Question detail

SolarSprout serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?4,294, sales of 269 units, and a 21% change in costs or demand. Which option best applies Evaluate suitable sources of finance for new and established businesses?

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At a glance

MCQ

Type

practice

Style

Topic

Sources of finance

Question

A. Use sources of finance to judge unit contribution, lenders impact, and the business objective in Finance sources and suitability.
B. Give only a definition of Sources of finance without using the case evidence.
C. Treat stakeholders and shareholders as identical and ignore the effect on lenders.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use sources of finance to judge unit contribution, lenders impact, and the business objective in Finance sources and suitability.

Explanation

Choose this response because Use sources of finance to judge unit contribution, lenders impact, and the business objective in Finance sources and suitability. The case evidence gives ?5,794, 269 units, and 21%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the lenders, or ignore the business objective.

Common mistake

Finance sources and suitability common mistake 1

Giving a vague answer instead of directly addressing: Evaluate suitable sources of finance for new and established businesses..

Answer by clearly explaining how to evaluate suitable sources of finance for new and established businesses..

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EcoWash serves local families while changing supplier; the case evidence includes gross profit margin of ?8,695, sales of 765 units, and a 30% change in costs or demand. Which option best applies Evaluate suitable sources of finance for new and established businesses?