Business Model Foundations Quiz

What does a business model explain?

• How a firm creates, delivers, and captures value

• Only how products are manufactured

• Only how customers are targeted

• Only how profit is calculated

Strategy mainly focuses on:

• Accounting practices

• Competitive positioning

• Customer service

• Internal operations

Value creation occurs when:

• Costs are reduced

• Customer needs are satisfied

• Competitors leave the market

• Marketing increases

Value capture refers to:

• Customer satisfaction

• How firms earn returns

• Branding activities

• Market research

A business model connects:

• Customers, resources, and processes

• Marketing and accounting

• Production and logistics

• Employees and managers

Innovation in business models often involves:

• Hiring more staff

• Changing how value is delivered or captured

• Increasing advertising

• Expanding buildings

Weak business models can:

• Improve performance

• Strengthen innovation

• Undermine good ideas

• Reduce competition

Value can be:

• Only financial

• Only operational

• Economic, social, or experiential

• Only customer satisfaction

Managers use business models primarily to:

• Replace strategy

• Guide decision-making

• Reduce employees

• Control marketing

Value capture is strongly influenced by:

• Pricing decisions

• Employee uniforms

• Office layout

• Customer age