A Company's Business Model

question 50

Multiple Choice

A company's business model

• A) zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment.
• B) is management's storyline for how the strategy will result in achieving the targeted strategic objectives.
• C) details the ethical and socially responsible nature of the company's strategy.
• D) explains how it intends to achieve high profit margins.
• E) sets forth the actions and approaches that it will employ to achieve market leadership.

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Definitions:

Cumulative Gain

The total amount of profit gained over a period of time from an investment or series of investments.

Semi-Annual Dividend

A payment made to shareholders that is distributed twice a year from a company's earnings.

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.

Capital Gain Yield

The rate of return on an investment based on the increase in its market value over the original purchase price, excluding dividends or interest.