Question 1

Which of the following is not one of the four elements of a vision?
A) Clarity
B) Creativity
C) Purpose
D) Uniqueness

Accepted Answer

Creativity is not typically considered one of the four elements of a vision, which usually include clarity, purpose, uniqueness, and future orientation.

Question 2

The vision incorporates the basic tenants of the mission statement.

Accepted Answer

The correct term is "tenets," not "tenants." Tenets refer to principles or beliefs, while tenants are people who occupy land or property.

Question 3

Which of these was given as a possible element of a mission statement?
A) Competitive advantage
B) Focus groups
C) Vision coherence
D) Rate of change

Accepted Answer

B

Question 4

Which of the following would not be part of eBay's mission statement?
A) Provide a global online marketplace
B) Enable worldwide economic opportunity
C) Enlist a world-class marketing team
D) Allow users to trade anything

Accepted Answer

Enlisting a world-class marketing team is more of an internal operational goal rather than a component of a mission statement, which typically focuses on the company's purpose and impact on users and society.

Question 5

Most mission statements are between 120 and 180 words.

Accepted Answer

Mission statements typically range from a few words to a couple of sentences, often much shorter than 120 to 180 words.

Question 6

The mission statement should not explain which of the following?
A) Collective purpose
B) Company values
C) Workforce size
D) Customer approach

Accepted Answer

A mission statement typically focuses on the organization's purpose, values, and approach to customers, not on specific operational details like workforce size.

Question 7

The mission statement should be unchanging throughout the lifetime of a company.

Accepted Answer

A mission statement may evolve as a company grows and adapts to changes in the market, industry, or its own strategic goals.

Question 8

When Google started to get into other industries such as self-driving cars, it kept its original mission statement unchanged.

Accepted Answer

Google's original mission statement was "to organize the world's information and make it universally accessible and useful." When it restructured under the parent company Alphabet Inc. in 2015, it allowed for a broader scope beyond just search and information, reflecting its expansion into other industries.

Question 9

Who should create the mission statement?
A) The head of the entrepreneurial team
B) Employees at the lowest level of the company
C) The entrepreneurial team and other employees

Accepted Answer

The mission statement should be created by the entrepreneurial team and other employees to ensure it reflects the company's values and goals comprehensively and inclusively.

Question 10

Smaller mission statements may branch off the main one.

Accepted Answer

Organizations often create smaller, more specific mission statements for different departments or initiatives that align with the overarching mission statement.

Question 11

The value proposition does not accomplish which of the following?
A) Equates the value to monetary worth
B) Describes what is offered to the customer
C) States who the customer is
D) Outlines the importance of the product

Accepted Answer

The value proposition does not equate the value to monetary worth; it focuses on the benefits and value offered to the customer, not just the price.

Question 12

What is the main difference between a unique selling proposition (USP) and a value proposition?
A) Length
B) Source
C) Outlook
D) Intent

Accepted Answer

The answer of What is the main difference between a...

Question 13

Which of the following is not one of the five values offered to a customer?
A) Experience
B) Access
C) Service
D) Quality

Accepted Answer

The answer of Which of the following is not one...

Question 14

Which of the following firms was listed as having Access as the primary value and Experience as the secondary value?
A) Mercedes
B) AT&T
C) Nordstrom
D) Starbucks

Accepted Answer

AT&T was listed as having Access as the primary value and Experience as the secondary value, focusing on providing widespread connectivity and customer service.

Question 15

American Express invented the travelers checks as a product that had high-value to the company and low-value to the customer.

Accepted Answer

American Express invented travelers checks as a secure and convenient way for travelers to carry money, providing high value to customers by offering safety and ease of use.

Question 16

Value propositions and USP's are for stakeholders as well as customers.

Accepted Answer

Value propositions and Unique Selling Propositions (USPs) are designed to communicate the benefits and unique aspects of a product or service to both customers and stakeholders, as they both have an interest in the success and differentiation of the business.

Question 17

In Alex Osterwalder's business model canvas, which of the following is one of the first three building blocks?
A) Key Partners
B) Customer Segments
C) Key Activities
D) Customer Relationships

Accepted Answer

The answer of In Alex Osterwalder's business model canvas, which...

Question 18

Figure 3.4 describes how the business model responds to changing conditions. What is the last step in this business design process?
A) Reevaluate the business model in terms of changes in the marketplace
B) Prepare and test a business model
C) Select the customer
D) Implement the business model

Accepted Answer

The last step in the business design process is to reevaluate the business model in terms of changes in the marketplace to ensure it remains relevant and effective.

Question 19

Spotify is an example of the ________ business model.
A) Music
B) Freemium
C) SaaS
D) Convergent

Accepted Answer

Spotify uses the freemium business model, offering basic services for free while charging for premium features.

Question 20

Kik's mobile messaging app has seen explosive user growth. However, a business model has yet to materialize. Which of the following is not a business model Kik could pursue to become a profitable business?
A) Kik could add the capability for its users to opt into advertising or special offers that are tied to users' interests or geolocation.
B) Kik could add new emoji to its set of messaging features.
C) Kik could charge for translating messages into different languages.
D) Kik could create corporate messaging accounts and charge corporations for the use of those accounts.

Accepted Answer

Adding new emoji to its set of messaging features is not a business model that directly generates revenue or profit for Kik.

Quiz 3: Vision and the Business Model

Which of the following is not one of the four elements of a vision?

The vision incorporates the basic tenants of the mission statement.

Which of these was given as a possible element of a mission statement?

Which of the following would not be part of eBay's mission statement?

Most mission statements are between 120 and 180 words.

The mission statement should not explain which of the following?

The mission statement should be unchanging throughout the lifetime of a company.

When Google started to get into other industries such as self-driving cars, it kept its original mission statement unchanged.

Who should create the mission statement?

Smaller mission statements may branch off the main one.

The value proposition does not accomplish which of the following?

What is the main difference between a unique selling proposition (USP) and a value proposition?

Which of the following is not one of the five values offered to a customer?

Which of the following firms was listed as having Access as the primary value and Experience as the secondary value?

American Express invented the travelers checks as a product that had high-value to the company and low-value to the customer.

Value propositions and USP's are for stakeholders as well as customers.

In Alex Osterwalder's business model canvas, which of the following is one of the first three building blocks?

Figure 3.4 describes how the business model responds to changing conditions. What is the last step in this business design process?

Spotify is an example of the ________ business model.

Kik's mobile messaging app has seen explosive user growth. However, a business model has yet to materialize. Which of the following is not a business model Kik could pursue to become a profitable business?