Question detail
CycleNest serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?9,544, sales of 129 units, and a 27% change in costs or demand. Which option best applies Explain how competition and costs can influence business location?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business location
Question
- A. Use location, costs, competition to judge unit contribution, managers impact, and the business objective in Location factors.
- B. Give only a definition of Business location without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on managers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use location, costs, competition to judge unit contribution, managers impact, and the business objective in Location factors.
Explanation
Choose this response because Use location, costs, competition to judge unit contribution, managers impact, and the business objective in Location factors. The case evidence gives ?11,044, 129 units, and 27%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the managers, or ignore the business objective.
Common mistake
Location factors common mistake 1
Giving a vague answer instead of directly addressing: Explain how competition and costs can influence business location..
Answer by clearly explaining how to explain how competition and costs can influence business location..
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