Question 1

_____ describes the various ways that an entrepreneur plans to make money.

Accepted Answer

A)  The pricing model 
B)  The revenue model 
C)  Value proposition 
D)  The freemium model 
E)  Feasibility analysis

Question 2

Philosopher-mathematician Nassim Taleb calls businesses _____ when they guard what they cannot afford to lose and take risks with 10 percent of the business.

Accepted Answer

A)  fragile 
B)  high impact 
C)  low impact 
D)  antifragile 
E)  balanced risks

Question 3

Products often go through channel intermediaries such as _____ and _____.

Accepted Answer

A)  advertisers; testers 
B)  suppliers; strategic partners 
C)  distributors; retailers 
D)  opinion leaders; developers 
E)  customers; competitors

Question 4

Prepare a feasibility analysis for a product or service you have thought about in the past and that may have market value. Answer the following questions: Is there a customer and market of sufficient size to make the concept viable and able to grow? Do the capital requirements to start and operate to a positive cash flow make sense? Can an appropriate startup or founding team be assembled to effectively execute the concept?

Accepted Answer

The answer of Prepare a feasibility analysis for a product...

Question 5

List the various components of a business model.

Accepted Answer

The answer of List the various components of a business...

Question 6

Probabilities can be attached to uncertainty.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurs who use a _____ model want to create premium experiences for their customers that typically involve personalized service and luxury facilities and products.

Accepted Answer

A)  revenue 
B)  benefits-driven 
C)  freemium 
D)  value-driven 
E)  cost-driven

Question 8

One of the most important components of the business model is identifying the _____ that will flow from the products and services being offered.

Accepted Answer

A)  market value 
B)  customer base 
C)  distribution channels 
D)  revenue streams 
E)  value proposition

Question 9

Every business needs to _____ to grow.

Accepted Answer

A)  minimize risk 
B)  take risk 
C)  wait until change happens before rethinking its business model 
D)  eliminate thoughts of future scenarios 
E)  attach probabilities to uncertainty

Question 10

In a(n) _____ cost structure, the primary costs of a business come from customer acquisition and maintaining relationships with customers.

Accepted Answer

A)  marketing 
B)  retail space 
C)  support center 
D)  direct 
E)  inventory

Exam 5: Developing and Testing a Business Model