Chapter 4:Developing an Effective Business Model (L6)

1) A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.

• A) commercialization plan

• B) business model

• C) business plan

• D) launch plan

• E) tactical model

2) The two general categories of business models are ________ and ________.

• A) normal; unique

• B) standard; disruptive

• C) ordinary; revolutionary

• D) customary; unique

• E) ordinary; disruptive

3) ________ business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.

• A) Revolutionary

• B) Normal

• C) Customary

• D) Disruptive

• E) Standard

4) Brandon Jones has crafted a business model for his firm that is based on an existing plan or template for how firms in his industry create, deliver and capture value for their shareholders. Brandon has crafted a ________ business model.

• A) standard

• B) disruptive

• C) customary

• D) normal

• E) temporary

5) Which of the following statements about business models is incorrect?

• A) There are two general types of business models.

• B) There is no perfect business model.

• C) Most of the standard business models have been in place for some time.

• D) A firm's business model is confined to its own boundaries.

• E) Firms should guard themselves against thinking that one particular business model is a "home run" regardless of circumstances.

6) ________ business models are ones that do not fit the profile of standard business models, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.

• A) Disruptive

• B) Normal

• C) Unique

• D) Incomparable

• E) Exceptional

A ………….. is a plan for the successful operations of a business.

• (A) Business model

• (B) Feasibility analysis

• (C) Innovation model

……………………gives you a way to create a business model by using a single sheet of paper.

• (A) Business operational model

• (B) Business plan

• (C) Business Model Canvas

Business model canvas should be used because it is easy to understand, focused, flexible, customer focused, shows connections, and ...........

• (A) Easy to follow

• (B) Easy to adopt

• (C) Easy to communicate

A business model canvas consists of ………. building blocks

• (A) Six

• (B) Seven

• (C) Nine