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Standard advisory glossary

Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.

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strategy · intro

Unit Economics

The direct revenues and costs associated with a single unit of a business, such as one customer or one product sold, used to assess whether a business model is fundamentally viable independent of its overall scale. A company can grow rapidly while still having poor unit economics, a combination that is often unsustainable in the long run without significant changes.