Question detail
QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?10,050, sales of 250 units, and a 23% change in costs or demand. Assess how the business should respond to Explain what a business is and why businesses may start, including producing goods, supplying services, distributing products, fulfilling opportunities and benefiting others.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
The purpose and nature of businesses
Question
QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?10,050, sales of 250 units, and a 23% change in costs or demand. Assess how the business should respond to Explain what a business is and why businesses may start, including producing goods, supplying services, distributing products, fulfilling opportunities and benefiting others.
Answer
Use the command word first. Apply services, business, goods to QuickFix Repairs serves commuters while opening a second outlet, then explain how the decision changes capacity utilisation, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for owners, uses figures such as ?13,450 or 23%, and reaches a supported judgement based on the business objective.
Explanation
Structure the judgement carefully. This explanation is anchored to Business purpose, goods and services and The purpose and nature of businesses because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates stakeholders and shareholders, which helps the final judgement stay precise.
Common mistake
Business purpose, goods and services common mistake 1
Giving a vague answer instead of directly addressing: Explain what a business is and why businesses may start, including producing goods, supplying services, distributing products, fulfilling opportunities and benefiting others..
Answer by clearly explaining how to explain what a business is and why businesses may start, including producing goods, supplying services, distributing products, fulfilling opportunities and benefiting others..
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