Business model & Risks

Question 1

What a business MODEL should contain? (5)

Answer 1

1. Unit economics (per unit revenue and costs)
2. Product and market
3. Target market
4. Channel strategy
5. TCO and maintenance

Question 2

Platform business are: (4)

Answer 2

1. Based on Network
2. Can be non-tech
3. Value is externally to the company that created
4. Can be difficult to attract user in the beginning

Question 3

Definition of
Supply chain
Value chain

Answer 3

Supply Chain
all in producing and delivering physical products to final costumer

Value chain
Includes only those functions performed by SINGLE FIRM

Valuable to costumers
May not involve physical changes

Question 4

Example of a firm wich have macro risk:

Answer 4

Swedish mining equipment manufacturer

(Depends on demand)

Suíço full importação, mas o exemplo é de cornao kakak

Question 5

Companies with Industry Risk are those which: (2)

Answer 5

Demand is difficult to forecast (oil companies)

Sensitive to macro risk

Question 6

One example of company specific risk, macro risk and industry risk

Answer 6

Macro - demands falls due declining population

Industry - consumer taste shift to favor locally apperal

Company specific- uncertainty about demand and hires a new chief of creation of other products

Question 7

What is more probable that will increase an operating leverage (2):

Answer 7

Reducing prices!!
Or increase in accounts receivable

Debt or equity financing has no bearing on operating leverage

Question 8

Replace short term debt to long term debt affects financial leverage?

Answer 8

NO!
debt is debt irrespective of maturity

Question 9

What are the effects of entering in a sale-leaseback transaction? (As a borrower)(2)

Answer 9

1. Raise financial leverage

Repurchase the asset back
Make lease payments

2. Reduce total assets
   Consecutively reduce the ability to issue more debt