The Lean Startup School Believes That the Business Model Is

question 44

True/False

The Lean Startup school believes that the business model is the product, and states that the client values and responds to the business model, not only the specific product or service.

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Definitions:

Activity Levels

A measure used in cost accounting to evaluate the relation between the cost of a particular activity and the level of activity executed.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Income from Operations

The earnings generated from a company's core business operations before subtracting interest and taxes.