lOMoARcPSD|14238370

lOMoARcPSD

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) Value proposition; competitive environment
D) Revenue model; market strategy
2) All of the following are using a subscription revenue model for music except:
A) Spotify.
B) Scribd.
C) Rhapsody.
D) Pandora.
3) Which element of the business model addresses what a firm provides that other firms do
not and cannot?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
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 strategy
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5) Which of the following are Amazon's primary value propositions?

A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
6) A firm's describes how a firm will produce a superior return on invested capital.
A) value proposition
B) revenue model
C) market strategy
D) competitive advantage
7) Which of the following is an example of the subscription revenue model?
A) eHarmony
B) eBay
C) E*Trade
D) Twitter
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) sales revenue model
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9) Which of the following companies uses a transaction fee revenue model?

A) Yahoo
B) E*Trade
C) Twitter
D) Sears
10) Which of the following is an example of the affiliate revenue model?
A) Scribd
B) eBay
C) L.L. Bean
D) MyPoints
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
12) Which of the following factors is not a significant influence on a company's competitive
environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
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13) Which of the following would be considered an indirect competitor of Priceline?

A) Travelocity
B) Expedia
C) Orbitz
D) TripAdvisor
14) The existence of a large number of 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.
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) Starbucks.
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.
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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.
18) A specifically details how you plan to find customers and to sell your product.
A) sales analysis
B) business plan
C) competitive strategy
D) market strategy
19) Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
20) 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
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21) An example of a company using the content provider model is:

A) Priceline.
B) Rhapsody.
C) Dell.
D) eBay.
22) 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
23) The overall retail market in the United States in 2015 was estimated at about:
A) $48 trillion.
B) $4.8 trillion.
C) $480 billion.
D) $48 billion.
24) 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.
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25) Which of the following was not able to successfully implement a freemium business model?
A) Pandora
B) Dropbox
C) LinkedIn
D) Ning
26) All of the following may lead to a competitive advantage except:
A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.
27) Which of the following is an unfair competitive advantage?
A) brand name
B) access to global markets
C) lower product prices
D) superior technology
28) 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
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29) Which of the following statements about Foursquare is not true?

A) Foursquare combines a social network business model with location-based technology.
B) Foursquare began operating without a revenue model.
C) Foursquare's business model faces significant intellectual property concerns.
D) Foursquare has been able to command a high valuation from venture capital investors
despite unimpressive revenue and profits.
30) 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
.

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

A) business model
B) business strategy
C) financial model
D) financial statements
32) All of the following use a social network marketing strategy except:
A) Twitter.
B) YouTube.
C) Pinterest.
D) Amazon.
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33) The use by a company of its competitive advantage to achieve more advantage in
surrounding markets is known as .
A) market strategy
B) differentiation
C) leverage
D) focus
34) A wealthy individual who invests personal funds in a start-up in exchange for an equity stock
in the business is referred to as a(n) .
A) incubator
B) angel investor
C) venture capital investor
D) crowdfunder
35) 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
36) A value proposition defines how a company's product or service fulfills the needs of a
customer.
Answer: TRUE /
FALSE

37) Firms that fail to produce returns greater than alternative investments typically go out
of business.
Answer: TRUE /
FALSE
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38) An asymmetry exists whenever all participants in a market have equivalent

resources. Answer: FALSE/ TRUE
39) First movers are often not as successful as follower firms.
Answer: TRUE/ FALSE
40)
41) All firms need an organization to efficiently implement their business plans and strategies.
Answer: F A L S E / TRUE

42) The JOBS Act and issuance of enabling regulations by the Securities and Exchange
Commission allows a start-up company to use crowdfunding to solicit accredited investors to
invest in small and early-stage start-ups.
Answer:FALSE/
TRUE
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43) The business model of e-tailers is quite similar to that of:

A) e-distributors.
B) transaction brokers.
C) exchanges.
D) service providers.
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44) All of the following use an advertising revenue model except:

A) Twitter.
B) Yahoo.
C) Google.
D) Amazon.
45) Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) Amazon
D) AOL LO:
2.2: Describe the
major B2C
business models.

46) 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.
47) 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
more cheaply.

12
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48) 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.
49) 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.
50) 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
51) 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
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52) On-demand service companies are characterized by the free sharing of resources between the
company and consumers.
Answer: FALSE/
TRUE
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53) All of the following are examples of business-to-business (B2B) business models except:
A) e-distributors.
B) e-procurement.
C) exchanges.
D) e-tailers.
54) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
55) W.W. Grainger is an example of which of the following business models?
A) B2B service provider
B) exchange
C) e-distributor
D) industry consortia
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56) create and sell access to digital markets.

A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators
57) Which of the following may offer its customers value chain management software?
A) e-distributors
B) e-procurement companies
C) exchanges
D) community providers
58) 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.
59) SupplyOn is an example of a(n):
A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.
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60) A marketplace supplies products and services of interest to particular industries.

A) perfect
B) differentiated
C) horizontal
D) vertical
61) SaaS and PaaS providers can typically provide services at lower costs through
scale economies.
Answer: TRUE /
FALSE
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62) 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
63) 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
64) 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
Difficulty: Moderate
65) 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
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66) 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.
67) A strategy designed to compete within a narrow market or product segment is called a
strategy.
A) scope
B) differentiation
C) cost
D) focus
68) technologies are technologies that enable the incremental improvement of
products and services.
A) Sustaining
B) Differentiating
C) Disruptive
D) Commodity
69) 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
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70) The term unfit fitness refers to a situation in which employees of a firm have the wrong skills
for the current environment.
Answer: TRUE/
FALSE

71) Scale economies are efficiencies that result from flattening the hierarchy of an
organization. Answer: TRUE/ FALSE

72) A company's strong linkages with its customers increase switching costs.
Answer: TRUE/ FALSE

73) The Internet's universal standards can change industry structure by increasing barriers to
entry and decreasing competition within an industry.
Answer: TRUE/
FALSE

74) Interactivity that enables product customization alters industry structure by increasing
the threat of substitutes.
Answer:TRUE/
FALSE

75) E-commerce has increased price competition in nearly all

markets. Answer: TRUE/ FALSE

76) Social technologies change industry structure by shifting programming and

editorial decisions to consumers and creating substitute entertainment products.
Answer: TRUE /
FALSE
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