ENT 3003 EXAM 3 PRACTICE QUESTIONS WITH
ACCURATE SOLUTIONS
Gathering unique information from network contacts, such as the release date of a new
product or what ______ look for during pitch, can give entrepreneurs the edge. --
Answer ✔✔ investors
What does it mean to maintain a network? -- Answer ✔✔ let your network know what
you are up to by tweeting
A process in which team members examine critical issues with a wide lens and
formulate strategies by considering diverse approaches, decision criteria, and courses of
action is ______. -- Answer ✔✔ cognitive comprehensiveness
What is the income gained from the sales of goods or services? -- Answer ✔✔ revenue
What is the key component of the business model which identifies how the company
will earn income and make profits? -- Answer ✔✔ revenue model
Airbnb is a type of business that generates revenues through the ______ revenue
model. -- Answer ✔✔ intermediation
,What model is described by the number of items (units) sold by a company? -- Answer
✔✔ unit sales revenue
What is the variation of the unit sales model? -- Answer ✔✔ razor-and-razor-blade
Meaningful advertising revenue generated in the digital world is dependent on which of
the following? -- Answer ✔✔ attracting traffic and developing a dominant niche
true or false: The licensing revenue model is where companies generate revenue by
selling high-quality, exclusive, valuable information to other parties. -- Answer ✔✔ false
What is a common way magazines and newspapers make revenue? -- Answer ✔✔
advertising revenue model
Why is the freemium revenue model becoming more popular? -- Answer ✔✔ it
encourages widespread customer adoption
What is the pricing of a product or service above its market value to pay for the loss of
giving away a product or service for free or below its market value? -- Answer ✔✔
direct cross subsidies
One way the free newspaper Metro makes money is ______. -- Answer ✔✔ featuring
major events
true or false: Multiparty business is a type of free model where one party is given a
product or service for free while another party must pay for it. -- Answer ✔✔ true
, What is the value of goods sold when a sale takes place? -- Answer ✔✔ cost of goods
sold
What are the costs of running a business—such as rent, utilities, administration, and
salaries—referred to as? -- Answer ✔✔ operating expenses
What are the key revenue drivers? -- Answer ✔✔ price, customers, and frequency
true or false: A pro forma income statement is a projection or estimate of what the
company might do. -- Answer ✔✔ true
What is a loss leader? -- Answer ✔✔ offering a product below cost
What is the type of pricing strategy when prices are guided by other businesses selling
the same or very similar products? -- Answer ✔✔ competition led
What is the point where revenue equals costs? -- Answer ✔✔ break even
What is the type of pricing strategy involving calculating all the costs involved in
manufacturing or delivering the product or service, plus all other expenses, plus
expected profit based on sales volume? -- Answer ✔✔ cost-led
What are ways to reduce the cost of goods sold? -- Answer ✔✔ use less expensive
materials, negotiate with vendors, or find a lower cost manufacturer
ACCURATE SOLUTIONS
Gathering unique information from network contacts, such as the release date of a new
product or what ______ look for during pitch, can give entrepreneurs the edge. --
Answer ✔✔ investors
What does it mean to maintain a network? -- Answer ✔✔ let your network know what
you are up to by tweeting
A process in which team members examine critical issues with a wide lens and
formulate strategies by considering diverse approaches, decision criteria, and courses of
action is ______. -- Answer ✔✔ cognitive comprehensiveness
What is the income gained from the sales of goods or services? -- Answer ✔✔ revenue
What is the key component of the business model which identifies how the company
will earn income and make profits? -- Answer ✔✔ revenue model
Airbnb is a type of business that generates revenues through the ______ revenue
model. -- Answer ✔✔ intermediation
,What model is described by the number of items (units) sold by a company? -- Answer
✔✔ unit sales revenue
What is the variation of the unit sales model? -- Answer ✔✔ razor-and-razor-blade
Meaningful advertising revenue generated in the digital world is dependent on which of
the following? -- Answer ✔✔ attracting traffic and developing a dominant niche
true or false: The licensing revenue model is where companies generate revenue by
selling high-quality, exclusive, valuable information to other parties. -- Answer ✔✔ false
What is a common way magazines and newspapers make revenue? -- Answer ✔✔
advertising revenue model
Why is the freemium revenue model becoming more popular? -- Answer ✔✔ it
encourages widespread customer adoption
What is the pricing of a product or service above its market value to pay for the loss of
giving away a product or service for free or below its market value? -- Answer ✔✔
direct cross subsidies
One way the free newspaper Metro makes money is ______. -- Answer ✔✔ featuring
major events
true or false: Multiparty business is a type of free model where one party is given a
product or service for free while another party must pay for it. -- Answer ✔✔ true
, What is the value of goods sold when a sale takes place? -- Answer ✔✔ cost of goods
sold
What are the costs of running a business—such as rent, utilities, administration, and
salaries—referred to as? -- Answer ✔✔ operating expenses
What are the key revenue drivers? -- Answer ✔✔ price, customers, and frequency
true or false: A pro forma income statement is a projection or estimate of what the
company might do. -- Answer ✔✔ true
What is a loss leader? -- Answer ✔✔ offering a product below cost
What is the type of pricing strategy when prices are guided by other businesses selling
the same or very similar products? -- Answer ✔✔ competition led
What is the point where revenue equals costs? -- Answer ✔✔ break even
What is the type of pricing strategy involving calculating all the costs involved in
manufacturing or delivering the product or service, plus all other expenses, plus
expected profit based on sales volume? -- Answer ✔✔ cost-led
What are ways to reduce the cost of goods sold? -- Answer ✔✔ use less expensive
materials, negotiate with vendors, or find a lower cost manufacturer
