Question detail
BrightBake serves business clients while changing promotion; the case evidence includes supplier lead time of ?10,154, sales of 544 units, and a 39% change in costs or demand. Which option best applies Analyse benefits and drawbacks of each legal structure, including management and control, sources of finance, liability and profit distribution?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business ownership
Question
- A. Use control, profit distribution, sources of finance to judge unit contribution, owners impact, and the business objective in Benefits, drawbacks and suitability.
- B. Give only a definition of Business ownership 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 control, profit distribution, sources of finance to judge unit contribution, owners impact, and the business objective in Benefits, drawbacks and suitability.
Explanation
The option is correct because Use control, profit distribution, sources of finance to judge unit contribution, owners impact, and the business objective in Benefits, drawbacks and suitability. The case evidence gives ?11,654, 544 units, and 39%, 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
Benefits, drawbacks and suitability common mistake 1
Giving a vague answer instead of directly addressing: Analyse benefits and drawbacks of each legal structure, including management and control, sources of finance, liability and profit distribution..
Answer by clearly explaining how to analyse benefits and drawbacks of each legal structure, including management and control, sources of finance, liability and profit distribution..
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