Chapter 2 e commerce

Which of the following was not able to successfully implement a freemium business model? Select one: a. Ning b. LinkedIn c. Dropbox d. Pandora

a. Ning

Which of the following would be considered an indirect competitor of Priceline? Select one: a. TripAdvisor b. Travelocity c. Orbitz d. Expedia

d. Expedia

Which of the following is an example of the affiliate revenue model? Select one: a. Scribd b. L.L. Bean c. eBay d. MyPoints

d. MyPoints

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________. Select one: a. venture capital investor b. incubator c. crowdfunder d. angel investor

d. angel investor

All of the following can be considered a direct or indirect competitor of Amazon except: Select one: a. eBay b. Walmart c. Starbucks d. Apple's iTunes Store.

c. Starbucks

An example of a company using the content provider model is: Select one: a. eBay b. Rhapsody c. Priceline d. Dell

b. Rhapsody

All of the following use an advertising revenue model except: Select one: a. Google b. Twitter c. Yahoo d. Amazon

d. Amazon

Which of the following companies uses a transaction fee revenue model? Select one: a. Twitter b. E*Trade c. Sears d. Yahoo

b. E*Trade

Which element of the business model refers to the presence of substitute products in the market? Select one: a. competitive environment b. market strategy c. competitive advantage d. value proposition

c. competitive advantage

Which of the following is an example of the subscription revenue model? Select one: a. eHarmony b. Twitter c. E*Trade d. eBay

a. eHarmony

Which of the following is not a key element of an elevator pitch? Select one: a. legal structure Correct b. market opportunity c. exit strategy d. growth metrics

a. legal structure

All of the following are using a subscription revenue model for music except: Select one: a. Rhapsody b. Scribd Correct c. Spotify d. Pandora

b. Scribd

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue? Select one: a. venture capital investors b. crowdfunders c. incubators d. angel investors

a. venture capital investors

All of the following may lead to a competitive advantage except: Select one: a. better employees. b. fewer products. c. All of the following may lead to a competitive advantage except: d. superior products.

b. fewer products.

Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service? Select one: a. transaction fee revenue model b. freemium strategy c. subscription revenue model d. advertising revenue model

b. freemium strategy

The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________. Select one: a. market strategy b. leverage Correct c. focus d. differentiation

b. leverage

Which of the following is not a variation of the e-tailer business model? Select one: a. manufacturer-direct b. market creator c. bricks-and-clicks d. virtual merchant

b. market creator

Which of the following gives a business model the most credibility with outside investors? Select one: a. the firm's value proposition b. the firm's management team c. the firm's market strategy d. the firm's market opportunity

b. the firm's management team

Which of the following statements about Foursquare is not true? Select one: a. Foursquare combines a social network business model with location-based technology. b. Foursquare began operating without a revenue model. c. Foursquare's business model faces significant intellectual property concerns.

c. Foursquare's business model faces significant intellectual property concerns.

Stickiness is an important attribute for which of the following revenue models? Select one: a. transaction fee revenue model b. subscription revenue model c. advertising revenue model d. sales revenue model

c. advertising revenue model

Which of the following is an unfair competitive advantage? Select one: a. superior technology b. access to global markets c. brand name Correct d. lower product prices

c. brand name

In general, the key to becoming a successful content provider is to: Select one: a. provide other services as well as online content. b. provide online content for free. c. own the content being provided d. own the technology by which content is created, presented, and distributed.

c. own the content being provided

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

c. revenue model

The overall retail market in the United States in 2015 was estimated at about: Select one: a. $480 billion. b. $48 trillion. c. 48 billion. d. 4.8 trillion.

d. 4.8 trillion.

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

d. incubators