Question detail
StyleHub serves commuters while opening a second outlet; the case evidence includes net profit margin of ?7,375, sales of 400 units, and a 22% change in costs or demand. Which option best applies Outline entrepreneur objectives including independence, flexible working, pursuing interests, earning more money, identifying a market gap and dissatisfaction with employment?
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 entrepreneur to judge gross profit margin, shareholders impact, and the business objective in Enterprise and entrepreneurship.
- B. Give only a definition of The purpose and nature of businesses without using the case evidence.
- C. Treat margin and markup 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 entrepreneur to judge gross profit margin, shareholders impact, and the business objective in Enterprise and entrepreneurship.
Explanation
The answer is commercially strongest because Use entrepreneur to judge gross profit margin, shareholders impact, and the business objective in Enterprise and entrepreneurship. The case evidence gives ?8,875, 400 units, and 22%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the shareholders, or ignore the business objective.
Common mistake
Enterprise and entrepreneurship common mistake 1
Giving a vague answer instead of directly addressing: Outline entrepreneur objectives including independence, flexible working, pursuing interests, earning more money, identifying a market gap and dissatisfaction with employment..
Answer by clearly explaining how to outline entrepreneur objectives including independence, flexible working, pursuing interests, earning more money, identifying a market gap and dissatisfaction with employment..
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