Question detail
GreenGlow serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?11,056, sales of 711 units, and a 27% change in costs or demand. Which option best applies Identify where a business may face a trade-off between ethics and profit?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Ethical and environmental considerations
Question
- A. Use ethics to judge net profit margin, managers impact, and the business objective in Ethical considerations.
- B. Give only a definition of Ethical and environmental considerations without using the case evidence.
- C. Treat internal and external finance as identical and ignore the effect on managers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use ethics to judge net profit margin, managers impact, and the business objective in Ethical considerations.
Explanation
The option is correct because Use ethics to judge net profit margin, managers impact, and the business objective in Ethical considerations. The case evidence gives ?12,556, 711 units, and 27%, 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 managers, or ignore the business objective.
Common mistake
Ethical considerations common mistake 1
Giving a vague answer instead of directly addressing: Identify where a business may face a trade-off between ethics and profit..
Answer by clearly explaining how to identify where a business may face a trade-off between ethics and profit..
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