Question detail
CraftCrate serves commuters while opening a second outlet; the case evidence includes net profit margin of ?6,180, sales of 315 units, and a 17% 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 capacity utilisation, customers 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 internal and external finance as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use structures, evaluate, suitable, legal to judge capacity utilisation, customers impact, and the business objective in Benefits, drawbacks and suitability.
Explanation
The option is correct because Use structures, evaluate, suitable, legal to judge capacity utilisation, customers impact, and the business objective in Benefits, drawbacks and suitability. The case evidence gives ?7,680, 315 units, and 17%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, miss the customers, 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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