Creating Revenue Models in Entrepreneurship MCQs
Creating Revenue Models in Entrepreneurship MCQs
Our team has conducted extensive research to compile a set of Creating Revenue Models in Entrepreneurship MCQs. We encourage you to test your Creating Revenue Models in Entrepreneurship knowledge by answering these 40 multiple-choice questions provided below.
Simply scroll down to begin!
1: In Advertising Revenue Model generating revenue by advertising products and services.
A. True
B. False
2: Brokers who organize transactions between buyers and sellers
A. True
B. False
3: Best definition of Bundled Pricing
A. A pricing strategy that matches prices to other businesses selling the same or very similar products and services.
B. A pricing strategy whereby companies package a set of goods or services together and then sell them for a lower price than if they were to be sold separately.
C. The direct cost of producing a product.
D. None of these
4: A pricing strategy that involves calculating all the costs involved in manufacturing or delivering the product or service, plus all other expenses, and adding an expected profit or margin by predicting your sales volume to get the approximate price is known as .
A. Competition-Led Pricing
B. Cost of Goods Sold
C. Cost-Led Pricing
D. Cost of Goods Sold (COG)
5: Generating revenue by selling high-quality, exclusive, valuable information to other parties are known as ?
A. Data revenue Model
B. Direct Cross-Subsidies
C. both a&b
D. None of these
6: In Direct Cross-Subsidies Pricing 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.
A. True
B. False
7: The degree to which both businesses and customers believe that the pricing is reasonable is known as?
A. Fair Pricing
B. Franchising Revenue Model
C. Freemium Revenue Model
D. None of these
8: Mixing free (mainly web-based) basic services with premium or upgraded services is known as?
A. Freemium Revenue Model
B. Income Statement
C. Intermediation Revenue Model
9: Best definition of Income Statement __.
A. A financial report that shows revenue, expenses, and profit for a period of time, typically a month, quarter, or year.
B. Intermedia tithe different methods by which third parties such as brokers (or “middlemen”) can generate money.
C. Introductory Offer
D. A pricing strategy to encourage people to try a new product by offering it for free or at a heavily discounted price.
E. Earning revenue by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees.
10: A pricing strategy that matches prices to other businesses selling the same or very similar products and services are called
A. Competition-Led Pricing
B. Cost of Goods Sold
C. Cost-Led Pricing
D. Cost of Goods Sold (COGS)
11: In Licensing Revenue Model Earning revenue by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees.
A. True
B. False
12: Introductory Offer strategy to _____ to try a new product by offering it for free or at a heavily discounted price.
A. discourage people
B. encourage people
C. People encourage
D. None of these
13: In Licensing Revenue Model Earning revenue by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees.
A. True
B. False
14: In which strategy a business offers a product or service at a lower price in an attempt to attract more customers.
A. Loss Leader
B. Operating Expenses
C. Multiparty Business
D. None of these
15: Choice best option according to statement “one party product or service free, but charging the other party “
A. Operating Expenses
B. Professional Revenue Model
C. Multiparty Business
D. Incorrect Statement
16: The costs of running your business, including your rent, utilities, administration, marketing/advertising, employee salaries, and so on is known as
A. Operating Expenses
B. Professional Revenue Model
C. Multiparty Business
D. Incorrect Statement
17: In the Professional Revenue Model earning revenue by providing professional ______ & materials contracts.
A. Latter
B. On time
C. Both a & b chances
D. None of these
18: A pricing strategy intended to encourage customers to buy on the basis of their belief that the product or service is cheaper than it really is known as .
A. Psychological Pricing
B. Professional Revenue Model
C. Revenue
D. Skimming
19: In Revenue the income gained from sales of goods or services.
A. True
B. False
20: In Revenue Model a key component of the business model that identifies how the company will earn income and make profits.
A. how the company will earn income and make profits.
B. Why do companies earn income and make profits?
C. company will earn income and make profits?
D. All possible
21: Skimming is generally used for
A. Old products
B. sold products
C. new products
D. All option possible
22: In Subscription Revenue Model charging customers to gain continuous access to a product or service.
A. True
B. False
23: Target-Return Pricing is a pricing method whereby the price is based on the amount of _____ you have put into your business.
A. investment
B. Budge
C. Saving
D. None of these
24: In the Unit Sales Revenue Model Generating revenue by the number of items (units) sold by _____ ?
A. A person
B. a company.
C. Both a & b
D. None of these
25: In Utility and Usage Revenue Model A pay-as-you-go model that charges customers fees on the basis of how often goods or services are used.
A. True
B. False
26: Value-Based Pricing is a pricing method that involves pricing a product based on _______
A. how it benefits the customer.
B. how it benefits the seller.
C. how it benefits the broker
D. None of these
27: A ______ explains how entrepreneurs will make money from delivering on the customer value proposition.
A. business model
B. revenue model
C. profit model
D. value model
28: Which of the following is a key revenue driver?
A. suppliers
B. competitive Rivalry
C. frequency
D. market
29: A ______ pricing model involves offering a product or service at a below-cost price in an attempt to attract more customers.
A. customer-led pricing
B. loss leader
C. skimming
D. introductory offer
30: Companies use the ______ when they generate revenue by selling high-quality, exclusive, valuable information to other parties.
A. data revenue model
B. franchising revenue model
C. subscription revenue model
D. professional revenue model
31: When Facebook offers its site for free use to consumers, and earns revenue by selling information on its users’ web habits to other companies, it is using the ______ type of free financial model.
A. direct cross-subsidies
B. multiparty markets
C. utility and usage models
D. razor-and-blades models
32: The ______ measures the amount of revenue generated by the number of items sold by a company.
A. advertising revenue model
B. intermediation revenue model
C. unit sales revenue model
D. licensing revenue model
33: ______ involves pricing your product based on how it benefits the customer.
A. Cost-led pricing
B. Target-return pricing
C. Value-based pricing
D. Freemium-to-premium-based pricing
34: The ______ involves charging customers to gain continuous access to a product or service.
A. data revenue model
B. franchising revenue model
C. subscription revenue model
D. professional revenue model
35: The ______ describes the different methods by which third parties such as brokers (or “middlemen”) can generate money.
A. advertising revenue model
B. intermediation revenue model
C. unit sales revenue model
D. licensing revenue model
36: A ______ pricing model is a form of high pricing, generally used for new products or services that face little or no competition.
A. customer-led pricing
B. loss leader
C. skimming
D. introductory offer
37: A ______ identifies how the company will earn income and generate profits.
A. business model
B. revenue model
C. profit model
D. value model
38: Using ______ is a type of financial model where a product or service is priced above its market value to pay for the loss of giving away a complementary product or service for free or below its market value.
A. direct cross-subsidies
B. multiparty markets
C. utility and usage models
D. razor-and-blades models
39: Which of the following is a cost driver?
A. fixed costs
B. capital expenses
C. long-term debt
D. cost of goods sold
40: Patrick’s Pizza has calculated the prices for its pizzas by first calculating all the expenses it incurs to make each pizza, and then adding a 50% profit margin. Patrick’s Pizza is thus using a ______ model.
A. cost-led pricing
B. target-return pricing
C. value-based pricing
D. freemium-to-premium-based pricing
41: ______ involves setting your price based on the amount of investment you have put into your business.
A. Cost-led pricing
B. Target-return pricing
C. Value-based pricing
D. Freemium-to-premium-based pricing
List of Creating Revenue Model...
Available in:
Creating Revenue Models in Entrepreneurship MCQs
