Question 1

________ and ________ are typically the most easily identifiable aspects of a company\'s business model.  A) Market strategy; market opportunity  B) Value proposition; revenue model  C) Competitive advantage; competitive environment  D) Revenue model; market opportunity

Accepted Answer

B

Question 2

All of the following use a subscription revenue model for music except:  A) Spotify.  B) eHarmony.  C) Rhapsody.  D) Pandora.

Accepted Answer

B

Question 3

Which element of the business model addresses what a firm provides that other firms cannot?  A) competitive environment  B) competitive advantage  C) market strategy  D) value proposition

Accepted Answer

D

Question 4

Which element of the business model refers to the presence of substitute products in the market?  A) value proposition  B) competitive environment  C) competitive advantage  D) market opportunity

Accepted Answer

B

Question 5

) Which of the following represent Amazon\'s primary value proposition(s)?  A) personalization and customization  B) selection and convenience  C) reduction of price discovery cost  D) management of product delivery

Accepted Answer

B

Question 6

A firm\'s ________ describes how a firm will produce a return on invested capital.  A) value proposition  B) revenue model  C) market strategy  D) competitive advantage

Accepted Answer

B

Question 7

Which of the following is an example of the subscription revenue model?  A) Scribd  B) eBay  C) E*Trade  D) Twitter

Accepted Answer

A

Question 8

Stickiness is an important attribute for which of the following revenue models?  A) advertising revenue model  B) subscription revenue model  C) transaction fee revenue model  D) affiliate revenue model

Accepted Answer

A

Question 9

Which of the following companies use a transaction fee revenue model?  A) Yahoo  B) E*Trade  C) Twitter  D) Birchbox

Accepted Answer

B

Question 10

Which of the following is an example of the affiliate revenue model?  A) Scribd  B) eBay  C) L.L. Bean  D) MyPoints

Accepted Answer

D

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?  A) advertising revenue model  B) subscription revenue model  C) freemium strategy  D) transaction fee revenue model

Accepted Answer

C

Question 12

Which of the following is not a significant influence on a company\'s competitive environment?  A) how many competitors are active  B) the market share of each competitor  C) the availability of supportive organizational structures  D) how competitors price their products

Accepted Answer

C

Question 13

All of the following would be considered a direct competitor of Priceline except:  A) Travelocity.  B) Expedia.  C) Orbitz.  D) ESPN.

Accepted Answer

D

Question 14

The existence of many competitors in any one market segment may indicate:  A) an untapped market niche.  B) the market is saturated.  C) no one firm has differentiated itself within that market.  D) a market that has already been tried without success.

Accepted Answer

B

Question 15

All of the following can be considered a direct or indirect competitor of Amazon except:  A) eBay.  B) Apple\'s iTunes Store.  C) Walmart.  D) Priceline.

Accepted Answer

D

Question 16

A perfect market is one in which:  A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.  B) one firm develops an advantage based on a factor of production that other firms cannot purchase.  C) one participant in the market has more resources than the others.  D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

Accepted Answer

A

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:  A) angel investors.  B) crowdfunders.  C) incubators.  D) venture capital investors.

Accepted Answer

C

Question 18

A ________ specifically details how you plan to find customers and sell your product.  A) sales analysis  B) business plan  C) competitive strategy  D) market strategy

Accepted Answer

D

Question 19

Which of the following was not able to successfully implement a freemium business model?  A) Pandora  B) Dropbox  C) LinkedIn  D) Baremetrics

Accepted Answer

D

Question 20

All of the following may lead to a competitive advantage except:  A) less expensive suppliers.  B) better employees.  C) fewer products.  D) superior products.

Accepted Answer

C

Question 21

Which of the following is an unfair competitive advantage?  A) brand name  B) access to global markets  C) lower product prices  D) superior technology

Accepted Answer

A

Question 22

Which of the following gives a business model the most credibility with outside investors?  A) the firm\'s management team  B) the firm\'s value proposition  C) the firm\'s market opportunity  D) the firm\'s market strategy

Accepted Answer

A

Question 23

Which of the following statements about Foursquare is not true?  A) Foursquare combines a social network business model with location-based technology.  B) Foursquare has struggled to find profitability.  C) Foursquare\'s business model raises significant privacy concerns.  D) In 2016, Foursquare decided to refocus its effort on developing a subscription-based revenue model.

Accepted Answer

D

Question 24

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?  A) incubators  B) angel investors  C) crowdfunders  D) venture capital investors

Accepted Answer

D

Question 25

Which of the following is another name for a revenue model?  A) business model  B) business strategy  C) financial model  D) financial statements

Accepted Answer

C

Question 26

All of the following use a social network marketing strategy except:  A) Twitter.  B) YouTube.  C) Pinterest.  D) Amazon.

