Question 1

___________ may prevent a licensee from just sitting on the rights and not trying to generate sales.

Accepted Answer

The answer of ___________ may prevent a licensee from just...

Question 2

A(n) ____________ is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.

Accepted Answer

The answer of A(n) ____________ is a legal and commercial...

Question 3

The _________ allows a franchisee to participate in building a business together with other franchisees, under the rules stipulated by the franchisor and under certain conditions spelled out in the agreement.

Accepted Answer

The answer of The _________ allows a franchisee to participate...

Question 4

Which of the following factors are not important when designing a business model?
A) Understanding customers' values
B) Having Venture Capital Investment
C) Analyzing current and potential customers
D) Clearly identifying the markets that you will enter.

Accepted Answer

Having Venture Capital Investment is not a fundamental factor in designing a business model. A business model primarily focuses on how a company creates, delivers, and captures value, which involves understanding customer values, analyzing customer bases, and identifying target markets. Venture capital can be a resource for scaling the business but is not a core element in the design of the business model itself.

Question 5

__________ are those non-customer relationships necessary to execute the business model.
A) Key activities
B) Revenue streams
C) Key partnerships
D) Key resources

Accepted Answer

Key partnerships are the network of suppliers and partners that make the business model work, encompassing those non-customer relationships necessary for executing the business model.

Question 6

A_______________________ is the way a company applies knowledge to capture value.
A) business model
B) value proposition
C) channel
D) revenue stream

Accepted Answer

A business model is the strategy or framework a company uses to apply its resources, including knowledge, to create and capture value, often through defining its value proposition, customer segments, channels, and revenue streams.

Question 7

It is recommended that the Business Model Canvas be used in _________ sessions.
A) Individual
B) Team
C) Small
D) Large

Accepted Answer

The Business Model Canvas is designed to be used in team sessions, as it facilitates collaboration, brainstorming, and the sharing of ideas among team members, making it a powerful tool for collective business planning and strategy development.

Question 8

When seeking a product market fit, an entrepreneur should:
A) Consider the customer's problem, the customer's challenges in resolving the problem, and the severity of the customer's pain points within the process.
B) Research the customer's current solution to the problem and identify what the customer may "gain" from a better solution.
C) Both a and b are parts of assessing product market fit.
D) Neither a or b relate to assessing product market fit.

Accepted Answer

Both A and B are essential steps in assessing product market fit. Understanding the customer's problem, their current solutions, and how a new solution could better meet their needs are critical for developing a product that will succeed in the market.

Question 9

Which of the following is NOT a correct matching of business canvas model elements:
A) Channels - the means with which you communicate with your customer segment(s) to deliver your value proposition.
B) Revenue Stream - the physical, financial, intellectual or human assets needed to deliver your value proposition(s).
C) Key Activities - critical actions needed to execute your business model.
D) Cost Structure - the main costs incurred in order to execute your business model.

Accepted Answer

Revenue Stream actually refers to the way a company makes income from its customers. The incorrect match here is that it's described as the assets needed to deliver value propositions, which more accurately describes Key Resources, not Revenue Streams.

Question 10

Data lock-ins inhibiting a move to a competitor can be found in which of the following?
A) E-mail services
B) Banking
C) Health care services
D) All of these.

Accepted Answer

Data lock-ins can occur in various sectors, including e-mail services, banking, and healthcare services, where proprietary formats or other barriers can make it difficult for customers to transfer their data to a competitor.

Question 11

The authors recommend that a small company restrict the number of licenses it issues to how many competitors?
A) Three or four
B) Five or six
C) Two or three
D) One or two

Accepted Answer

The authors suggest that a small company should limit the number of licenses to two or three competitors to maintain control and manage competition effectively.

Question 12

Which of the following is the term used to describe the fee that may be paid to initiate the contract?
A) Running royalties
B) Minimums
C) Up-front
D) Advances

Accepted Answer

The term "up-front" is used to describe the fee that may be paid to initiate a contract. This is often a one-time payment made at the beginning of a contractual agreement.

