The Basic Business Model Shows

question 92

Multiple Choice

The basic business model shows:

• A)financing is used to generate revenue that is invested in assets that produce net income.
• B)financing is used to invest in assets that generate revenues that produce net income.
• C)revenue is produced from net income that is invested in assets to repay financing.
• D)assets are used to generate financing that produces revenue and net income.

---

Definitions:

Positive Economics

A branch of economics that focuses on describing and explaining the economic world as it is, not as it should be.

Operation of Systems

The process of managing and executing the functions and activities of interconnected and interdependent components to achieve specified goals.

Economic Behavior

The study of how individuals, institutions, and societies make decisions under constraints of resources, including analysis of market and non-market behaviors.

Normative Statement

An opinion-based statement that reflects beliefs about what is good or desirable and prescribes or recommends specific policies.