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PAU Business & Business Model Design (Cantabria) study materials
PAU Business & Business Model Design (Cantabria) study resources

PAU Business & Business Model Design (Cantabria) practice questions

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Question 1Business and the business environment: types of business, legal forms, objectives and stakeholders

Under Spanish company law, which form allows a single individual to enjoy limited liability while being taxed as a personal income taxpayer by default?

  1. Sociedad Anónima (SA)
  2. Comunidad de Bienes
  3. Sociedad Unipersonal de Responsabilidad Limitada Correct answer.
  4. Sociedad de Responsabilidad Limitada (SRL)

Explanation

A single-member limited liability company (Sociedad Unipersonal de Responsabilidad Limitada) is a capital company whose sole shareholder is shielded from personal liability, yet it is not automatically a corporate taxpayer in the way an SA is often assumed to be; the key point is that limited liability and single ownership are compatible in this form. Comunidad de Bienes offers no such shield.

Question 2Business and the business environment: types of business, legal forms, objectives and stakeholders

A cooperative in Cantabria distributes surplus to members. Which principle governs this distribution?

  1. Profits are shared strictly in proportion to capital contributed
  2. Surplus is allocated to members in proportion to their cooperative activity, not capital Correct answer.
  3. Surplus must be fully reinvested and cannot be returned to members
  4. Distribution is decided solely by the board without member approval

Explanation

Cooperatives are governed by the principle of democratic control and member benefit, so any surplus (retorno cooperativo) is returned in proportion to each member's transactions with the cooperative rather than to capital invested. This distinguishes them from capital companies where dividends follow shareholding.

Question 3Business and the business environment: types of business, legal forms, objectives and stakeholders

Which statement best describes the difference between a business objective and a stakeholder?

  1. A stakeholder is a legal form; an objective is a tax category
  2. An objective is a person who invests; a stakeholder is a financial target
  3. An objective is a goal the firm pursues; a stakeholder is a party affected by or interested in the firm Correct answer.
  4. Both terms refer to the same group of owners

Explanation

Objectives are the aims an organisation sets (profit, growth, sustainability), while stakeholders are the individuals or groups with an interest in or affected by its activity. The two concepts are distinct: stakeholders influence or are influenced by how objectives are pursued.

Question 4Business and the business environment: types of business, legal forms, objectives and stakeholders

A sole trader (empresario individual) in Santander wants to limit personal liability. Which legal form would best achieve this while remaining a small company?

  1. Empresario individual
  2. Comunidad de Bienes
  3. Sociedad de Responsabilidad Limitada Correct answer.
  4. Sociedad Civil

Explanation

The Sociedad de Responsabilidad Limitada separates the owner's personal assets from business debts, providing limited liability. The other small forms listed leave the owner personally exposed to business obligations.

Question 5Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following is a primary objective typically associated with a public limited company (SA) operating in competitive markets?

  1. Distributing all profits to the state
  2. Maximising shareholder value over the long term Correct answer.
  3. Eliminating all competition in its sector
  4. Guaranteeing employment for all workers regardless of performance

Explanation

An SA is a capital company whose shareholders expect a return, so long-term shareholder value is a primary objective. Other listed goals are either unrealistic or not characteristic of a competitive capital company.

Question 6Business and the business environment: types of business, legal forms, objectives and stakeholders

A worker cooperative and a conventional SA both employ staff. Which governance feature most clearly distinguishes the cooperative?

  1. One person, one vote regardless of capital contributed Correct answer.
  2. Voting rights proportional to salary
  3. One share, one vote in the general assembly
  4. Voting restricted to external investors

Explanation

Cooperatives follow democratic member control, typically one person one vote, independent of capital. Capital companies like an SA allocate votes according to shares held.

Question 7Business and the business environment: types of business, legal forms, objectives and stakeholders

Which stakeholders are most directly affected by a decision to relocate a factory from Cantabria to another region?

