Question detail
CraftCrate serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?4,663, sales of 233 units, and a 36% change in costs or demand. Which option best applies Give business examples that operate in each sector?
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 operate, examples, that, business to judge cash inflow, shareholders impact, and the business objective in Factors of production and business sectors.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat internal and external finance as identical and ignore the effect on shareholders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use operate, examples, that, business to judge cash inflow, shareholders impact, and the business objective in Factors of production and business sectors.
Explanation
The answer is commercially strongest because Use operate, examples, that, business to judge cash inflow, shareholders impact, and the business objective in Factors of production and business sectors. The case evidence gives ?6,163, 233 units, and 36%, 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
Factors of production and business sectors common mistake 1
Giving a vague answer instead of directly addressing: Give business examples that operate in each sector..
Answer by clearly explaining how to give business examples that operate in each sector..
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