Exam 5: Understanding Your Business Model and Developing Your Strategy

Going global increases risk and requires capital.

COGS is a cost measure that applies to companies that manufacture tangible products; COGS cannot be computed for firms that deal exclusively in a service-based revenue model.

Mergers and acquisitions are likely to increase a company's survival rate when used as a means for growth.

By selling a higher volume of your product through a particular distribution channel, you increase your:

Technology licensing is a good opportunity to extend your brand image into new markets.

If you do not fully understand your revenue drivers, you cannot achieve the highest success.

Maintaining trade secrets is one way to protect a company's competitive advantage.

Before raising capital, the company should identify which of the following?

It is a good idea for a startup to hire employees who are:

The more products you sell through your distribution channels, the greater your negotiating power.

Certain stages of the "initial market test" can be cheap or even free.

Which of the following influence a company's revenue?

Under the Foreign Direct Investment strategy, the startup retains control of the assets and facilities, which results in a cheap and easy means to go global.