Understanding Business Models

What is a business model?

• A document outlining a company's financial goals

• A plan for marketing and advertising a product

• A framework that describes how a company creates, delivers, and captures value

• A strategy for managing a company's employees

Which of the following is NOT a key component of a business model?

• Value proposition

• Target market

• Revenue streams

• Marketing budget

What does the value proposition of a business model define?

• The specific group of customers a business aims to serve

• The benefits and value a product or service offers

• How a company makes money from its products or services

• The unique characteristics of a company's brand

Which business model involves transactions between businesses?

• B2B model

• B2C model

• Subscription model

• Freemium model

Which business model involves transactions between businesses and individual consumers?

• B2B model

• B2C model

• Subscription model

• Freemium model

Which business model requires customers to pay a recurring fee to access a product or service?

• B2B model

• B2C model

• Subscription model

• Freemium model

Which business model offers basic services for free while charging for premium features?

• B2B model

• B2C model

• Subscription model

• Freemium model

Which business model generates revenue by displaying ads to users?

• B2B model

• B2C model

• Advertising model

• Freemium model

Which business model pays a small commission to others to promote goods?

• B2B model

• B2C model

• Affiliate model

• Freemium model

Which business model sells multiple products to a single customer for a fixed price?

• B2B model

• B2C model

• Bundling model

• Freemium model