Question 1

A business model provides a framework in which entrepreneurs can examine their business plans and explore alternative ways for their companies to function and grow profitably while building barriers to ward off competitors.

Accepted Answer

A business model outlines how a company creates, delivers, and captures value, serving as a blueprint for its operations, growth, and competitive strategy, including mechanisms for protecting its market position.

Question 2

Because a small company may not have the resources or time to gain a share of a new market before its products, services, or even business models have become obsolete, partnering with large companies may accelerate a small company's growth.

Accepted Answer

Partnering with large companies can provide small companies with the resources, expertise, and market access they might not have on their own, thus accelerating their growth and helping them to overcome the challenges of entering new markets or scaling their operations.

Question 3

Capturing data on customer requirements and using it to create unique services or products can be a powerful way of adding value and keeping out competitors.

Accepted Answer

This approach, often associated with customization or personalization, allows companies to better meet the specific needs and preferences of their customers, thereby enhancing customer satisfaction and loyalty, and creating barriers for competitors who may not offer such tailored solutions.

Question 4

A business model based on information sharing can provide low barriers against competitors because the costs involved in integrating incompatible data and computer systems can be prohibitive.

Accepted Answer

The answer of A business model based on information sharing...

Question 5

Unfortunately, licensing and franchising are not valuable components of a business model.

Accepted Answer

Licensing and franchising can significantly expand a business's reach and revenue without the need for direct management of new locations or services, making them valuable components of a business model.

Question 6

Interestingly, some companies base their business models entirely on licensing and have no intention of producing or selling any product.

Accepted Answer

Many companies, especially in industries like technology and entertainment, focus on developing intellectual property (IP) such as patents, trademarks, and copyrights, which they then license to other companies for production and distribution, generating revenue without manufacturing or selling physical products themselves.

Question 7

An entrepreneur should not seek to be a franchisee or build a business as a franchisor without seeking competent legal advice.

Accepted Answer

Franchising involves complex legal agreements and regulations, making competent legal advice essential to navigate the process successfully and ensure compliance with laws.

Question 8

Due to the obvious benefits from partnerships between small innovative companies, such as larger corporations' resources, contacts, reputation, and other things, rarely do the relationships become tense as cultural issues become dominant.

Accepted Answer

While partnerships between small innovative companies and larger corporations can offer benefits like resources, contacts, and reputation, cultural differences often lead to tensions and challenges in the relationship.

Question 9

Building social networks into your business is a way of getting sales leads and new ideas for products or services from your customers

Accepted Answer

Incorporating social networks into a business strategy allows for direct engagement with customers, which can lead to valuable insights on consumer needs and preferences, thus generating sales leads and innovative ideas for new products or services.

Question 10

Large companies that have a complementary product or service sold alongside a small company's product for mutual benefit is an example of corporate partnering.

Accepted Answer

Corporate partnering involves collaborations between companies, often involving complementary products or services, to enhance their market offerings and achieve mutual benefits.

Question 11

In applying the business model canvas for a service-based organization, physical assets to produce the product are going to be critical resources.

Accepted Answer

In a service-based organization, critical resources are more likely to be human resources, intellectual property, or digital platforms rather than physical assets, which are more crucial in product-based businesses.

Question 12

The four steps in the MVP process in order are: identify minimum product features; define the essential customer experience; illustrate product's ability to solve the problem; and measure the validity of this MVP version.

Accepted Answer

The typical MVP process involves identifying the minimum viable product features, building the MVP, measuring its effectiveness in the market, and learning from the feedback to make necessary adjustments. The steps provided mix up the order and content of a standard MVP development process.

Question 13

Small enterprises must be part of a supply chain, but large companies often undertake all the functions from start to finish that are required to deliver their end product.

Accepted Answer

Large companies may also be part of a supply chain, as they often outsource certain functions or components to other companies, including small enterprises, to focus on their core competencies and improve efficiency.

Question 14

A(n) ________ provides a framework in which entrepreneurs can examine their business plans and explore alternative ways for their companies to function and grow profitably while building barriers to ward off competitors.

Accepted Answer

The answer of A(n) ________ provides a framework in which...

Question 15

_____________are the reasons the customer segment(s) will use your products or services instead of a competitor.

Accepted Answer

The answer of _____________are the reasons the customer segment(s) will...

Question 16

A ______________ is that version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.

Accepted Answer

The answer of A ______________ is that version of a...

Question 17

If you can enter the market and build your customer base before anyone else, you achieve ____________ in which it becomes harder and harder for competitors to get into the market and convince your customers to switch.

Accepted Answer

The answer of If you can enter the market and...

Question 18

Licensing and ________ refer to types of contracts between an issuing entity and a receiving entity.

Accepted Answer

The answer of Licensing and ________ refer to types of...

Question 19

A(n) _________ license provides just one licensee the rights stated in the agreement.

Accepted Answer

The answer of A(n) _________ license provides just one licensee...

Question 20

____________ are paid as a percentage of net sales of products or services.

Accepted Answer

The answer of ____________ are paid as a percentage of...

Quiz 3: Framing and Testing the Business Model