demo day, to speed up growth of ventures that already have a product. An incubator is typically longer and supports earlier stages, so the other options are wrong.

  1. AA fixed-duration, cohort-based programme aimed at rapid growth of ventures that already have a productCorrect
  2. BAn open-ended arrangement meant only for people who have yet to form an idea
  3. CA bank's lending scheme with collateral requirements
  4. DA government licence required before starting any business

Explanation

Accelerators run short, fixed-term, cohort-based programmes, often with seed funding and a demo day, to speed up growth for ventures that already have a product. Incubators are usually longer and more open-ended and support earlier stages. The other options describe lending schemes or licences, not accelerators.

Did you get it right without looking?

One question tells you little. A timed set on The Entrepreneurial Ecosystem shows your real accuracy, how long you take and where you lose marks.

Practise The Entrepreneurial EcosystemFree diagnostic mock

More The Entrepreneurial Ecosystem questions