What Revenue Model Involves Charging Customers to Gain Continuous Access

question 15

Multiple Choice

What revenue model involves charging customers to gain continuous access to a product or service?

• A)licensing revenue model
• B)franchising revenue model
• C)revolving revenue model
• D)subscription revenue model

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Definitions:

Net Present Value

The financial difference calculated by subtracting cash outflows’ present value from cash inflows’ present value during a set period.

Sales Quantity

The total volume or number of units sold of a product or service within a specified time frame.

Accounting Break-even

The point at which a project's revenues equal its costs, considering both cash and non-cash expenses.

Variable Cost

Charges that adjust according to the amount of goods produced or sold, like raw materials and labor costs.