Question detail
Harbour Hire serves repeat customers while raising prices; the case evidence includes unit contribution of ?2,186, sales of 731 units, and a 25% 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 net profit margin, 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 internal and external finance 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 net profit margin, owners impact, and the business objective in Dynamic nature of business.
Explanation
The option is correct because Use legislation, technology, environmental expectations to judge net profit margin, owners impact, and the business objective in Dynamic nature of business. The case evidence gives ?3,686, 731 units, and 25%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, 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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