Question detail
StyleHub serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,307, sales of 997 units, and a 32% change in costs or demand. Which option best applies Distinguish goods from services and needs from wants in business contexts?
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 needs, services, business, goods to judge customer retention, employees 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 gross and net profit as identical and ignore the effect on employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use needs, services, business, goods to judge customer retention, employees impact, and the business objective in Business purpose, goods and services.
Explanation
This is the best-supported choice because Use needs, services, business, goods to judge customer retention, employees impact, and the business objective in Business purpose, goods and services. The case evidence gives ?11,807, 997 units, and 32%, 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 employees, or ignore the business objective.
Common mistake
Business purpose, goods and services common mistake 1
Giving a vague answer instead of directly addressing: Distinguish goods from services and needs from wants in business contexts..
Answer by clearly explaining how to distinguish goods from services and needs from wants in business contexts..
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