Question 1

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

Accepted Answer

A)  mission statement 
B)  vision statement 
C)  feasibility statement 
D)  duty statement 
E)  responsibility statement 
A)  mission statement 
B)  vision statement 
C)  feasibility statement 
D)  duty statement 
E)  responsibility statement

Question 2

________ describes the way a firm's product or service "goes to market."

Accepted Answer

A)  Fulfillment and support 
B)  Execution and discharge 
C)  Achievement and discharge 
D)  Implementation and maintenance 
E)  Execution and maintenance 
A)  Fulfillment and support 
B)  Execution and discharge 
C)  Achievement and discharge 
D)  Implementation and maintenance 
E)  Execution and maintenance

Question 3

Which of the following is not one of the components of a firm's business model?

Accepted Answer

A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  business plan 
E)  customer interface 
A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  business plan 
E)  customer interface

Question 4

Fortunately, if three of the four components of a firm's business model are in place, the firm has a high probability of success.

Accepted Answer

A) True 
 B)False

Question 5

Why is it important for a firm to have a well-thought-out business model?

Accepted Answer

Having a well-thought-out and clearly ar

Question 6

Two fatal flaws can render a business model untenable from the beginning: a complete misread of the customer and utterly unsound economics.

Accepted Answer

A) True 
 B)False

Question 7

Sony's competence in miniaturization, Dell's competence in supply chain management, and Amie Street's competence in managing a music download Web site are examples of ________, which serve as each of these respective firm's competitive advantage of their rivals.

Accepted Answer

A)  foundational competencies 
B)  core competencies 
C)  core elements 
D)  distinguishing attributes 
E)  foundational attributes 
A)  foundational competencies 
B)  core competencies 
C)  core elements 
D)  distinguishing attributes 
E)  foundational attributes

Question 8

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Accepted Answer

A) True 
 B)False

Question 9

Match the business model component with its explanation:

Accepted Answer

A)  core strategy/how a firm structures and nurtures its partnerships 
B)  customer interface/how a firm acquires and uses its resources 
C)  strategic resources/how a firm acquires and uses its resources 
D)  partnership network/how a firm competes 
E)  core strategy/how a firm interfaces with its customers 
A)  core strategy/how a firm structures and nurtures its partnerships 
B)  customer interface/how a firm acquires and uses its resources 
C)  strategic resources/how a firm acquires and uses its resources 
D)  partnership network/how a firm competes 
E)  core strategy/how a firm interfaces with its customers

Question 10

Which of the following is not a "primary" activity in the value chain?

Accepted Answer

A)  inbound logistics 
B)  marketing and sales 
C)  service 
D)  technology development 
E)  outbound logistics 
A)  inbound logistics 
B)  marketing and sales 
C)  service 
D)  technology development 
E)  outbound logistics

Question 11

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three business model innovators: SunEdison, Red Hat, and Cater Internal Medicine. What is SunEdison's business model innovation?

Accepted Answer

A)  to build solar energy platforms in the ocean 
B)  Make solar energy a service rather than a product. 
C)  Sell solar energy equipment in "kits" that consumers can install themselves. 
D)  Create solar energy "farms" in rural areas and create a new category of "farmers." 
E)  Build large solar energy arrays on the outskirts of cities to provide for a sizeable portion of their energy needs. 
A)  to build solar energy platforms in the ocean 
B)  Make solar energy a service rather than a product. 
C)  Sell solar energy equipment in "kits" that consumers can install themselves. 
D)  Create solar energy "farms" in rural areas and create a new category of "farmers." 
E)  Build large solar energy arrays on the outskirts of cities to provide for a sizeable portion of their energy needs.

Question 12

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 13

The term ________ refers to initiatives, such as Netflix in movie rentals and IKEA in furniture, which revolutionize how products are sold in an industry.

Accepted Answer

A)  product model modernism 
B)  business model innovation 
C)  feasibility analysis innovation 
D)  value innovation 
E)  opportunity innovation 
A)  product model modernism 
B)  business model innovation 
C)  feasibility analysis innovation 
D)  value innovation 
E)  opportunity innovation

Question 14

Donna Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the component of her business model is Donna working on?

Accepted Answer

A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis 
A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis

Question 15

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

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

________ describes the way a firm's product or service "goes to market."

Which of the following is not one of the components of a firm's business model?

Fortunately, if three of the four components of a firm's business model are in place, the firm has a high probability of success.

Why is it important for a firm to have a well-thought-out business model?

Two fatal flaws can render a business model untenable from the beginning: a complete misread of the customer and utterly unsound economics.

Sony's competence in miniaturization, Dell's competence in supply chain management, and Amie Street's competence in managing a music download Web site are examples of ________, which serve as each of these respective firm's competitive advantage of their rivals.

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Match the business model component with its explanation:

Which of the following is not a "primary" activity in the value chain?

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three business model innovators: SunEdison, Red Hat, and Cater Internal Medicine. What is SunEdison's business model innovation?

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

The term ________ refers to initiatives, such as Netflix in movie rentals and IKEA in furniture, which revolutionize how products are sold in an industry.

Donna Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the component of her business model is Donna working on?

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

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 Venture's 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

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

________ describes the way a firm's product or service "goes to market."

Which of the following is not one of the components of a firm's business model?

Fortunately, if three of the four components of a firm's business model are in place, the firm has a high probability of success.

Why is it important for a firm to have a well-thought-out business model?

Two fatal flaws can render a business model untenable from the beginning: a complete misread of the customer and utterly unsound economics.

Sony's competence in miniaturization, Dell's competence in supply chain management, and Amie Street's competence in managing a music download Web site are examples of ________, which serve as each of these respective firm's competitive advantage of their rivals.

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Match the business model component with its explanation:

Which of the following is not a "primary" activity in the value chain?

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three business model innovators: SunEdison, Red Hat, and Cater Internal Medicine. What is SunEdison's business model innovation?

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

The term ________ refers to initiatives, such as Netflix in movie rentals and IKEA in furniture, which revolutionize how products are sold in an industry.

Donna Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the component of her business model is Donna working on?

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

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 Venture's 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