Question detail
RiverRun Catering serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?8,688, sales of 298 units, and a 19% 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 labour productivity, managers impact, and the business objective in Exchange rates.
- B. Give only a definition of Globalisation without using the case evidence.
- C. Treat gross and net profit 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 sales, profit, exchange rates to judge labour productivity, managers impact, and the business objective in Exchange rates.
Explanation
This option works because Use sales, profit, exchange rates to judge labour productivity, managers impact, and the business objective in Exchange rates. The case evidence gives ?10,188, 298 units, and 19%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the managers, 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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