Question detail
CloudCart serves local families while changing supplier; the case evidence includes gross profit margin of ?4,389, sales of 199 units, and a 40% change in costs or demand. Which option best applies Identify where a business may face a trade-off between sustainability 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 sustainability to judge break-even output, suppliers impact, and the business objective in Environmental responsibility and sustainability.
- B. Give only a definition of Ethical and environmental considerations 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 sustainability to judge break-even output, suppliers impact, and the business objective in Environmental responsibility and sustainability.
Explanation
This answer fits the scenario because Use sustainability to judge break-even output, suppliers impact, and the business objective in Environmental responsibility and sustainability. The case evidence gives ?5,889, 199 units, and 40%, 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
Environmental responsibility and sustainability common mistake 1
Giving a vague answer instead of directly addressing: Identify where a business may face a trade-off between sustainability and profit..
Answer by clearly explaining how to identify where a business may face a trade-off between sustainability and profit..
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