The basic business model shows:
A)financing is used to generate revenue that is invested in assets that produce net income.
B)financing is used to invest in assets that generate revenues that produce net income.
C)revenue is produced from net income that is invested in assets to repay financing.
D)assets are used to generate financing that produces revenue and net income.

Question

Quizplus · Accepted Answer

The basic business model involves using financing to invest in assets that generate revenue which in turn produces net income. This net income can then be used to repay financing and/or reinvested in the business. Option A doesn't include the step of generating revenue, option C is the opposite of the correct process, and option D is unclear and confusing. Therefore, option B is the best choice.

The Basic Business Model Shows