Question detail
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?3,472, sales of 312 units, and a 21% 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 supplier lead time, managers 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 efficiency and productivity 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 control, profit distribution, sources of finance to judge supplier lead time, managers impact, and the business objective in Benefits, drawbacks and suitability.
Explanation
This option works because Use control, profit distribution, sources of finance to judge supplier lead time, managers impact, and the business objective in Benefits, drawbacks and suitability. The case evidence gives ?4,972, 312 units, and 21%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the managers, 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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