A company's business model
A) details the manner in which the company will pass the three tests of a winning strategy.
B) indicates how the strategy will result in achieving the targeted strategic objectives.
C) clarifies (1) how the business will provide customers with value,and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits.
D) explains how it intends to achieve high profit margins.
E) sets forth the actions and approaches that it will employ to achieve market leadership.

Question

Quizplus · Accepted Answer

A company's business model sets forth how its strategy and operating approaches will create value for customers,while at the same time generate ample revenues to cover costs and realize a profit.The two elements of a company's business model are its (1) customer value proposition and (2) its profit formula.

A Company's Business Model