The Cost Structure of a Business Model

question 12

Multiple Choice

The cost structure of a business model

• A)defines the types of income.
• B)determines how much money is needed for positive cash flow.
• C)drives the company's cost and expenses.
• D)is the most critical component for long term success.

---

Definitions:

Compensating Differential

Additional wage or benefit that compensates workers for unpleasant aspects of a job, such as risks or undesirable location.

Nonmonetary Characteristics

Aspects of a job or employment that are not related to the salary or wages. These include working conditions, job security, work-life balance, and other benefits.

Wages

The compensation paid to employees for their labor, typically calculated as an hourly rate or fixed salary.

Beauty Premium

The phenomenon where more physically attractive individuals may receive higher wages and better employment opportunities than less attractive individuals.