The Process of Testing the Business Model on a Small

question 126

Multiple Choice

The process of testing the business model on a small scale before committing serious resources to launch a business that might not work is called:

• A)benchmarking.
• B)business prototyping.
• C)scaling.
• D)lean modeling.

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Definitions:

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.

Substitute Resource

Alternative resources or inputs that can be used in place of another in the production process to produce a similar type of output.