Question detail
SolarSprout serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?10,722, sales of 962 units, and a 11% 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 supplier lead time, owners 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 owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use legislation, technology, environmental expectations to judge supplier lead time, owners impact, and the business objective in Dynamic nature of business.
Explanation
Choose this response because Use legislation, technology, environmental expectations to judge supplier lead time, owners impact, and the business objective in Dynamic nature of business. The case evidence gives ?12,222, 962 units, and 11%, 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 owners, 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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