What Is the Relationship Between the Business Plan and the Business

question 79

Multiple Choice

What is the relationship between the business plan and the business model?

• A)The business model will not be possible without a business plan.
• B)The business model will support the business plan, explaining how to attain the plan's goals.
• C)They are the same thing.
• D)A business plan supports the business model, explaining how to attain the model's goals.

---

Definitions:

Marginal Revenue Product

The additional revenue generated from employing one additional unit of a resource, such as labor or capital.

Complementary Resource

A resource or product that enhances or is necessary for the use of another resource or product, such as printers for computers.

Substitution Effect

The alteration in buying habits caused by shifts in relative prices, prompting consumers to swap out higher-priced goods for more affordable options.

Output Effect

The change in total revenue resulting from selling more units of a product, potentially influenced by changes in price or quantity produced.