Question detail
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?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Sources of finance
Question
- A. Use sources of finance to judge gross profit margin, shareholders 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 cash flow and profit 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 sources of finance to judge gross profit margin, shareholders impact, and the business objective in Finance sources and suitability.
Explanation
This answer fits the scenario because Use sources of finance to judge gross profit margin, shareholders impact, and the business objective in Finance sources and suitability. The case evidence gives ?10,195, 765 units, and 30%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the shareholders, 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..
Related flashcards
Flashcard 1 of 6
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.