Question detail

StyleHub serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,327, sales of 777 units, and a 18% change in costs or demand. Which option best applies Explain the four factors of production: land, labour, capital and enterprise?

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At a glance

MCQ

Type

practice

Style

Topic

The purpose and nature of businesses

Question

A. Use enterprise, land, capital, labour to judge customer retention, shareholders 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 gross and net profit as identical and ignore the effect on shareholders.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use enterprise, land, capital, labour to judge customer retention, shareholders impact, and the business objective in Factors of production and business sectors.

Explanation

This is the best-supported choice because Use enterprise, land, capital, labour to judge customer retention, shareholders impact, and the business objective in Factors of production and business sectors. The case evidence gives ?9,827, 777 units, and 18%, 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 shareholders, 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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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?