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ENTREPRENEURSHIP 2017 - Quiz Answer : Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland) - Chapter 4

Entrepreneurship and Start Up

ENTREPRENEURSHIP 2017 - Quiz Answer and Case Study Guides

Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland)

Quiz Answers and Case Guides

Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland)

Chapter 4   Developing an Effective Business Model

 

1) Her Campus Media, the focus of the opening feature of Chapter 4, features a vibrant online magazine, with feature articles targeted toward all aspects of college life and survival. According to the feature, Her Campus's business model focuses on connecting companies with college females. The key to making this work is ________.

  1. A) the strength of Her Campus Media's management team
  2. B) the strength of Her Campus Media's brand
  3. C) the quality of the online content that Her Campus Media produces
  4. D) the functionality and vibrancy of the company's Web site
  5. E) Her Campus's unparalleled access to college females

Answer:  E

Diff: 2      Page Ref: 112

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

2) A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.

  1. A) commercialization plan
  2. B) business model
  3. C) business plan
  4. D) launch plan
  5. E) tactical model

Answer:  B

Diff: 1      Page Ref: 112

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

3) The Savvy Entrepreneurial Firm feature in Chapter 4 focuses on the ways in which Quirky creates, delivers and captures value for its stakeholders. According to the feature, Quirky would be a business that would be difficult to copy. According to the feature, it would be difficult to copy because ________.

  1. A) it has raised over $91 million and has over 550,000 people in its network
  2. B) it has a highly-functional Web site and has a talented management team
  3. C) it has a savvy marketing plan and has over 550,000 people in its network
  4. D) it has raised over $91 million and has a talented management team
  5. E) it has an excellent Internet domain name and has a first-mover advantage

Answer:  A

Diff: 2      Page Ref: 113

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

4) Which of the following is the proper sequence for when a firm should develop a business model?

  1. A) Preparation of the business model, initial validation of the business idea, opportunity recognition
  2. B) Initial validation of the business idea, establishing a growth plan, preparation of the business model
  3. C) Initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm
  4. D) Opportunity recognition, fleshing out the operational details of the firm, preparation of the business model
  5. E) Opportunity recognition, preparation of the business model, establishing a growth plan for the firm

Answer:  C

Diff: 2      Page Ref: 114

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

5) In regard to business models, which of the following statements is incorrect?

  1. A) There is a standard business model that most firms follow.
  2. B) A firm's business model is inherently dependent on the collection of resources it controls and the capabilities it possesses.
  3. C) It is dangerous for a company to assume that it can be successful by simply copying the business model of another firm.
  4. D) A firm's business model is its plan or diagram for how it competes.
  5. E) It is often difficult to determine what another firm's business model is.

Answer:  A

Diff: 2      Page Ref: 114

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

 

 

 

6) The Partnering for Success feature in Chapter 4 focused on Web-based platforms, including Odesk, Elance, and Guru, that make it easy to identify and hire experienced ________.

  1. A) part time employees
  2. B) freelancers
  3. C) interns
  4. D) virtual assistants
  5. E) full-time employees

Answer:  B

Diff: 1      Page Ref: 132

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

 

7) A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.

Answer:  TRUE

Diff: 1      Page Ref: 112

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

8) What is a business model? Why is it important? Provide an example to illustrate your answer.

Answer:  A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders. Business models are fundamental to a firm's ability to succeed both in the short and long term. Dropbox, for example, has what's referred to as a freemium business model. It offers customers a free account with a set amount of storage space, and makes money by selling premium accounts with more capacity. Dropbox could charge all of its users a monthly fee based on the amount of storage that they use, but that's not its business model. Its business model is based on the belief that by introducing users to its service through a free account, it will ultimately sign up more paid users. A firm's business model also describes how the core aspects of what it does fit together and complement one another.

Diff: 1      Page Ref: 112

LO:  4.1: Describe business models and discuss their importance.

AACSB:  Reflective Thinking

 

9) The two general categories of business models are ________ and ________.

  1. A) normal; unique
  2. B) standard; disruptive
  3. C) ordinary; revolutionary
  4. D) customary; unique
  5. E) ordinary; disruptive

Answer:  B

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

10) ________ business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.

