A Company's Business Model

question 8

Multiple Choice

A company's business model

• A) concerns the actions and business approaches that will be used to grow the business,conduct operations,please customers,and compete successfully.
• B) relates to the principle business components that will allow the business to generate revenues ample to cover costs and produce a profit.
• C) concerns what moves in the marketplace it plans to make to outcompete rivals.
• D) deals with how it can simultaneously maximize profits and operate in a socially responsible manner.
• E) concerns how management plans to pursue strategic objectives,given the larger imperative of meeting or beating its financial performance targets.

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Definitions:

Market Call Premium

Additional amount above the par value that an investor must pay to call in a callable bond before its maturity date.

Stock Price Volatility

Refers to the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock or other underlying asset at a predetermined price within a specified time period.

Put Option

A financial contract allowing the holder to sell a specific amount of an underlying asset at a predetermined price within a specified time frame.