What defines the business model of an organization?

The business model of an organization is fundamentally defined by its structure, purpose, and the method it uses to generate revenue. This encompasses the way the organization creates, delivers, and captures value, addressing how it meets customer needs and sustains itself financially.

B provides a comprehensive view, indicating that an effective business model includes not just how revenue is generated, but also the underlying structure of the business—such as the resources it utilizes, its unique value proposition, and the market segments it targets. It reflects the strategic choices that affect how the organization operates and competes in its market.

In contrast, while organizational hierarchy and employee roles can influence operational efficiency, they do not fundamentally define the business model itself. Similarly, marketing strategies and physical infrastructure, though essential components of a business's operations, do not encapsulate the core essence of how the business functions or how it generates value from its activities. Thus, the focus on structure, purpose, and revenue generation distinctly outlines what defines a business model.