  1. A) Revolutionary
  2. B) Normal
  3. C) Customary
  4. D) Disruptive
  5. E) Standard

Answer:  E

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

 

11) Brandon Jones has crafted a business model for his firm that is based on an existing plan or template for how firms in his industry create, deliver and capture value for their shareholders. Brandon has crafted a ________ business model.

  1. A) standard
  2. B) disruptive
  3. C) customary
  4. D) normal
  5. E) temporary

Answer:  A

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

12) Which of the following statements about business models is incorrect?

  1. A) There are two general types of business models.
  2. B) There is no perfect business model.
  3. C) Most of the standard business models have been in place for some time.
  4. D) A firm's business model is confined to its own boundaries.
  5. E) Firms should guard themselves against thinking that one particular business model is a "home run" regardless of circumstances.

Answer:  D

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

13) ________ refers to the number of subscribers that a subscription-based business loses each month.

  1. A) Agitate
  2. B) Churn
  3. C) Erosion
  4. D) Attrition
  5. E) Stir

Answer:  B

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

 

14) Tyler Smith founded a firm that has a subscription-based business model. Although Tyler has averaged 600 new subscribers per month, she also loses 450 subscribers per month. The number of subscribers that Tyler loses each month is referred to as ________.

  1. A) erosion
  2. B) churn
  3. C) destruction
  4. D) attrition
  5. E) agitation

Answer:  B

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

15) Which of the following firms has a peer-to-peer business model?

  1. A) Dell
  2. B) Dropbox
  3. C) Airbnb
  4. D) Salesforce.com
  5. E) Google

Answer:  C

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

16) ________ business models are ones that do not fit the profile of standard business models, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.

  1. A) Disruptive
  2. B) Normal
  3. C) Unique
  4. D) Incomparable
  5. E) Exceptional

Answer:  A

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

 

17) Google and its AdWords program is an example of a ________ disruptive business model.

  1. A) low-end
  2. B) new-market
  3. C) high-quality
  4. D) low-price
  5. E) new-channel

Answer:  B

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

18) Southwest Airlines is an example of a ________ disruptive business model.

  1. A) low-end
  2. B) new-market
  3. C) high-quality
  4. D) new-product
  5. E) new-channel

Answer:  A

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

19) There are two types of disruptive business models — ________ and ________.

  1. A) low-end; high-end
  2. B) new-product; new-market
  3. C) new-market; low-end
  4. D) new-channel; high-quality
  5. E) standard; unique

Answer:  C

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

20) Which of the following firms introduced a disruptive business model?

  1. A) Salesforce.com
  2. B) eBay
  3. C) Panera Bread
  4. D) Barnes & Nobel
  5. E) J. Crew

Answer:  A

Diff: 2      Page Ref: 119

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Analytical Thinking

 

21) Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.

Answer:  TRUE

Diff: 1      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

22) It is important to understand that there are several perfect business models.

Answer:  FALSE

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

23) Disruptive business models are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.

Answer:  TRUE

Diff: 2      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

24) According to the textbook, Southwest Airlines introduced a new market disruption type of disruptive business model.

Answer:  FALSE

Diff: 3      Page Ref: 118

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

25) The Barringer/Ireland Business Model Template has five major categories and 14 individual parts.

Answer:  FALSE

Diff: 2      Page Ref: 120

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

26) What is the difference between standard business models and disruptive business models? Include examples of both in your answer.

Answer:  Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders. Examples include the advertising business model, the auction business model, the low-cost business model, and the manufacture/retailer business model. Disruptive business models, which are rare, are ones that do not fit the profile of a standard business model, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry. Examples include Dell (which introduced the direct-to-consumer computer sales model), Google (which introduced the online advertising model), and Salesforce.com (which introduced the notion of software as a service, or SaaS).

Diff: 2      Page Ref: 115

LO:  4.2: Identify and describe the two general types of business models—standard and disruptive business models.

AACSB:  Reflective Thinking

 

27) The Barringer/Ireland Business Model Canvas consists of ________ major category(ies) and ________ parts.

  1. A) 1; 12
  2. B) 3; 9
  3. C) 6; 18
  4. D) 4; 12
  5. E) 2; 6

Answer:  D

Diff: 2      Page Ref: 120

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

28) The four major categories in the Barringer/Ireland Business Model Template are ________.

