The Business Model in Which a Company Sells Products, Such

question 24

Multiple Choice

The business model in which a company sells products, such as razors, at break-even pricing in order to sell higher-margin products, such as razor blades, is called the

• A) time model.
• B) multi-component system.
• C) customer solutions model.
• D) switchboard model.
• E) efficiency model.

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Definitions:

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business, indicating its operational efficiency and liquidity.

Taxable Income

The amount of income used to calculate how much the entity or individual owes in taxes to the government.

Tax Bill

The amount of money owed by an individual or corporation to the taxing authorities as a result of income or other taxes.

Net Fixed Assets

The total value of a company’s fixed assets minus any accumulated depreciation.