Question detail

QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?8,350, sales of 145 units, and a 25% 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

  1. A. Use survival, shareholder value, growth, profit maximisation to judge capacity utilisation, lenders impact, and the business objective in Aims and objectives.
  2. B. Give only a definition of Setting business aims and objectives without using the case evidence.
  3. C. Treat internal and external finance as identical and ignore the effect on lenders.
  4. 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 capacity utilisation, lenders impact, and the business objective in Aims and objectives.

Explanation

The option is correct because Use survival, shareholder value, growth, profit maximisation to judge capacity utilisation, lenders impact, and the business objective in Aims and objectives. The case evidence gives ?9,850, 145 units, and 25%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, miss the lenders, 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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