What is a business model?

Question

I am suppose to describe a business model, but I really don't know what that is.

Answer 1

A Business Model "describes the way in which a company makes money. A business model can be simple or very complex. A restaurant's business model is to make money by cooking and serving food to hungry customers. A web site's business model might not be so clear, as there are many ways in which these types of companies can generate revenue. For example, some make money (or try to) by providing a free service and then selling advertising to other companies, while others might sell a product or service directly to on line customers."