Question detail
Harbour Hire serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,905, sales of 655 units, and a 36% change in costs or demand. Which option best applies Explain the meaning of enterprise and entrepreneur?
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 entrepreneur, enterprise to judge gross profit margin, local community impact, and the business objective in Enterprise and entrepreneurship.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat efficiency and productivity as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use entrepreneur, enterprise to judge gross profit margin, local community impact, and the business objective in Enterprise and entrepreneurship.
Explanation
This is the best-supported choice because Use entrepreneur, enterprise to judge gross profit margin, local community impact, and the business objective in Enterprise and entrepreneurship. The case evidence gives ?10,405, 655 units, and 36%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the local community, or ignore the business objective.
Common mistake
Enterprise and entrepreneurship common mistake 1
Giving a vague answer instead of directly addressing: Explain the meaning of enterprise and entrepreneur..
Answer by clearly explaining how to explain the meaning of enterprise and entrepreneur..
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