13 Business Models

What is a business model?

• A company's plan for making a profit

• A financial report

• A type of investment strategy

• A marketing campaign

Which of the following is an example of a subscription business model?

• Spotify

• Costco Wholesale

• DLA Piper LLP

• Ford Motor Company

What does the term 'value proposition' refer to in a business model?

• The description of goods or services offered

• The cost of goods sold

• The target market

• The company's revenue streams

Which business model involves selling a durable product below cost?

• Marketplace

• Franchise

• Razor Blade

• Brokerage

What is a key component that businesses should regularly update?

• Their employee handbook

• Their product line

• Their business model

• Their marketing strategy

Which of the following is NOT a type of business model mentioned?

• Freemium

• Fee-for-Service

• Crowdfunding

• Direct Sales

What is the primary lever of a business model?

• Customer service

• Product development

• Pricing and costs

• Marketing and sales

Which company is an example of a brokerage business model?

• Domino's Pizza

• Spotify

• Apple

• Re/Max

What is the purpose of evaluating a company's gross profit?

• To determine employee satisfaction

• To assess the company's market share

• To evaluate the success of a business model

• To analyze customer feedback

What is a common mistake companies make when creating business models?

• Ignoring competition

• Underestimating funding costs

• Overestimating market demand

• Focusing too much on marketing