When should you create a business model?

a$.$ When you are trying to decide if a business opportunity is viable

b$.$ After you create your full business plan

c$.$ Before you create your full business plan

d$.$ A and C

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What type of business model is the $$manufacturer$$ model?

Traditional business model

Duplication business model

Direct selling business model

Internet based business model

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What are $$Direct Selling$$ business models?

When a parent company let$$s you duplicate its exact business model

When the Internet is the primary tool for advertising and making sales

When companies let employees, associates or distributors sell their products directly to customers

Business models that have been used for many years and still work

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What is a $$Multi$-$level$$ business model?

When companies sell their products at their cost plus an added percentage

When customers pay a monthly or annual fee to continue to receive products or services

When companies recruit independent distributors who make money by selling products and participating in the sales of others they have recruited into their group

When companies buy large amounts of merchandise and sell it to retailers for reduced prices

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Which of the following describes a service business?

A company that is not in business for profit

A company that focuses on corporate social responsibility

A company that charges different prices for different levels of value

A company that sells something intangible

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What is a $$Party Plan$$ model?

When professional service providers charge a flat fee for their services

When people sell products needed to plan and hold various types of parties

When companies buy products from manufacturers and sell them to retailers

When associates sell products directly to customer in people$$s homes

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What is a key feature of a $$Licensing$$ business model?

You get to use a company$$s brand, logo$,$ slogan, trademarks, and patents

You pay an upfront cost for the license and then ongoing royalties

It is more flexible and less expensive than franchising

All of the above are features of licensing

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What does someone using a $$Wholesaler$$ business model do$?$

Purchase large quantities of goods and sell them at cost plus a fixed percentage

Purchase large quantities of products and sell them out of no$-$frills locations

Purchase large quantities of goods at low prices and then sell them to retailers

Purchase large quantities of goods and sell them directly to customers

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What is a $$Tiered Pricing$$ business model?

When companies offer different prices based on the number of customers who use the product or services

When businesses sell other companies products for a percentage of the transaction

When companies sell the use of a product to customers rather than the product itself

All of the above are correct answers

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What is a $$Brick and Click$$ business model?

It is when a physical retail business also sells its product on the Internet

It is when a company buys large quantities of goods and sells them in a no$-$frills location

It is when a company sells all of its products online

It is when a company closes its retail location and moves all of its product to the Internet