Which of the following best describes what a business model is?

Which of the following best describes what a business model is?
A . The rationale for how an organization, creates, deliveries and captures value.
B . The description of the structure and interaction of applications that provide Key business functions.
C . The representation of business assets in use, or planned by the enterprise.
D . A maturity model tor IT process management, continuous improvement and best practices.

View Answer

Answer: A

Explanation:

A business model is a plan that describes how a business intends to make money by providing value to its customers or clients. It defines the value proposition, the target market, the revenue streams, and the cost structure of the business. According to Investopedia 1, a business model is “a company’s plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses