In Which Revenue Model Does an Existing Business Allow Another

question 56

Multiple Choice

In which revenue model does an existing business allow another party to trade under the name of that business?

• A)an intermediation revenue model
• B)a franchising revenue model
• C)a brokerage model
• D)an advertising model

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Definitions:

Common Stock

This represents units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The sum total of profit a company achieves after removing the costs and tax payments from its income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by reporting these profits as income.