Final answer:
A business model explains how a business will generate profits and cash flow by outlining its strategy, structure, operations, revenue sources, cost structure, target market, and competitive advantage.
Step-by-step explanation:
A business model explains how a business will generate profits and cash flow. It outlines the strategy, structure, and operations of a business, including its revenue sources, cost structure, target market, and competitive advantage.
For example, a business model for a clothing brand might explain how it will sell its products through online and physical stores, use social media marketing to attract customers, and differentiate itself from competitors through high-quality materials and unique designs.