  1. A) core strategy, resources, financials, and operations
  2. B) core strategy, value proposition, customers and channels
  3. C) value proposition, resources, customers and partners
  4. D) activities, partners, customers, and competitors
  5. E) value proposition, cost structure, financials, and operations

Answer:  A

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

29) Which of the following is not one of the four major categories in the Barringer/Ireland Business Model Template?

  1. A) Operations
  2. B) Resources
  3. C) Channels
  4. D) Core strategy
  5. E) Financials

Answer:  C

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

30) In the Barringer/Ireland Business Model Template, ________ describes how the firm plans to compete relative to its competitors.

  1. A) strategic plan
  2. B) grand strategy
  3. C) tactical strategy
  4. D) value proposition
  5. E) core strategy

Answer:  E

Diff: 2      Page Ref: 120

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

31) Jamie Finch is crafting the business model for her fashion design firm. She just completed the section that describes how her firm plans to compete relative to her rivals. Jamie just completed the ________ portion of her business model template.

  1. A) operations
  2. B) core strategy
  3. C) resources
  4. D) strategic plan
  5. E) tactical strategy

Answer:  B

Diff: 2      Page Ref: 120

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

32) Which of the following is not one of the four elements of the core strategy section of the Barringer/Ireland Business Model Template?

  1. A) Business mission
  2. B) Key assets
  3. C) Basis of differentiation
  4. D) Target market
  5. E) Product/market scope

Answer:  B

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

33) A business's ________ describes why it exists and what its business model is supposed to accomplish.

  1. A) values statement
  2. B) importance statement
  3. C) differentiation statement
  4. D) mission statement
  5. E) significance statement

Answer:  D

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

34) Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement—"Helping Make Your Life Better, Healthier, and Fuller"—that describes the reason his company exists and what his business model is supposed to accomplish. In the terminology used in the Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________ statement.

  1. A) values
  2. B) uniqueness
  3. C) differentiation
  4. D) mission
  5. E) task

Answer:  D

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Analytical Thinking

 

 

35) The first box in the Barringer/Ireland Business Model Template is ________.

  1. A) product/market scope
  2. B) revenue streams
  3. C) business mission
  4. D) target market
  5. E) channels

Answer:  C

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Analytical Thinking

 

36) When completing the basis of differentiation box in the Barringer/Ireland Business Model Template, it is best to limit the description to ________.

  1. A) two to three points
  2. B) one point
  3. C) five to10 points
  4. D) two to three points for manufacturing firms and five to 10 points for service firms
  5. E) five to 10 points for manufacturing firms and two to three points for service firms

Answer:  A

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Analytical Thinking

37) A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.

  1. A) aspirational
  2. B) ambitious
  3. C) constrained
  4. D) target
  5. E) objective

Answer:  D

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Analytical Thinking

 

 

38) Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.

  1. A) controlled
  2. B) ambitious
  3. C) identifiable
  4. D) target
  5. E) aspirational

Answer:  D

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Analytical Thinking

 

39) A company's ________ scope defines the products and markets on which it will concentrate.

  1. A) product/market
  2. B) offering/industry
  3. C) business/market
  4. D) business/industry
  5. E) offering/market

Answer:  A

Diff: 2      Page Ref: 123

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

40) Erin Hill is working on the box in the Barringer/Ireland Business Model Template that defines the products and markets on which her firm will concentrate. Erin is working on the ________ scope portion of the business model template.

  1. A) offering/market
  2. B) offering/industry
  3. C) business/market
  4. D) business/industry
  5. E) product/market

Answer:  E

Diff: 2      Page Ref: 123

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

41) The Resources section of the Barringer/Ireland Business Model Template consists of the ________ and ________ boxes.

  1. A) business mission; core competency
  2. B) core competency; product/market scope
  3. C) channels; key partners
  4. D) core competency; key assets
  5. E) revenue streams; key assets

Answer:  D

Diff: 2      Page Ref: 124

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

42) In the Barringer/Ireland Business Model Template, a(n) ________ is a specific factor or capability that supports a firm's business model and sets it apart from its rivals.

  1. A) primary capability
  2. B) core competency
  3. C) essential asset
  4. D) staple proficiency
  5. E) key aptitude

Answer:  B

Diff: 2      Page Ref: 124

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

43) Mark White is the founder of a firm that builds iPhone apps. Mark is very technically savvy, which allows him to build apps quickly and with minimal bugs or problems. In the terminology of the Barringer/Ireland Business Model Template, Mark's technical savvy is a(n) ________ of his firm.

