Question detail
QuickFix Repairs serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?7,899, sales of 494 units, and a 12% change in costs or demand. Which option best applies Explain the meaning of a market and competition?
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, market to judge break-even output, employees impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat internal and external finance 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 competition, market to judge break-even output, employees impact, and the business objective in Competition and markets.
Explanation
The answer is commercially strongest because Use competition, market to judge break-even output, employees impact, and the business objective in Competition and markets. The case evidence gives ?9,399, 494 units, and 12%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, miss the employees, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Explain the meaning of a market and competition..
Answer by clearly explaining how to explain the meaning of a market and competition..
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