A Business Model

question 5

Multiple Choice

A business model:

• A)means the same thing as a revenue model
• B)focuses on how the product or service will serve a market need
• C)determines how profits will be made
• D)determines how revenue will be earned

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Definitions:

Interest Expense

The expenses an entity faces for borrowing money, encompassing loans, bonds, or credit lines.

Effective-Interest Method

An accounting practice used to allocate loan or bond interest expense over the life of the loan/bond based on the loan's/bond's yielding interest rate.

Bond Premium Amortization

The gradual reduction over time of the amount by which a bond's purchase price exceeds its face value.

Carrying Value

Another term for book value; it's the value at which an asset is recognized on the balance sheet.