Question detail
MetroMove serves commuters while opening a second outlet; the case evidence includes net profit margin of ?2,531, sales of 926 units, and a 36% change in costs or demand. Which option best applies Explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions?
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 objectives, finance, functions to judge average order value, employees 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 margin and markup 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 objectives, finance, functions to judge average order value, employees impact, and the business objective in Purpose and sections of business planning.
Explanation
The answer is commercially strongest because Use objectives, finance, functions to judge average order value, employees impact, and the business objective in Purpose and sections of business planning. The case evidence gives ?4,031, 926 units, and 36%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the employees, or ignore the business objective.
Common mistake
Purpose and sections of business planning common mistake 1
Giving a vague answer instead of directly addressing: Explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions..
Answer by clearly explaining how to explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions..
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