What is a business model?

A business model is fundamentally about how a company creates, delivers, and captures value. It serves as a blueprint for the operations of a business, detailing the core aspects of how the company functions and generates revenue. This includes identifying the target market, the product or service offered, the marketing strategies employed, the operational processes involved, and the revenue streams that sustain the business.

By defining these elements, a business model helps to clarify how a company intends to meet customer needs while ensuring profitability. It captures the essential characteristics that not only dictate how the business operates but also how it competes in its market. The effectiveness of a business model can significantly determine a company's success or failure in delivering value to its customers and stakeholders.

While the other options touch on important aspects of business, they do not encapsulate the comprehensive nature of a business model. For instance, a financial statement primarily focuses on a company's financial health, employee recruitment strategies are more operational than strategic, and corporate social responsibility frameworks address ethical obligations rather than how value is created or delivered.