Why is a business model created?
Answer and explanation
Correct answer: To explain how the business will create value and earn income
A business model describes how an enterprise serves customers, creates and delivers value, obtains resources, and earns revenue. It helps the entrepreneur see whether the proposed activities can work together financially and operationally. Thus option A is correct. A name, secrecy, or hiding expenses cannot explain how the business actually functions.
Frequently asked questions
What is the correct answer to this question?
To explain how the business will create value and earn income
Why is this the correct answer?
A business model describes how an enterprise serves customers, creates and delivers value, obtains resources, and earns revenue. It helps the entrepreneur see whether the proposed activities can work together financially and operationally. Thus option A is correct. A name, secrecy, or hiding expenses cannot explain how the business actually functions.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