  1. Employees, local suppliers and the local community Correct answer.
  2. Only the shareholders
  3. Only the tax authority
  4. Only competitors

Explanation

Relocation affects employees (jobs), local suppliers (orders) and the community (employment and economic activity), in addition to owners. Recognising this range is central to stakeholder analysis.

Question 8Business and the business environment: types of business, legal forms, objectives and stakeholders

A start-up founder wants outside investors but wishes to keep control and avoid a stock-market listing. Which form is most appropriate?

  1. Sociedad de Responsabilidad Limitada Correct answer.
  2. Sociedad comanditaria simple
  3. Sociedad Colectiva
  4. Sociedad Anónima with shares admitted to trading

Explanation

The SRL allows capital to be raised from new partners while remaining unlisted and closely held, which suits founders who want investors without losing control through public markets. The other forms either involve listing or unlimited liability.

Question 9Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of these is an example of a secondary-sector business activity?

  1. A bank issuing mortgages
  2. A retail chain selling clothing
  3. A firm manufacturing furniture from timber Correct answer.
  4. A consultancy offering legal advice

Explanation

The secondary sector transforms raw materials into finished goods, as in furniture manufacturing. Retail, consultancy and banking belong to the tertiary (service) sector.

Question 10Business and the business environment: types of business, legal forms, objectives and stakeholders

A family-owned bakery operates as a Sociedad Limitada Nueva Empresa (SLNE). Which feature is characteristic of this form?

  1. It can only be used by cooperatives
  2. It is reserved for listed companies
  3. It requires a minimum of three partners and a large capital
  4. It is designed for small companies with simplified incorporation and a capped capital Correct answer.

Explanation

The SLNE is a streamlined variant of the limited company intended for small enterprises, with simplified formalities and a maximum capital limit. It is not a cooperative or listed form.

Question 11Business and the business environment: types of business, legal forms, objectives and stakeholders

Which statement best captures the concept of corporate social responsibility in relation to stakeholders?

  1. A firm transfers all decisions to government
  2. A firm considers the impact of its decisions on employees, customers, community and environment alongside profit Correct answer.
  3. A firm maximises short-term profit regardless of consequences
  4. A firm ignores all groups except shareholders

Explanation

CSR means the firm voluntarily weighs the effects of its activity on a broad set of stakeholders, not only owners. It complements, rather than replaces, the profit objective.

Question 12Business and the business environment: types of business, legal forms, objectives and stakeholders

A partnership where some partners contribute capital but do not manage the business, while at least one general partner has unlimited liability, is known as:

  1. Sociedad cooperativa
  2. Sociedad comanditaria Correct answer.
  3. Sociedad Laboral
  4. Sociedad Anónima

Explanation

In a sociedad comanditaria there are colectivos (general partners with unlimited liability and management) and comanditarios (limited partners who contribute capital but do not manage). This dual structure is its defining feature.

Question 13Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following best explains why a firm's objectives may change over its life cycle?

  1. Only shareholder votes can change objectives
  2. Priorities shift as the firm grows, faces competition and responds to stakeholder pressures Correct answer.
  3. Objectives change only when the firm is sold
  4. Objectives are fixed by law and cannot change

Explanation

Objectives evolve with the firm's stage of development, market conditions and stakeholder expectations, for example moving from survival to growth to sustainability. They are not legally fixed or tied solely to ownership changes.

Question 14Business and the business environment: types of business, legal forms, objectives and stakeholders

Which type of business is owned and democratically controlled by its workers, often with limits on hired labour?

  1. Sociedad Cooperativa de Trabajo Asociado Correct answer.
  2. Sociedad Anónima
  3. Empresario individual
  4. Sociedad comanditaria

Explanation

A worker cooperative is owned and governed by its worker-members on democratic principles and typically restricts the proportion of non-member employees. The other forms are capital or individual businesses.

Question 15Business and the business environment: types of business, legal forms, objectives and stakeholders

A company's directors decide to cut costs by reducing safety training. Which stakeholder group bears the most direct risk from this decision?

