Explain the Differences Between a Strategy and Business Model

question 90

Essay

Explain the differences between a strategy and business model.

Understand the impact of the principal's bankruptcy on the agent's power.

Recognize the requirements for terminating an agent's apparent authority.

Distinguish between actual, implied, and express authority of an agent.

Understand the contractual liability implications for disclosed, partially disclosed, and undisclosed principals.

---

Definitions:

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.

Producer Surplus

The gap between the minimum amount producers are willing to accept for providing a good or service and the actual amount they end up receiving.

Producer Surplus

The additional income a producer receives for selling a good or service above its production cost.