The Business Model of an Organisation

question 41

Multiple Choice

The business model of an organisation:

• A)takes the value proposition and incorporates it into a specific value chain of activities
• B)is a process for modelling the success of the organisation's strategy
• C)determines how the organisation will create customer value
• D)can be difficult to identify in low-cost manufacturing firms

---

Definitions:

Price/Earnings Ratio

A valuation metric for stocks calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Stock Market

A marketplace where shares of public companies are traded between investors.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its customers by comparing net credit sales to average accounts receivable.

Return On Assets

A profitability ratio that measures how efficient a company is at using its assets to generate earnings, calculated as net income divided by total assets.