  1. Employees, through increased workplace injury risk Correct answer.
  2. Shareholders, through lower dividends
  3. Competitors, through lost market share
  4. The tax authority, through reduced revenue

Explanation

Reducing safety training directly raises the physical risk to workers, making employees the most directly affected stakeholders. Other groups may be indirectly affected but do not bear the immediate safety consequence.

Question 16Business and the business environment: types of business, legal forms, objectives and stakeholders

Which statement correctly distinguishes a shareholder from a bondholder?

  1. Both have identical rights to vote at the general meeting
  2. A shareholder owns part of the company and bears residual risk; a bondholder is a creditor with a fixed claim Correct answer.
  3. A shareholder is a creditor; a bondholder owns equity
  4. A bondholder participates in profit distribution; a shareholder receives fixed interest

Explanation

Shareholders hold equity, receive dividends only after other claims and vote at the general meeting; bondholders lend money and receive contractual interest, ranking ahead of shareholders for repayment. Their risk and return profiles therefore differ.

Question 17Business and the business environment: types of business, legal forms, objectives and stakeholders

A small firm in Cantabria is set up by two friends who each want limited liability but prefer a simple, low-cost structure. Which form is most suitable?

  1. Sociedad Anónima
  2. Sociedad Colectiva
  3. Comunidad de Bienes
  4. Sociedad de Responsabilidad Limitada Correct answer.

Explanation

The SRL offers limited liability for all partners with lower capital and simpler formalities than an SA, making it the standard choice for small partnerships. The other options either impose unlimited liability or heavier requirements.

Question 18Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following best describes the role of the general meeting (junta general) in a limited company?

  1. It audits the annual accounts
  2. It is the sovereign body where shareholders decide major matters such as accounts and appointments Correct answer.
  3. It manages day-to-day operations
  4. It represents the company before courts

Explanation

The general meeting is the supreme governing body where shareholders approve accounts, appoint directors and decide major issues. Day-to-day management belongs to the directors, and auditing is done by external auditors.

Question 19Business and the business environment: types of business, legal forms, objectives and stakeholders

A firm's main objective is stated as 'maximising profit this quarter'. Which stakeholder concern is most likely to be neglected?

  1. Immediate cash flow
  2. Short-term dividend payments
  3. Long-term employee training and environmental investment Correct answer.
  4. Quarterly sales targets

Explanation

A short-term profit focus tends to crowd out investments whose returns are deferred, such as employee development and environmental measures, which matter to employees and the community. Immediate cash-flow and sales concerns align with the short-term aim rather than being neglected.

Question 20Business and the business environment: types of business, legal forms, objectives and stakeholders

Which legal form is characterised by partners whose liability is limited to the capital they contributed, with no general partner bearing unlimited liability, and which is not a capital company?

  1. Sociedad comanditaria por acciones
  2. Sociedad comanditaria simple
  3. Sociedad de Responsabilidad Limitada Correct answer.
  4. Agrupación de Interés Económico

Explanation

The SRL limits every partner's liability to their contribution and is a capital company in structure but distinct from the SA. The comanditaria forms always include at least one general partner with unlimited liability.

Question 21Business and the business environment: types of business, legal forms, objectives and stakeholders

A cooperative's general assembly decides to create a mandatory reserve fund. What is the main purpose of this fund in a cooperative?

  1. To strengthen the cooperative's equity and support its continuity, often required by law Correct answer.
  2. To pay dividends to external shareholders
  3. To reduce member voting rights
  4. To fund competitors

Explanation

Cooperative reserve funds are legally mandated allocations of surplus that reinforce the entity's financial solidity and continuity. They are not for external shareholders, who are not part of a cooperative's ownership.

Question 22Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following is the clearest example of an internal stakeholder?

  1. An employee Correct answer.
  2. A local resident
  3. A customer
  4. A supplier

Explanation

Internal stakeholders operate within the organisation, such as employees and managers. Suppliers, customers and local residents are external stakeholders who interact with the firm from outside.

