Entrepreneur Test 2

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

• commercialization plan

• business model

• business plan

• tactical model

Which of the following is the proper sequence for when a firm should develop a business model?

• Preparation of the business model, initial validation of the business idea, opportunity recognition

• Initial validation of the business idea, establishing a growth plan, preparation of the business model

• Initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm

• Opportunity recognition, fleshing out the operational details of the firm, preparation of the business model

In regard to business models, which of the following statements is incorrect?

• There is a standard business model that most firms follow.

• A firm's business model is inherently dependent on the collection of resources it controls and the capabilities it possesses.

• It is dangerous for a company to assume that it can be successful by simply copying the business model of another firm.

• A firm's business model is its plan or diagram for how it competes.

The two general categories of business models are and .

• normal; unique

• standard; disruptive

• ordinary; revolutionary

• customary; unique

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

• Revolutionary

• Normal

• Customary

• Standard

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 abusiness model.

• standard

• disruptive

• normal

• temporary

Which of the following statements about business models is incorrect?

• There are two general types of business models.

• There is no perfect business model.

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

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

refers to the number of subscribers that a subscription-based business loses each month.

• Agitate

• Churn

• Erosion

• Attrition

Which of the following firms has a peer-to-peer business model?

• Dell

• Dropbox

• Airbnb

• Salesforce.com

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.

• Disruptive

• Normal

• Unique

• Incomparable