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)revenues 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 is then reinvested to further grow the business. This is evident in many businesses, such as real estate or manufacturing, where funding is obtained to purchase properties or equipment that generate income through rent or production, respectively.

The Basic Business Model Shows