Question detail
SolarSprout serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?7,365, sales of 630 units, and a 10% change in costs or demand. Which option best applies Explain the main business aims and objectives: survival, profit maximisation, domestic and international growth, market share, customer satisfaction, social and ethical objectives and shareholder value?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Setting business aims and objectives
Question
- A. Use survival, shareholder value, growth, profit maximisation to judge gross profit margin, suppliers impact, and the business objective in Aims and objectives.
- B. Give only a definition of Setting business aims and objectives without using the case evidence.
- C. Treat fixed and variable costs as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use survival, shareholder value, growth, profit maximisation to judge gross profit margin, suppliers impact, and the business objective in Aims and objectives.
Explanation
This is the best-supported choice because Use survival, shareholder value, growth, profit maximisation to judge gross profit margin, suppliers impact, and the business objective in Aims and objectives. The case evidence gives ?8,865, 630 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 suppliers, or ignore the business objective.
Common mistake
Aims and objectives common mistake 1
Giving a vague answer instead of directly addressing: Explain the main business aims and objectives: survival, profit maximisation, domestic and international growth, market share, customer satisfaction, social and ethical objectives and shareholder value..
Answer by clearly explaining how to explain the main business aims and objectives: survival, profit maximisation, domestic and international growth, market share, customer satisfaction, social and ethical objectives and shareholder value..
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