Question 1

Airbnb is considered an intermediation revenue model because it ______.

Accepted Answer

A) helps people in a real-estate-related industry 
B) advertises on behalf of the homeowner/renter 
C) charges a commission for connecting home renters with home owners 
D) is purely web-based 
A) helps people in a real-estate-related industry 
B) advertises on behalf of the homeowner/renter 
C) charges a commission for connecting home renters with home owners 
D) is purely web-based C

Question 2

The income statement ______.

Accepted Answer

A) subtracts the cost of goods sold from the total revenue to determine net income 
B) subtracts the operating expenses from the total revenue to determine net income 
C) subtracts the cost of goods sold and operating expenses from the total revenue to determine net income 
D) reports all income with no adjustment for cost of goods sold or operating expenses 
A) subtracts the cost of goods sold from the total revenue to determine net income 
B) subtracts the operating expenses from the total revenue to determine net income 
C) subtracts the cost of goods sold and operating expenses from the total revenue to determine net income 
D) reports all income with no adjustment for cost of goods sold or operating expenses C

Question 3

Another term for an income statement is ______.

Accepted Answer

A) profit and loss statement 
B) income tax statement 
C) balance sheet 
D) credit report 
A) profit and loss statement 
B) income tax statement 
C) balance sheet 
D) credit report A

Question 4

What revenue model involves charging customers to gain continuous access to a product or service?

Accepted Answer

A) licensing revenue model 
B) franchising revenue model 
C) revolving revenue model 
D) subscription revenue model 
A) licensing revenue model 
B) franchising revenue model 
C) revolving revenue model 
D) subscription revenue model

Question 5

The razor-and-razor-blade model is an example of an intermediation revenue model.

Accepted Answer

A) True 
 B)False

Question 6

In an income statement,taxes are the last expense item before net income.

Accepted Answer

A) True 
 B)False

Question 7

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Accepted Answer

A) psychological pricing 
B) loss leader 
C) introductory offer 
D) customer-led pricing 
A) psychological pricing 
B) loss leader 
C) introductory offer 
D) customer-led pricing

Question 8

Imagine that you are offering an Internet-based software service that helps people plan group projects and calendar events.Describe a freemium program to attract customers to your service.

Accepted Answer

Some service can be given away for free

Question 9

In general,reducing operating costs is the most effective way of yielding long-term gains.

Accepted Answer

A) True 
 B)False

Question 10

What revenue model charges customers fees based on how often goods or services are used?

Accepted Answer

A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model 
A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model

Question 11

The iPad at its initial launch is an example of price skimming.

Accepted Answer

A) True 
 B)False

Question 12

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Accepted Answer

A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model 
A) data revenue model 
B) utility and usage revenue model 
C) professional revenue model 
D) franchising revenue model

Question 13

Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?

Accepted Answer

A) direct cross-subsidies 
B) price plus 
C) freemium plus 
D) BOGO pricing 
A) direct cross-subsidies 
B) price plus 
C) freemium plus 
D) BOGO pricing

Question 14

In what pricing strategy prices are guided by the price other businesses set for similar products and services?

Accepted Answer

A) customer-led pricing 
B) loss-leader pricing 
C) competition-led pricing 
D) psychological pricing 
A) customer-led pricing 
B) loss-leader pricing 
C) competition-led pricing 
D) psychological pricing

Question 15

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Accepted Answer

A) direct cross-subsidies 
B) multiparty markets 
C) price gouging 
D) distributed pricing 
A) direct cross-subsidies 
B) multiparty markets 
C) price gouging 
D) distributed pricing

Question 16

Revenue can be described as which of the following?

Accepted Answer

A) all the money that a company has to work with 
B) the money from loans,sales,and contributions 
C) the income gained from the sale of goods or services 
D) the income gained from sales minus the cost of creating the goods 
A) all the money that a company has to work with 
B) the money from loans,sales,and contributions 
C) the income gained from the sale of goods or services 
D) the income gained from sales minus the cost of creating the goods

Question 17

Which of the following refers to the model that gives a product away to one party but charges another party?

Accepted Answer

A) dual system 
B) multiparty business 
C) single-party marketing 
D) double-bind pricing 
A) dual system 
B) multiparty business 
C) single-party marketing 
D) double-bind pricing

Question 18

Identify a company that sells database information.Describe how the data are protected for privacy and how the data result in sales.Discuss what revenue streams might be associated with the sale.

Accepted Answer

Examples should include reasonable data

Question 19

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

Accepted Answer

A) Lowest-cost pricing 
B) Loss-leader pricing 
C) Customer-led pricing 
D) Fair pricing 
A) Lowest-cost pricing 
B) Loss-leader pricing 
C) Customer-led pricing 
D) Fair pricing

Question 20

A business model and a revenue model are the same thing.

Accepted Answer

A) True 
 B)False

Airbnb is considered an intermediation revenue model because it ______.

The income statement ______.

Another term for an income statement is ______.

What revenue model involves charging customers to gain continuous access to a product or service?

The razor-and-razor-blade model is an example of an intermediation revenue model.

In an income statement,taxes are the last expense item before net income.

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Imagine that you are offering an Internet-based software service that helps people plan group projects and calendar events.Describe a freemium program to attract customers to your service.

In general,reducing operating costs is the most effective way of yielding long-term gains.

What revenue model charges customers fees based on how often goods or services are used?

The iPad at its initial launch is an example of price skimming.

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?

In what pricing strategy prices are guided by the price other businesses set for similar products and services?

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Revenue can be described as which of the following?

Which of the following refers to the model that gives a product away to one party but charges another party?

Identify a company that sells database information.Describe how the data are protected for privacy and how the data result in sales.Discuss what revenue streams might be associated with the sale.

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

A business model and a revenue model are the same thing.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters

Exam 9: Creating Revenue Models

Airbnb is considered an intermediation revenue model because it ______.

The income statement ______.

Another term for an income statement is ______.

What revenue model involves charging customers to gain continuous access to a product or service?

The razor-and-razor-blade model is an example of an intermediation revenue model.

In an income statement,taxes are the last expense item before net income.

Mehmet's café sells coffee for only $.50,which is less than it costs,but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries.What sort of pricing strategy is Mehmet pursuing?

Imagine that you are offering an Internet-based software service that helps people plan group projects and calendar events.Describe a freemium program to attract customers to your service.

In general,reducing operating costs is the most effective way of yielding long-term gains.

What revenue model charges customers fees based on how often goods or services are used?

The iPad at its initial launch is an example of price skimming.

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?

In what pricing strategy prices are guided by the price other businesses set for similar products and services?

A popular restaurant offers a free meal.At the restaurant,it turns out that drinks are not included.The drinks sell for above market rates.This is an example of which of the following?

Revenue can be described as which of the following?

Which of the following refers to the model that gives a product away to one party but charges another party?

Identify a company that sells database information.Describe how the data are protected for privacy and how the data result in sales.Discuss what revenue streams might be associated with the sale.

______ is the degree to which both businesses and customers believe that the pricing is reasonable.

A business model and a revenue model are the same thing.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters