Question detail

EcoWash serves online shoppers while training staff; the case evidence includes customer retention of ?7,597, sales of 617 units, and a 42% change in costs or demand. Which option best applies Explain why objectives differ between businesses, including business size, competition and not-for-profit status?

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 competition to judge customer retention, suppliers impact, and the business objective in Changing objectives and success measures.
  2. B. Give only a definition of Setting business aims and objectives without using the case evidence.
  3. C. Treat gross and net profit as identical and ignore the effect on suppliers.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use competition to judge customer retention, suppliers impact, and the business objective in Changing objectives and success measures.

Explanation

This is the best-supported choice because Use competition to judge customer retention, suppliers impact, and the business objective in Changing objectives and success measures. The case evidence gives ?9,097, 617 units, and 42%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the suppliers, 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 objectives differ between businesses, including business size, competition and not-for-profit status..

Answer by clearly explaining how to explain why objectives differ between businesses, including business size, competition and not-for-profit status..

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