Question 1

The business model is a format for a story that explains a business' What? How? With whom? and What are the financial effects?

Accepted Answer

The business model is indeed a format for a story that explains a business' What? How? With whom? and What are the financial effects.

Question 2

Within an organization, there is a strategic level and an operational level (containing concrete processes and flows of activity). Where does the business model fit in this universe?
A) Between - connecting these two levels
B) Beneath - detailing processes and flows
C) Above - controlling the strategy

Accepted Answer

The business model serves as a link between the strategic level and the operational level. It translates the mission, vision, and goals of the organization into concrete processes and activities, while also providing insights on how to improve the overall strategic direction. Therefore, it is positioned between these two levels, serving as a key bridge between strategic planning and operational execution.

Question 3

The book states that strategy focuses on opportunity and implementation, while the business model focuses on the market and competition.

Accepted Answer

It is actually the opposite. Strategy focuses on the market and competition, while the business model focuses on opportunity and implementation.

Question 4

The business model can be said to form a bridge between the strategic and operational levels, indicating what in the way of ideas, resources, activities and relationships is needed to carry out a given strategy successfully.

Accepted Answer

The statement accurately describes the role of a business model in connecting the strategic and operational levels of a company.

Question 5

In an entrepreneurial context, a business model is often the result of entrepreneurial experimentation and learning. Effectuation and Lean Startup are examples of this successive logic.

Accepted Answer

In both Effectuation and Lean Startup, entrepreneurs experiment and learn from their experiences to develop a successful business model. Therefore, the statement is true.

Question 6

The book contains the following quote by Henry Chesbrough. "The economic value of a technology remains latent until it is commercialized via a business model. " In other words, technology alone is not enough - it must be translated into a business model that captures/extracts the financial value.

Accepted Answer

The quote by Henry Chesbrough suggests that technology alone is not enough to create economic value, and that a business model is necessary to commercialize the technology and extract financial value.

Question 7

In order to grasp the concept of the business model, the book lists various alternative definitions. Which three of the following are correct? A business model:
A) describes how all the elements in the system fit together to form a functional whole
B)describes how an organization creates, delivers and captures value
C) is the overall configuration of ideas, resources, activities and logics in the organization
D) is a model which states those businesses one should choose and those best avoided
E) is a tool which uses business as a model for the future

Accepted Answer

These three choices correctly describe the concept of a business model as defined in the book.

Question 8

The book emphasizes the idea of the business model as a system constructed to create value. What does this systematic school of thought believe?
A) it emphasizes the building blocks
B) it emphasizes the value-creating whole, its parts and the relations between the parts
C) it emphasizes the whole
D) it emphasizes the relations between the parts

Accepted Answer

The systematic school of thought focuses on the value-creating whole, its parts, and the relations between the parts. This is reflected in the book's emphasis on the business model as a system constructed to create value, rather than just a collection of individual building blocks or components.

Question 9

The contradictory expression "dynamically stable" is used to describe a quality of the business model (when viewed as a system). This implies that:
A) the bearing structure remains unchanged, whereas other, supporting parts can vary and adapt over time
B) in the business model, dynamics have a paradoxical relationship to stability
C) in order for something to be stable, one must slightly alter it
D) stability requires that all parts are flexible and changeable

Accepted Answer

The contradictory expression "dynamically stable" implies that the bearing structure remains unchanged, whereas other, supporting parts can vary and adapt over time.

Question 10

The business model can be seen as providing an answer to certain key questions, including: What will the customer be provided? Who is the customer? How or with whom should the offering be produced? How will it be financially sustainable?

Accepted Answer

The business model provides answers to key questions, including what the customer will be provided, who the customer is, how to produce the offering, and how to sustain it financially.

Question 11

The book states that the many proposals boil down to the conclusion that a business model should contain four dimensions. Which two are incorrect?
A) profit formula
B) mission
C) key resources
D) key processes
E) strategic analysis
F) value proposition

Accepted Answer

The answer of The book states that the many proposals...

Question 12

One of the roles of a good model is to simplify reality so that it becomes easier to understand and easier to discuss.

Accepted Answer

A good model should simplify reality and make it easier to understand and discuss by representing essential features of the real-world situation.

Question 13

When creating a business model, the work of answering questions and calibrating responses is called business modelling or business model design. These words reflect the nature of creating a business model as:
A) a part-analytical/part-creative process
B) a strictly analytical process
C) a strictly creative process

Accepted Answer

Creating a business model involves answering analytical questions about the business and also requires a certain level of creativity in designing a unique and effective model. Therefore, it can be described as a part-analytical/part-creative process.

Question 14

Creating a business model often demands imagination, judgment and an eye for the parts and the whole.

Accepted Answer

Creating a business model requires creativity (imagination), decision-making skills (judgment) and the ability to see both the details (parts) and the bigger picture (whole).

Question 15

When people in a certain sector or branch use approximately the same business model, this is referred to as industrial wisdom/industrial logic - a generally accepted idea of how things are done in a certain branch (and how things aren't done).

Accepted Answer

Industrial wisdom/industrial logic refers to the common practices and accepted ways of doing business in a specific industry.

