Question detail
Northline Gym serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?1,960, sales of 945 units, and a 35% 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 capacity utilisation, managers 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 break-even and profit as identical and ignore the effect on managers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use operate, examples, that, business to judge capacity utilisation, managers impact, and the business objective in Factors of production and business sectors.
Explanation
Choose this response because Use operate, examples, that, business to judge capacity utilisation, managers impact, and the business objective in Factors of production and business sectors. The case evidence gives ?3,460, 945 units, and 35%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and profit, miss the managers, 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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