Question detail

RiverRun Catering serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?10,283, sales of 428 units, and a 18% change in costs or demand. Which option best applies Explain how sole traders, partnerships, private limited companies, public limited companies and not-for-profit organisations differ?

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

  1. A. Use partnership, sole trader, not-for-profit to judge cash inflow, employees impact, and the business objective in Legal structures.
  2. B. Give only a definition of Business ownership without using the case evidence.
  3. C. Treat cash flow and profit as identical and ignore the effect on employees.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use partnership, sole trader, not-for-profit to judge cash inflow, employees impact, and the business objective in Legal structures.

Explanation

This answer fits the scenario because Use partnership, sole trader, not-for-profit to judge cash inflow, employees impact, and the business objective in Legal structures. The case evidence gives ?11,783, 428 units, and 18%, 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 employees, or ignore the business objective.

Common mistake

Legal structures common mistake 1

Giving a vague answer instead of directly addressing: Explain how sole traders, partnerships, private limited companies, public limited companies and not-for-profit organisations differ..

Answer by clearly explaining how to explain how sole traders, partnerships, private limited companies, public limited companies and not-for-profit organisations differ..

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