Question detail
PeakPods serves local families while changing supplier; the case evidence includes gross profit margin of ?10,071, sales of 221 units, and a 32% change in costs or demand. Which option best applies Explain the role of objectives in running a business?
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 business, running, objectives, role to judge average order value, shareholders 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 stakeholders and shareholders as identical and ignore the effect on shareholders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use business, running, objectives, role to judge average order value, shareholders impact, and the business objective in Aims and objectives.
Explanation
This answer fits the scenario because Use business, running, objectives, role to judge average order value, shareholders impact, and the business objective in Aims and objectives. The case evidence gives ?11,571, 221 units, and 32%, 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 shareholders, or ignore the business objective.
Common mistake
Aims and objectives common mistake 1
Giving a vague answer instead of directly addressing: Explain the role of objectives in running a business..
Answer by clearly explaining how to explain the role of objectives in running a business..
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