Practice Test Chapter 5

Practice Test Chapter 5 - Business 3215 Principles of...

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Business 3215 – Principles of Entrepreneurship Practice Self-Test CHAPTER 5 Developing An Effective Business Model MULTIPLE-CHOICE QUESTIONS Business Models Answer: B Easy Page: 100 1. According to our textbook, a firm’s __________ is a firm’s plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it earns. A. tactical plan B. business model C. business plan D. feasibility analysis E. strategic plan Answer: A Easy Page: 100 2. Carol Sanders has just finished the feasibility analysis stage of her new business venture. She has now reached the point where she needs to develop a plan for how her firm will compete, use its resources, structure its relationships, interface with customers, and create value to sustain itself on the basis of the profits it earns. Carol need to establish her firm’s: A. business model B. tactical plan C. strategic plan D. operating plan E. business template Answer: E Medium Page: 102 3. In regard to business models, which of the following statements is incorrect? A. it is dangerous for a company to assume that it can be successful by simply copying the business model of another firm B. a firm’s business model is inherently dependent on the collection of resources it controls and the capabilities it possesses C. a firm’s business model is its plan or diagram for how it competes D. at times, it is difficult to determine what another firm’s business
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Chapter 5: Developing A Profitable Business Model model is E. there is a standard business model that most firms follow Answer: D Medium Page: 102 4. The term __________ refers to initiatives, such as Dell in personal computers, which revolutionize how products are sold in an industry. A. business plan modernism B. opportunity innovation C. feasibility analysis innovation D. business model innovation E. production model modernism Answer: A Medium Page: 102 5. According to the textbook, which of the following answers reflects the proper sequence for engaging in or developing the four activities identified? A. opportunity recognition, feasibility analysis, business model, business plan B. feasibility analysis, business model, business plan, opportunity recognition C. opportunity recognition, business model, feasibility analysis, business plan D. business plan, opportunity recognition, feasibility analysis, business model E. business plan, feasibility analysis, business model, opportunity recognition Answer: B Medium Page: 103 6. Which of the following is not one of the purposes of a business model? A. serves as an ongoing extension of feasibility analysis B. serves as a template for conducting industry analysis C. focuses attention on how all the elements of a business fit together D. describes why the network of participants needed to make a business idea viable is willing to work together E. articulates a company’s core logic to all stakeholders
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This note was uploaded on 06/12/2011 for the course MNGT 305 taught by Professor Chadwick during the Spring '11 term at Nicholls State.

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Practice Test Chapter 5 - Business 3215 Principles of...

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