  1. A) primary capability
  2. B) core competency
  3. C) essential asset
  4. D) staple proficiency
  5. E) key aptitude

Answer:  B

Diff: 2      Page Ref: 124

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

44) In the terminology of the Barringer/Ireland Business Model Template, ________ assets are the assets that a firms owns that enable its business model to work.

  1. A) key
  2. B) tactical
  3. C) fundamental
  4. D) primary
  5. E) strategic

Answer:  A

Diff: 2      Page Ref: 125

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

45) In the Barringer/Ireland Business Model Template, key assets can be ________.

  1. A) fixed, situational, variable, and permanent
  2. B) tactical, strategic, fixed, and variable
  3. C) tangible, intangible, variable, and fixed
  4. D) temporary, permanent, fixed, and variable
  5. E) physical, financial, intellectual, or human

Answer:  E

Diff: 2      Page Ref: 125

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

46) The Financials section of the Barringer/Ireland Business Model Template consists of three boxes. The boxes are titled ________.

  1. A) economics of the business, startup-costs, and break-even
  2. B) revenue streams, cost structure, and financing/funding
  3. C) profit margins, revenue streams, and break-even
  4. D) startup-costs, operating leverage, and financing/funding
  5. E) fixed vs variables costs, financing/funding, and break-even

Answer:  B

Diff: 2      Page Ref: 126

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

47) Which section of the Barringer/Ireland Business Model Template is the only section that describes how it makes money?

  1. A) Core strategy
  2. B) Resources
  3. C) Financials
  4. D) Operations
  5. E) Value proposition

Answer:  C

Diff: 2      Page Ref: 126

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

48) A firm's ________ describe(s) the ways in which it makes money.

  1. A) proceeds account
  2. B) break-even analysis
  3. C) revenue streams
  4. D) cash flow
  5. E) income statement

Answer:  C

Diff: 2      Page Ref: 126

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

49) Advertising, commissions, download fees, licensing, and product sale are examples of ________.

  1. A) revenue streams
  2. B) basis of differentiation
  3. C) key assets
  4. D) channels
  5. E) cost structure

Answer:  A

Diff: 2      Page Ref: 127

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

50) In the terminology of the Barringer/Ireland Business Model Template, a firm's ________ structure describes the most important costs incurred to support its business model.

  1. A) expense
  2. B) cost
  3. C) budget
  4. D) overhead
  5. E) outflow

Answer:  B

Diff: 2      Page Ref: 127

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

51) Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template.

  1. A) expense
  2. B) outlay
  3. C) payment
  4. D) overhead
  5. E) cost

Answer:  E

Diff: 2      Page Ref: 127

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

52) ________ costs are costs that remain the same despite the volume of goods or services produced. ________ costs vary proportionally with the volume of goods or services provided.

  1. A) Expense; Non-standard
  2. B) Standard; Non-Standard
  3. C) Fixed; Variable
  4. D) Non-Standard; Standard
  5. E) Variable; Fixed

Answer:  C

Diff: 2      Page Ref: 127

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

53) According to the textbook, there are three categories of costs to consider when completing the "financing/funding" section of the Barringer/Ireland Business Model Template. These are ________.

  1. A) setup costs, one-time expenses, and costs associated with incorporating the firm
  2. B) capital costs, marketing costs, and provisions for ramp-up expenses
  3. C) setup costs, marketing costs, and operating costs
  4. D) capital costs, one-time expenses, and provisions for ramp-up expenses
  5. E) operating costs, capital costs, and costs associated with setting up the firm

Answer:  E

Diff: 2      Page Ref: 128

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

54) The operations quadrant in the Barringer/Ireland Business Model Template includes three sections. These are ________.

  1. A) product (or service) production, channels, and key partners
  2. B) product/market scope, cost structure, and key partners
  3. C) key assets, cost structure, and channels
  4. D) key partners, financing/funding, and target market
  5. E) channels, core competency, and key partners

Answer:  A

Diff: 2      Page Ref: 129

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

55) Sarah Green, who plans to open a garden and lawn business, is working on the portion of the Barringer/Ireland Business Model template that focuses on how her products and services will be produced. Sarah is working on the ________ section of the template.

