BM: 1-2 Types of Business Models

What is the difference between a business model and a business plan?

• D. A business model is a term of art, while a business plan is a full story of the business's goals and objectives

• A. A business model is a roadmap of the business's goals and objectives, while a business plan is how a company sells its products

• B. A business model is how a company sells its products to customers and its plan for making a profit, while a business plan is a roadmap of the business's goals and objectives

• C. A business model is a combination of more than one business plan, while a business plan is simply how a company sells its products to customers

Which type of business model involves selling products directly to customers without third-party retailers or middlemen?

• C. Direct to Consumer (D2C)

• B. Distributor

• D. Wholesaler

• A. Manufacturer

What type of business model does Amazon fall under?

• A. Manufacturer

• B. Distributor

• D. Wholesaler

• C. Online Retailer

Which business model charges a regularly scheduled fee for their products or services?

• A. Freemium

• D. Franchise

• C. Nickel-and-Dime

• B. Subscription

What is the business model where a company offers some basic services for free and then charges money for certain additional features?

• A. Freemium

• B. Subscription

• C. Nickel-and-Dime

• D. Franchise

Which business model collects a fee or commission per transaction for selling the aggregated products through its own platform?

• A. Aggregator

• B. Online Marketplace

• C. Manufacturer

• D. Distributor

What type of business model involves buying large quantities of products from manufacturers or distributors and reselling them to retailers?

• A. Manufacturer

• D. Retailer

• B. Distributor

• C. Wholesaler

Which business model provides low price points for the cost-sensitive consumer?

• D. Franchise

• C. Nickel-and-Dime

• B. Subscription

• A. Freemium

What is the business model that uses an electronic medium to facilitate the buying and selling of products and services by businesses and consumers?

• A. E-Commerce

• D. Advertisement

• B. Aggregator

• C. Online Marketplace

Which business model is used by companies that provide their services for free and sell advertising space to fund their businesses?

• B. Aggregator

• D. Advertisement

• A. E-Commerce

• C. Online Marketplace