ENT I: Unit 5 Practice Test

What is the primary definition of a revenue stream?

• The total cost of producing goods

• The various ways a business earns income

• The investment made by stakeholders

• The cost of customer acquisition

What is an example of a transactional revenue stream?

• Monthly subscription fee

• One-time sale of a t-shirt

• Licensing a brand name

• Ad revenue from a blog

Which of the following is a characteristic of a recurring revenue stream?

• It happens only once

• It is unpredictable

• It occurs on a regular basis

• It depends on equity investment

Why are recurring revenue streams beneficial to a business?

• They eliminate expenses

• They create consistent income

• They increase startup costs

• They reduce the need for marketing

What term refers to charging customers for use of a product rather than ownership?

• Licensing

• Freemium

• Usage fee

• Asset sale

What is a freemium model?

• Paying a one-time fee for lifetime access

• Offering basic services for free and charging for advanced features

• Renting equipment instead of buying

• Outsourcing manufacturing to reduce cost

What kind of revenue stream is created when a business licenses intellectual property?

• Usage fee
• Asset Sale

• Subscription

• Licensing

Which of the following is an example of an intermediation fee?

• Renting a room through Airbnb

• Selling your own product on Etsy

• Purchasing a car from a dealership

• Donating to a crowdfunding campaign

What is the main advantage of advertising as a revenue stream?

• It increases production costs

• It allows customers to buy more products

• It monetizes attention or views

• It requires subscription fees

What is the biggest challenge of an advertising-based revenue stream?

• Managing equipment

• Building a large audience

• Hiring skilled employees

• Reducing product cost