A Business Model Explains How a Business Will Generate Profit

question 26

True/False

A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.

---

Definitions:

Provision

A specified amount set aside for future expenses or reductions in asset value, typically used in accounting and financial reporting.

Public Good

This refers to goods or services distributed to all societal members at no cost, courtesy of either public institutions or nonprofit private entities.

Private Sector

Part of the economy that is run by individuals and companies for profit and is not under direct state control.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a business with the aim of making a profit.