Entrepreneurship and Small Business (ESB) Certification Practice Exam

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What is a common characteristic of a minimum viable product?

High production cost
Advanced features
Inexpensive to create
Official launch ready

The correct answer is: Inexpensive to create

A minimum viable product (MVP) is typically defined as a version of a new product that includes only the essential features necessary to meet the needs of early adopters and gather feedback for future development. This strategy allows businesses to test their product idea without incurring high costs associated with full-scale production or feature development. Creating an MVP is intended to be a cost-effective approach; hence, it is inexpensive to create. This allows entrepreneurs to validate their concepts in the market and adjust based on real user input before making larger investments in additional features or production. The other characteristics, such as high production cost, advanced features, or being fully ready for official launch, contrast with the fundamental essence of an MVP, which emphasizes simplicity, affordability, and adaptability. These aspects reflect the need for firms to practice lean startup principles where learning and iterating based on customer feedback is prioritized over perfection or extensive feature sets from the outset.