Exam 5: Competitive Advantage, Firm Performance, and Business Models

In the _____ business model, the initial product is often sold at a loss or given away for free in order to drive demand for complementary goods.

Threadless is a community-centered online apparel store that leverages user-generated content.The idea is to turn consumers into prosumers, a hybrid between producers and consumers.Members of the Threadless community do most of the work, which they consider fun: They submit T-shirt designs online, and community members vote on which designs they like best.The designs receiving the most votes are put in production, printed, and sold online.It can be said that Threadless uses the _____ technique.

By selling a laptop at $1000 for which consumers are willing to pay up to $1200, a consumer electronics firm makes a profit of $400 per unit.In this scenario, the amount $600, that is ($1200 - $1000)+ $400, is the _____.

Which of the following is NOT an accurate expression of the economic value created per unit of a product sold?

What can be inferred from a firm's Research & development (R&D)/Revenue ratio?

The top management at BioTrue Pharma Inc.through rigorous testing ensures that the company develops and sells drugs that are free of harmful side-effects.Also, the company ensures that the chemical waste generated in the manufacturing process is kept to a bare minimum and is disposed of according to the regulations of the Environmental Protection Agency.The management assesses its overall performance based on these dimensions.Thus, the managers at Bio True Pharma are applying the _____ approach to measure firm performance.

A defining characteristic of the pay-as-you-go business model is that the:

Which of the following statements is true of accounting data?

The difference between the price charged for a product and the cost to manufacture it is referred to as the _____.

Describe the pay-as-you go business model.

Maverick Communications Inc.is a cellular service provider that charges its customers $1 for three hours of talk time.So, if a customer's talk time for a month is 60 hours, the company charges him or her $20 at the end of the month.Which of the following business models does this best illustrate?

List the dimensions on which a firm can create greater economic value.

Which of the following statements is true of the triple bottom line?

Discuss the four key questions managers need to answer when using the balanced scorecard to develop strategic objectives.

Which of the following expressions accurately describes market cap?

Janet is a 23-year-old employee at DR Products Inc.As a millennial, she will tend to:

What are the disadvantages of the balanced scorecard?

Competitive advantage goes to the firm that achieves the largest economic value created.Elaborate on this statement.

A firm incurs $100 to manufacture an office table.It fixes the market price of the table as $250, and discounts the price to $200.However, the maximum a person is willing to pay for it is $180.What is the amount of total perceived consumer benefits in this scenario?

Define crowdsourcing.