Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
By promoting rapid testing and learning from customer feedback
B
By ensuring all projects are completed before market entry
C
By focusing solely on product development without market validation
D
By minimizing employee involvement in decision-making processes
Understanding the Answer
Let's break down why this is correct
Answer
Lean Startup teaches firms to build a minimal product, test it with real customers, and change quickly based on what works. By cutting out unnecessary features and learning from early failures, companies spend less money and time on ideas that won’t succeed. Over time, this cycle of rapid experiment, feedback, and adjustment leads to stronger products, faster market entry, and lower risk, which together boost profitability and growth. For example, a tech startup releases a simple app, gathers user data, and pivots to a new feature that solves a real pain point, saving millions that would have been spent on a doomed full release. The result is a more agile, customer‑focused firm that performs better as it matures.
Detailed Explanation
Lean Startup pushes companies to test ideas quickly and listen to customers. Other options are incorrect because Some think Lean Startup means finishing a project before it hits the market; A misconception is that Lean Startup ignores market validation.
Key Concepts
Lean Startup Methodology
Firm Performance
Customer Feedback Loop
Topic
Performance Impact of Lean Startup
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
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Question 3Which of the following outcomes can be attributed to the adoption of the lean startup methodology in firms? (Select all that apply)
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Question 4How does the Lean Startup methodology primarily impact firm performance over time?
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Question 7How does the lean startup methodology impact long-term firm performance compared to traditional approaches?
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