Question detail
Harbour Hire serves repeat customers while raising prices; the case evidence includes unit contribution of ?7,841, sales of 736 units, and a 22% change in costs or demand. Which option best applies Evaluate suitable legal structures for new start-ups and large established businesses?
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 structures, evaluate, suitable, legal to judge average order value, local community 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 break-even and profit as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use structures, evaluate, suitable, legal to judge average order value, local community impact, and the business objective in Benefits, drawbacks and suitability.
Explanation
This answer fits the scenario because Use structures, evaluate, suitable, legal to judge average order value, local community impact, and the business objective in Benefits, drawbacks and suitability. The case evidence gives ?9,341, 736 units, and 22%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and profit, miss the local community, or ignore the business objective.
Common mistake
Benefits, drawbacks and suitability common mistake 1
Giving a vague answer instead of directly addressing: Evaluate suitable legal structures for new start-ups and large established businesses..
Answer by clearly explaining how to evaluate suitable legal structures for new start-ups and large established businesses..
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