BUS 1-7 Types of Business Models

What is the primary purpose of a business model?

• To list the company's employees and their roles.
• To provide a detailed financial analysis of the company.
• To describe how a company sells its products and makes a profit.
• To outline the company's goals and objectives.

Which of the following statements accurately describes a business plan?

• It solely focuses on marketing strategies.
• It is a detailed financial report of the company's earnings.
• It is a roadmap that includes the business model as one part.
• It is a summary of the company's history.

How do companies typically adapt their business models over time?

• By maintaining the same strategies regardless of market changes.
• By changing their business models to adapt to technology and consumer preferences.
• By eliminating all previous models and starting anew.
• By focusing solely on increasing their product prices.

What is a key characteristic of the Direct to Consumer (D2C) model?

• It focuses on selling only to businesses.
• It sells products directly to customers without intermediaries.
• It requires third-party wholesalers for distribution.
• It involves selling products through multiple retailers.

What does the term 'E-Commerce' refer to in a business context?

• A business model that uses electronic mediums for buying and selling.
• A model that relies on physical stores for sales.
• A method of selling products through direct mail.
• A strategy focused solely on social media marketing.

In the Freemium model, what is offered for free?

• Only premium services.
• Basic services, with additional features available for a fee.
• A full refund on all purchases.
• All services without any charges.

What is the primary function of the Subscription model?

• To charge a one-time fee for a product.
• To charge a regularly scheduled fee for products or services.
• To sell products only during seasonal sales.
• To provide free trials for all services.

What does the Aggregator model do?

• It focuses on manufacturing goods in bulk.
• It provides free services to all users.
• It collects information from competing sources and charges a fee per transaction.
• It sells products directly to consumers.

How do Data Licensing companies generate revenue?

• By offering free services to users.
• By selling physical products.
• By licensing the data they collect.
• By charging for advertising space.

Why is the business model slide important in a pitch deck for investors?

• It provides a detailed marketing strategy.
• It lists all employees and their roles.
• It summarizes how the company makes money.
• It shows the company's history.