Question detail
Harbour Hire serves business clients while changing promotion; the case evidence includes supplier lead time of ?8,352, sales of 462 units, and a 13% change in costs or demand. Which option best applies Define opportunity cost and apply it to business choices?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The purpose and nature of businesses
Question
- A. Use opportunity cost, business to judge supplier lead time, managers impact, and the business objective in Business purpose, goods and services.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on managers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use opportunity cost, business to judge supplier lead time, managers impact, and the business objective in Business purpose, goods and services.
Explanation
Choose this response because Use opportunity cost, business to judge supplier lead time, managers impact, and the business objective in Business purpose, goods and services. The case evidence gives ?9,852, 462 units, and 13%, 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 managers, or ignore the business objective.
Common mistake
Business purpose, goods and services common mistake 1
Giving a vague answer instead of directly addressing: Define opportunity cost and apply it to business choices..
Answer by clearly explaining how to define opportunity cost and apply it to business choices..
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