Which of the Following Is Not One of the Purposes

question 20

Multiple Choice

Which of the following is not one of the purposes of a business model?

• A) serves as an ongoing extension of feasibility analysis
• B) serves as a template for conducting industry analysis
• C) focuses attention on how all the elements of a business fit together
• D) describes why the network of participants needed to make a business idea viable is willing to work together
• E) articulates a company's core logic to all stakeholders

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Definitions:

Contra Stockholders' Equity

Accounts on a company's balance sheet that have a negative balance, reducing the overall equity of stockholders.

Retained Earnings

The portion of net profits not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves plus any additional paid-in capital.

Treasury Stock

Stocks that the original issuing company has repurchased, decreasing the total number of shares available for trade in the public market.