Question detail
StyleHub serves repeat customers while raising prices; the case evidence includes unit contribution of ?4,854, sales of 844 units, and a 29% change in costs or demand. Which option best applies Explain organic growth through franchising, opening new stores and e-commerce expansion?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Expanding a business
Question
- A. Use organic growth, franchising, e-commerce to judge unit contribution, lenders impact, and the business objective in Methods of expansion.
- B. Give only a definition of Expanding a business 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 organic growth, franchising, e-commerce to judge unit contribution, lenders impact, and the business objective in Methods of expansion.
Explanation
Choose this response because Use organic growth, franchising, e-commerce to judge unit contribution, lenders impact, and the business objective in Methods of expansion. The case evidence gives ?6,354, 844 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.
Common mistake
Methods of expansion common mistake 1
Giving a vague answer instead of directly addressing: Explain organic growth through franchising, opening new stores and e-commerce expansion..
Answer by clearly explaining how to explain organic growth through franchising, opening new stores and e-commerce expansion..
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