Business Plan: Channels, Revenue & Cost Quiz

Expenses are things the business will have to buy to keep the business running.

• True

• False

A business model involves...

• how you will structure your distribution to determine its feasibility including the details of how your channels to retailers will operate.

• how you will structure your business to determine its feasibility including the details of how your business will operate.

• how you will structure your promotions to determine its feasibility including the details of how your promotions will operate.

• how you will structure your customer service to determine its feasibility including the details of how your customers will operate.

Revenue is the amount of money a business receives during a specific time period after expenses.

• True

• False

You will need to set up a cost structure for your business so that you can ensure that you have a profit.

• True

• False

Revenue streams are...

• the two methods by which money comes into a company.

• the multiple methods by which money comes into a company.

• the individual methods by which money comes into a company.

• the five methods by which money comes into a company.

Distribution channels are the various ways through which a product can reach a customer.

• True

• False

Variable expenses are expenses that change based on the amount of goods or services a business sells.

• True

• False

All of the following are examples of Revenue Streams, except:

• Subscription Fees

• Renting/Leasing

• Freemium Models

• Accounting Department

Wholesaling businesses buy goods in very large batches and resell the goods in smaller batches to customers other than the final buyers.

• True

• False

Three types of variable expenses are:

• materials, labor and other variable expenses

• revenue, cost, channels

• employees, customers, market research

• land, capital, resources