MCQ 3 or better

[Brian]

1. Free, The Future of a Radical Price: Which of the following is
false regarding the Freemium Business Model?

A. The Freemium model works best if your marginal cost of distribution
is near 0.
B. Premiums are integral to a Freemium model which enable a user to
upgrade their basic product or service.
*C. The Freemium model cannot work because customers will never pay a
premium when receiving free products and services.
D. The Freemium model has been most successful with software and
internet companies since digital distribution of their products is
close to nothing.
E. One of the major benefits of adopting a Freemium model is that free
products lead to a vast customer base .

2.Competition Demystified: Each of the following choices reflects
competitive advantage except?
A. Competitors are having difficulty entering a given market.
*B. Growth should be the next objective once a company recognizes
competitive advantages
C. Achieving a lower average cost per unit through economies of scale
D. 'Locking' in customers to the company's product through habit or
switching costs
E. Invested capital is reporting a sharp increase in return

3.Business Model Generation: All of the following reflect Business
Model Innovation except?
A. Business Model Innovation should focus on creating value for
firms, society, and consumers.
B. A Business Model Canvas is conducive to a more dynamic approach
when creating a BMI
*C. The best business models do not let customer behavior and
external information mold their BMI
D. Prototyping can help facilitate the direction of your BMI
E. Searching for patterns among different Business Models and can
help develop understanding and creativity

4.Adaptability: The New Competitive Advantage: All of the following
represent approaches to adaptability to big business except:
*1. Reorganize traditional hierarchical structures
2. Become innovative in the approach to analyzing risk
(uncertainties) and rewards
3. Expedite meetings and decision making processes
4. Shift focus of competitors from traditional companies to high
growth new companies
5.Proliferate the amount of alternatives to a given solution

5.Speaker Victor Mitchell: All of the following represent ways to
develop a successful business except:
A. Know your financial statements in detail
B. Have multiple revenue streams
C. Be honest and highly self-critical
D. Set clear goals and have measurable results
*E. Do not focus immediately on limiting your downside risk