MHR 322: Business Models: Quiz

Which part of the Business Model Canvas describes all costs incurred to operate a business model?

Cost structures

Which part of the Business Model Canvas describes the types of relationships a company establishes with specific customer segments?

Customer relationships

Which part of the Business Model Canvas describes the different groups of people or organizations an enterprise aims to reach and serve?

Customer segments

An example of a 'Consumables' business model would be a free website that sells your information to advertisers.

False

Calculating total addressable market for follow-on markets is essential relatively early in the venturing process because you need to be prepared to pivot if your beachhead market does not develop as expected.

False

Giving away your product or service for free can be a viable business model as long as you sort out how to monetize it later.

False

Once you have identified your beachhead market, you should identify 10-12 adjacent markets and calculate TAM for each.

False

The 17 business models presented in Disciplined entrepreneurship represent the full set of possible business models you should consider for your venture.

False

Customers may be resistant to purchasing a new or unfamiliar product. Steps that you can take to overcome this resistance include:

Make it compatible with existing customer behavior

Which business model relies on the customer providing their credit card or billing information in advance and then being charged for small purchases, usually of digital goods with no physical value?

Microtransactions

Which of the following is the best definition of a business model?

The rationale of how an organization creates, delivers, and captures value.

The business model you select and implement for your venture will have a significant impact on both whether you need to raise external capital as well as how you raise external capital.

True

When mapping the process to acquire a paying customer, you should note whether payment will come from the customer's yearly operating budget or from the customer's long-term capital budget.

True

Which part of the Business Model Canvas describes the bundle of products and services that create value for a specific customer segment?

Value proposition

Which business model is the most common for service firms because it rewards short-term activity rather than scaling up?

Hourly Rates

In "A Broken Place," the article about Better Place and entrepreneur Shai Agassi, a key lesson about building a viable business model for a new venture is that:

It is very difficult to get consumers to change their behavior

Which part of the Business Model Canvas describes the most important things a company must do to make its business model work?

Key activities

Which part of the Business Model Canvas describes the most important assets required to make a business model work?

Key resources

The best way to figure out the decision-making unit is to talk to your potential customers.

True

All of the following are primary roles in the decision-making unit EXCEPT:

Purchasing agent

Which of the following is NOT one of the 9 building blocks of the Business Model Canvas?

Team

Which of the following is NOT one of the 9 building blocks of the Business Model Canvas?

Technology

The decision maker who will sign off on spending money

The decision maker who will sign off on spending money

In her talk on why business models matter, Ann Miura-ko of Floodgate Ventures says that she likes to see a business model for a new venture because it shows:

The key assumptions and hypotheses about why the venture could succeed.

In the decision-making unit, a champion is:

The person who wants the customer to purchase the product

What is the best definition for the Primary Economic Buyer?

The person with the authority to spend money to purchase the product

A business model is a framework by which you capture value from customers based on the product or service you sell.

True

Calculating the total addressable market size for follow-on markets helps you stay aware of the long-term potential of your business

True

It is important to carefully consider your new venture's business model because it you many options to choose from and it is difficult to change your business model later.

True

Mapping the process to acquire a paying customer can help you identify hidden obstacles that inhibit your ability to sell your product.

True

One of the most important reasons to map out the process to acquire a paying customer is to understand the length of the sales cycle.

True