Question detail

Northline Gym serves repeat customers while raising prices; the case evidence includes unit contribution of ?6,874, sales of 449 units, and a 41% change in costs or demand. Which option best applies Demonstrate knowledge and understanding of business concepts, terminology and issues?

Try the question, check the answer, then read the explanation to understand the curriculum point.

Show answer Topic hub Objective page

At a glance

MCQ

Type

practice

Style

Topic

Business decision making and command words

Question

A. Use business, demonstrate, understanding, knowledge to judge unit contribution, owners impact, and the business objective in Assessment objectives and command words.
B. Give only a definition of Business decision making and command words without using the case evidence.
C. Treat margin and markup as identical and ignore the effect on owners.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use business, demonstrate, understanding, knowledge to judge unit contribution, owners impact, and the business objective in Assessment objectives and command words.

Explanation

The option is correct because Use business, demonstrate, understanding, knowledge to judge unit contribution, owners impact, and the business objective in Assessment objectives and command words. The case evidence gives ?8,374, 449 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the owners, or ignore the business objective.

Common mistake

Assessment objectives and command words common mistake 1

Giving a vague answer instead of directly addressing: Demonstrate knowledge and understanding of business concepts, terminology and issues..

Answer by clearly explaining how to demonstrate knowledge and understanding of business concepts, terminology and issues..

Related flashcards

Flashcard 1 of 5

Press Space to flip, arrows to move

SwiftServe serves business clients while changing promotion; the case evidence includes supplier lead time of ?3,915, sales of 575 units, and a 28% change in costs or demand. Which option best applies Demonstrate knowledge and understanding of business concepts, terminology and issues?