Question 1

Describe the two potential fatal flaws of business models.

Accepted Answer

Two fatal flaws can render a business mo

Question 2

From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are:

Accepted Answer

A)  high quality and low cost 
B)  discount pricing and premium pricing 
C)  value and low cost 
D)  cost leadership and differentiation 
E)  cost premium and separation 
A)  high quality and low cost 
B)  discount pricing and premium pricing 
C)  value and low cost 
D)  cost leadership and differentiation 
E)  cost premium and separation

Question 3

________ are anything rare and valuable that a firm owns.

Accepted Answer

A)  Tactical assets 
B)  Tactical properties 
C)  Deliberate assets 
D)  Strategic assets 
E)  Operational assets 
A)  Tactical assets 
B)  Tactical properties 
C)  Deliberate assets 
D)  Strategic assets 
E)  Operational assets

Question 4

What is a strategic asset? Provide an example of a strategic asset that is utilized by an entrepreneurial firm.

Accepted Answer

Strategic assets are anything rare and v

Question 5

Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff has worked hard on is determining how his company will compete in the marketplace. This element of Jeff's business model is referred to as:

Accepted Answer

A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  fulfillment and support 
E)  customer interface 
A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  fulfillment and support 
E)  customer interface

Question 6

Briefly describe the four main components of a business model. Identify the subcomponents of each the four main components of a business model.

Accepted Answer

The four main components of a business m

Question 7

A ________ is a resource or capability that serves as a source of a firm's competitive advantage over its rivals.

Accepted Answer

A)  foundational competency 
B)  core competency 
C)  distinctive attribute 
D)  center attribute 
E)  core element 
A)  foundational competency 
B)  core competency 
C)  distinctive attribute 
D)  center attribute 
E)  core element

Question 8

Which of the following statements is incorrect regarding the "core strategy" component of a firm's business model?

Accepted Answer

A)  A firm's core strategy describes how it competes relative to its competitors. 
B)  The product a firm chooses has little impact on its core strategy and business model. 
C)  A company's product/market scope defines the products and markets on which it will compete. 
D)  From a broad perspective firms typically choose one of two generic strategies: cost leadership or differentiation. 
E)  The generic strategy a firm chooses greatly affects its business model. 
A)  A firm's core strategy describes how it competes relative to its competitors. 
B)  The product a firm chooses has little impact on its core strategy and business model. 
C)  A company's product/market scope defines the products and markets on which it will compete. 
D)  From a broad perspective firms typically choose one of two generic strategies: cost leadership or differentiation. 
E)  The generic strategy a firm chooses greatly affects its business model.

Question 9

The network of companies that participate in the production of a product, from the acquisition of raw materials to the final sale, is referred to as the:

Accepted Answer

A)  input chain 
B)  participation chain 
C)  supply chain 
D)  involvement network 
E)  contribution chain 
A)  input chain 
B)  participation chain 
C)  supply chain 
D)  involvement network 
E)  contribution chain

Question 10

Fulfillment and support describes the way a firm's product or service "goes to market" or how it reaches its customers.

Accepted Answer

A) True 
 B)False

Question 11

"Organize all the world's information and make it universally accessible and useful" is Google's:

Accepted Answer

A)  function 
B)  duty 
C)  credo 
D)  purpose statement 
E)  mission statement 
A)  function 
B)  duty 
C)  credo 
D)  purpose statement 
E)  mission statement

Question 12

Two fatal flaws can render a business model untenable from the beginning. These are:

Accepted Answer

A)  failure to complete a business plan and failure to get funding 
B)  a complete misread of the customer and utterly unsound economics 
C)  failure to copy the industry leader's business plan and a complete misread of the customer 
D)  failure to complete a business plan and overemphasizing the importance of feasibility analysis 
E)  overemphasizing the importance of feasibility analysis and utterly unsound economics 
A)  failure to complete a business plan and failure to get funding 
B)  a complete misread of the customer and utterly unsound economics 
C)  failure to copy the industry leader's business plan and a complete misread of the customer 
D)  failure to complete a business plan and overemphasizing the importance of feasibility analysis 
E)  overemphasizing the importance of feasibility analysis and utterly unsound economics

Question 13

A firm's business model resides within its own boundaries.