Question 23Business and the business environment: types of business, legal forms, objectives and stakeholders

A company wants to convert from an SRL to an SA to access larger capital markets. Which consequence is most relevant for existing partners?

  1. They gain unlimited personal liability
  2. Their control may be diluted as new shares are issued and shares become more freely transferable Correct answer.
  3. They automatically become employees of the company
  4. They lose all voting rights immediately

Explanation

Moving to an SA allows broader capital raising and freer share transfers, which can dilute existing partners' control as new shareholders enter. Limited liability is retained, and voting rights are not automatically lost.

Question 24Business and the business environment: types of business, legal forms, objectives and stakeholders

Which statement about the objectives of a public-sector enterprise is most accurate?

  1. It always seeks to maximise profit like a private firm
  2. It cannot employ workers
  3. It has no stakeholders
  4. It may pursue public-service goals such as universal access alongside financial sustainability Correct answer.

Explanation

Public enterprises often balance service obligations, such as universal access, with financial viability, rather than pursuing profit maximisation alone. They still have stakeholders and employees.

Question 25Business and the business environment: types of business, legal forms, objectives and stakeholders

A cooperative member leaves the cooperative. How is their capital typically treated?

  1. It is reimbursed according to the cooperative's rules and statutes Correct answer.
  2. It is permanently retained by the cooperative with no reimbursement
  3. It is converted into shares of an SA
  4. It is transferred automatically to the state

Explanation

On leaving, a member's capital contribution is returned following the procedures set out in the cooperative's statutes and cooperative law. It is not confiscated, transferred to the state, or converted into another company's shares.

Question 26Business and the business environment: types of business, legal forms, objectives and stakeholders

Under Spanish company law, which legal form allows a single individual to run a business with full limited liability and no minimum share capital requirement?

  1. Comunidad de bienes
  2. Empresario individual
  3. Sociedad Limitada Unipersonal (SLU) Correct answer.
  4. Sociedad Civil

Explanation

The Sociedad Limitada Unipersonal is a one-person limited company: the sole owner's liability is capped at the capital contributed, and the SL regime imposes no legal minimum share capital. The other forms either expose the owner personally or are not capital companies at all.

Question 27Business and the business environment: types of business, legal forms, objectives and stakeholders

Which feature is the defining characteristic of a Sociedad Anónima (SA) as opposed to a Sociedad de Responsabilidad Limitada (SRL)?

  1. Its partners always answer personally for company debts
  2. It is prohibited from issuing shares to the public
  3. Its shares are freely transferable by default and it may be listed on a stock exchange Correct answer.
  4. It can only be formed by members of the same family

Explanation

The SA is the open capital company: shares are in principle freely transferable and the form is designed to allow access to public capital markets. The SRL, by contrast, restricts transfer of participaciones and cannot be listed.

Question 28Business and the business environment: types of business, legal forms, objectives and stakeholders

A business is owned by its members, who each hold one vote at the general assembly regardless of how much capital they have contributed. Which type of organisation does this describe?

  1. A Sociedad Anónima
  2. A sole proprietorship
  3. A limited partnership
  4. A cooperative Correct answer.

Explanation

Cooperatives apply the principle of one member, one vote, separating governance power from capital contribution. Capital companies such as the SA normally weight voting rights by shareholding.

Question 29Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following is a primary-sector business activity?

  1. Operating a hotel on the Cantabrian coast
  2. Refining crude oil into petrol
  3. Designing advertising campaigns for retailers
  4. Extracting slate from a quarry in Cantabria Correct answer.

Explanation

The primary sector covers activities that obtain raw materials directly from nature, such as mining, quarrying, farming and fishing. Refining and manufacturing belong to the secondary sector, while services belong to the tertiary sector.

Question 30Business and the business environment: types of business, legal forms, objectives and stakeholders

A group of small investors forms a Sociedad de Responsabilidad Limitada. Which combination of features correctly describes this form?