Question 13

_________may prevent a license from just sitting on the rights and not trying to generate sales.
A) Running royalties
B) Minimums
C) Up-front fees
D) Marketing

Accepted Answer

Minimums are often included in licensing agreements to ensure that the licensee actively promotes and sells the licensed product. If the licensee fails to meet the minimum sales figures, they may face penalties, thus incentivizing them to generate sales to avoid such consequences.

Question 14

Which is the best-known franchise organization?
A) Wendy's
B) Arby's
C) Chick-Fil-A
D) McDonald's

Accepted Answer

McDonald's is the best-known franchise organization globally, recognized for its extensive global presence and significant influence in the fast-food industry.

Question 15

The federal government has issued regulations that require franchisors to prepare an extensive disclosure document called _______.
A) UFCO
B) UFCC
C) UFOC
D) UFDC

Accepted Answer

The correct answer is C) UFOC, which stands for Uniform Franchise Offering Circular. This document is required by the Federal Trade Commission (FTC) and provides prospective franchisees with information about the franchisor, the franchise system, and the agreements they will need to sign, helping them make informed decisions.

Question 16

A franchise agreement need not have the following conditions stated:
A) Payments that must be made to the franchisor
B) The location where the franchisee may operate
C) Guidelines on using the franchisor's brand
D) The expiration date of the patent that is being franchised

Accepted Answer

The expiration date of the patent that is being franchised is not a necessary condition to be stated in a franchise agreement. Franchise agreements typically focus on payments, operational locations, and brand usage guidelines rather than specifics about patent expirations.

Question 17

For a franchise agreement, the typical length of agreement for initial period is around:
A) 8 years
B) 9 years
C) 7 years
D) 10 years

Accepted Answer

The typical length of agreement for the initial period of a franchise agreement is around 7 years.

Question 18

Limitations of franchise agreements include all of the following except:
A) Treatment of confidentiality
B) General legal requirements
C) Non-compete stipulation
D) Legal advice

Accepted Answer

Legal advice is not a limitation of franchise agreements; rather, it is a recommendation for both parties to seek in order to understand the agreement fully and ensure their interests are protected. The other options (A, B, C) represent common limitations or stipulations found within franchise agreements.

Question 19

____________________is the ability to capture 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.
A) Collaborative filtering
B) Performance
C) First-movers advantage
D) Mining the long-tail

Accepted Answer

Collaborative filtering is a method used to predict the preferences of a user by collecting preferences from many users. This technique is often applied in recommendation systems to suggest products, services, or content that a user may be interested in, based on the preferences of similar users. This process inherently captures data on customer requirements and uses it to create unique, personalized offerings, adding significant value and differentiating a company's offerings from competitors.

Question 20

If you can enter the market and build your data-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.
A) non-compete stipulation.
B) first-movers advantage.
C) data mining.
D) mining the long tail

Accepted Answer

First-movers advantage refers to the benefits a company gains by being the first to enter a specific market or industry. This advantage allows the company to establish strong brand recognition and customer loyalty before competitors enter the market, making it more difficult for new entrants to gain market share.

Quiz 3: Framing and Testing the Business Model

___________ may prevent a licensee from just sitting on the rights and not trying to generate sales.

A(n) ____________ is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.

The _________ allows a franchisee to participate in building a business together with other franchisees, under the rules stipulated by the franchisor and under certain conditions spelled out in the agreement.

Which of the following factors are not important when designing a business model?

__________ are those non-customer relationships necessary to execute the business model.

A_______________________ is the way a company applies knowledge to capture value.

It is recommended that the Business Model Canvas be used in _________ sessions.

When seeking a product market fit, an entrepreneur should:

Which of the following is NOT a correct matching of business canvas model elements:

Data lock-ins inhibiting a move to a competitor can be found in which of the following?

The authors recommend that a small company restrict the number of licenses it issues to how many competitors?

Which of the following is the term used to describe the fee that may be paid to initiate the contract?

_________may prevent a license from just sitting on the rights and not trying to generate sales.

Which is the best-known franchise organization?

The federal government has issued regulations that require franchisors to prepare an extensive disclosure document called _______.

A franchise agreement need not have the following conditions stated:

For a franchise agreement, the typical length of agreement for initial period is around:

Limitations of franchise agreements include all of the following except:

____________________is the ability to capture 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.

If you can enter the market and build your data-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.