Explain What Is Meant by the "Lean Business Model" and Why

question 190

Essay

Explain what is meant by the "lean business model" and why many businesses have adopted it.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ultimately providing information on its profit or loss.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of a company's assets financed by debt compared to shareholder equity.

Common Stock

An ownership share in a corporation, representing a claim on part of the company's profits and assets.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific marketplace.