Question 1

What of the following is not a component of the Business Model Canvas?

Accepted Answer

A)   Key partners
B)   Customer relationships
C)   Cost structure
D)   Investor financing
E)   Revenue stream D

Question 2

The Business Model Canvas is a blueprint to help businesses to implement new strategies.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following are keys to successful franchising.

Accepted Answer

A)   Replicability
B)   Financing
C)   Control
D)   B and C
E)   A and C f)  All of the above E

Question 4

Discuss some check points an entrepreneur should confirm before expanding a product mix

Accepted Answer

The answer of Discuss some check points an entrepreneur should...

Question 5

A business strategy that maximizes long tail theory would focus on initial high sale numbers that taper off quickly.

Accepted Answer

A) True 
 B)False

Question 6

Online ventures are not considered global ventures until they reach $10 million in sales.

Accepted Answer

A) True 
 B)False

Question 7

What is long tail theory and how has a company like Amazon used it successfully?

Accepted Answer

The answer of What is long tail theory and how...

Question 8

People are the most critical component of any new or existing venture.

Accepted Answer

A) True 
 B)False

Question 9

What is the Lean Canvas, and how does it differ from the Business Model Canvas?

Accepted Answer

The answer of What is the Lean Canvas, and how...

Question 10

The 'tail' of the long tail theory refers to what type of company?

Accepted Answer

A)   Mainstream mass markets sales with high sales
B)   Specialty products that experience a short lived spike in sales
C)   Specialty products that have low sales numbers but continue for a longer period of time
D)   A and C
E)   None of the above.

Question 11

The Lean Canvas is better suited for existing businesses and is not an appropriate tool for startups.

Accepted Answer

A) True 
 B)False

Question 12

What is the side effect of a positive work culture?

Accepted Answer

A)   Open communication and job satisfaction encourages innovation
B)   Decreases turnover (lower costs for training new employees) 
C)   Team unity fosters cooperation and between employees
D)   Satisfied employees are more willing to work longer hours to get the job done
E)   All of the above

Question 13

Which business was mentioned in the chapter as having maximized on the benefits of long tail theory?

Accepted Answer

A)   Amazon
B)   Walmart
C)   Microsoft
D)   Blackberry
E)   General Electric

Question 14

To successfully exploit being a first mover, one must be able to:

Accepted Answer

A)   Mass sufficient resources (people, cash, expertise)  to open and develop a market in order to identify and secure the dominate position
B)   Obscure your efforts from competitors until the last possible moment before publicizing your offering to minimize competitors' time to respond
C)   Resist installing to much operating leverage until you've identified the new market's dominate position
D)   Be prepared to defend the dominate market position through legal means, raising entry costs, or increasing the customers cost of switching.
E)   All of the above f)  None of the above

Question 15

Long tail theory is focused on cultural shift away from mainstream products towards specialty products and services.

Accepted Answer

A) True 
 B)False

Exam 4: Understanding Your Business Model and Developing Your Strategy

What of the following is not a component of the Business Model Canvas?

The Business Model Canvas is a blueprint to help businesses to implement new strategies.

Which of the following are keys to successful franchising.

Discuss some check points an entrepreneur should confirm before expanding a product mix

A business strategy that maximizes long tail theory would focus on initial high sale numbers that taper off quickly.

Online ventures are not considered global ventures until they reach $10 million in sales.

What is long tail theory and how has a company like Amazon used it successfully?

People are the most critical component of any new or existing venture.

What is the Lean Canvas, and how does it differ from the Business Model Canvas?

The 'tail' of the long tail theory refers to what type of company?

The Lean Canvas is better suited for existing businesses and is not an appropriate tool for startups.

What is the side effect of a positive work culture?

Which business was mentioned in the chapter as having maximized on the benefits of long tail theory?

To successfully exploit being a first mover, one must be able to:

Long tail theory is focused on cultural shift away from mainstream products towards specialty products and services.