Question

What is not true about the profit business model?

Answer 1

The choices can be found elsewhere and as follows:

a.) The revenue is always more than the cost.
b.) Ideally, the cost will be less than the revenue.
c.) The profit function can be represented by P(x)= R(x)-C(x).

I think the correct answer is option A. The revenue is always more than the cost is not a true statement. It does not necessarily always have to be in such way. Hope this answers the question.

Answer 2

I believe the answer is: The revenue is always more than the cost.

In a profit business model, organisations tend to create financial planning for their business expansion. This might cause them to allocate some of their money to be invested in buying necessary resources for their expansion which might cause their revenue to be lower than their overall cost.