Question detail
RiverRun Catering serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?11,109, sales of 134 units, and a 28% change in costs or demand. Which option best applies Explain why entrepreneurs embark on running businesses despite risk?
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, entrepreneur to judge break-even output, suppliers impact, and the business objective in Uncertainty and risk.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat stakeholders and shareholders as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use risk, entrepreneur to judge break-even output, suppliers impact, and the business objective in Uncertainty and risk.
Explanation
This answer fits the scenario because Use risk, entrepreneur to judge break-even output, suppliers impact, and the business objective in Uncertainty and risk. The case evidence gives ?12,609, 134 units, and 28%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the suppliers, or ignore the business objective.
Common mistake
Uncertainty and risk common mistake 1
Giving a vague answer instead of directly addressing: Explain why entrepreneurs embark on running businesses despite risk..
Answer by clearly explaining how to explain why entrepreneurs embark on running businesses despite risk..
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