Why Is It Important to Craft a Business Model

question 30

Multiple Choice

Why is it important to craft a business model?

• A)Because it sets forth management's game plan for maximizing profits for shareholders
• B)Because it details exactly how management's strategy will result in the achievement of the company's strategic intent
• C)Because it is a part of an operating model that focuses on delivering excellence and creating value for external shareholders and internal labor force
• D)Because it sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner
• E)Because it sets forth management's long-term action plan to match the business standards set by formidable rivals

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Definitions:

Target Market

A specific group of consumers identified as the intended recipients of a product or service, based on shared characteristics or needs.

Children

Individuals in the early stages of life, typically defined as persons under the age of 18.

Executive Summary

A brief section at the beginning of a business plan, document, or report, summarizing the main points and providing a comprehensive overview to readers.

Business Plan

A formal document detailing a business's goals, strategies, target market, and financial forecasts, serving as a roadmap for business development.