Question detail
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?4,390, sales of 395 units, and a 43% 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, lenders 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 internal and external finance as identical and ignore the effect on lenders.
- 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, lenders impact, and the business objective in Factors of production and business sectors.
Explanation
The option is correct because Use enterprise, land, capital, labour to judge capacity utilisation, lenders impact, and the business objective in Factors of production and business sectors. The case evidence gives ?5,890, 395 units, and 43%, 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 lenders, 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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