Which of the following best describes a business model?

A business model fundamentally outlines how a company generates value, detailing the processes by which it creates and captures economic value through its offerings. It encompasses key components such as the target market, value proposition, revenue streams, cost structure, and the organization’s overall strategy for competing in the market. This framework illustrates how a company identifies customer needs, delivers value to those customers, and derives profit from that value exchange, thereby defining its place and function within the broader economic landscape.

In contrast, a description of business methods refers more to particular tactics or operational strategies rather than the overarching framework of value creation. While financial strategies are essential, they are only one aspect of the comprehensive view provided by a business model. Likewise, a plan for employee training focuses narrowly on workforce development and does not encompass the larger context of how the business operates or generates value. The correct option captures the essence of what a business model truly represents, centering on the value creation and delivery processes that underpin a company's success.