  1. Unlimited liability for members, restricted transfer of participaciones, and no minimum capital
  2. Limited liability for members, restricted transfer of participaciones, and no access to a stock-market listing Correct answer.
  3. Limited liability for members, freely traded shares, and a minimum of ten founding shareholders
  4. Unlimited liability for members, freely traded shares, and a mandatory stock-market listing

Explanation

The SRL gives members limited liability while keeping ownership closed: transfers of participaciones are restricted and the company cannot be listed. This makes it the usual choice for small and medium-sized firms.

Question 31Business and the business environment: types of business, legal forms, objectives and stakeholders

In a limited company, what is the main function of the annual accounts (cuentas anuales) that the directors must formulate?

  1. To register the company's commercial name with the tax authority
  2. To replace the minutes of the general meeting as evidence of resolutions
  3. To give shareholders and creditors a true and fair view of the company's financial position and results Correct answer.
  4. To set the dividend that directors are obliged to pay to shareholders

Explanation

Annual accounts, comprising the balance sheet, profit and loss account, statement of changes in equity, cash-flow statement and notes, must present a true and fair view for shareholders and third parties. They are approved by the general meeting and filed at the Companies Register.

Question 32Business and the business environment: types of business, legal forms, objectives and stakeholders

A company's directors refuse to disclose environmental emissions data to a local community group while continuing to pay dividends. Which stakeholder relationship does this illustrate?

  1. A situation in which all stakeholders' interests are fully aligned
  2. A conflict between shareholder interests and the interests of an external stakeholder group Correct answer.
  3. A conflict between two internal stakeholder groups over operational control
  4. A purely legal dispute between the company and its suppliers

Explanation

Shareholders benefit from dividends, while the community group is an external stakeholder affected by the firm's environmental conduct. The refusal shows a tension between shareholder returns and wider social accountability.

Question 33Business and the business environment: types of business, legal forms, objectives and stakeholders

A firm states that its objective is to increase market share by five points within two years. Which characteristic of a well-formulated business objective does this statement best illustrate?

  1. It is expressed only in social terms
  2. It is specific and time-bound Correct answer.
  3. It is set by an external regulator
  4. It is deliberately vague to allow flexibility

Explanation

An effective objective is specific, measurable and has a defined time horizon, which allows managers to monitor progress. The statement names a measurable target and a deadline, satisfying these criteria.

Question 34Business and the business environment: types of business, legal forms, objectives and stakeholders

Which of the following best describes a stakeholder as opposed to a shareholder?

  1. Only the banks that have lent money to the company
  2. Any individual or group affected by or with an interest in the firm's activities, whether or not they own shares Correct answer.
  3. Only the employees who work under a permanent contract
  4. Only those who hold voting shares in the company

Explanation

Stakeholders include anyone with an interest in or affected by the firm, such as employees, customers, suppliers, creditors, the community and shareholders. Shareholders are therefore a subset of stakeholders, not the whole category.

Question 35Business and the business environment: types of business, legal forms, objectives and stakeholders

Why might a growing firm convert from a Sociedad de Responsabilidad Limitada to a Sociedad Anónima?

  1. To issue shares that can be offered more easily to a wider circle of investors Correct answer.
  2. To eliminate the obligation to file annual accounts
  3. To reduce the liability of its members below the capital contributed
  4. To avoid holding a general meeting of shareholders

Explanation

The SA permits free transfer of shares and access to public capital markets, which suits firms needing large amounts of outside finance. The SRL's restricted participaciones make large-scale equity raising harder.

Question 36Business and the business environment: types of business, legal forms, objectives and stakeholders

In a cooperative, what is the usual purpose of the mandatory reserve fund (fondo de reserva obligatorio)?

  1. To pay directors' bonuses at the end of each financial year
  2. To distribute profits to members in proportion to their capital contributions
  3. To finance political donations approved by the assembly
  4. To strengthen the cooperative's own resources and absorb losses, being indivisible among members Correct answer.

Explanation

The mandatory reserve is built from surpluses and serves to consolidate the cooperative's financial strength; it is not distributable to members and is treated as indivisible. This protects the cooperative's continuity over time.

