12 Questions
What is the primary purpose of a business model?
To generate a profit
What is an advantage of online businesses compared to traditional brick and mortar stores?
Lower startup costs
What type of online business model generates revenue through advertisements?
Advertising-based
What is a characteristic of brick and mortar businesses?
High maintenance costs
What is an example of a freemium business model?
A free application with premium features
Why do businesses establish new business models or adapt existing ones?
To respond to changing market conditions
What is the term used to describe businesses that utilize both online and physical stores?
Bricks and clicks
What is the role of intermediaries in a distribution channel?
To help a company find customers or make sales to them
What is the advantage of a direct-to-consumer business model?
Strong focus and connection with customers, which builds customer loyalty
What is a franchise?
A business that grants another business the right to use their trademark, business systems, and processes
What is an import?
A good or service produced overseas and sold to Australian consumers
What happens to imports when the exchange rate is higher?
It becomes less profitable
Test your knowledge on business models and how they operate to generate profit. Explore different aspects such as main business goals, types of goods and services, target customers, costs, and the establishment of new businesses vs. franchises. Learn about the impact of the internet on online businesses.
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