Understanding the different business models is critical. Selecting the right business model to meet the business owner’s needs is the first step in reaching the target audience. There are main features of each model, and it is important and illustrating an understanding through the use of examples is best.

Think of several different businesses and consider the business models that they use. Identify three businesses that each uses one of the three distinct business models. For your discussion:

• List the three companies and the business model utilized by each company (remember, you want one company per model)
• What business model do you feel is the most effective and why?
• If you were to open up a business, what type of business would it be, what model will best suit your business, and why?

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