Answer the following statement(s) true (T) or false (F)

1. A revenue model explains how an entrepreneur will make money from the customer value proposition.
2. A business model and a revenue model mean the same thing.
3. The razor-and-razor-blade model is an example of an intermediation revenue model.
4. An advertising revenue model gets revenue through advertising products and service.
5. Real estate brokers represent an intermediation revenue model because they help manage the transaction between the home seller and the home buyer.
6. In general, reducing operating costs is the most effective way of yielding long-term gains.


1. True
2. False
3. False
4. True
5. True
6. False

Business

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The company is deciding whether to drop product line F because it has an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

Accelerate Rollerblades has three product lines—D, E, and F. The following information is available:



A) Operating income will increase by $35,000.
B) Operating income will increase by $20,000.
C) Operating income will decrease by $5000.
D) Operating income will decrease by $15,000.

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Indicate whether the statement is true or false

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Indicate whether the statement is true or false

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Cross-cultural research suggests that in a society that highly values an equal distribution of power, bullying by the boss is tolerated a little more than in a society in which managers are expected to exercise more power and authority

Indicate whether the statement is true or false.

Business