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StyleHub serves commuters while opening a second outlet; the case evidence includes net profit margin of ?3,204, sales of 369 units, and a 43% change in costs or demand. Which option best applies Explain why objectives differ between businesses, including business size, competition and not-for-profit status?

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At a glance

MCQ

Type

practice

Style

Topic

Setting business aims and objectives

Question

  1. A. Use competition to judge unit contribution, customers 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 cash flow and profit as identical and ignore the effect on customers.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use competition to judge unit contribution, customers impact, and the business objective in Changing objectives and success measures.

Explanation

Choose this response because Use competition to judge unit contribution, customers impact, and the business objective in Changing objectives and success measures. The case evidence gives ?4,704, 369 units, and 43%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the customers, 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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