Ch 2 Quiz

Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company? a) subscription b) affiliate c) advertising d) transaction fee

a) subscription

The element of a business model that is responsible for making the model work is: a) the management team b) the firm's key competitive advantage c) the organizational structure d) the market strategy

a) the management team

The existence of a large number of competitors in any one market segment may indicate: a) the market is saturated b) a market that has already been tried without success c) no one firm has differentiated itself within that market d) an untapped market niche

a) the market is saturated

Stickiness is an important attribute for which revenue model? a) subscription revenue model b) advertising revenue model c) transaction fee revenue model d) sales revenue model

b) advertising revenue model

What is the primary revenue model for an e-distributor? a) advertising b) sales c) subscription d) transaction fee

b) sales

All of the following use an advertising revenue model *except*: a) Yahoo b) Facebook c) Google d) Amazon

d) Amazon

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as: a) venture capital investors. b) angel investors c) crowdfunders d) incubators

d) incubators

A firm's ________ describes how a firm will produce a superior return on invested capital. a) value proposition b) competitive advantage c) market strategy d) revenue model

d) revenue model

Which of the following are Amazon's primary value propositions? a) reduction of price discovery cost b) personalization and customization c) management of product delivery d) selection and convenience

d) selection and convenience

________ and ________ are typically the most easily identifiable aspects of a company's business model. a) value proposition; competitive environment b) market strategy; market opportunity c) revenue model; market strategy d) value proposition; revenue model

d) value proposition; revenue model