1. Business ModelChoose One • 4 pointsWhat is a general definition of a business model?A plan designed to facilitate employee payroll and benefits A plan created and executed by a company to genera

1. Business Model

Choose One • 4 points

What is a general definition of a business model?

• A plan designed to facilitate employee payroll and benefits
• A plan created and executed by a company to generate revenues and profits
• A blueprint for the accounting department to track expenses and taxes
• A report given by upper management to the board of directors of a company

2. Value Proposition

Choose One • 4 points

What is meant by a ‘value proposition’ provided by a company?

• The value of a company based on the price of its stock
• The amount of money needed to start up (capitalize) the business
• The brand identity of the products /services that meet a need of its customer segments
• The cost of doing business, including all the expenses

3. Customer Segments

Choose One • 4 points

What is meant by a target customer or customer segment?

• Those who prefer to shop in stores rather than online
• Any person of any age who can afford to buy the company’s products
• People who keep up with advertising and are smart about brands
• Specific demographics of people to whom the company wants to sell its products or service

4. Elements

Choose One • 4 points

How many building blocks or elements of a business model are there, according to the ‘business model canvas’?

• Five
• Six
• Nine
• Ten

5. Capturing Value

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What is meant by a company ‘delivering and capturing value’ for customers?

• A product or service that solves a problem for specific customers
• A product or service that meets a need of specific customers
• Both of the above
• None of the above

6. Customer Definitions

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In marketing or branding, a broad group of customers with similar needs, problems and interests is a:

• Mass, undifferentiated market
• Niche, differentiated market
• Duplicative market
• Non-commercial market

7. Defining Customers

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A small group of customers with specific requirements and focused interests and preferences is:

• Mass, undifferentiated market
• Niche, differentiated market
• Unvalued audience
• Cross-over market

8. Defining the Elements (A)

Choose One • 4 points

The means by which a company delivers its products/services to specific customers is:

• The value proposition
• Channels of distribution
• Key partnerships
• Customer relationships

9. Defining Elements (B)

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The means by which a company acquires customers, retains customers and generates repeat sales is: 

• The Value Proposition
• Channels of Distribution
• Key Partnerships
• Customer Relationships

10. Defining Elements (C)

Choose One • 4 points

The most important things that a company must do in order to create, produce, market and deliver products, to make its business work, are:

• Key Partnerships
• Key Activities
• Key Resources
• Value Proposition

11. Defining Elements (D)

Choose One • 4 points

The materials or assets that a company must have – human, financial, physical or intellectual – to make its business model work are:

• Key Activities
• Key Partnerships
• Key Resources
• Customer Relationships

12. Costs

Choose One • 4 points

The costs of doing business that remain the same, regardless of how much product is made, such as salaries, rent, or manufacturing facilities are called:

• Variable costs
• Fixed costs
• Above the line costs
• Below the line costs

13. Costs Types

Choose One • 4 points

The business costs that can change due to the amount of product or services produced/ sold, such as raw materials, shipping or attendance are called:

• Above the line costs
• Below the line costs
• Fixed Costs
• Variable Costs

14. Revenues

Choose One • 4 points

The amount of revenue remaining after all costs have been deducted and bills paid is:

• Gross revenues generated
• Cost of doing business
• Net revenue or profit
• Capitalization

15. Business Analysis

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The analysis that allows a company to do an environmental scan of the outside forces and trends that affect a business and indicate the business model may need adjustment is:

• SWOT
• PEST
• COST
• Variable

16. Analysis Types

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The type of business analysis that examines a company or product line’s weaknesses, strengths, threats and opportunities is known as a:

• WSTO
• PEST
• SWOT
• COST

17. Trend Forces (A)

Choose One • 4 points

If the national Congress or state passes new laws that affect corporate taxes, business regulation, safety or health restrictions, or if the U.S. becomes involved in a war abroad, what type of force or trend is it?

• Economic
• Political
• Technological
• Social

18. Trends Forces (B)

Choose One • 4 points

If there is a major bank failure, a recession, a shortage of gasoline, growing unemployment or a rally of the U.S. stock market, what type of force or trend is it?

• Economic
• Political
• Socal
• Technological

19. Trends Forces (C)

Choose One • 4 points

If the operating system of a product is updated, the way it is delivered to customers goes online or a competitor develops a more streamlined product, what type of force or trend is it?

• Economic
• Social
• Technological
• Political

20. Trends Forces (D)

Choose One • 4 points

When there is a generational shift in the age of target customers, changes cultural values

or a shift in ethnic population, what type of force or trend is it?

• Economic
• Technological
• Social
• Political

21. Business Patterns (A)

Choose One • 4 points

There are different ‘patterns’ in business models.  When a company brings two or more groups of customers together, facilitates interactions between them, and takes a fee or commission, it is a:

• Open business model
• Unbundled corporation
• Multi-sided pattern
• Free model

22. Business Patterns (B)

Choose One • 4 points

When a company sells or moves a large volume of products overall, but in small amounts of any one product (some big ‘hits’ and some not hits), to a range of niche customers it is a:

• Long tail pattern
• Closed model
• Unbundled pattern
• Bait and switch pattern

23. Conglomerates

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When a conglomerate integrates the same product or brand over many platforms in several of its divisions or business units, it is known as:

• Capitalization
• Syndication
• Dollar-cost average
• Vertical integration

24. Celebrities

Choose One • 4 points

The business success of brands built around personalities, stars or on professional sports teams, is due in large part to:

• Emotional connection to fans/customers
• Strong financial foundation
• Good management
• Superior talent

25. Emotion-based Needs

Choose One • 4 points

Marketing and advertising often exploit emotion-based needs of potential customers.  Emotion-based needs include:

• Age, gender, ethnicity
• Education, income, IQ
• Hobbies, interests, skills
• Greed, fear, love, pride, guilt