Question detail
RiverRun Catering serves local families while changing supplier; the case evidence includes gross profit margin of ?7,550, sales of 370 units, and a 23% change in costs or demand. Which option best applies Analyse the benefits and drawbacks of business planning?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business planning
Question
- A. Use business plan to judge capacity utilisation, lenders impact, and the business objective in Purpose and sections of business planning.
- B. Give only a definition of Business planning without using the case evidence.
- C. Treat stakeholders and shareholders as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use business plan to judge capacity utilisation, lenders impact, and the business objective in Purpose and sections of business planning.
Explanation
Choose this response because Use business plan to judge capacity utilisation, lenders impact, and the business objective in Purpose and sections of business planning. The case evidence gives ?9,050, 370 units, and 23%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the lenders, or ignore the business objective.
Common mistake
Purpose and sections of business planning common mistake 1
Giving a vague answer instead of directly addressing: Analyse the benefits and drawbacks of business planning..
Answer by clearly explaining how to analyse the benefits and drawbacks of business planning..
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