Question detail
Northline Gym serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?10,189, sales of 164 units, and a 30% change in costs or demand. Which option best applies Explain why the business environment changes over time?
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 changes, over, business, time to judge break-even output, suppliers impact, and the business objective in Dynamic nature of business.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat revenue and profit as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use changes, over, business, time to judge break-even output, suppliers impact, and the business objective in Dynamic nature of business.
Explanation
The answer is commercially strongest because Use changes, over, business, time to judge break-even output, suppliers impact, and the business objective in Dynamic nature of business. The case evidence gives ?11,689, 164 units, and 30%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the suppliers, or ignore the business objective.
Common mistake
Dynamic nature of business common mistake 1
Giving a vague answer instead of directly addressing: Explain why the business environment changes over time..
Answer by clearly explaining how to explain why the business environment changes over time..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.