ENT Quiz questions Chapter 7,8,9,10,12,16

This is not one of the key revenue drivers mentioned in the chapter

Competitors

_______ requires the business owner to figure all costs of the product, and then adding an expected profit by predicting sales volume to estimate an approximate price

Cost-led pricing

This part of the business model requires entrepreneurs to focus on a target market

Customers

For this type of pricing, prices are guided by other business' selling the same or very similar products or services

competition-led pricing

The key to sustaining a new business is to create:

consistent revenue streams

These types of costs need to be considered when looking at cost drivers

cost of goods sold and operating expenses

If these get to high, the freemium business model will not work

costs of supporting free customers

If these get too high, the freemium business model will not work

costs of supporting free customers

Market segments and target markets describe this part of the business model

customers

The chapter suggests that entrepreneurs apply ______ to the customer value proposition

design thinking

This type of customer is anyone who can veto or slow down a purchasing decision

saboteurs

In the chapter, we learned that there is(are) ________ to calculate the best price for a product or service

several methods

The scientific process of experimentation, which is very useful to entrepreneurs, has how many steps?

six

the rules of experimentation suggest:

six pieces of information saying the same thing be a fact

Storyboarding is a creative way for entrepreneurs to:

solve customer problems

In the suggested rules of experimentation, the focus should be on the:

stakeholders

This is an early form of prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawing, sketches, or illustrations

storyboarding

Disassembling a product or deconstructing an idea are examples of the _____ type of experiment

take apart products, processes, and ideas

The case study in the chapter reinforced the benefits of:

Experimentation

CVP stands for customers value program

False

Companies cannot generate revenue by profiting from "free"

False

In the chapter, the rules of experimentation suggest asking a minimum number of questions, to avoid confusing the customers and employees

False

The best place to begin to find out the "going rate" of a product you want to sell is to ask your customers what they want to pay

False

The chapter describes four common types of experiments

False

The second most important part of the business model is the Customer Value Proposition

False

the implementation phase focuses on late stage, high-cost testing, and experimentation to strengthen ideas

False

Using the PSB framework from the chapter, which question is not needed?

How many sales are need to break even?

This statement is also known as the profit and loss statement

Income statement

The three types of value propositions listed in the chapter include all of the following except:

Internal and external analysis

Which of the following is not one of the three necessary qualities of a customer value proposition?

It must be unique

In the business model canvas, this process is included in infrastructure

Key activities

Those companies outside of the business which are critical to its success would be called _____ in the business model canvas

Key partners

Based on the reading, this company was created to solve the problem of the customer's time spent waiting, using a customer value proposition process

MinuteClinic

This type of market is a type of free model, which involves giving a product or service to one party for free, but charging the other party or parties

Multiparty business

In the business model canvas, how many components are listed?

Nine

This framework is described in the chapter

Problem-solution-benefit

________ is the difference between revenue and expense

Profit

This revenue model is a variation of the unit sales revenue model

Razor-and-razor-blade model

This factor was mentioned as a reason for the success of Chicago Food Plant Food Tours' in the chapter

Reasonable startup cost, 2-3 days intensive courses for owners, and over 100 locations in over 20 countries

______ is defined as income gained from sales of good or services

Revenue

A ______ is a key component of the business model and identifies how the company will earn income and generate profits

Revenue model

This method of calculating prices is based on setting a price based on the amount of investment you have put into your business

Target-return pricing

This company was noted in the chapter for creating a CVP that provided low-cost cars for the people of India

Tata Motors

When customers are asked to try a sample of a new product or use a product for the first time in the marketplace, then this type of experimentation is occurring

Test ideas through pilots and prototypes

This type of pricing is created to encourage people to try a new product with a special deal

The introductory offer

Which part of the CVP describes exactly what products of services a business offers and sells to customers?

The offering

The advertising revenue model relies on the amount of revenue gained through ______ products and services

advertising

Which entrepreneur was famous for storyboarding?

Walt Disney

A successful customer value proposition process would include asking which question first?

What job is the customer trying to get done?

