Question detail
Northline Gym serves commuters while opening a second outlet; the case evidence includes net profit margin of ?6,336, sales of 481 units, and a 41% 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 net profit margin, managers impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat gross and net 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 competition to judge net profit margin, managers impact, and the business objective in Competition and markets.
Explanation
This option works because Use competition to judge net profit margin, managers impact, and the business objective in Competition and markets. The case evidence gives ?7,836, 481 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the managers, 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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