Business Model Generation

Question 1

rationale (n)

Answer 1

the reasons or intentions that cause a particular set of beliefs or actions:

I don’t understand the rationale for these restrictions.

Question 2

intuitively (adv)

Answer 2

in a way that is based on feelings rather than facts or proof:

I knew intuitively that something dreadful had happened to him.

Question 3

viability (n)

Answer 3

ability to work as intended or to succeed:

Rising costs are threatening the viability of many businesses.

Question 4

proposition (n)

Answer 4

an offer or suggestion, usually in business:

He wrote to me last week regarding a business proposition he thought might interest me.

Question 5

distinct (a)

Answer 5

clearly noticeable; that certainly exists:

There’s a distinct smell of cigarettes in here.

Question 6

comprise (v)

Answer 6

to have things or people as parts or members; to consist of:

The course comprises a class book, a practice book, and a CD.

Question 7

interface (n)

Answer 7

1. a connection between two pieces of electronic equipment, or between a person and a computer:

My computer has a network interface, which allows me to get to other computers.

2. a situation, way, or place where two things come together and affect each other:

the interface between technology and tradition

Question 8

phase (n)

Answer 8

any stage in a series of events or in a process of development:

The project is only in its initial phase as yet, but it’s looking quite promising.

Question 9

distinguish (v)

Answer 9

to notice or understand the difference between two things, or to make one person or thing seem different from another:

He’s colour-blind and can’t distinguish (the difference) between red and green easily.

Question 10

span (n)

Answer 10

1. the period of time that sometimes exists or happens:

He has a short attention/concentration span.

2. the length of something from one end to the other:

huge wings with a span of over a metre

Question 11

margin (n)

Answer 11

the amount by which one thing is different from another:

The Senate approved the use of military force by a margin of 52 votes to 47.

Question 12

revenue (n)

Answer 12

the income that a government or company receives regularly:

Taxes provide most of the government’s revenue.

Question 13

purchase (v)

Answer 13

to buy something:

Tickets must be purchased two weeks in advance.

Question 14

stream (n)

Answer 14

a continuous flow of things or people:

There has been a steady stream of phone calls from worried customers.

Question 15

subtract (v)

Answer 15

to remove a number from another number:

Four subtracted from ten equals six.

Question 16

bargain (v)

Answer 16

to try to make someone agree to give you something that is better for you, such as a better price or better working conditions:

Unions bargain with employers for better rates of pay each year.

Question 17

yield management (nph)

Answer 17

a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats or hotel room reservations or advertising inventory).

Question 18

recur (v)

Answer 18

to happen many times or to happen again:

The theme of freedom recurs throughout her writing.

Question 19

derive (v)

Answer 19

to get something from something else:

The institute derives all its money from foreign investments.

Question 20

lend (v)

Answer 20

to give something to someone for a short period of time, expecting it to be given back:

She doesn’t like lending her books.

Question 21

usage (n)

Answer 21

the way a particular word in a language, or a language in general, is used:

a guide to common English usage

Question 22

patent (n)

Answer 22

the official legal right to make or sell an invention for a particular number of years:

In 1880 Alexander Graham Bell was granted a patent on an apparatus for signalling and communicating called a Photophone.

Question 23

intermediation (n)

Answer 23

the process by which money that has been invested in a bank, etc. is lent to people, companies, etc. who want to borrow it:

Our aim is to bring about enhanced financial intermediation through stable and sustainable interest rates.

Question 24

bidding (n)

Answer 24

the act of offering to pay a particular amount of money for something, by different people:

Most of the bidding was done by phone.

Question 25

categorize (v)

Answer 25

to put people or things into groups with the same features:

The books are categorized into beginner and advanced.

Question 26

enormous (a)

Answer 26

extremely large:

an enormous car/house

Question 27

proprietary (n)

Answer 27

owned and legally controlled by a particular company:

This is proprietary software, and you have no right to copy it without a license from the owner.

Question 28

substantial (a)

Answer 28

large in size, value, or importance:

The findings show a substantial difference between the opinions of men and women.

Question 29

prominent (a)

Answer 29

very well known and important:

a prominent Democrat

Question 30

predicate (v)

Answer 30

to say that something is true:

[ + that ] It would be unwise to predicate that the disease is caused by a virus before further tests have been carried out.

Question 31

leverage (n)

Answer 31

power to influence people and get the results you want:

If the United Nations had more troops in the area, it would have greater leverage.

Question 32

provision (n)

Answer 32

the act of providing something:

The provision of good public transport will be essential for developing the area.

Question 33

optimization (n)

Answer 33

the process of making something as good or effective as possible:

The airline’s scheduling optimization program ensures that it serves the maximum number of passengers.

Question 34

Economies of Scale (terminology)

Answer 34

Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.

The size of the business generally matters when it comes to economies of scale. The larger the business, the more the cost savings.

Question 35

Economies of Scope (terminology)

Answer 35

Economies of scope describe situations in which the long-run average and marginal cost of a company, organization, or economy decreases, due to the production of some complementary goods and services. An economy of scope means that the production of one good reduces the cost of producing another related good.

While economies of scope are characterized by efficiencies formed by variety, economies of scale are characterized by volume.

Question 36

no frills (term)

Answer 36

A no-frills or no frills service or product is one for which the non-essential features have been removed to keep the price low.