Accepted Answer

D

Question 27

The use of a company\'s competitive advantage to penetrate surrounding markets is known as ________.  A) market strategy  B) differentiation  C) leverage  D) focus

Accepted Answer

C

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) ________.  A) incubator  B) angel investor  C) venture capital investor  D) crowdfunder

Accepted Answer

B

Question 29

Which of the following is not a key element of an elevator pitch?  A) exit strategy  B) growth metrics  C) legal structure  D) market opportunity

Accepted Answer

C

Question 30

Which of the following is not a community provider?  A) LinkedIn  B) Facebook  C) Blue Nile  D) Pinterest

Accepted Answer

C

Question 31

Which of the following is not a variation of the e-tailer business model?  A) bricks-and-clicks  B) virtual merchant  C) market creator  D) manufacturer-direct

Accepted Answer

C

Question 32

An example of a company using the content provider model is:  A) Priceline.  B) Rhapsody.  C) Dell.  D) eBay.

Accepted Answer

B

Question 33

Which of the following is not an example of the bricks-and-clicks e-tailing business model?  A) Walmart  B) Sears  C) Bluefly  D) Staples

Accepted Answer

C

Question 34

In general, the key to becoming a successful content provider is to:  A) own the content being provided.  B) own the technology by which content is created, presented, and distributed.  C) provide online content for free.  D) provide other services as well as online content.

Accepted Answer

A

Question 35

The business model of e-tailers is similar to that of:  A) e-distributors.  B) transaction brokers.  C) exchanges.  D) service providers.

Accepted Answer

A

Question 36

All of the following use an advertising revenue model except:  A) Twitter.  B) Yahoo.  C) Google.  D) Amazon.

Accepted Answer

D

Question 37

Which of the following is not considered a portal?  A) Yahoo  B) MSN  C) Amazon  D) AOL

Accepted Answer

C

Question 38

Portals primarily generate revenue in all of the following ways except:  A) charging advertisers for ad placement.  B) collecting transaction fees.  C) sales of goods.  D) charging subscription fees.

Accepted Answer

C

Question 39

The basic value proposition of community providers is:  A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.  B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers.  C) they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.  D) they increase customers\' productivity by helping them get things done faster and with less expense.

Accepted Answer

A

Question 40

eBay uses all of the following business models except:  A) B2C market creator.  B) C2C market creator.  C) content provider.  D) e-commerce infrastructure provider.

Accepted Answer

C

Question 41

All of the following are business models employed in the online music industry except:  A) subscription.  B) peer-to-peer streaming.  C) download-and-own.  D) cloud streaming.

Accepted Answer

B

Question 42

The financial services, travel services, and job placement services industries typically use the ________ business model.  A) community provider  B) transaction broker  C) market creator  D) e-tailer

Accepted Answer

B

Question 43

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.  A) market creator  B) community provider  C) e-tailer  D) portal

Accepted Answer

A

Question 44

All of the following are examples of business-to-business (B2B) business models except:  A) e-distributors.  B) e-procurement.  C) exchanges.  D) portals.

Accepted Answer

D

Question 45

What is the primary revenue model for an e-distributor?  A) sales  B) transaction fee  C) advertising  D) subscription

Accepted Answer

A

Question 46

Amazon is an example of which of the following business models?  A) B2B service provider  B) exchange  C) e-distributor  D) industry consortia

Accepted Answer

C

Question 47

________ create and sell access to digital markets.  A) E-distributors  B) Portals  C) E-procurement firms  D) Market creators

Accepted Answer

C

Question 48

Which of the following may offer its customers value chain management software?  A) e-distributors  B) e-procurement companies  C) exchanges  D) community providers

Accepted Answer

B

Question 49

Over the past decade, the number of exchanges has:  A) greatly increased.  B) diminished sharply.  C) stayed about the same.  D) increased slowly but steadily.

Accepted Answer

B

Question 50

TheSeam is an example of a(n):  A) private industrial network.  B) exchange.  C) industry consortium.  D) e-distributor.

Accepted Answer

C

Question 51

A ________ marketplace supplies products and services of interest to particular industries.  A) perfect  B) differentiated  C) horizontal  D) vertical

Accepted Answer

D

Question 52

Which business strategy involves implementing a new, more efficient set of business processes that other firms cannot yet obtain?  A) strategy of cost competition  B) scope strategy  C) customer intimacy strategy  D) focus/market niche strategy

Accepted Answer

A

Question 53

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?  A) global reach  B) richness  C) interactivity  D) personalization

Accepted Answer

A

Question 54

Which of the following is not a primary activity in a firm value chain?  A) outbound logistics  B) finance/accounting  C) operations  D) after-sales service

Accepted Answer

B

Question 55

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.  A) value chain  B) value system  C) value web  D) business strategy

Accepted Answer

C

Question 56

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:  A) enable individual customization of the product by consumers.  B) implement a strategy of commoditization.  C) adopt a strategy of cost competition.  D) develop a scope strategy to compete within a narrower market segment.

Accepted Answer

A

Question 57

A strategy designed to compete within a narrow market or product segment is called a ________ strategy.  A) scope  B) differentiation  C) commoditization  D) focus

Accepted Answer

D

Question 58

________ technologies are technologies that enable the incremental improvement of products and services.  A) Sustaining  B) Differentiating  C) Disruptive  D) Commodity

Accepted Answer

A

Question 59

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.  A) crowdfunders  B) venture capitalists  C) disruptors  D) angel investors

Accepted Answer

C

ECON 139A – Chapter 2 – Flashcards

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