Business Model Innovation Practice Exam
Course Introduction
Business Model Innovation explores the processes, tools, and frameworks that enable organizations to rethink and redesign the way they create, deliver, and capture value. This course examines how established firms and startups can develop new business models or reinvent existing ones in response to changing markets, technologies, and customer demands. Through case studies, interactive exercises, and analysis of successful and failed business model innovations, students will learn how to identify opportunities, assess risks, and craft sustainable strategies for competitive advantage in a dynamic environment.
Recommended Textbook
Entrepreneurship Successfully Launching New Ventures 3rd Edition by Bruce R. Barringer
Available Study Resources on Quizplus
15 Chapters
1125 Verified Questions
1125 Flashcards
Source URL: https://quizplus.com/study-set/287
Page 2
Chapter 1: Introduction to Entrepreneurship
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4763
Sample Questions
Q1) Entrepreneurs are usually moderate, rather than high, risk-takers.
A)True
B)False
Answer: True
Q2) According to Chapter 1, investors often cite the ________ as their most important criterion in the decision to fund new ventures.
A) financial position of the new venture
B) strength of the industry the new firm is entering
C) strength of the new venture's marketing plan
D) strength of the business idea
E) strength of the entrepreneur
Answer: E
Q3) Innovation is the process of creating something new, which is central to the entrepreneurial process.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Recognizing Opportunities and Generating Ideas
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4764
Sample Questions
Q1) Several studies have shown that prior experience in an industry blinds an entrepreneur to potential business opportunities in the same industry.
A)True
B)False
Answer: False
Q2) Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities.
A)True
B)False
Answer: True
Q3) A(n) ________ is a physical or digital repository for storing ideas.
A) suggestion bank
B) idea depository
C) suggestion pool
D) idea bank
E) proposition pool
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Feasibility Analysis
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4765
Sample Questions
Q1) The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.
A)True
B)False
Answer: True
Q2) To test resource sufficiency, a firm should list the ________ most critical non-financial resources that it will need to move its business idea forward and determine if those resources are available.
A) 1 to 2
B) 3 to 5
C) 6 to 12
D) 10 to 16
E) 15 to 25
Answer: C
Q3) There are two primary areas to consider in organizational feasibility analysis: management prowess and resource sufficiency.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Writing a Business Plan
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4766
Sample Questions
Q1) Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?
A) founders with none of their own money at risk
B) defining the market size too narrowly
C) a poorly cited plan
D) sloppiness in any area
E) overly aggressive financials
Q2) An operational business plan is between 40 and 100 pages, it is meant primarily for an internal audience, and works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers.
A)True
B)False
Q3) A competitor analysis should be included in the ________ section of a business plan.
A) market analysis
B) industry analysis
C) company description
D) management team and company structure
E) operations plan
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: Industry and Competitor Analysis
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4767
Sample Questions
Q1) Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.
A) inclusive
B) universal
C) multidomestic
D) contemporary
E) worldwide
Q2) Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 different countries. One thing that Shelly's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country by country basis to meet the demands of the local markets. Shelly's firm is pursuing a ________ strategy.
A) global
B) home
C) universal
D) contemporary
E) multidomestic
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Developing an Effective Business Model
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4768
Sample Questions
Q1) Which of the following is a "support" activity in the value chain?
A) outbound logistics
B) service
C) marketing and sales
D) operations
E) human resource management
Q2) The Partnering for Success feature in Chapter 6 focuses on Cameron Hughes Win and Partsearch. The overarching point of the feature is:
A) the best business models do not incorporate partners until the firm is fully established
B) the best business model is one that works not only for yourself but elevates your partners
C) the best business model allows a firm to co-opt resources from its partners
D) its a rare firm that is able to create a successful business model without relying on partners
E) an increasing number of business models are relying on the network form of partnership
Q3) Why is it important for a firm to have a well-thought-out business model?
Q4) Describe the two potential fatal flaws of business models.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Preparing the Proper Ethical and Legal Foundation
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4769
Sample Questions
Q1) A ________ partnership is a modified form of a general partnership. A) restricted
B) limited C) partial D) constrained E) fractional
Q2) The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization is to hire an aggressive attorney.
A)True
B)False
Q3) A noncompete agreement prevents an individual from competing against a former employer for a specific period of time.
A)True
B)False
Q4) List and briefly describe three specific steps that an entrepreneurial organization can take to build a strong ethical culture.
Q5) What is meant by the term "piercing the corporate veil"? How can the corporate veil be pierced?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Assessing a New Venture's Financial Strength and Viability
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4770
Sample Questions
Q1) The pro forma balance sheet provides a firm a sense of how its activities will affect its ability to meet its short-term liabilities and how its finances will evolve over time.
A)True
B)False
Q2) ________ is the ability to earn a profit.
A) Liquidity
B) Profitability
C) Effectiveness
D) Stability
E) Efficiency
Q3) Describe the purpose of the income statement, the balance sheet, and the statement of cash flows.
