Which Is Not True About Business Models for Ventures

question 8

Multiple Choice

Which is not true about business models for ventures:

• A) As important for venture success as the products or services of the company
• B) Can be a source of innovative thinking, just as much of the product or service
• C) It usually best for venture success to give away a service for free, convince users that it is worthwhile, and then ask them to pay for it later.
• D) Can be hard to convince customers to adopt if it is very different than traditional methods of pricing

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Definitions:

Cash Surrender Value

Cash surrender value is the amount of cash that a life insurance policyholder can receive upon the cancellation of their policy before its maturity or the insured event.

Capital Lease

A lease agreement considered to have the economic characteristics of asset ownership, thus it is recorded as an asset and liability on the balance sheet.

Fair Market Value

An estimate of the market price of a property or asset if sold under competitive and open market conditions.

Marketable Securities

Financial instruments that can be easily converted into cash at market value, often used for short-term investments.