Question detail
GreenGlow serves local families while changing supplier; the case evidence includes gross profit margin of ?9,954, sales of 209 units, and a 37% change in costs or demand. Which option best applies Explain activities businesses can use to minimise risks?
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 risk to judge unit contribution, owners impact, and the business objective in Uncertainty and risk.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use risk to judge unit contribution, owners impact, and the business objective in Uncertainty and risk.
Explanation
Choose this response because Use risk to judge unit contribution, owners impact, and the business objective in Uncertainty and risk. The case evidence gives ?11,454, 209 units, and 37%, 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 owners, or ignore the business objective.
Common mistake
Uncertainty and risk common mistake 1
Giving a vague answer instead of directly addressing: Explain activities businesses can use to minimise risks..
Answer by clearly explaining how to explain activities businesses can use to minimise risks..
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