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

A type of security that signifies ownership in a corporation, entitling the holder to a share of the company's assets and profits.

Pre-Tax Cost of Debt

The interest rate a company pays on its borrowings before taking into account any tax deductions.

Zero-Coupon Bonds

Zero-coupon bonds are debt securities that are issued at a discount to their face value and don’t pay interest before maturity; instead, investors receive the face value at maturity.

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount due at maturity.