Which of These Is Not a Useful Feature of the Business

question 6

Multiple Choice

Which of these is not a useful feature of the business model concept:

• A)It provides a roadmap to show how value is created by an organization
• B)It provides a way of sharing the core business idea with others, making the 'business vision' explicit
• C)It offers a helpful checklist of areas to consider in making sure the idea and the route to creating value is well thought through
• D)It offers a useful marketing slogan for the business

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Definitions:

Bonds Payable

Bonds payable are long-term liabilities represented by bonds that a company issues to investors, promising to repay the principal along with interest at specified dates.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments but usually without voting rights.

Financing Activities

Transactions that involve changes in the size and composition of the equity capital or borrowings of a company.

Indirect Method

A technique for preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.