question

1) ________ and ________ are typically the most easily identifiable aspects of a company's business model.

answer

B) Value proposition; revenue model

question

3) Which element of the business model addresses what a firm provides that other firms cannot?

answer

D) value proposition

question

4) Which element of the business model refers to the presence of substitute products in the market?

answer

B) competitive environment

question

5) Which of the following represent Amazon's primary value proposition(s)?

answer

B) selection and convenience

question

6) A firm's ________ describes how a firm will produce a return on invested capital.

answer

B) revenue model

question

7) Which of the following is an example of the subscription revenue model?

answer

A) Scribd

question

8) Stickiness is an important attribute for which of the following revenue models?

answer

A) advertising revenue model

question

9) Which of the following companies use a transaction fee revenue model?

answer

B) E*Trade

question

10) Which of the following is an example of the affiliate revenue model?

answer

D) MyPoints

question

11) Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?

answer

C) freemium strategy

question

12) Which of the following is not a significant influence on a company's competitive environment?

answer

C) the availability of supportive organizational structures

question

13) All of the following would be considered a direct competitor of Priceline except:

answer

D) ESPN.

question

14) The existence of many competitors in any one market segment may indicate:

answer

B) the market is saturated.

question

15) All of the following can be considered a direct or indirect competitor of Amazon except:

answer

D) Priceline.

question

16) A perfect market is one in which:

answer

A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

question

17) Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

answer

C) incubators.

question

18) A ________ specifically details how you plan to find customers and sell your product.

answer

D) market strategy

question

19) Which of the following was not able to successfully implement a freemium business model?

answer

D) Baremetrics

question

20) All of the following may lead to a competitive advantage except:

answer

C) fewer products.

question

21) Which of the following is an unfair competitive advantage?

answer

A) brand name

question

22) Which of the following gives a business model the most credibility with outside investors?

answer

A) the firm's management team

question

23) Which of the following statements about Foursquare is not true?

answer

D) In 2016, Foursquare decided to refocus its effort on developing a subscription-based revenue model.

question

24) Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

answer

D) venture capital investors

question

25) Which of the following is another name for a revenue model?

answer

C) financial model

question

26) All of the following use a social network marketing strategy except:

answer

D) Amazon.

question

27) The use of a company's competitive advantage to penetrate surrounding markets is known as ________.

answer

C) leverage

question

28) A wealthy individual who invests personal funds in a start-up in exchange for an equity share in the business is referred to as a(n) ________.

answer

B) angel investor

question

29) Which of the following is not a key element of an elevator pitch?

answer

C) legal structure

question

40) Which of the following is not a community provider?

answer

C) Blue Nile

question

42) An example of a company using the content provider model is:

answer

B) Rhapsody.

question

43) Which of the following is not an example of the bricks-and-clicks e-tailing business model?

answer

C) Bluefly

question

45) In general, the key to becoming a successful content provider is to:

answer

A) own the content being provided.

question

47) All of the following use an advertising revenue model except:

answer

D) Amazon.

question

48) Which of the following is not considered a portal?

answer

C) Amazon

question

49) Portals primarily generate revenue in all of the following ways except:

answer

C) sales of goods.

question

50) The basic value proposition of community providers is:

answer

A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.

question

51) eBay uses all of the following business models except:

answer

C) content provider.

question

52) All of the following are business models employed in the online music industry except:

answer

B) peer-to-peer streaming.

question

53) The financial services, travel services, and job placement services industries typically use the ________ business model.

answer

B) transaction broker

question

54) In the ________ business model, a web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.

answer

A) market creator

question

57) All of the following are examples of business-to-business (B2B) business models except:

answer

D) portals.

question

58) What is the primary revenue model for an e-distributor?

answer

A) sales

question

59) Amazon is an example of which of the following business models?

answer

C) e-distributor

question

60) ________ create and sell access to digital markets.

answer

C) E-procurement firms

question

61) Which of the following may offer its customers value chain management software?

answer

B) e-procurement companies

question

62) Over the past decade, the number of exchanges has:

answer

B) diminished sharply.

question

63) TheSeam is an example of a(n):

answer

C) industry consortium.

question

64) A ________ marketplace supplies products and services of interest to particular industries.

answer

D) vertical

question

67) Which business strategy involves implementing a new, more efficient set of business processes that other firms cannot yet obtain?

answer

A) strategy of cost competition

question

68) Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

answer

A) global reach

question

69) Which of the following is not a primary activity in a firm value chain?

answer

B) finance/accounting

question

70) A ________ is a networked business ecosystem that coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.

answer

C) value web

question

71) If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

answer

A) enable individual customization of the product by consumers.

question

72) A strategy designed to compete within a narrow market or product segment is called a ________ strategy.

answer

D) focus

question

73) ________ technologies are technologies that enable the incremental improvement of products and services.

answer

A) Sustaining

question

74) Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.

answer

C) disruptors

Chapter 2 Quiz 1 Econ 139A – Flashcards

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