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What is a business model canvas?a.A script that states about the markets, proposed products, required resources, and the growth.b.A one-page template that graphically sketches the key start-up activities.c.A strategic tool for examining the macro and micro environment of a business.d.A technique that is used to design a wide range of activities for start-ups.

Question

What is a business model canvas?a.A script that states about the markets, proposed products, required resources, and the growth.b.A one-page template that graphically sketches the key start-up activities.c.A strategic tool for examining the macro and micro environment of a business.d.A technique that is used to design a wide range of activities for start-ups.

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Solution 1

The Business Model Canvas is b. A one-page template that graphically sketches the key start-up activities.

Here's a step-by-step explanation:

  1. The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models.

  2. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances.

  3. It assists firms in aligning their activities by illustrating potential trade-offs.

  4. The Business Model Canvas was initially proposed by Alexander Osterwalder based on his earlier work on Business Model Ontology.

  5. The canvas is divided into several sections: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams.

  6. Each of these sections is filled out based on the specifics of the business or product, allowing for a comprehensive overview of what the business does and how it does it.

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Solution 2

The answer is b. A one-page template that graphically sketches the key start-up activities.

Step 1: Understand the question - The question is asking for the definition of a business model canvas.

Step 2: Understand the options -

a. A script that states about the markets, proposed products, required resources, and the growth is more of a business plan than a business model canvas.

b. A one-page template that graphically sketches the key start-up activities is the definition of a business model canvas. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances.

c. A strategic tool for examining the macro and micro environment of a business is more related to a SWOT analysis or PESTEL analysis, not a business model canvas.

d. A technique that is used to design a wide range of activities for start-ups is a vague description and doesn't specifically define a business model canvas.

Step 3: Match the definition to the term -

Among the given options, a one-page template that graphically sketches the key start-up activities best defines a business model canvas.

Therefore, a business model canvas is a one-page template that graphically sketches the key start-up activities.

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