Question 37Business and the business environment: types of business, legal forms, objectives and stakeholders

A public limited company is wholly owned by a regional government. Which statement about its objectives is most accurate?

  1. It is legally barred from earning any surplus
  2. It pursues public-service goals alongside financial sustainability, so profitability is not its only criterion Correct answer.
  3. It has no need to cover its costs because the government funds all losses
  4. It must maximise profit exactly as a privately owned listed company would

Explanation

Public-sector enterprises typically combine service obligations, such as providing affordable or universal services, with the need to remain financially viable. Profit maximisation is therefore balanced against public-interest goals.

Question 38Business and the business environment: types of business, legal forms, objectives and stakeholders

A partnership is formed in which one partner manages the business and answers for its debts with personal assets, while another contributes capital only and is liable solely up to that contribution. Which legal form is this?

  1. Sociedad Limitada
  2. Sociedad Anónima
  3. Sociedad comanditaria simple (limited partnership) Correct answer.
  4. Cooperativa de trabajo asociado

Explanation

The sociedad comanditaria simple has two classes of partner: general partners (socios colectivos) with unlimited liability who manage the firm, and limited partners (socios comanditarios) whose liability is capped at their contribution. The capital-company and cooperative forms do not split partners this way.

Question 39Business and the business environment: types of business, legal forms, objectives and stakeholders

A start-up needs significant external equity but its founders want to preserve control and avoid the compliance burden of a listed company. Which legal form and financing choice best fits this aim?

  1. An SRL whose participaciones are sold to a small number of venture-capital investors under negotiated terms Correct answer.
  2. A comunidad de bienes with several co-owners sharing unlimited liability
  3. An SA listed on a stock exchange to raise capital from the general public
  4. A sole proprietorship funded entirely by bank loans

Explanation

An SRL can admit a limited number of investors while keeping ownership closed and control negotiated in the statutes, avoiding listing requirements. Listing on an exchange would dilute control and add heavy compliance obligations.

Question 40Business and the business environment: types of business, legal forms, objectives and stakeholders

A firm's directors propose closing a plant to raise short-term profit. Which analysis best reflects a stakeholder perspective on this decision?

  1. It treats the local community as irrelevant because it holds no shares
  2. It considers only the effect on the firm's share price
  3. It assumes employees and shareholders always share the same interest
  4. It weighs the gain to shareholders against job losses for employees and knock-on effects on local suppliers and the community Correct answer.

Explanation

A stakeholder analysis maps the benefits and harms of a decision across all affected groups, not just owners. Closing a plant may raise profit for shareholders while imposing costs on employees, suppliers and the local economy, which must be weighed in the decision.

Question 41Business model design and innovation: value proposition, value creation and capture, business model canvas

In the Business Model Canvas, which block describes the specific groups of people or organizations a company aims to serve and reach?

  1. Channels
  2. Revenue Streams
  3. Key Partners
  4. Customer Segments Correct answer.

Explanation

Customer Segments defines the distinct groups of people or organizations the enterprise aims to reach and serve. It is the starting point for designing a model, because the value proposition, channels, and relationships are built around these groups.

Question 42Business model design and innovation: value proposition, value creation and capture, business model canvas

A start-up offers a reusable water bottle that keeps drinks cold for 24 hours and donates a share of profit to clean-water projects. In the Canvas, the statement 'a durable bottle that keeps drinks cold all day while supporting clean-water access' belongs primarily to which block?

  1. Cost Structure
  2. Value Proposition Correct answer.
  3. Key Activities
  4. Customer Relationships

Explanation

The Value Proposition block states the bundle of products and services that create value for a specific segment. The claim about durability, cold retention, and social contribution is exactly that value bundle.

Question 43Business model design and innovation: value proposition, value creation and capture, business model canvas

Which pair of Canvas blocks together represents the 'value capture' side of a business model?

