Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Answers to Questions in the Text
Chapter 8: Building Business Models
ENTREPRENEURSHIP IN ACTION
Tanzeel urRehman, Co-founder and CEO, Virtual Force (VF)
1. How would you describe the business model used by VF?
Sample Answer: VF’s business model includes the following objectives:
• Create value by joining a new start-up’s team as an unofficial Chief Technology Officer
(CTO) or “tech co–founder.”
2. Why do you think VF changed its business model?
3. Do you think taking ownership in his client’s businesses will be valuable in the long run?
Explain your reasoning.
ENTREPRENEURSHIP MEETS ETHICS
Attack of the Clones
1. What do you think are the ethical implications of copycat business models?
Sample Answer: Perhaps the greatest risk comes in inadvertent infringement of trademarks and
2. Do you think cloning products and services is good business practice? Why or why not?
3. What would you do if someone else cloned your product or service?
MINDSHIFT
Create Your Own BMC
1. Why do you think this tool is called the Business Model Canvas?
2. In what ways does the division between value creation and value delivery help to clarify
the process of refining the business model?
3. In completing a BMC for your idea, what did you learn that surprised you or overturned
your expectations?
RESEARCH AT WORK
Peer-to-Peer Business Models
1. Do you think the peer-to-peer business model is better than the traditional business
model? Why or why not?
Sample Answer: Answers may vary from student to student. It is likely that each student’s
2. What do you think the impact will be if traditional businesses fail to adapt to peer–to–
peer business models?
3. How would negative press or reviews influence your decision to use peer–to-peer
services?
Sample Answer: It depends on how confident and determined you can be that your service will
Summary Questions
1. Define the business model.
2. Identify the four core areas of a business model.
3. Explore the importance of the CVP in further detail.
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
4. Describe the different types of CVPs and show how to identify your target customers.
Businesses tend to have different CVPs for each customer segment. This is to ensure they are
5. Identify the nine components of the business model canvas.