Exam 7: The Business Models Financial Abcs

The difference between the price and variable costs, when expressed in percentage terms, is called the ……….

Later on, a need for ………. will arise due to heavy product development costs, market expansion, etc.

Which costs cannot be avoided regardless of the level of sales? In other words, what ……… will be required to create and deliver the product?

The money needed to get a business up and running and to survive the early stage is called ………. .

The financial aspect of the business model covers what it will cost to create and deliver the value proposition, including all activities, resources and partnerships proposed in the upper sectors of the BMC model.

The two bottom blocks in the Business Model Canvas are related to financial aspects. What are they called?

The book argues that the financial side of a company is separate from the rest and is managed by the financial department.

A sensitivity test in this context is to test (simulate) the impact various factors have on, e.g. the result. One poses the question "What if …?"

The break-even point is when:

In terms of finances, the book states that a company's eternal dilemma is:

If one lowers the gross margin:

Enough profits mean one is able to ensure that the share of ……… does not shrink, which strengthens, or even improves, the company's resilience in the face of setbacks.

Post-purchase, cash and advanced are three payment alternatives which impact liquidity. Put them in order, starting with the one which has the most positive impact:

How much money will be tied up in the inventory and receivables. In other words, how much ……… will be required?

The book argues in the Financial ABC's that the purpose of the business model is to prevent "silo thinking" between the various parts. This implies that:

The expression "cash is king" means:

The aggregate anticipated revenue from a variety of sources that the proposition could pull in is referred to in the BMC as ………?

Persuading one's customers to pay in cash is good, but persuading them to pay in advance is even better.

The break-even point is calculated by identifying the volume or turnover at which: Note from Sarah: please verify that these acronyms are correct. I wasn't sure if RC and FC were correct in English) TR = total revenue; TC = total costs; FC = ? RC = ?

There are various sources of financing one can speak about at various stages. Sort the following sources of financing, beginning with the early-stage, smaller types of financing, and continue on with the later stage and larger sources. Crowdfunding Bank loan Family and friends Owner's equity Investment angels Self-financing Stock exchange listing Strategic partnerships Government risk financing Venture capital