A Business Model Is Managers' Conception of How the Set

question 82

True/False

A business model is managers' conception of how the set of strategies their company pursues work together as a congruent whole, enabling the company to gain a competitive advantage as well as achieve superior profitability and profit growth.

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Definitions:

Minority Active Investment

An investment where the investor holds a non-controlling interest in a company but is still actively involved in its management or operations.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized and subsequently adjusted for the investor’s share of the net assets of the investee, including recognized income or loss.

Cost Method

An accounting method used to record investments in which the investment is recorded at its acquisition cost without recognizing subsequent changes in market value.

Investment Method

A technique for recognizing the investor's share of investee profits and adjusting the carrying amount of the investment accordingly.