A Revenue Model Explains How an Entrepreneur Will Make Money

question 50

True/False

A revenue model explains how an entrepreneur will make money from delivering on the customer value proposition.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Rate of Return

A financial ratio that calculates the percentage of profit or loss made on an investment relative to its cost.

Internal Rate

Often referring to the internal rate of return (IRR), it's the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Screening Tool

A method or instrument used to evaluate or identify certain characteristics or conditions, often used in the context of health care or recruitment.