Question detail

PixelPrint serves business clients while changing promotion; the case evidence includes supplier lead time of ?3,275, sales of 425 units, and a 16% 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

  1. A. Use objectives, finance, functions to judge gross profit margin, employees impact, and the business objective in Purpose and sections of business planning.
  2. B. Give only a definition of Business planning without using the case evidence.
  3. C. Treat gross and net profit as identical and ignore the effect on employees.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use objectives, finance, functions to judge gross profit margin, employees impact, and the business objective in Purpose and sections of business planning.

Explanation

This is the best-supported choice because Use objectives, finance, functions to judge gross profit margin, employees impact, and the business objective in Purpose and sections of business planning. The case evidence gives ?4,775, 425 units, and 16%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, 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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