Accepted Answer

A) True 
 B)False

Question 14

The opening feature in Chapter 6 focuses on Stroome, an exciting new Web-based service for editing and remixing video. The idea for Stroome emerged in:

Accepted Answer

A)  a graduate communications class at the University of Southern California 
B)  a student-run incubator at the University of Illinois 
C)  a technology commercialization class at Cornell 
D)  a city-owned new business incubator in Cleveland 
E)  a business plan class at Kansas State 
A)  a graduate communications class at the University of Southern California 
B)  a student-run incubator at the University of Illinois 
C)  a technology commercialization class at Cornell 
D)  a city-owned new business incubator in Cleveland 
E)  a business plan class at Kansas State

Question 15

Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. Stroome's initial business model is based on making money in the following two ways:

Accepted Answer

A)  subscription fees and licensing its software to film producers 
B)  a "freemium" pricing model and white labeling its site 
C)  online advertising and affiliate fees 
D)  white labeling its site and subscription fees 
E)  Google AdSense and affiliate fees 
A)  subscription fees and licensing its software to film producers 
B)  a "freemium" pricing model and white labeling its site 
C)  online advertising and affiliate fees 
D)  white labeling its site and subscription fees 
E)  Google AdSense and affiliate fees

Describe the two potential fatal flaws of business models.

From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are:

________ are anything rare and valuable that a firm owns.

What is a strategic asset? Provide an example of a strategic asset that is utilized by an entrepreneurial firm.

Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff has worked hard on is determining how his company will compete in the marketplace. This element of Jeff's business model is referred to as:

Briefly describe the four main components of a business model. Identify the subcomponents of each the four main components of a business model.

A ________ is a resource or capability that serves as a source of a firm's competitive advantage over its rivals.

Which of the following statements is incorrect regarding the "core strategy" component of a firm's business model?

The network of companies that participate in the production of a product, from the acquisition of raw materials to the final sale, is referred to as the:

Fulfillment and support describes the way a firm's product or service "goes to market" or how it reaches its customers.

"Organize all the world's information and make it universally accessible and useful" is Google's:

Two fatal flaws can render a business model untenable from the beginning. These are:

A firm's business model resides within its own boundaries.

The opening feature in Chapter 6 focuses on Stroome, an exciting new Web-based service for editing and remixing video. The idea for Stroome emerged in:

Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. Stroome's initial business model is based on making money in the following two ways:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 6: Developing an Effective Business Model

Describe the two potential fatal flaws of business models.

From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are:

________ are anything rare and valuable that a firm owns.

What is a strategic asset? Provide an example of a strategic asset that is utilized by an entrepreneurial firm.

Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff has worked hard on is determining how his company will compete in the marketplace. This element of Jeff's business model is referred to as:

Briefly describe the four main components of a business model. Identify the subcomponents of each the four main components of a business model.

A ________ is a resource or capability that serves as a source of a firm's competitive advantage over its rivals.

Which of the following statements is incorrect regarding the "core strategy" component of a firm's business model?

The network of companies that participate in the production of a product, from the acquisition of raw materials to the final sale, is referred to as the:

Fulfillment and support describes the way a firm's product or service "goes to market" or how it reaches its customers.

"Organize all the world's information and make it universally accessible and useful" is Google's:

Two fatal flaws can render a business model untenable from the beginning. These are:

A firm's business model resides within its own boundaries.

The opening feature in Chapter 6 focuses on Stroome, an exciting new Web-based service for editing and remixing video. The idea for Stroome emerged in:

Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. Stroome's initial business model is based on making money in the following two ways:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters