CMA Final · Entrepreneurship and Startup · The Entrepreneurial Ecosystem
Which of the following is the primary role of a business incubator in an entrepreneurial ecosystem?
A business incubator's main role is to nurture early-stage ventures by offering shared workspace, mentoring, training and networking access. It increases survival chances of young startups, unlike investors seeking control, regulators fixing prices, or underwriters handling public issues.
- AProviding nurturing support such as workspace, mentoring and networking to early-stage venturesCorrect
- BPurchasing controlling stakes in listed companies for portfolio returns
- CRegulating the pricing of products sold by startups
- DUnderwriting the public issue of shares of large corporations
Explanation
Incubators help ideas and very young ventures develop through shared space, mentoring, training and access to networks, often for a fee or small equity. Buying controlling stakes, price regulation and underwriting are functions of other institutions.
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.
More The Entrepreneurial Ecosystem questions
- Which of the following best distinguishes venture capital funding from bank term loans for a startup?
- In the language of the startup ecosystem, which role is played by an incubator?
- A deep-tech startup in Pune has a working prototype of an industrial sensor but has not yet launched commercially and has minimal revenue. I…
- In the language of startup funding, the 'valley of death' most commonly refers to which phase?
- A Pune-based founder has a working prototype and first few paying customers, and now needs about ₹40 lakh from wealthy individuals who also …
- A startup's founders agree to a clause that lets early investors buy new shares in each later round to maintain their percentage holding. Th…