Q4) The balance sheet reflects the results of the operations of a firm over a specified period of time.
A)True
B)False
Q5) Profitability is the ability to earn a profit.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Building a New Venture Team
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4771
Sample Questions
Q1) What is a skills profile and what is it used for?
Q2) Which of the following statements is not true regarding the attributes of the founder or founders of a firm?
A) Evidence suggests that important entrepreneurial skills are enhanced through higher education.
B) Founders with prior entrepreneurial experience are more likely to avoid costly mistakes.
C) Founders with experience in the same industry as their new ventures will typically have "blinders" on and are typically not as effective as founders new to the industry.
D) Founders with broad social and professional networks have an advantage.
E) New ventures that are started by a team rather than an individual have an advantage.
Q3) Relevant industry experience is a poor predictor of future entrepreneurial performance.
A)True
B)False
Q4) Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Getting Financing or Funding
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4772
Sample Questions
Q1) Historically, the vast majority of SBIR Phase 1 proposals are approved.
A)True
B)False
Q2) The are three common sources of "personal" financing for a start-up firm: personal funds, friends and family, and bootstrapping.
A)True
B)False
Q3) The number of angel investors in the United States has increased dramatically over the past decade.
A)True
B)False
Q4) Which of the following set of characteristics places a startup in the strongest position to apply for equity funding?
A) weak cash flow, high leverage, low-to-moderate growth, unproven management
B) strong cash flow, low leverage, audited financials, good management, healthy balance sheet
C) unique business idea, strong cash flow, low-to-moderate growth, broad market
D) strong cash flow, high leverage, low-to-moderate growth, unproven management
E) unique business idea, high growth, niche market, proven management
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Unique Marketing Issues
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4773
Sample Questions
Q1) The proper sequence in selecting a target market and positioning strategy is (1) craft a unique positioning strategy, (2) select a target market, and (3) segment the market.
A)True
B)False
Q2) According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.
A) value-based
B) cost-based
C) competitive-based
D) tactical
E) strategic
Q3) Describe the concept of guerrilla marketing. Why is guerrilla market particularly suitable for entrepreneurial firms?
Q4) Promotion is the only element in the marketing mix that produces revenue; all other elements represent costs.
A)True
B)False
Q5) What is a brand? How does a new firm develop a brand?
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: The Importance of Intellectual Property
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4774
Sample Questions
Q1) Trademark law falls under the Lanham Act, which passed in 1946.
A)True
B)False
Q2) Identify and briefly describe the three types of patents.
Q3) A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.
A)True
B)False
Q4) A company's customer list is most commonly protected under ________ regulations.
A) patent
B) copyright
C) trade secret
D) trademark
E) collective mark
Q5) What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?
Q6) What is a copyright? What is protected by a copyright?
Q7) What is a trademark? Why are trademarks important?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Preparing for and Evaluating the Challenges of Growth
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4775
Sample Questions
Q1) Moral hazard means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.
A)True
B)False
Q2) According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that:
A) solve a significant problem or have a major impact on their customers' productivity or lives
B) are cost leaders and are promote themselves aggressively
C) have a major impact on their customers' lives and sell high quality products
D) take advantage of environmental trends and are cost leaders
E) solve a significant problem or sell high quality products
Q3) One of the most difficult challenges that businesses encounter as they grow is maintaining high levels of quality and customer service.
A)True
B)False
Q4) What is the organizational life cycle and why is it important?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Strategies for Firm Growth
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4776
Sample Questions
Q1) University Parent Media, the company profiled in the opening feature for Chapter 14, published print guides and provides online resources for the parents of college students. During its early years, University Parent Media relied primary on ________ to increase its sales.
A) organic growth
B) acquisitions
C) franchising
D) licensing
E) strategic alliances and joint ventures
Q2) The ________ is the company that owns the intellectual property. The ________ is the company purchasing the right to use it.
A) endorsee, endorser
B) licensor, licensee
C) licensor, endorsee
D) endorser, endorsee
E) licensee, licensor
Q3) Geographic expansion is most common in retail settings.
A)True
B)False
Q4) Describe what a joint venture is. Identify the two types of joint ventures.
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Franchising
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4777
Sample Questions
Q1) Franchisors are required by law to disclose all their costs in a document called the Franchise Disclosure Document.
A)True
B)False
Q2) How can a person tell if franchising is right for them?
Q3) According to the textbook, one of the first companies in the United States to utilize franchising was:
A) McDonald's
B) Singer Sewing Machine
C) H&R Block
D) Coca-Cola
E) Curves International
Q4) An area franchise agreement allows a franchisee to own and operate a specific number of outlets in a particular geographic area.
A)True
B)False
Q5) What is the difference between a product and trademark franchise and a business format franchise? Which type of franchise is most common for entrepreneurial firms?
To view all questions and flashcards with answers, click on the resource link above. Page 17