Question detail
RiverRun Catering serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?9,138, sales of 628 units, and a 25% change in costs or demand. Which option best applies Identify the legal structures available to 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, businesses, available, legal to judge labour productivity, owners 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 owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use structures, businesses, available, legal to judge labour productivity, owners impact, and the business objective in Legal structures.
Explanation
Choose this response because Use structures, businesses, available, legal to judge labour productivity, owners impact, and the business objective in Legal structures. The case evidence gives ?10,638, 628 units, and 25%, 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 owners, or ignore the business objective.
Common mistake
Legal structures common mistake 1
Giving a vague answer instead of directly addressing: Identify the legal structures available to businesses..
Answer by clearly explaining how to identify the legal structures available to businesses..
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