Question detail
CycleNest serves tourists while improving quality control; the case evidence includes average order value of ?7,075, sales of 560 units, and a 32% change in costs or demand. Which option best applies Explain how technology, the economic situation, legislation and environmental expectations can affect business activity?
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 legislation, technology, environmental expectations to judge gross profit margin, employees impact, and the business objective in Dynamic nature of business.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat stakeholders and shareholders 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 legislation, technology, environmental expectations to judge gross profit margin, employees impact, and the business objective in Dynamic nature of business.
Explanation
This answer fits the scenario because Use legislation, technology, environmental expectations to judge gross profit margin, employees impact, and the business objective in Dynamic nature of business. The case evidence gives ?8,575, 560 units, and 32%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the employees, or ignore the business objective.
Common mistake
Dynamic nature of business common mistake 1
Giving a vague answer instead of directly addressing: Explain how technology, the economic situation, legislation and environmental expectations can affect business activity..
Answer by clearly explaining how to explain how technology, the economic situation, legislation and environmental expectations can affect business activity..
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