A business model is ________
A) a competitor that a company seeks to emulate
B) a strategic design for how a company intends to make profit
C) a theoretical ideal that a company seeks to emulate
D) an unrelated organization whose practices a company seeks to emulate
Answer: B
Explanation: A business model is not a model that an organization tries to emulate whether it is a competitor, a theoretical ideal, or an unrelated company, making all of these choices incorrect. A business model is, instead, a plan that reveals the edge that a company has that will allow it to profit from a situation. For example, one company might feature an efficiency business model in which it can control costs better than its competitors, while a second company may feature some unique product that gives it an edge over the competition.
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