Which of the following is a common business model?

Prepare for the T Level Management and Administration Test. Utilize flashcards and multiple choice questions to enhance your study. Each question comes with detailed hints and explanations. Ace your exam!

The direct sales model is a common business model that involves selling products or services directly to consumers, bypassing traditional retail channels. This approach allows companies to establish personal relationships with customers and offers the potential for higher profit margins since there are no intermediary costs.

In a direct sales model, businesses often rely on individual sales representatives or online platforms to reach customers. The effectiveness of this model is seen in various industries, from cosmetics to health products, demonstrating its versatility and widespread acceptance.

While other options describe organizational structures or strategies rather than business models, the direct sales model specifically outlines a method for generating revenue through direct consumer engagement. This emphasis on direct interaction and sales efficiency is what makes it a prominent and recognizable business model across many sectors.

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