  1. A) basis of differentiation
  2. B) product/or service production
  3. C) product/market scope
  4. D) core competency
  5. E) channels

Answer:  B

Diff: 2      Page Ref: 129

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

56) Brad Jones is in the process of opening an electronics supply company and is working on the portion of his business plan template that describes how he will deliver his products and services to his customers. The portion of the business plan template that Brad is working on is referred to as ________.

  1. A) channels
  2. B) network
  3. C) linkages
  4. D) grids
  5. E) conduits

Answer:  A

Diff: 2      Page Ref: 130

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

57) Cynthia Hamilton is launching a chain of smoothie restaurants. Among Cynthia's key partners will be firms that provide her the ingredients needed to make her smoothies. In the terminology of the Barringer/Ireland Business Model Template, these partners are called ________.

  1. A) dealers
  2. B) suppliers
  3. C) merchants
  4. D) traders
  5. E) brokers

Answer:  B

Diff: 2      Page Ref: 130

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

58) An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.

  1. A) trade association
  2. B) network
  3. C) joint venture
  4. D) consortia
  5. E) strategic alliance

Answer:  C

Diff: 2      Page Ref: 131

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

59) The four major categories in the Barringer/Ireland Business Model Template are: core strategy, resources, financials, and operations.

Answer:  TRUE

Diff: 2      Page Ref: 121

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

60) Core strategy describes what causes consumers to pick one company's products over another.

Answer:  FALSE

Diff: 2      Page Ref: 120

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

61) A business's mission or mission statement describes why it exists and what its business model is supposed to accomplish.

Answer:  TRUE

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

62) When competing the basis for differentiation portion of the Barringer/Ireland Business Model template, it is important to emphasize as many points of differentiation as possible.

Answer:  FALSE

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

63) A company's target market is a place within a larger market segment that represents a narrower group of customers with similar interests.

Answer:  TRUE

Diff: 2      Page Ref: 122

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

64) A company's product/market scope defines the products and markets on which it will concentrate.

Answer:  TRUE

Diff: 2      Page Ref: 123

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

65) The resources section of the Barringer/Ireland Business Model Template includes three parts: core competency, key assets, and revenue streams.

Answer:  FALSE

Diff: 2      Page Ref: 123

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

66) In the terminology of the Barringer/Ireland Business Model Template, a key asset is a specific factor or capability that support a firm's business model and sets it apart from its rivals.

Answer:  FALSE

Diff: 2      Page Ref: 124

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

67) A firm's revenue streams describe the ways in which it makes money.

Answer:  TRUE

Diff: 2      Page Ref: 126

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

68) Value-driven businesses focus on minimizing costs wherever possible.

Answer:  FALSE

Diff: 2      Page Ref: 127

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

69) In the financing/funding section of the Barringer/Ireland Business Model Template, there are three categories of costs to consider: capital costs, one-time expenses, and provisions for ramp-up expenses.

Answer:  TRUE

Diff: 2      Page Ref: 128

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

70) The operations section of the Barringer/Ireland Business Model Template includes three sections: product (or service) production, channels, and key partners.

Answer:  TRUE

Diff: 2      Page Ref: 129

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

71) A company's channels describe how it delivers its product or service to its customers.

Answer:  TRUE

Diff: 2      Page Ref: 130

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

72) A strategic alliance is an entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization.

Answer:  FALSE

Diff: 2      Page Ref: 131

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

73) Describe the Barringer/Ireland Business Model Template and discuss its purpose.

Answer:  The Barringer/Ireland Business Model Template is a visual template that lays out the four major categories and 12 individual parts of a firm's business model. The job of the entrepreneur, or team of entrepreneurs, is to configure their firm's business model in a manner that produces a viable and exciting business. The Barringer/Ireland Business Model template is a tool that allows an entrepreneur to describe, project, revise, and pivot a business model until all 12 parts are decided upon. The 12 parts are spread out, which provides space for ideas to be recorded, scratched out, and recorded again as ideas morph and change. The four major categories and 12 individual parts are: Core Strategy (business mission, basis of differentiation, target market, and product/market scope), Resources (core competency and key assets), Financials (revenue streams, cost structure, and financing/funding), and Operations (product or service production, channels, and key partners).

