Which of the following best describes a benefit of business models?

Which of the following best describes a benefit of business models?
A . They can be used to resolve conflict amongst different stakeholders.
B . They can improve communication among business executives.
C . They can be used to calculate detailed cost estimates.
D . They have a consistent format that can be easily understood.

View Answer

Answer: B

Explanation:

This answer is based on the benefit of business models as communication tools, as stated in the article “Business Models – Example, Types, Importance & Advantages” 2. According to this article, “Advantages of Business Models. A good business model gives the company a competitive edge in the industry. A strong business model provides the company good reputation in the market place encouraging investors to remain invested in the company.” One of the ways that a good business model can achieve these advantages is by improving communication among business executives, as well as with other stakeholders such as customers, suppliers, and investors. A clear and concise business model can help convey the value proposition, target market, revenue streams, and cost structure of the business in an effective way. The other options are not as accurate or relevant as benefits of business models.