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
- A. Use partnership, sole trader, not-for-profit to judge cash inflow, employees impact, and the business objective in Legal structures.
- B. Give only a definition of Business ownership without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on employees.
- 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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