Harbour Hire serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?9,094, sales of 279 units, and a 29% 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?

The correct option is: Use objectives, finance, functions to judge unit contribution, lenders impact, and the business objective in Purpose and sections of business planning.

Choose this response because Use objectives, finance, functions to judge unit contribution, lenders impact, and the business objective in Purpose and sections of business planning. The case evidence gives ?10,594, 279 units, and 29%, 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.