Question detail
PeakPods serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?3,185, sales of 165 units, and a 32% 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 gross profit margin, local community 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 efficiency and productivity as identical and ignore the effect on local community.
- 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, local community 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, local community impact, and the business objective in Purpose and sections of business planning. The case evidence gives ?4,685, 165 units, and 32%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the local community, 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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