What describes a business model in an organization?

Enhance your knowledge for the ISSP-SA exam. Study with multiple choice questions, each with hints and explanations. Prepare thoroughly for your certification!

A business model in an organization fundamentally defines how the organization creates, delivers, and captures value. It encompasses the processes, strategies, and overall framework that allow a company to generate revenue and sustain itself in the marketplace. This includes aspects such as the target customer base, the value proposition offered to those customers, distribution channels, and the overall operational processes that support the business functions.

In selecting the correct response regarding what describes a business model, it is crucial to understand that it summarizes the organization's approach to making money, which is the primary focus of option C. A well-defined business model outlines how an organization sells its products or services, who its customers are, and how it plans to sustain its profitability over time.

Other options address important elements that can relate to a business’s operation and strategy but do not encapsulate the comprehensive nature of a business model. Employee management practices and marketing strategies contribute to a business's efficiency and outreach respectively, while financial requisites highlight the monetary aspects necessary for survival. However, none of these options provide a holistic view of how an organization intends to make money, which lies at the heart of the concept of a business model.

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