Question detail
QuickFix Repairs serves business clients while changing promotion; the case evidence includes supplier lead time of ?10,276, sales of 856 units, and a 13% change in costs or demand. Which option best applies Identify situations where businesses face minimal or no 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 to judge net profit margin, customers impact, and the business objective in Competition and markets.
- 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 customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge net profit margin, customers impact, and the business objective in Competition and markets.
Explanation
Choose this response because Use competition to judge net profit margin, customers impact, and the business objective in Competition and markets. The case evidence gives ?11,776, 856 units, and 13%, 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 customers, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Identify situations where businesses face minimal or no competition..
Answer by clearly explaining how to identify situations where businesses face minimal or no competition..
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