EEE 370 EXAMS SCRIPT ALL QUESTIONS AND
ANSWERS SURE A+
✔✔Customer segment pivot - ✔✔Solves the original problem/need, but for a different
customer than originally intended
Ex: Fab.com
✔✔Customer need pivot - ✔✔Identified a target that needs a problem solved, but you
change the original problem you intended to solve
Ex: Chegg
✔✔Platform pivot - ✔✔Change from an application to a platform (or vice versa)
✔✔Business architecture pivot - ✔✔Pivot from one model type to the other:
-High margin, low volume (complex systems model)
-Low margin, high volume (volume operations model)
✔✔Value capture pivot - ✔✔Changes in the way the company offers value to the
customer
Ex: Zappos
✔✔Engine of growth pivot - ✔✔Change in growth strategy to attain more profitable
growth
✔✔Channel pivot - ✔✔Same solution is delivered through a different channel, leading to
more effective results
✔✔Technology pivot - ✔✔A company achieves the same solution, by using a different
means of technology
, Ex: PayPal
✔✔Financial feasibility analysis - ✔✔Overall financial attractiveness of the proposed
business; Total start-up cash needed; Financial performance of similar businesses
✔✔Explain the components of, the differences between and give example of:
-Balance sheet - ✔✔Snapshot of the firm and all it owns, shows what the firm is "worth"
Assets=Liabilities+Owners Equity
Equation must always be "in balance"
✔✔Explain the components of, the differences between and give example of:
-Income statement - ✔✔Shows the financial performance of the firm, measured over a
period of time
Revenue-Expenses=Profit (Loss)
✔✔Explain the components of, the differences between and give example of:
-Statement of cash flows - ✔✔Looks at cash in, cash out, and where, seen over a
period of time
✔✔Explain the components of, the differences between and give example of:
-Break-even analysis - ✔✔When do you actually make money? Lets you plan ahead,
helps to keep costs low, graphical calculation
✔✔Owner's Equity - ✔✔The owner's claims to the assets of the business
✔✔Variable costs - ✔✔Varies with changes in level of output
✔✔Fixed costs - ✔✔Does not change as level of output changes
✔✔Human capital - ✔✔The skills and knowledge gained by a worker through education
and experience
✔✔Revenue drivers - ✔✔Identify all the ways the venture makes money, fixed or
flexible pricing
✔✔Margins - ✔✔Contribution margin = Price-Variable Cost per Unit
ANSWERS SURE A+
✔✔Customer segment pivot - ✔✔Solves the original problem/need, but for a different
customer than originally intended
Ex: Fab.com
✔✔Customer need pivot - ✔✔Identified a target that needs a problem solved, but you
change the original problem you intended to solve
Ex: Chegg
✔✔Platform pivot - ✔✔Change from an application to a platform (or vice versa)
✔✔Business architecture pivot - ✔✔Pivot from one model type to the other:
-High margin, low volume (complex systems model)
-Low margin, high volume (volume operations model)
✔✔Value capture pivot - ✔✔Changes in the way the company offers value to the
customer
Ex: Zappos
✔✔Engine of growth pivot - ✔✔Change in growth strategy to attain more profitable
growth
✔✔Channel pivot - ✔✔Same solution is delivered through a different channel, leading to
more effective results
✔✔Technology pivot - ✔✔A company achieves the same solution, by using a different
means of technology
, Ex: PayPal
✔✔Financial feasibility analysis - ✔✔Overall financial attractiveness of the proposed
business; Total start-up cash needed; Financial performance of similar businesses
✔✔Explain the components of, the differences between and give example of:
-Balance sheet - ✔✔Snapshot of the firm and all it owns, shows what the firm is "worth"
Assets=Liabilities+Owners Equity
Equation must always be "in balance"
✔✔Explain the components of, the differences between and give example of:
-Income statement - ✔✔Shows the financial performance of the firm, measured over a
period of time
Revenue-Expenses=Profit (Loss)
✔✔Explain the components of, the differences between and give example of:
-Statement of cash flows - ✔✔Looks at cash in, cash out, and where, seen over a
period of time
✔✔Explain the components of, the differences between and give example of:
-Break-even analysis - ✔✔When do you actually make money? Lets you plan ahead,
helps to keep costs low, graphical calculation
✔✔Owner's Equity - ✔✔The owner's claims to the assets of the business
✔✔Variable costs - ✔✔Varies with changes in level of output
✔✔Fixed costs - ✔✔Does not change as level of output changes
✔✔Human capital - ✔✔The skills and knowledge gained by a worker through education
and experience
✔✔Revenue drivers - ✔✔Identify all the ways the venture makes money, fixed or
flexible pricing
✔✔Margins - ✔✔Contribution margin = Price-Variable Cost per Unit