The keys to a successful business model is focusing on ________ and __________

What the customer wants/where they are going

This is a reason why some entrepreneurial firms choose not to experiment

it is seen as risky, it may require a tradoff between short-term loss and long term gain, and fear of failure

This characteristic is not required for the customer value proposition:

it must beat all competitors' prices

The rules of experimentation point out the necessity of:

keeping track of all data

High tech products, such as DNA testing kits and solar energy panels would fall under this problem experienced by customers, which could be solved by a well-thought out customer value proposition

lack of skills ---> actually quiz answer is Lack of Access (use this ans if an option)

In the customer value proposition process, the four problems experienced by customers include all of the following except:

lack of time lack of choice <---ANSWER lack of money lack of access

This type of experimentation can test the validity of an idea with little impact on the bottom line

limited, low cost experimentation

The business _______ supports the business ________

plan/model

Testing a hypothesis is not just about gathering data - it also involves:

potentially adapting the original assumptions to better understand the customer target base

This is the best way to figure out the underlying factors that will drive revenue for your business

Actively testing assumptions and hypotheses

Which steps occurs early in the scientific process of experimentation

Asking lots of questions

BMC stands for:

Business Model Canvas

Which item is the best source of information to use when making business decisions as the result of experimentation?

Data

Companies that generate revenue by selling high-quality, exclusive, valuable information to other parties are using this revenue model

Data revenue model

This type of market offers services to serve two or more customer segments with differing needs, which bear no relationship to each other

Diversified market

Entrepreneurs:

Do not need expensive systems to generate data, can use small scale experiments, and should remember that failure is important, for if you cannot fail, you cannot learn.

This question would identify the buying behavior of a target customer

Does your customer buy products spontaneously?

This ethical concern needs to be addressed in experimentation

Treating the participants with dignity, not deceiving or harming participants, and all laws must be followed

A business plan is not the same as a business model

True

All businesses share the need to generate revenue

True

Channels are not one of the nine components of the business model canvas.

True

Entrepreneurs can use hypothesis testing to identify customers

True

It is equally important for entrepreneurs to understand what is driving their revenues as well as their costs

True

The fist part of the business model is the offering.

True

The key to pricing is to ensure that you make a profit

True

The scientific process of experimentation can be very useful to entrepreneurs

True

When identifying your target customer, you should ask: What age is your customer?

True

This type of pricing involves pricing a product based on how it benefits the customer

Value-based pricing

This step comes toward the end in the scientific process of experimentation

analyzing data

In scientific experimentation, this process comes after hypothesis testing

analyzing the data

In the chapter, rocket internet financially supports duplicate versions of proven business models. This case study is an example of issues involving:

business ethics

A ________ is a conceptual framework that describes how a company creates, delivers, and extracts value

business model

A ________ is a formal document that provides background and financial information about the company, outlines your goals for the business, and describes how you intend to reach them.

business plan

Taking action, trying something new, and building that learning into the next iteration is a description of:

experimentation

Entrepreneurs should remember this about failure:

failure results in valuable learning

In the scientific method, drawing conclusions may occur before hypothesis testing

false

Revenues and cost structures are a part of this aspect of the business model

financial viability

In the business model canvas, when is the value proposition introduced?

first

If one business allows another party to trade under its name, then the _____ is being used

franchising revenue model

This is not one of the ideas for direct cross-subsidies

give away services, sell products, give away software, sell hardware, give away the drinks, sell the show

The CVP is about finding a _________ and then proposing a way to fulfill it

goal

Often consumers are influence by this type of customer who can encourage purchasing decisions, buy many have no involvement in the production or creation of the product

influencers or opinion leaders

often consumers are influenced by this type of customer who can encourage purchasing decisions, but may have no involvement in the production or creation of the product

influencers or opinion leaders

______ is the part of the business model that all resources that an entrepreneur must have in order to deliver the CVP

infrastructure

Storyboarding requires that _____ be at the center of the story

the customer

This type of pricing is set to offer a product or service at a below-cost price in an attempt to attract more customers

the loss leader

According to Amazon founder and CEO Jeff Bezos, experiments are useful because:

they rarely turn out as you expect, they are key to innovation, you learn so much

An experiment begins with a hypothesis

true

People often mistakenly think that a business model is just about revenue and costs

true

In this type of experiment, the results can broaden our minds so we can make connections, expand our knowledge, and become more innovative

trying our new experiences

Business models help entrepreneurs generate:

value and scale