Two Fatal Flaws Can Render a Business Model Untenable from the Beginning

question 5

Multiple Choice

Two fatal flaws can render a business model untenable from the beginning. These are utterly unsound economics and:

• A) a complete misread of the customer
• B) failure to copy the industry leader's business plan
• C) overemphasis on the importance of feasibility analysis
• D) overemphasis on the importance of industry analysis
• E) failure to complete a business plan prior to developing a business model

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Definitions:

Amortization Schedule

A detailed table of periodic loan payments, breaking down the amounts going towards principal and interest over the life of the loan.

Total Interest

The overall amount of interest paid on a loan or earned on an investment over a specific period.

Compounded Quarterly

A compound interest calculation where interest is added to the principal every three months.

Quarterly Payments

Payments that are made four times a year at three-month intervals.