Question detail

PixelPrint serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?7,130, sales of 320 units, and a 29% change in costs or demand. Which option best applies Explain why objectives may change as businesses evolve from start-up to larger established businesses?

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At a glance

MCQ

Type

practice

Style

Topic

Setting business aims and objectives

Question

A. Use established business, start-up to judge capacity utilisation, 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 cash flow and profit 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 established business, start-up to judge capacity utilisation, owners impact, and the business objective in Changing objectives and success measures.

Explanation

Choose this response because Use established business, start-up to judge capacity utilisation, owners impact, and the business objective in Changing objectives and success measures. The case evidence gives ?8,630, 320 units, and 29%, 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 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 may change as businesses evolve from start-up to larger established businesses..

Answer by clearly explaining how to explain why objectives may change as businesses evolve from start-up to larger established businesses..

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FreshFork serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?2,890, sales of 325 units, and a 33% change in costs or demand. Which option best applies Explain why objectives may change as businesses evolve from start-up to larger established businesses?