Business Model describes how you operate, generate revenue and profit, and deliver value at a reasonable cost. Which option completes this description?

• A. Describes how you operate
• B. Generates revenue and profit
• C. Delivers value at a reasonable cost
• D. All of the above

Answer: (D)

A business model is the plan for how an organization operates, earns revenue and profit, and delivers value to customers at a reasonable cost. Each part matters: how you operate covers the day-to-day activities and processes; generating revenue and profit shows how the model sustains the business financially; delivering value at a reasonable cost demonstrates price, efficiency, and customer benefit. If you only describe one or two of these aspects, you don’t capture how the business actually works as a whole. The most complete description is the one that includes operating, revenue and profit generation, and delivering value at a reasonable cost, since together they describe the full functioning and sustainability of the model.