1.4 Test your knowledge
Now you have considered the three different interpretations of the meaning and function of ‘business models’, complete Activity 2 to test your knowledge.
Activity 2 What are business models?
a.
Business models may be viewed as attributes of real firms.
b.
Business models may be represented as cognitive and linguistic schemata.
c.
A business model of an organisation may be viewed as representations of how it functions.
d.
All of the above.
The correct answer is d.
d.
This is correct. Business models may be interpreted in different ways. All the three statements are possible interpretations of what a business model may be. Business models may be viewed as attributes of real firms. They may also be represented as cognitive and linguistic schemata. Finally, they may be viewed as representations of how an organisation functions.
Now you have developed an understanding of what a business model is, you will next consider the different types of business models.