What distinguishes a business model from a business plan?

A business model and a business plan serve different purposes in the context of a business's strategy and operations. The distinguishing factor highlighted in the correct choice is that a business model primarily focuses on how a company creates, delivers, and captures value—essentially outlining the framework for value creation. This includes the value proposition, customer segments, revenue streams, and key activities that enable the business to thrive.

In contrast, a business plan is broader and includes detailed strategies for execution, market analysis, financial projections, and other operational aspects necessary for running the business. It serves as a roadmap for the business owner and potential investors, providing comprehensive insights into how the company plans to achieve its goals.

The distinction between these two concepts is crucial for entrepreneurs, as understanding the core components of a business model helps in developing an effective business plan that ensures alignment between intended value creation and operational execution. This clarity can significantly enhance a new venture's chances of success.