978-0134729534 Test Bank Chapter 04 Part 2

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

A) product/market

B) offering/industry

C) business/market

D) business/industry

E) offering/market

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.

A) offering/market

B) offering/industry

C) business/market

D) business/industry

E) product/market

41) The Resources section of the Barringer/Ireland Business Model Template consists of the

________ and ________ boxes.

A) business mission; core competency

B) core competency; product/market scope

C) channels; key partners

D) core competency; key assets

E) revenue streams; key assets

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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.

A) primary capability

B) core competency

C) essential asset

D) staple proficiency

E) key aptitude

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.

A) primary capability

B) core competency

C) essential asset

D) staple proficiency

E) key aptitude

44) In the terminology of the Barringer/Ireland Business Model Template, ________ assets are

the assets that a firm owns that enable its business model to work.

A) key

B) tactical

C) fundamental

D) primary

E) strategic

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

A) fixed, situational, variable, and permanent

B) tactical, strategic, fixed, and variable

C) tangible, intangible, variable, and fixed

D) temporary, permanent, fixed, and variable

E) physical, financial, intellectual, or human

46) The Financials section of the Barringer/Ireland Business Model Template consists of three

boxes. The boxes are titled ________.

A) economics of the business, startup-costs, and break-even

B) revenue streams, cost structure, and financing/funding

C) profit margins, revenue streams, and break-even

D) startup-costs, operating leverage, and financing/funding

E) fixed vs variables costs, financing/funding, and break-even

47) Which section of the Barringer/Ireland Business Model Template is the only section that

describes how it makes money?

A) Core strategy

B) Resources

C) Financials

D) Operations

E) Value proposition

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

A) proceeds account

B) break-even analysis

C) revenue streams

D) cash flow

E) income statement

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

________.

A) revenue streams

B) basis of differentiation

C) key assets

D) channels

E) cost structure

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.

A) expense

B) cost

C) budget

D) overhead

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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.

A) expense

B) outlay

C) payment

D) overhead

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.

A) Expense; Non-standard

B) Standard; Non-Standard

C) Fixed; Variable

D) Non-Standard; Standard

E) Variable; Fixed

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

________.

A) setup costs, one-time expenses, and costs associated with incorporating the firm

B) capital costs, marketing costs, and provisions for ramp-up expenses

C) setup costs, marketing costs, and operating costs

D) capital costs, one-time expenses, and provisions for ramp-up expenses

E) operating costs, capital costs, and costs associated with setting up the firm

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54) The operations quadrant in the Barringer/Ireland Business Model Template includes three

sections. These are ________.

A) product (or service) production, channels, and key partners

B) product/market scope, cost structure, and key partners

C) key assets, cost structure, and channels

D) key partners, financing/funding, and target market

E) channels, core competency, and key partners

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.

A) basis of differentiation

B) product/service production

C) product/market scope

D) core competency

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 ________.

A) channels

B) network

C) linkages

D) grids

E) conduits

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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

________.

A) dealers

B) suppliers

C) merchants

D) traders

E) brokers

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 ________.

A) trade association

B) network

C) joint venture

D) consortia

E) strategic alliance

59) The four major categories in the Barringer/Ireland Business Model Template are: core

strategy, resources, financials, and operations.

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

61) A business’s mission or mission statement describes why it exists and what its business

62) When completing the basis for differentiation portion of the Barringer/Ireland Business

Model template, it is important to emphasize as many points of differentiation as possible.

63) A company’s target market is a place within a larger market segment that represents a

narrower group of customers with similar interests.

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

concentrate.

65) The resources section of the Barringer/Ireland Business Model Template includes three parts:

core competency, key assets, and revenue streams.

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66) In the terminology of the Barringer/Ireland Business Model Template, a key asset is a

specific factor or capability that supports a firm’s business model and sets it apart from its rivals.

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

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

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.

70) The operations section of the Barringer/Ireland Business Model Template includes three

sections: product (or service) production, channels, and key partners.

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

Answer: TRUE

Diff: 2

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

Quest. Category: Critical 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.

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

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74) Briefly describe the four main components of the Barringer/Ireland Business Model

Template. Identify the subcomponents of each of the four main components of a business model.

75) What are core competencies? Provide an example of the core competencies that are utilized

by an entrepreneurial firm.