Question detail
MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?5,715, sales of 620 units, and a 12% change in costs or demand. Which option best applies Explain risks businesses face and why all businesses face uncertainty?
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 uncertainty, risk to judge gross profit margin, employees impact, and the business objective in Uncertainty and risk.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use uncertainty, risk to judge gross profit margin, employees impact, and the business objective in Uncertainty and risk.
Explanation
The answer is commercially strongest because Use uncertainty, risk to judge gross profit margin, employees impact, and the business objective in Uncertainty and risk. The case evidence gives ?7,215, 620 units, and 12%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the employees, or ignore the business objective.
Common mistake
Uncertainty and risk common mistake 1
Giving a vague answer instead of directly addressing: Explain risks businesses face and why all businesses face uncertainty..
Answer by clearly explaining how to explain risks businesses face and why all businesses face uncertainty..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.