Question 16

Match the business model headings with the question addressed beneath each heading.
-Value Proposition
A) For whom are we creating value ?
B) How do we establish and maintain our relation to the customer?
C) How do we communicate and deliver?
D) What activities are needed to create and deliver our proposition?
E) Which income and costs can we expect once we transform the model into reality?
F) What resources are needed to create and deliver our proposition?
G) What partners and networks are needed to create and deliver the offering?
H)What is the offering to the customer?

Accepted Answer

The Value Proposition section specifically addresses what the offering is to the customer, focusing on the value or solution the business provides.

Question 17

Match the business model headings with the question addressed beneath each heading.
-Customer Segments
A) For whom are we creating value ?
B) How do we establish and maintain our relation to the customer?
C) How do we communicate and deliver?
D) What activities are needed to create and deliver our proposition?
E) Which income and costs can we expect once we transform the model into reality?
F) What resources are needed to create and deliver our proposition?
G) What partners and networks are needed to create and deliver the offering?
H)What is the offering to the customer?

Accepted Answer

The question "For whom are we creating value?" directly addresses the identification of customer segments, which is about understanding who the business's target customers are.

Question 18

Match the business model headings with the question addressed beneath each heading.
-Customer Relationships
A) For whom are we creating value ?
B) How do we establish and maintain our relation to the customer?
C) How do we communicate and deliver?
D) What activities are needed to create and deliver our proposition?
E) Which income and costs can we expect once we transform the model into reality?
F) What resources are needed to create and deliver our proposition?
G) What partners and networks are needed to create and deliver the offering?
H)What is the offering to the customer?

Accepted Answer

Customer Relationships focus on how a company establishes and maintains its relationships with customers, which is directly answered by option B.

Question 19

Match the business model headings with the question addressed beneath each heading.
-Channels
A) For whom are we creating value ?
B) How do we establish and maintain our relation to the customer?
C) How do we communicate and deliver?
D) What activities are needed to create and deliver our proposition?
E) Which income and costs can we expect once we transform the model into reality?
F) What resources are needed to create and deliver our proposition?
G) What partners and networks are needed to create and deliver the offering?
H)What is the offering to the customer?

Accepted Answer

Channels in a business model refer to how a company communicates and delivers its value proposition to its customer segment. This includes the methods and pathways through which the company reaches out to its customers, delivers its products or services, and manages customer interactions.

Question 20

Match the business model headings with the question addressed beneath each heading.
-Key Activities
A) For whom are we creating value ?
B) How do we establish and maintain our relation to the customer?
C) How do we communicate and deliver?
D) What activities are needed to create and deliver our proposition?
E) Which income and costs can we expect once we transform the model into reality?
F) What resources are needed to create and deliver our proposition?
G) What partners and networks are needed to create and deliver the offering?
H)What is the offering to the customer?

Accepted Answer

Key Activities are directly related to the core activities a company must undertake to create and deliver its value proposition, hence the correct match is "What activities are needed to create and deliver our proposition?"

Quiz 6: The Business Model

The business model is a format for a story that explains a business' What? How? With whom? and What are the financial effects?

Within an organization, there is a strategic level and an operational level (containing concrete processes and flows of activity) . Where does the business model fit in this universe?

The book states that strategy focuses on opportunity and implementation, while the business model focuses on the market and competition.

The business model can be said to form a bridge between the strategic and operational levels, indicating what in the way of ideas, resources, activities and relationships is needed to carry out a given strategy successfully.

In an entrepreneurial context, a business model is often the result of entrepreneurial experimentation and learning. Effectuation and Lean Startup are examples of this successive logic.

The book contains the following quote by Henry Chesbrough. "The economic value of a technology remains latent until it is commercialized via a business model. " In other words, technology alone is not enough - it must be translated into a business model that captures/extracts the financial value.

In order to grasp the concept of the business model, the book lists various alternative definitions. Which three of the following are correct? A business model:

The book emphasizes the idea of the business model as a system constructed to create value. What does this systematic school of thought believe?

The contradictory expression "dynamically stable" is used to describe a quality of the business model (when viewed as a system) . This implies that:

The business model can be seen as providing an answer to certain key questions, including: What will the customer be provided? Who is the customer? How or with whom should the offering be produced? How will it be financially sustainable?

The book states that the many proposals boil down to the conclusion that a business model should contain four dimensions. Which two are incorrect?

One of the roles of a good model is to simplify reality so that it becomes easier to understand and easier to discuss.

When creating a business model, the work of answering questions and calibrating responses is called business modelling or business model design. These words reflect the nature of creating a business model as:

Creating a business model often demands imagination, judgment and an eye for the parts and the whole.

When people in a certain sector or branch use approximately the same business model, this is referred to as industrial wisdom/industrial logic - a generally accepted idea of how things are done in a certain branch (and how things aren't done).

Match the business model headings with the question addressed beneath each heading. -Value Proposition

Match the business model headings with the question addressed beneath each heading. -Customer Segments

Match the business model headings with the question addressed beneath each heading. -Customer Relationships

Match the business model headings with the question addressed beneath each heading. -Channels

Match the business model headings with the question addressed beneath each heading. -Key Activities