Question detail
CycleNest serves tourists while improving quality control; the case evidence includes average order value of ?2,153, sales of 573 units, and a 42% change in costs or demand. Which option best applies Analyse potential impacts of competition on businesses?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Competitive environment
Question
- A. Use competition to judge cash inflow, local community impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat revenue and profit as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge cash inflow, local community impact, and the business objective in Competition and markets.
Explanation
The answer is commercially strongest because Use competition to judge cash inflow, local community impact, and the business objective in Competition and markets. The case evidence gives ?3,653, 573 units, and 42%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the local community, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Analyse potential impacts of competition on businesses..
Answer by clearly explaining how to analyse potential impacts of competition on businesses..
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