Final answer:
A software company generates revenue by selling its products or services through various channels. The revenue stream can be calculated by multiplying the price of the software by the number of units sold. Factors such as pricing strategy, competition, and customer acquisition also impact the revenue stream.
Step-by-step explanation:
In order to generate revenue, a software company typically relies on selling its software products or services. This can be done through various channels such as direct sales to customers, licensing agreements with other companies, or offering software as a subscription service.
The revenue stream for a software company can be calculated by multiplying the price of the software or service by the number of units sold or number of customers. For example, if a company sells a software product for $100 and sells 100 units, the revenue generated would be $10,000.
Other factors that can affect the revenue stream of a software company include pricing strategy, market demand, competition, and the company's ability to acquire and retain customers.