Diff: 2      Page Ref: 119

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

74) Briefly describe the four main components of the Barringer/Ireland Business Model Template. Identify the subcomponents of each the four main components of a business model.

Answer:  The four main components of a business model are as follows:

  • Core Strategy. The first component of the Barringer/Ireland Business Model Template is core strategy. A core strategy describes how the firm plans to compete relative to its competitors. The primary elements of core strategy are: business mission, basis of differentiation, target market, and product/market scope.
  • Resources. The second component is resources. Resources are the inputs a firm uses to produce, sell, distribute, and service a product or service. At a basic level, a firm must have a sufficient amount of resources to enable its business model to work. Resources are developed and accumulated over time. The primary elements of resources are core competencies and key assets.
  • Financials. The third component of the Barringer/Ireland Business Model Template focuses on financials. For most businesses, the manner in which it makes money is one of the most fundamental aspects around which its business model is built. The primary aspects of financials are: revenue streams, cost structure, and financing/funding.
  • Operations. The final quadrant in a firm's business model is operations. Operations are both integral to a firm's overall business model and represent the day-to-day heartbeat of a firm. The primary elements of operations are: product or service production, channels, and key partners.

Diff: 3      Page Ref: 120

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

75) What are core competencies? Provide an example of the core competencies that are utilized by an entrepreneurial firm.

Answer:  A core competency is a specific factor or capability that support's a firm's business model and sets it apart from rivals. A core competency can take on various forms, such as technical know-how, an efficient process, a trusting relationship with customers, expertise in product design, and so forth. For example, Her Campus Media has three core competencies: (1) creating content of interest to active college-aged girls, (2) recruiting and managing a volunteer network, and (3) connecting active college-aged females with major brands.

Diff: 2      Page Ref: 124

LO:  4.3: Explain the components of the Barringer/Ireland Business Model Template that entrepreneurs can use to develop a business model for their firm.

AACSB:  Reflective Thinking

 

 

 

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Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback, Alan Carsrud
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough

------
PART 1: Decision to Become an Entrepreneur
1. Introduction to Entrepreneurship
PART 2: Developing Successful Business Ideas
3. Feasibility Analysis
4. Developing an Effective Business Model
5. Industry and Competitor Analysis
6. Writing a Business Plan
PART 3: Moving from an Idea to an Entrepreneurial Firm
7. Preparing the Proper Ethical and Legal Foundation
8. Assessing a New Venture’s Financial Strength and Viability
9. Building a New-Venture Team
10. Getting Financing or Funding
PART 4: Managing and Growing an Entrepreneurial Firm
11. Unique Marketing Issues
12. The Importance of Intellectual Property
13. Preparing for and Evaluating the Challenges of Growth
14. Strategies for Firm Growth
15. Franchising

------
PART I. STARTING THE PROCESS
Chapter 1. Why Plan?
PART II. WHAT TO DO BEFORE THE BUSINESS PLAN IS WRITTEN
Chapter 2. Developing and Screening Business Ideas
Chapter 3. Feasibiity Analysis
PART III. PREPARING A BUSINESS PLAN
Chapter 4. Introductory Material, Executive Summary, and Description of the Business
Chapter 5. Industry Analysis
Chapter 6. Market Analysis
Chapter 7. Marketing Plan
Chapter 8. Management Team and Company Structure
Chapter 9. Operations Plan and Product (or Service) Design and Development Plan
Chapter 10. Financial Projections
PART IV. PRESENTING THE BUSINESS PLAN
Chapter 11. Presenting the Plan with Confidence

