SQA Higher Business Practice Exam 2025 - Free Business Exam Practice Questions and Study Guide

An effective business model typically includes a plan for generating revenue from operations, which is crucial for the sustainability and growth of the business. This aspect focuses on how the business will make money through its chosen products or services, pricing strategies, and overall value proposition. It details the mechanisms through which income is earned and outlines various revenue streams, whether through sales, subscriptions, licensing, or other methods.

While other choices highlight important components of a business, they do not primarily define the core of a business model, which revolves around revenue generation. For example, the allocation of employee roles and responsibilities, while important for operational efficiency, does not directly address how the business will sustain itself financially. Similarly, customer relationship management strategies are essential for maintaining customer loyalty and satisfaction, but they fall under the broader umbrella of marketing and customer service rather than the foundational aspect of how a business generates revenue. Finally, marketing tactics serve to attract customers, but again, they are more focused on the promotional aspect of a business rather than the underlying financial strategies that define a successful business model.