OpenStax Entrepreneurship Test Bank
Chapter 11: Business Model and Plan
Chapter 11: Business Model and Plan
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is the most common business model and involves one-sided actors?
A. ad-based
B. direct*
C. marketplace
D. multi-sided
Difficulty: Easy
2. Why do most businesses fail within the first few years?
A. cash flow issues*
B. lack of leadership
C. poor product/service
D. too much debt
Difficulty: Moderate
3. Coca-Cola’s brand-line extension with Cherry Coke and Coca-Cola with Lime is an example
of ________.
A. disruptive innovation
B. incremental innovation*
C. market innovation
D. radical innovation
Difficulty: Moderate
4. Which of the following is a new addition to the market or a novel change in an existing
product or service?
A. advancement
B. innovation*
C. invention
D. market addition
Difficulty: Easy
5. 3-D printing is an example of what type of innovation?
A. advanced
B. disruptive*
C. incremental
D. market
Page 1 of 10
, OpenStax Entrepreneurship Test Bank
Chapter 11: Business Model and Plan
Difficulty: Difficult
6. Which of the following improve the performance of established products through
characteristics that mainstream customers adopt?
A. disruptive technologies
B. innovative technologies
C. radical technologies
D. sustaining technologies*
Difficulty: Moderate
7. Why will a disruptive technology fail in most instances?
A. because it is not tested in the marketplace
B. because customers are not early adopters
C. because there is lack of funding for the technology
D. because a different business model will be needed*
Difficulty: Difficult
8. When an existing business fundamentally changes their approach to the business, it is called
________.
A. business model innovation*
B. disruptive model innovation
D. incremental innovation
C. market adjusted innovation
Difficulty: Easy
9. The ________ statement summarizes the benefits customers can expect from the
product/service.
A. business purpose
B. innovation statement
C. market position
D. value proposition*
Difficulty: Easy
10. The business model canvas has ________ key components.
A. two
B. four
C. six
D. nine*
Difficulty: Easy
Page 2 of 10
Chapter 11: Business Model and Plan
Chapter 11: Business Model and Plan
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is the most common business model and involves one-sided actors?
A. ad-based
B. direct*
C. marketplace
D. multi-sided
Difficulty: Easy
2. Why do most businesses fail within the first few years?
A. cash flow issues*
B. lack of leadership
C. poor product/service
D. too much debt
Difficulty: Moderate
3. Coca-Cola’s brand-line extension with Cherry Coke and Coca-Cola with Lime is an example
of ________.
A. disruptive innovation
B. incremental innovation*
C. market innovation
D. radical innovation
Difficulty: Moderate
4. Which of the following is a new addition to the market or a novel change in an existing
product or service?
A. advancement
B. innovation*
C. invention
D. market addition
Difficulty: Easy
5. 3-D printing is an example of what type of innovation?
A. advanced
B. disruptive*
C. incremental
D. market
Page 1 of 10
, OpenStax Entrepreneurship Test Bank
Chapter 11: Business Model and Plan
Difficulty: Difficult
6. Which of the following improve the performance of established products through
characteristics that mainstream customers adopt?
A. disruptive technologies
B. innovative technologies
C. radical technologies
D. sustaining technologies*
Difficulty: Moderate
7. Why will a disruptive technology fail in most instances?
A. because it is not tested in the marketplace
B. because customers are not early adopters
C. because there is lack of funding for the technology
D. because a different business model will be needed*
Difficulty: Difficult
8. When an existing business fundamentally changes their approach to the business, it is called
________.
A. business model innovation*
B. disruptive model innovation
D. incremental innovation
C. market adjusted innovation
Difficulty: Easy
9. The ________ statement summarizes the benefits customers can expect from the
product/service.
A. business purpose
B. innovation statement
C. market position
D. value proposition*
Difficulty: Easy
10. The business model canvas has ________ key components.
A. two
B. four
C. six
D. nine*
Difficulty: Easy
Page 2 of 10
