Question detail
MetroMove serves premium buyers while launching a product; the case evidence includes labour productivity of ?4,225, sales of 930 units, and a 18% 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
- A. Use services, business, goods to judge gross profit margin, local community impact, and the business objective in Business purpose, goods and services.
- 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 local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use services, business, goods to judge gross profit margin, local community impact, and the business objective in Business purpose, goods and services.
Explanation
This is the best-supported choice because Use services, business, goods to judge gross profit margin, local community impact, and the business objective in Business purpose, goods and services. The case evidence gives ?5,725, 930 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 local community, 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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