Which of the following are not risks that can be evaluated through the business model canvas?ARegulatory riskBViability riskCFeasibility riskDDesirability risk
Question
Which of the following are not risks that can be evaluated through the business model canvas?
- A. Regulatory risk
- B. Viability risk
- C. Feasibility risk
- D. Desirability risk
Solution
The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances.
Here's a breakdown of the risks mentioned:
A. Regulatory Risk: This refers to the potential for laws and regulations to negatively impact a company's operations or investment decisions. While the Business Model Canvas can help identify areas where regulatory risk may exist (such as key activities or key partners), it doesn't evaluate the risk itself.
B. Viability Risk: This refers to the risk that a business model might not be sustainable in the long term. The Business Model Canvas can help evaluate this risk by examining elements like revenue streams, cost structure, and value propositions.
C. Feasibility Risk: This refers to the risk that a business model might not be practical or achievable. The Business Model Canvas can help evaluate this risk by examining elements like key resources, key activities, and key partners.
D. Desirability Risk: This refers to the risk that customers might not want or need a company's product or service. The Business Model Canvas can help evaluate this risk by examining elements like customer segments, channels, and customer relationships.
So, to answer your question, the Business Model Canvas can help identify areas where these risks may exist, but it doesn't directly evaluate regulatory risk. Therefore, the answer is A. Regulatory Risk.
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