Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

What does a lean canvas cover?

1. Detailed operational procedures

2. Problems, solutions, and revenue streams

3. Financial audits and compliance

4. Company culture and values

The correct answer is: Problems, solutions, and revenue streams

A lean canvas is a strategic tool designed for startups and entrepreneurs to help them quickly articulate their business model. It focuses on essential factors that contribute to the viability and scalability of a business. The correct answer highlights key components that the lean canvas specifically addresses: problems, solutions, and revenue streams. The "problems" section identifies the main challenges or pains that the target customer faces, which the business aims to solve. The "solutions" part outlines the ways in which the business plans to address these problems through its products or services. Finally, the "revenue streams" section details how the company intends to generate income from its offerings. This structured approach allows entrepreneurs to visualize their business in a concise manner, making it easier to identify areas for improvement and validate their business ideas quickly. In contrast, other options refer to aspects not typically covered by a lean canvas. Detailed operational procedures relate more to the day-to-day workings of a business, which the lean canvas does not focus on. Financial audits and compliance are concerned with regulatory and accounting practices, while company culture and values pertain to the internal environment of the business rather than its strategic direction. Thus, the lean canvas provides a focused overview on critical external factors essential for startup success.