What is a business model? Why is it important? Provide an example ...

[Caiter2013]

What is a business model? Why is it important? Provide an example to illustrate your answer.
 
  What will be an ideal response?

Question 2

Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success.
 
  Indicate whether the statement is true or false

[cuttiesgirl16]

Answer to Question 1

A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders. Business models are fundamental to a firm's ability to succeed both in the short and long term. Dropbox, for example, has what's referred to as a freemium business model. It offers customers a free account with a set amount of storage space, and makes money by selling premium accounts with more capacity. Dropbox could charge all of its users a monthly fee based on the amount of storage that they use, but that's not its business model. Its business model is based on the belief that by introducing users to its service through a free account, it will ultimately sign up more paid users. A firm's business model also describes how the core aspects of what it does fit together and complement one another.

Answer to Question 2

TRUE

[Caiter2013]

Thank you

[cuttiesgirl16]

Happy to help you