Question detail
CycleNest serves tourists while improving quality control; the case evidence includes average order value of ?6,286, sales of 711 units, and a 27% change in costs or demand. Which option best applies Explain why business success can be measured by more than profit?
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, success, more, measured to judge net profit margin, lenders impact, and the business objective in Changing objectives and success measures.
- B. Give only a definition of Setting business aims and objectives without using the case evidence.
- C. Treat revenue and profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use business, success, more, measured to judge net profit margin, lenders impact, and the business objective in Changing objectives and success measures.
Explanation
The option is correct because Use business, success, more, measured to judge net profit margin, lenders impact, and the business objective in Changing objectives and success measures. The case evidence gives ?7,786, 711 units, and 27%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the lenders, or ignore the business objective.
Common mistake
Changing objectives and success measures common mistake 1
Giving a vague answer instead of directly addressing: Explain why business success can be measured by more than profit..
Answer by clearly explaining how to explain why business success can be measured by more than profit..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.