  1. Customer Segments and Value Proposition
  2. Revenue Streams and Cost Structure Correct answer.
  3. Key Partners and Key Resources
  4. Channels and Customer Relationships

Explanation

Value capture concerns how the firm retains part of the value it creates, expressed financially as revenues minus costs. Revenue Streams and Cost Structure are the two financial blocks that together form the Canvas's profit logic.

Question 44Business model design and innovation: value proposition, value creation and capture, business model canvas

In the Canvas, the block that lists the most important assets required to make a business model work is called:

  1. Key Activities
  2. Key Resources Correct answer.
  3. Channels
  4. Key Partnerships

Explanation

Key Resources are the assets required to make the model function, such as physical, intellectual, human, or financial resources. They are distinct from activities, which are the actions performed using those assets.

Question 45Business model design and innovation: value proposition, value creation and capture, business model canvas

A firm states that it reaches customers mainly through its own physical stores and a mobile app. Which Canvas block is being described?

  1. Customer Relationships
  2. Revenue Streams
  3. Channels Correct answer.
  4. Key Activities

Explanation

Channels describe how a company communicates with and reaches its Customer Segments to deliver the value proposition. Physical stores and an app are touchpoints, so they belong in Channels.

Question 46Business model design and innovation: value proposition, value creation and capture, business model canvas

In the value proposition, a 'pain reliever' refers to:

  1. the legal guarantee attached to the product
  2. an element that removes a customer frustration or obstacle Correct answer.
  3. a feature that adds an unexpected delight to the offer
  4. the price discount offered to loyal customers

Explanation

Value propositions are often analysed as pain relievers and gain creators. Pain relievers describe how the offer eliminates or reduces customer frustrations, obstacles, or risks.

Question 47Business model design and innovation: value proposition, value creation and capture, business model canvas

A company sells industrial pumps and also charges customers an annual maintenance contract. In the Canvas, the maintenance contract is best classified as:

  1. a recurring revenue stream Correct answer.
  2. a key resource
  3. a customer relationship type
  4. a cost structure element

Explanation

Revenue Streams distinguish between one-off transaction revenues and recurring revenues from ongoing payments. An annual maintenance contract generates repeat payments, so it is a recurring revenue stream.

Question 48Business model design and innovation: value proposition, value creation and capture, business model canvas

Which statement best captures the difference between value creation and value capture?

  1. Creation is about pricing; capture is about product design.
  2. Creation and capture are synonyms used interchangeably in business model analysis.
  3. Creation concerns only costs; capture concerns only customer segments.
  4. Creation is about generating benefits for customers and partners; capture is about retaining a share of that value as profit. Correct answer.

Explanation

Value creation is the process of generating benefits for customers and other stakeholders through the offer and its delivery. Value capture concerns how the firm appropriates part of the created value, for instance through pricing and cost management.

Question 49Business model design and innovation: value proposition, value creation and capture, business model canvas

A courier company designs a model in which freelance drivers use their own vehicles and are paid per delivery. Which two Canvas blocks are most directly affected by this choice?

  1. Key Resources and Cost Structure Correct answer.
  2. Customer Segments and Channels
  3. Revenue Streams and Channels
  4. Value Proposition and Customer Relationships

Explanation

Using freelance drivers with their own vehicles shifts the asset base away from owned vehicles and turns fixed costs into variable per-delivery costs. Both Key Resources and Cost Structure are therefore directly affected.

Question 50Business model design and innovation: value proposition, value creation and capture, business model canvas

A software firm moves from selling perpetual licences to a monthly subscription. Which statement about the Canvas is most accurate?

  1. No Canvas block changes because the product itself is unchanged.
  2. Only the Cost Structure block changes, because development costs rise.
  3. The Revenue Streams block changes from transaction-based to recurring, while the Value Proposition may also shift toward ongoing access. Correct answer.
  4. Only the Customer Segments block changes, because subscribers differ from buyers.

Explanation

A shift to subscriptions changes the revenue mechanism from one-off transactions to recurring payments. It often also reframes the value proposition as continuous access and service rather than a one-time product transfer.