Question 1

The income statement:

Accepted Answer

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

Question 2

How do companies gain revenue from free products under the freemium model?

Accepted Answer

A) They operate as nonprofits. 
B) They are sponsored by wealthy sponsors. 
C) The cost of the free service is minimal (usually web based) and the upgrade costs enough to cover the cost. 
D) They get donations from users. 
A) They operate as nonprofits. 
B) They are sponsored by wealthy sponsors. 
C) The cost of the free service is minimal (usually web based) and the upgrade costs enough to cover the cost. 
D) They get donations from users.

Question 3

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

Question 4

This revenue model mixes free basic services with premium or upgraded services:

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 5

The four elements of revenue are:

Accepted Answer

A) customers, frequency, selling process, price 
B) profit, sales, employees, selling process 
C) selling process, price, employees, profit 
D) customers, revenue streams, frequency, price 
A) customers, frequency, selling process, price 
B) profit, sales, employees, selling process 
C) selling process, price, employees, profit 
D) customers, revenue streams, frequency, price

Question 6

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 7

Carol sells a downloadable product that uses bar codes to conduct comparison shopping.Carol's product is an example of:

Accepted Answer

A) a tangible revenue model 
B) an intangible sale 
C) a data revenue model 
D) a licensing revenue model 
A) a tangible revenue model 
B) an intangible sale 
C) a data revenue model 
D) a licensing revenue model

Question 8

This method of pricing involves pricing the product based on how it benefits the customers:

Accepted Answer

A) target-return pricing 
B) customer-led pricing 
C) value-based pricing 
D) benefit pricing 
A) target-return pricing 
B) customer-led pricing 
C) value-based pricing 
D) benefit pricing

Question 9

Which of the following refers to pricing a product or service above its market value to cover the cost of giving a product away for free or for a marked discount?

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 10

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) money gained from the sale of goods or services 
D) money 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) money gained from the sale of goods or services 
D) money gained from sales minus the cost of creating the goods

Question 11

What can be sold as unit sales?

Accepted Answer

A) physical goods 
B) intangibles 
C) support offered by the hour 
D) all of these 
A) physical goods 
B) intangibles 
C) support offered by the hour 
D) all of these

Question 12

Profit will depend primarily on which of the following?

Accepted Answer

A) the amount of revenue that your company can bring in 
B) both revenue and cost 
C) the value of the company 
D) the number of customers generated 
A) the amount of revenue that your company can bring in 
B) both revenue and cost 
C) the value of the company 
D) the number of customers generated

Question 13

A local hardware store offers flashlights at "3 for a dollar." This action would indicate which of the following strategies?

Accepted Answer

A) psychological pricing 
B) loss-leader pricing 
C) value-based pricing 
D) fair pricing 
A) psychological pricing 
B) loss-leader pricing 
C) value-based pricing 
D) fair pricing

Question 14

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) dishonest pricing 
C) double whammy 
D) distributed pricing 
A) direct cross-subsidies 
B) dishonest pricing 
C) double whammy 
D) distributed pricing

Question 15

Imagine that you are trying to determine the price for your new product, an ergonomic chair that reduces back strain.How would you go about pricing the chair?

Accepted Answer

Answers should include checking with the

Question 16

Knowing how many customers will be needed is important because:

Accepted Answer

A) a business needs as many customers as possible 
B) a company can resell product to the same customer 
C) it will determine the level of effort required to earn enough revenue for business success 
D) it will determine how much profit the company can make 
A) a business needs as many customers as possible 
B) a company can resell product to the same customer 
C) it will determine the level of effort required to earn enough revenue for business success 
D) it will determine how much profit the company can make

Question 17

In target-return pricing, the cost is determined by which of the following:

Accepted Answer

A) the maximum amount that your customers will pay 
B) the cost of creating the product and adding a profit margin 
C) pricing is based on how much you have invested in your business 
D) the price you need to charge to meet your company goals 
A) the maximum amount that your customers will pay 
B) the cost of creating the product and adding a profit margin 
C) pricing is based on how much you have invested in your business 
D) the price you need to charge to meet your company goals

Question 18

Intermediation revenue is associated with:

Accepted Answer

A) direct buyer-seller relationships 
B) the use of intermediary brokers 
C) repeat sales 
D) dispute management 
A) direct buyer-seller relationships 
B) the use of intermediary brokers 
C) repeat sales 
D) dispute management

Question 19

Taxes are the last expense item before net income.

Accepted Answer

A) True 
 B)False

Question 20

This revenue model provides professional services on time and materials contract:

Accepted Answer

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

The income statement:

How do companies gain revenue from free products under the freemium model?

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

This revenue model mixes free basic services with premium or upgraded services:

The four elements of revenue are:

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

Carol sells a downloadable product that uses bar codes to conduct comparison shopping.Carol's product is an example of:

This method of pricing involves pricing the product based on how it benefits the customers:

Which of the following refers to pricing a product or service above its market value to cover the cost of giving a product away for free or for a marked discount?

Revenue can be described as which of the following?

What can be sold as unit sales?

Profit will depend primarily on which of the following?

A local hardware store offers flashlights at "3 for a dollar." This action would indicate which of the following strategies?

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?

Imagine that you are trying to determine the price for your new product, an ergonomic chair that reduces back strain.How would you go about pricing the chair?

Knowing how many customers will be needed is important because:

In target-return pricing, the cost is determined by which of the following:

Intermediation revenue is associated with:

Taxes are the last expense item before net income.

This revenue model provides professional services on time and materials contract:

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Learning From Failure

Bootstrapping for Resources

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

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Exam 10: Creating Revenue Models

The income statement:

How do companies gain revenue from free products under the freemium model?

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

This revenue model mixes free basic services with premium or upgraded services:

The four elements of revenue are:

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

Carol sells a downloadable product that uses bar codes to conduct comparison shopping.Carol's product is an example of:

This method of pricing involves pricing the product based on how it benefits the customers:

Which of the following refers to pricing a product or service above its market value to cover the cost of giving a product away for free or for a marked discount?

Revenue can be described as which of the following?

What can be sold as unit sales?

Profit will depend primarily on which of the following?

A local hardware store offers flashlights at "3 for a dollar." This action would indicate which of the following strategies?

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?

Imagine that you are trying to determine the price for your new product, an ergonomic chair that reduces back strain.How would you go about pricing the chair?

Knowing how many customers will be needed is important because:

In target-return pricing, the cost is determined by which of the following:

Intermediation revenue is associated with:

Taxes are the last expense item before net income.

This revenue model provides professional services on time and materials contract:

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Learning From Failure

Bootstrapping for Resources

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

the Pitch Deck

Filters