Question detail
CloudCart serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?5,625, sales of 290 units, and a 10% change in costs or demand. Which option best applies Explain outsourcing and external growth through mergers and takeovers?
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 outsourcing, takeovers, mergers to judge gross profit margin, local community 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 fixed and variable costs 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 outsourcing, takeovers, mergers to judge gross profit margin, local community impact, and the business objective in Methods of expansion.
Explanation
This is the best-supported choice because Use outsourcing, takeovers, mergers to judge gross profit margin, local community impact, and the business objective in Methods of expansion. The case evidence gives ?7,125, 290 units, and 10%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the local community, or ignore the business objective.
Common mistake
Methods of expansion common mistake 1
Giving a vague answer instead of directly addressing: Explain outsourcing and external growth through mergers and takeovers..
Answer by clearly explaining how to explain outsourcing and external growth through mergers and takeovers..
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