Question detail
SolarSprout serves local families while changing supplier; the case evidence includes gross profit margin of ?10,357, sales of 142 units, and a 8% change in costs or demand. Which option best applies Explain how exchange rates can affect profits and sales for businesses that export?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Globalisation
Question
- A. Use sales, profit, exchange rates to judge customer retention, suppliers impact, and the business objective in Exchange rates.
- B. Give only a definition of Globalisation 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 sales, profit, exchange rates to judge customer retention, suppliers impact, and the business objective in Exchange rates.
Explanation
This answer fits the scenario because Use sales, profit, exchange rates to judge customer retention, suppliers impact, and the business objective in Exchange rates. The case evidence gives ?11,857, 142 units, and 8%, 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
Exchange rates common mistake 1
Giving a vague answer instead of directly addressing: Explain how exchange rates can affect profits and sales for businesses that export..
Answer by clearly explaining how to explain how exchange rates can affect profits and sales for businesses that export..
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