CFA Level I · CFA Level I Exam · Company Analysis: Past, Present, and Future
An analyst begins a company analysis by examining the firm's revenue sources, its customer segments, and how it creates and captures value. The analyst is most likely evaluating the company's:
The analyst is evaluating the company's business model. A business model explains how the firm creates and captures value through its revenue sources, customer segments and cost structure, which is the starting point of company analysis, unlike capital structure or dividend policy.
- Acapital structure
- Bbusiness modelCorrect
- Cdividend policy
Explanation
A business model describes how a company creates and captures value, including its revenue sources, customers and cost structure. Capital structure concerns debt and equity financing, and dividend policy concerns payouts, so neither fits the description.
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