Question 1

Myhours.com offers a free individual time reporting system.However,it charges for additional users and services.This is an example of what revenue model?

Accepted Answer

A) utility and usage revenue model 
B) professional revenue model 
C) freemium revenue model 
D) premium revenue model 
A) utility and usage revenue model 
B) professional revenue model 
C) freemium revenue model 
D) premium revenue model

Question 2

The operating profit represents the amount left over from revenue once all costs and operating expenses are subtracted.

Accepted Answer

A) True 
 B)False

Question 3

Due to an increase in online sales,the advertising revenue model has seen decreased revenues for startups.

Accepted Answer

A) True 
 B)False

Question 4

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

Accepted Answer

Answers can vary but will have the chara

Question 5

A form of pricing high,what strategy is used for new products that have no competition?

Accepted Answer

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

Question 6

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

Accepted Answer

A) licensing revenue 
B) unit sales 
C) data revenue 
D) intermediation revenue 
A) licensing revenue 
B) unit sales 
C) data revenue 
D) intermediation revenue

Question 7

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

Accepted Answer

A) customer-led pricing 
B) psychological pricing 
C) freemium pricing 
D) bundled pricing 
A) customer-led pricing 
B) psychological pricing 
C) freemium pricing 
D) bundled pricing

Question 8

A mobile telephone company charges a base fee plus additional minutes for data usage.What revenue model is demonstrated in this example?

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 9

The cost of running the business,including rent,utilities,administration,salaries,marketing,etc.,is referred to as which of the following?

Accepted Answer

A) cost of goods sold 
B) operating expenses 
C) infrastructure costs 
D) nonsales costs 
A) cost of goods sold 
B) operating expenses 
C) infrastructure costs 
D) nonsales costs

Question 10

The goal of loss-leader pricing is to attract more customers.

Accepted Answer

A) True 
 B)False

Question 11

Google's "cost-per-click" model is a type of ______ revenue model.

Accepted Answer

A) franchising 
B) licensing 
C) advertising 
D) data 
A) franchising 
B) licensing 
C) advertising 
D) data

Question 12

An introductory offer is a form of high pricing,generally used for new products or services that face very little or even no competition.

Accepted Answer

A) True 
 B)False

Question 13

Cost-led pricing refers to which of the following pricing calculations?

Accepted Answer

A) calculating the cost of manufacturing and delivering the product and adding a profit margin 
B) calculating the cost based on how much profit you have targeted in your business plan 
C) calculating the price based on the maximum price a customer will pay 
D) calculating the price based on competitive products 
A) calculating the cost of manufacturing and delivering the product and adding a profit margin 
B) calculating the cost based on how much profit you have targeted in your business plan 
C) calculating the price based on the maximum price a customer will pay 
D) calculating the price based on competitive products

Question 14

What is a likely reason why someone would pay money for a franchise?

Accepted Answer

A) They are not aware of basic business practices. 
B) They will not have to spend the same amount of time marketing and building the brand. 
C) They do not have knowledge in the industry or business model. 
D) They will not have to work as hard in running the business. 
A) They are not aware of basic business practices. 
B) They will not have to spend the same amount of time marketing and building the brand. 
C) They do not have knowledge in the industry or business model. 
D) They will not have to work as hard in running the business.

Question 15

What revenue model provides professional services on a time and materials contract?

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 16

In what pricing strategy customers are asked how much they would pay for the product?

Accepted Answer

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

Question 17

The pro forma income statement shows income in the first year of business.

Accepted Answer

A) True 
 B)False

Question 18

Clinton owns a popular coffee shop in downtown Seattle.Rather than open up a second shop,he allows another business owner to use his company name and follow the same operations.The second business owner,in turn,pays him an initial monthly fee for operational support and the use of the company name.What revenue model does this represent?

Accepted Answer

A) intermediation revenue model 
B) franchising revenue model 
C) licensing revenue model 
D) professional revenue model 
A) intermediation revenue model 
B) franchising revenue model 
C) licensing revenue model 
D) professional revenue model

Question 19

Which of the following is the role of the broker in an intermediation revenue model?

Accepted Answer

A) Brokers sell to the ultimate buyer. 
B) Brokers organize transactions between buyer and seller. 
C) Brokers represent the buyer in legal cases. 
D) Brokers represent the seller in legal cases. 
A) Brokers sell to the ultimate buyer. 
B) Brokers organize transactions between buyer and seller. 
C) Brokers represent the buyer in legal cases. 
D) Brokers represent the seller in legal cases.

Question 20

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

Accepted Answer

A) True 
 B)False

Myhours.com offers a free individual time reporting system.However,it charges for additional users and services.This is an example of what revenue model?

The operating profit represents the amount left over from revenue once all costs and operating expenses are subtracted.

Due to an increase in online sales,the advertising revenue model has seen decreased revenues for startups.

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

A form of pricing high,what strategy is used for new products that have no competition?

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

A mobile telephone company charges a base fee plus additional minutes for data usage.What revenue model is demonstrated in this example?

The cost of running the business,including rent,utilities,administration,salaries,marketing,etc.,is referred to as which of the following?

The goal of loss-leader pricing is to attract more customers.

Google's "cost-per-click" model is a type of ______ revenue model.

An introductory offer is a form of high pricing,generally used for new products or services that face very little or even no competition.

Cost-led pricing refers to which of the following pricing calculations?

What is a likely reason why someone would pay money for a franchise?

What revenue model provides professional services on a time and materials contract?

In what pricing strategy customers are asked how much they would pay for the product?

The pro forma income statement shows income in the first year of business.

Which of the following is the role of the broker in an intermediation revenue model?

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

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

Myhours.com offers a free individual time reporting system.However,it charges for additional users and services.This is an example of what revenue model?

The operating profit represents the amount left over from revenue once all costs and operating expenses are subtracted.

Due to an increase in online sales,the advertising revenue model has seen decreased revenues for startups.

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

A form of pricing high,what strategy is used for new products that have no competition?

Cylle installs a unique home entertainment center.He charges a flat fee of $1,200 for the system and the installation.What revenue model does Cylle employ?

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

A mobile telephone company charges a base fee plus additional minutes for data usage.What revenue model is demonstrated in this example?

The cost of running the business,including rent,utilities,administration,salaries,marketing,etc.,is referred to as which of the following?

The goal of loss-leader pricing is to attract more customers.

Google's "cost-per-click" model is a type of ______ revenue model.

An introductory offer is a form of high pricing,generally used for new products or services that face very little or even no competition.

Cost-led pricing refers to which of the following pricing calculations?

What is a likely reason why someone would pay money for a franchise?

What revenue model provides professional services on a time and materials contract?

In what pricing strategy customers are asked how much they would pay for the product?

The pro forma income statement shows income in the first year of business.

Which of the following is the role of the broker in an intermediation revenue model?

If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.

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