Question detail
SolarSprout serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?7,362, sales of 807 units, and a 13% 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
- A. Use competition to judge supplier lead time, owners 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 margin and markup as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge supplier lead time, owners impact, and the business objective in Changing objectives and success measures.
Explanation
The option is correct because Use competition to judge supplier lead time, owners impact, and the business objective in Changing objectives and success measures. The case evidence gives ?8,862, 807 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the owners, 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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