Question detail
MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?4,540, sales of 795 units, and a 35% change in costs or demand. Which option best applies Explain the four factors of production: land, labour, capital and enterprise?
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 enterprise, land, capital, labour to judge capacity utilisation, customers impact, and the business objective in Factors of production and business sectors.
- 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 customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use enterprise, land, capital, labour to judge capacity utilisation, customers impact, and the business objective in Factors of production and business sectors.
Explanation
Choose this response because Use enterprise, land, capital, labour to judge capacity utilisation, customers impact, and the business objective in Factors of production and business sectors. The case evidence gives ?6,040, 795 units, and 35%, 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 customers, or ignore the business objective.
Common mistake
Factors of production and business sectors common mistake 1
Giving a vague answer instead of directly addressing: Explain the four factors of production: land, labour, capital and enterprise..
Answer by clearly explaining how to explain the four factors of production: land, labour, capital and enterprise..
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