Question

What does a business model explain?

a) The company's mission statement
b) How a business will generate profits and cash flow
c) Employee job descriptions
d) Market analysis for the business

Answer 1

A business model explains how a business will generate profits and cash flow by outlining its strategy, structure, operations, revenue sources, cost structure, target market, and competitive advantage.

Step-by-step explanation:

A business model explains how a business will generate profits and cash flow. It outlines the strategy, structure, and operations of a business, including its revenue sources, cost structure, target market, and competitive advantage.

For example, a business model for a clothing brand might explain how it will sell its products through online and physical stores, use social media marketing to attract customers, and differentiate itself from competitors through high-quality materials and unique designs.