Question 1

When Sally placed cookies along the side counter of her coffee shop,which revenue driver was she addressing?

Accepted Answer

A) frequency 
B) price 
C) selling process 
D) customers 
A) frequency 
B) price 
C) selling process 
D) customers

Question 2

Clinton owns a popular coffee shop in downtown Seattle.Rather than open up a second shop,he allows another business owner to use his company name and follow the same operations.The second business owner,in turn,pays him an initial monthly fee for operational support and the use of the company name.What revenue model does this represent?

Accepted Answer

A) intermediation revenue model 
B) franchising revenue model 
C) licensing revenue model 
D) professional revenue model 
A) intermediation revenue model 
B) franchising revenue model 
C) licensing revenue model 
D) professional revenue model

Question 3

What is the main reason customers are attracted to direct cross-subsidies?

Accepted Answer

A) They get two products for the price of one. 
B) It eliminates or reduces the upfront cost of a product or service. 
C) It is the most cost-effective model. 
D) They rarely calculate the true costs. 
A) They get two products for the price of one. 
B) It eliminates or reduces the upfront cost of a product or service. 
C) It is the most cost-effective model. 
D) They rarely calculate the true costs.

Question 4

An example of unit-priced sales is selling music in iTunes.

Accepted Answer

A) True 
 B)False

Question 5

Intermediation revenue is associated with ______.

Accepted Answer

A) direct buyer-seller relationships 
B) the use of third parties (or "middlemen") 
C) repeat sales 
D) dispute management 
A) direct buyer-seller relationships 
B) the use of third parties (or "middlemen") 
C) repeat sales 
D) dispute management

Question 6

Why is the razor-and-razor-blade model also known as the printer-and-ink model?

Accepted Answer

A) The technique is only used by printing companies. 
B) The razor blade is not used that much today,whereas printers are ubiquitous. 
C) The printer is sold at a low cost,but ink or toner is priced much higher. 
D) Printers are expensive,but ink is readily available. 
A) The technique is only used by printing companies. 
B) The razor blade is not used that much today,whereas printers are ubiquitous. 
C) The printer is sold at a low cost,but ink or toner is priced much higher. 
D) Printers are expensive,but ink is readily available.

Question 7

Regardless of the type of business,all businesses need to generate revenue.

Accepted Answer

A) True 
 B)False

Question 8

The pro forma income statement shows income in the first year of business.

Accepted Answer

A) True 
 B)False

Question 9

Depreciation can be thought of as ______.

Accepted Answer

A) the cost of wear and tear on physical assets 
B) a discount placed on certain aspects of your business 
C) the result of business losses 
D) the value of used goods 
A) the cost of wear and tear on physical assets 
B) a discount placed on certain aspects of your business 
C) the result of business losses 
D) the value of used goods

Question 10

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Accepted Answer

A) psychological pricing 
B) loss leader 
C) introductory offer 
D) customer-led pricing 
A) psychological pricing 
B) loss leader 
C) introductory offer 
D) customer-led pricing

Question 11

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Accepted Answer

A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model 
A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model

Question 12

Which of the following would be considered an intangible?

Accepted Answer

A) a t-shirt 
B) a gym membership 
C) a refrigerator 
D) an iTunes download 
A) a t-shirt 
B) a gym membership 
C) a refrigerator 
D) an iTunes download

Question 13

In an income statement,taxes are the last expense item before net income.

Accepted Answer

A) True 
 B)False

Question 14

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

Accepted Answer

A) licensing revenue 
B) unit sales 
C) data revenue 
D) intermediation revenue 
A) licensing revenue 
B) unit sales 
C) data revenue 
D) intermediation revenue

Question 15

What revenue model charges customers fees based on how often goods or services are used?

Accepted Answer

A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model 
A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model

Question 16

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

Accepted Answer

A) Lowest-cost pricing 
B) Loss-leader pricing 
C) Customer-led pricing 
D) Fair pricing 
A) Lowest-cost pricing 
B) Loss-leader pricing 
C) Customer-led pricing 
D) Fair pricing

Question 17

The goal of loss-leader pricing is to attract more customers.

Accepted Answer

A) True 
 B)False

Question 18

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

Accepted Answer

A) True 
 B)False

Question 19

The razor-and-razor-blade revenue model ______.

Accepted Answer

A) includes tangible and intangible sales 
B) involves offering an item at no or low-cost to encourage the sale of expensive complementary or disposable products later 
C) involves the sale of a high-cost product with easy-to-replace parts 
D) includes additional products as an add-on to the sale 
A) includes tangible and intangible sales 
B) involves offering an item at no or low-cost to encourage the sale of expensive complementary or disposable products later 
C) involves the sale of a high-cost product with easy-to-replace parts 
D) includes additional products as an add-on to the sale

Question 20

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Accepted Answer

A) direct cross-subsidies 
B) multiparty markets 
C) price gouging 
D) distributed pricing 
A) direct cross-subsidies 
B) multiparty markets 
C) price gouging 
D) distributed pricing

When Sally placed cookies along the side counter of her coffee shop,which revenue driver was she addressing?

What is the main reason customers are attracted to direct cross-subsidies?

An example of unit-priced sales is selling music in iTunes.

Intermediation revenue is associated with ______.

Why is the razor-and-razor-blade model also known as the printer-and-ink model?

Regardless of the type of business,all businesses need to generate revenue.

The pro forma income statement shows income in the first year of business.

Depreciation can be thought of as ______.

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Which of the following would be considered an intangible?

In an income statement,taxes are the last expense item before net income.

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

What revenue model charges customers fees based on how often goods or services are used?

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

The goal of loss-leader pricing is to attract more customers.

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

The razor-and-razor-blade revenue model ______.

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

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Exam 9: Creating Revenue Models

When Sally placed cookies along the side counter of her coffee shop,which revenue driver was she addressing?

What is the main reason customers are attracted to direct cross-subsidies?

An example of unit-priced sales is selling music in iTunes.

Intermediation revenue is associated with ______.

Why is the razor-and-razor-blade model also known as the printer-and-ink model?

Regardless of the type of business,all businesses need to generate revenue.

The pro forma income statement shows income in the first year of business.

Depreciation can be thought of as ______.

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Which of the following would be considered an intangible?

In an income statement,taxes are the last expense item before net income.

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

What revenue model charges customers fees based on how often goods or services are used?

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

The goal of loss-leader pricing is to attract more customers.

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

The razor-and-razor-blade revenue model ______.

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters