Question 1

What type of revenue should be a primary goal when developing a business model?

Accepted Answer

A)  Initial revenue 
B)  Fast revenue 
C)  Recurrent revenue 
D)  Any revenue 
A)  Initial revenue 
B)  Fast revenue 
C)  Recurrent revenue 
D)  Any revenue C

Question 2

Which of the following statements is true about outsourcing production/manufacturing and new ventures?

Accepted Answer

A)  The use of third-party manufacturers is commonplace 
B)  Outsourcing production/manufacturing saves significant capital for the venture 
C)  The third-party contractor gains access to the intellectual capital of the new venture 
D)  All the above are true 
A)  The use of third-party manufacturers is commonplace 
B)  Outsourcing production/manufacturing saves significant capital for the venture 
C)  The third-party contractor gains access to the intellectual capital of the new venture 
D)  All the above are true D

Question 3

What is perhaps the best way for entrepreneurs to break into entrenched markets?

Accepted Answer

A)  Be the low cost provider 
B)  Use business model innovation 
C)  Go head-to-head with the market leader 
D)  None of the above 
A)  Be the low cost provider 
B)  Use business model innovation 
C)  Go head-to-head with the market leader 
D)  None of the above B

Question 4

Which of the following is a key element of a business model?

Accepted Answer

A)  The structure and nature of revenues 
B)  The venture's approach to R&D 
C)  The approach to production and/or fulfillment 
D)  All of the above 
A)  The structure and nature of revenues 
B)  The venture's approach to R&D 
C)  The approach to production and/or fulfillment 
D)  All of the above

Question 5

The time it takes to complete the development of the product or service to bring it to the market is referred to as the ________________.

Accepted Answer

A)  time to first dollar 
B)  cash conversion cycle 
C)  venture concept 
D)  business model 
A)  time to first dollar 
B)  cash conversion cycle 
C)  venture concept 
D)  business model

Question 6

If a venture activity does not involve a core competency, then you should consider

Accepted Answer

A)  growing the competency. 
B)  outsourcing the competency. 
C)  deleting the competency. 
D)  None of the above. 
A)  growing the competency. 
B)  outsourcing the competency. 
C)  deleting the competency. 
D)  None of the above.

Question 7

The design of a business model allows the entrepreneur to establish certain critical business goals for the new venture. Which is an example of such?

Accepted Answer

A)  The time to first dollar 
B)  Revenue for a scaled-up business 
C)  Exit valuation 
D)  All the above are examples 
A)  The time to first dollar 
B)  Revenue for a scaled-up business 
C)  Exit valuation 
D)  All the above are examples

Question 8

Which is not true about business models for ventures:

Accepted Answer

A)  As important for venture success as the products or services of the company 
B)  Can be a source of innovative thinking, just as much of the product or service 
C)  It usually best for venture success to give away a service for free, convince users that it is worthwhile, and then ask them to pay for it later. 
D)  Can be hard to convince customers to adopt if it is very different than traditional methods of pricing 
A)  As important for venture success as the products or services of the company 
B)  Can be a source of innovative thinking, just as much of the product or service 
C)  It usually best for venture success to give away a service for free, convince users that it is worthwhile, and then ask them to pay for it later. 
D)  Can be hard to convince customers to adopt if it is very different than traditional methods of pricing

Question 9

With regard to the launch phase of a new venture, which is the landmark moment for the venture?

Accepted Answer

A)  Having the venture team in place 
B)  Securing the venture funding 
C)  The first sale 
D)  None of the above would be a landmark moment 
A)  Having the venture team in place 
B)  Securing the venture funding 
C)  The first sale 
D)  None of the above would be a landmark moment

Question 10

Which of the following is NOT an example of a business model approach for a new venture?

Accepted Answer

A)  Manufacturing 
B)  Creating services 
C)  Licensing 
D)  All the above are examples of approaches to business modeling 
A)  Manufacturing 
B)  Creating services 
C)  Licensing 
D)  All the above are examples of approaches to business modeling

Question 11

The MyMMs example in the chapter is NOT a good illustration of:

Accepted Answer

A)  Premiumization: selling a traditional product for more money 
B)  Services innovation: figuring out how to sell a product as a service 
C)  Personalization: customizing a mass product for individual consumers 
D)  Disruptive technology: inventing an entirely new printing technology 
A)  Premiumization: selling a traditional product for more money 
B)  Services innovation: figuring out how to sell a product as a service 
C)  Personalization: customizing a mass product for individual consumers 
D)  Disruptive technology: inventing an entirely new printing technology

Question 12

Go-to-market covers

Accepted Answer

A)  How consumers get to the place they purchase 
B)  A ventures decisions on channels and building awareness 
C)  A companies logistics 
D)  Who the company uses to ship their products 
A)  How consumers get to the place they purchase 
B)  A ventures decisions on channels and building awareness 
C)  A companies logistics 
D)  Who the company uses to ship their products

Question 13

Which of the following statement is true?

Accepted Answer

A)  Revenue is not necessarily cash 
B)  Cash and revenue are actually the same thing 
C)  Revenue is what you have in the bank 
D)  Cash is non-taxable and revenue is not 
A)  Revenue is not necessarily cash 
B)  Cash and revenue are actually the same thing 
C)  Revenue is what you have in the bank 
D)  Cash is non-taxable and revenue is not

Question 14

If you want to sell a premium product to a selected few buyers, which price/volume structure are you following?

Accepted Answer

A)  High price/moderate margin/low volume 
B)  Low price/high margin/low volume 
C)  High price/low margin/high volume 
D)  High price/high margin/low volume 
A)  High price/moderate margin/low volume 
B)  Low price/high margin/low volume 
C)  High price/low margin/high volume 
D)  High price/high margin/low volume

Question 15

The best example of a Business model innovation is a ______________.

Accepted Answer

A)  change to the traditional way of making money 
B)  change to the way you produce 
C)  change to the way you distribute your product 
D)  change to the way you package your product 
A)  change to the traditional way of making money 
B)  change to the way you produce 
C)  change to the way you distribute your product 
D)  change to the way you package your product

Question 16

What is an exit valuation?

Accepted Answer

A)  Value of the business at the time of exit, IPO or acquisition 
B)  Value of the business after your 5 year projections 
C)  The industry average value of companies in your industry of the same age 
D)  The amount of money investors are willing to invest 
A)  Value of the business at the time of exit, IPO or acquisition 
B)  Value of the business after your 5 year projections 
C)  The industry average value of companies in your industry of the same age 
D)  The amount of money investors are willing to invest

Question 17

Which of the following is true about a business model?

Accepted Answer

A)  It only involves your go-to-market strategy 
B)  It is less important than your financial strategy 
C)  It drives financial strategies and outcomes 
D)  It is driven by financial models 
A)  It only involves your go-to-market strategy 
B)  It is less important than your financial strategy 
C)  It drives financial strategies and outcomes 
D)  It is driven by financial models

Question 18

What does a business model describe?

Accepted Answer

A)  How competitors in a market sell their products 
B)  How a venture plans to make money 
C)  How investors plan to make their money 
D)  How an industry makes money 
A)  How competitors in a market sell their products 
B)  How a venture plans to make money 
C)  How investors plan to make their money 
D)  How an industry makes money

Question 19

What is the business model for other companies that already exist in your target industry? What might be a way to "spice" up that business model, such as offering follow-on products or services or ways to share cost-savings or other benefits with customers?

Accepted Answer

The business model for other companies i

Question 20

Which of the following best describes a go-to-market approach?

Accepted Answer

A)  How a new venture uses R&D 
B)  A new venture's plan to engage and deliver products and services to customers 
C)  Quantity of product to be produced 
D)  All of the above 
A)  How a new venture uses R&D 
B)  A new venture's plan to engage and deliver products and services to customers 
C)  Quantity of product to be produced 
D)  All of the above

What type of revenue should be a primary goal when developing a business model?

Which of the following statements is true about outsourcing production/manufacturing and new ventures?

What is perhaps the best way for entrepreneurs to break into entrenched markets?

Which of the following is a key element of a business model?

The time it takes to complete the development of the product or service to bring it to the market is referred to as the ________________.

If a venture activity does not involve a core competency, then you should consider

The design of a business model allows the entrepreneur to establish certain critical business goals for the new venture. Which is an example of such?

Which is not true about business models for ventures:

With regard to the launch phase of a new venture, which is the landmark moment for the venture?

Which of the following is NOT an example of a business model approach for a new venture?

The MyMMs example in the chapter is NOT a good illustration of:

Go-to-market covers

Which of the following statement is true?

If you want to sell a premium product to a selected few buyers, which price/volume structure are you following?

The best example of a Business model innovation is a ______________.

What is an exit valuation?

Which of the following is true about a business model?

What does a business model describe?

What is the business model for other companies that already exist in your target industry? What might be a way to "spice" up that business model, such as offering follow-on products or services or ways to share cost-savings or other benefits with customers?

Which of the following best describes a go-to-market approach?

Defining Your Industry Focus and the Type of Business You Want to Start

Defining the Target Customer

Defining the Needs of Target Customers

Defining Solutions for Customers

Positioning and Branding a Venture in the Marketplace

A Reality Check on the Venture Concept and the Business Model

Financial Sources for Startups and Corporate Ventures

Projecting the Financial Performance and Requirements for the Venture

Organizing the Venture Team

Writing the Business Plan

Making the Pitch

Filters

Exam 5: Defining the Business Model for a Venture

What type of revenue should be a primary goal when developing a business model?

Which of the following statements is true about outsourcing production/manufacturing and new ventures?

What is perhaps the best way for entrepreneurs to break into entrenched markets?

Which of the following is a key element of a business model?

The time it takes to complete the development of the product or service to bring it to the market is referred to as the ________________.

If a venture activity does not involve a core competency, then you should consider

The design of a business model allows the entrepreneur to establish certain critical business goals for the new venture. Which is an example of such?

Which is not true about business models for ventures:

With regard to the launch phase of a new venture, which is the landmark moment for the venture?

Which of the following is NOT an example of a business model approach for a new venture?

The MyMMs example in the chapter is NOT a good illustration of:

Go-to-market covers

Which of the following statement is true?

If you want to sell a premium product to a selected few buyers, which price/volume structure are you following?

The best example of a Business model innovation is a ______________.

What is an exit valuation?

Which of the following is true about a business model?

What does a business model describe?

What is the business model for other companies that already exist in your target industry? What might be a way to "spice" up that business model, such as offering follow-on products or services or ways to share cost-savings or other benefits with customers?

Which of the following best describes a go-to-market approach?

Defining Your Industry Focus and the Type of Business You Want to Start

Defining the Target Customer

Defining the Needs of Target Customers

Defining Solutions for Customers

Positioning and Branding a Venture in the Marketplace

A Reality Check on the Venture Concept and the Business Model

Financial Sources for Startups and Corporate Ventures

Projecting the Financial Performance and Requirements for the Venture

Organizing the Venture Team

Writing the Business Plan

Making the Pitch

Filters