Question 1

The difference between the price and variable costs, when expressed in percentage terms, is called the ……….

Accepted Answer

The answer of The difference between the price and variable...

Question 2

Later on, a need for ………. will arise due to heavy product development costs, market expansion, etc.

Accepted Answer

The answer of Later on, a need for ………. will...

Question 3

Which costs cannot be avoided regardless of the level of sales? In other words, what ……… will be required to create and deliver the product?

Accepted Answer

The answer of Which costs cannot be avoided regardless of...

Question 4

The money needed to get a business up and running and to survive the early stage is called ………. .

Accepted Answer

The answer of The money needed to get a business...

Question 5

The financial aspect of the business model covers what it will cost to create and deliver the value proposition, including all activities, resources and partnerships proposed in the upper sectors of the BMC model.

Accepted Answer

A) True 
 B)False

Question 6

The two bottom blocks in the Business Model Canvas are related to financial aspects. What are they called?

Accepted Answer

A)  Income budget 
B)  Revenue streams 
C)  Costs budget 
D)  Cost structure 
E)  Liquidity planning
F) Budget of results

Question 7

The book argues that the financial side of a company is separate from the rest and is managed by the financial department.

Accepted Answer

A) True 
 B)False

Question 8

A sensitivity test in this context is to test (simulate) the impact various factors have on, e.g. the result. One poses the question "What if …?"

Accepted Answer

A) True 
 B)False

Question 9

The break-even point is when:

Accepted Answer

A)  aggregate pay-ins and aggregate pay-outs are balanced 
B) aggregate income and aggregate cost are balanced 
C)  customers break through the point where they become profitable 
D)  the critical success factors have been solved and are in place

Question 10

In terms of finances, the book states that a company's eternal dilemma is:

Accepted Answer

A)  that "cash is king" 
B)  that the break-even point increases over time 
C)  that costs quickly surpass income 
D)  that expenditures usually come before payments received

Question 11

If one lowers the gross margin:

Accepted Answer

A) the break-even point increases 
B)  the break-even point lowers

Question 12

Enough profits mean one is able to ensure that the share of ……… does not shrink, which strengthens, or even improves, the company's resilience in the face of setbacks.

Accepted Answer

The answer of Enough profits mean one is able to...

Question 13

Post-purchase, cash and advanced are three payment alternatives which impact liquidity. Put them in order, starting with the one which has the most positive impact:

Accepted Answer

A)  Post-purchase, cash, advanced 
B)  Advanced, post-purchase, cash 
C)  Advanced, cash, post-purchase 
D)  Cash, post-purchase, advanced

Question 14

How much money will be tied up in the inventory and receivables. In other words, how much ……… will be required?

Accepted Answer

The answer of How much money will be tied up...

Question 15

The book argues in the Financial ABC's that the purpose of the business model is to prevent "silo thinking" between the various parts. This implies that:

Accepted Answer

A)  one understands and stresses the mutual dependence between the various parts of the model, as well as the financial implications of all aspects 
B)  one has control over the costs and revenue aspects but separates those from the rest 
C)  one avoids addressing the problems that may arise between customer and company expectations 
D)  one avoids addressing how costs may affect revenue

Question 16

The expression "cash is king" means:

Accepted Answer

A)  the most money wins 
B)  money grants status 
C)  having money on hand equals independence 
D)  having no money on hand renders one vulnerable 
E)  those in power also make money
F) having no money on hand can easily make one dependent on others to solve one's liquidity crisis

Question 17

The aggregate anticipated revenue from a variety of sources that the proposition could pull in is referred to in the BMC as ………?

Accepted Answer

The answer of The aggregate anticipated revenue from a variety...

Question 18

Persuading one's customers to pay in cash is good, but persuading them to pay in advance is even better.

Accepted Answer

A) True 
 B)False

Question 19

The break-even point is calculated by identifying the volume or turnover at which: Note from Sarah: please verify that these acronyms are correct. I wasn't sure if RC and FC were correct in English) TR = total revenue; TC = total costs; FC = ? RC = ?

Accepted Answer

A)  FC = RC 
B)  TR ‹ TC 
C) TR = TC 
D)  TC = FC + RC

Question 20

There are various sources of financing one can speak about at various stages.
Sort the following sources of financing, beginning with the early-stage, smaller types of financing, and continue on with the later stage and larger sources.
Crowdfunding
Bank loan
Family and friends
Owner's equity
Investment angels
Self-financing
Stock exchange listing
Strategic partnerships
Government risk financing
Venture capital

Accepted Answer

The answer of There are various sources of financing one...

Exam 7: The Business Models Financial Abcs

The difference between the price and variable costs, when expressed in percentage terms, is called the ……….

Later on, a need for ………. will arise due to heavy product development costs, market expansion, etc.

Which costs cannot be avoided regardless of the level of sales? In other words, what ……… will be required to create and deliver the product?

The money needed to get a business up and running and to survive the early stage is called ………. .

The financial aspect of the business model covers what it will cost to create and deliver the value proposition, including all activities, resources and partnerships proposed in the upper sectors of the BMC model.

The two bottom blocks in the Business Model Canvas are related to financial aspects. What are they called?

The book argues that the financial side of a company is separate from the rest and is managed by the financial department.

A sensitivity test in this context is to test (simulate) the impact various factors have on, e.g. the result. One poses the question "What if …?"

The break-even point is when:

In terms of finances, the book states that a company's eternal dilemma is:

If one lowers the gross margin:

Enough profits mean one is able to ensure that the share of ……… does not shrink, which strengthens, or even improves, the company's resilience in the face of setbacks.

Post-purchase, cash and advanced are three payment alternatives which impact liquidity. Put them in order, starting with the one which has the most positive impact:

How much money will be tied up in the inventory and receivables. In other words, how much ……… will be required?

The book argues in the Financial ABC's that the purpose of the business model is to prevent "silo thinking" between the various parts. This implies that:

The expression "cash is king" means:

The aggregate anticipated revenue from a variety of sources that the proposition could pull in is referred to in the BMC as ………?

Persuading one's customers to pay in cash is good, but persuading them to pay in advance is even better.

The break-even point is calculated by identifying the volume or turnover at which: Note from Sarah: please verify that these acronyms are correct. I wasn't sure if RC and FC were correct in English) TR = total revenue; TC = total costs; FC = ? RC = ?