Question detail
QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?2,155, sales of 730 units, and a 8% 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, employees 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 margin and markup as identical and ignore the effect on employees.
- 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, employees impact, and the business objective in Methods of expansion.
Explanation
The answer is commercially strongest because Use outsourcing, takeovers, mergers to judge gross profit margin, employees impact, and the business objective in Methods of expansion. The case evidence gives ?3,655, 730 units, and 8%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the employees, 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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