------
BRIEF CONTENTS
UNIT 1 Entrepreneurial Pathways
Chapter 1 Entrepreneurs Recognize Opportunities
Chapter 2 Franchising
Chapter 3 Finding Opportunity in an Existing Business
Chapter 4 The Business Plan: Road Map to Success
Honest Tea Business Plan
Unit 1 Case Study: Spanx
UNIT 2 Who Are Your Customers?
Chapter 5 Creating Business from Opportunity
Chapter 6 Exploring Your Market
Unit 2 Case Study: Kitchen Arts & Letters, Inc.
UNIT 3 Integrated Marketing
Chapter 7 Developing the Right Marketing Mix and Plan
Chapter 8 Pricing and Credit Strategies
Chapter 9 Integrated Marketing Communications
Chapter 10 Marketing Globally
Chapter 11 Smart Selling and Effective Customer Service
Unit 3 Case Study: Empact
UNIT 4 Show Me the Money: Finding, Securing, and Managing It
Chapter 12 Understanding and Managing Start-Up, Fixed, and Variable Costs
Chapter 13 Using Financial Statements to Guide a Business
Chapter 14 Cash Flow and Taxes
Chapter 15 Financing Strategy: Debt, Equity, or Both?
Unit 4 Case Study: Lee’s Ice Cream
UNIT 5 Operating a Small Business Effectively
Chapter 16 Addressing Legal Issues and Managing Risk
Chapter 17 Operating for Success
Chapter 18 Location, Facilities, and Layout
Chapter 19 Human Resources and Management
Unit 5 Case Study: ONLC
UNIT 6 Leadership, Ethics, and Exits
Chapter 20 Leadership and Ethical Practices
Chapter 21 Franchising, Licensing, and Harvesting: Cashing in Your Brand
Unit 6 Case Study: Honest Tea
Appendix 1 Sample Student Business Plan: University Parent, Inc.
Appendix 2 BizBuilder Business Plan
Appendix 3 Resources for Entrepreneurs
Appendix 4 Useful Formulas and Equations
------
Section 1: The Rewards and Challenges of Entrepreneurship
1. Entrepreneurs: The Driving Force Behind Small Business
2. Ethics and Social Responsibility: Doing the Right Thing
3. Creativity and Innovation: Keys to Entrepreneurial Success
4. Strategic Management and the Entrepreneur
Section 2: Launching a Venture: Entry Strategies
5. Choosing a Form of Ownership
6. Franchising and the Entrepreneur
7. Buying an Existing Business
8. New Business Planning Process: Feasibility Analysis, Business Modeling, and Crafting a Winning Business Plan
Section 3: Building a Marketing Plan
9. Building a Bootstrap Marketing Plan
10. Creative Use of Advertising and Promotion
11. Pricing and Credit Strategies
12. Global Marketing Strategies
13. E-Commerce and Entrepreneurship
Section 4: Building a Financial Plan
14. Creating a Solid Financial Plan
15. Managing Cash Flow
16. Sources of Equity Financing
17. Sources of Debt Financing
Section 5: Building an Operating Plan
18. Location, Layout, and Physical Facilities
19. Supply Chain Management
20. Managing Inventory
21. Staffing and Leading a Growing Company
Section 6: Legal Aspects of Small Business: Succession, Ethics, and Government Regulation
22. Management Succession and Risk Management Strategies in the Family Business
23. The Legal Environment: Business Law and Government Regulation
------
Section I: The Challenge of Entrepreneurship 
1. The Foundations of Entrepreneurship
2. Ethics and Social Responsibility: Doing the Right Thing
3. Inside the Entrepreneurial Mind: From Ideas to Reality
Section II: The Entrepreneurial Journey Begins
4. Conducting a Feasibility Analysis and Designing a Business Model
5. Crafting a Business Plan and Building a Solid Strategic Plan
6. Forms of Business Ownership and Buying an Existing Business
7. Franchising and the Entrepreneur
Section III: Launching the Business
8. Building a Powerful Bootstrap Marketing Plan
9. E-commerce and the Entrepreneur
10. Pricing and Credit Strategies
11. Creating a Successful Financial Plan
12. Managing Cash Flow
Section IV: Putting the Business Plan to Work: Sources of Funds
13. Sources of Financing: Equity and Debt
14. Choosing the Right Location and Layout
15. Global Aspects of Entrepreneurship
16. Building a New Venture Team and Planning the Next Generation
------

 

ENTREPRENEURSHIP 2017 - NEW COLLECTION 2016 - 2017

1. Youtube Playlist: See the collection of videos - www.youtube.com/ecomftu2012

2. Download Power Point Slides Free

Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti - LINK
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer  - LINK
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough - LINK
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback - LINK
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough - LINK

 

For Test Bankz, Quiz Answers and Case study Guides, email toThis email address is being protected from spambots. You need JavaScript enabled to view it.

Good Luck and Success, Enjoy Your Study !

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