What is meant by "business model"?

The concept of a "business model" refers to a comprehensive framework that outlines how a company operates to generate value. This includes details on how it creates products or services, delivers them to customers, and captures revenue from those offerings. Understanding a business model is essential because it encapsulates the fundamental aspects of the business's operations and value proposition.

A business model typically addresses key elements such as target markets, value propositions, revenue streams, cost structures, and the channels through which a business interacts with its customers. By effectively communicating these facets, a company can align its strategies and goals to ensure a sustainable and profitable operation.

The other options focus on narrower aspects of business operations or organizational policies, which do not encompass the holistic nature of a business model that integrates various components crucial for success.