Question detail

EcoWash serves tourists while improving quality control; the case evidence includes average order value of ?5,519, sales of 699 units, and a 8% change in costs or demand. Which option best applies 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

MCQ

Type

practice

Style

Topic

The purpose and nature of businesses

Question

  1. A. Use services, business, goods to judge break-even output, shareholders impact, and the business objective in Business purpose, goods and services.
  2. B. Give only a definition of The purpose and nature of businesses without using the case evidence.
  3. C. Treat internal and external finance as identical and ignore the effect on shareholders.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use services, business, goods to judge break-even output, shareholders impact, and the business objective in Business purpose, goods and services.

Explanation

The answer is commercially strongest because Use services, business, goods to judge break-even output, shareholders impact, and the business objective in Business purpose, goods and services. The case evidence gives ?7,019, 699 units, and 8%, 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 shareholders, or ignore the business objective.

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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