Question detail
SwiftServe serves business clients while changing promotion; the case evidence includes supplier lead time of ?9,010, sales of 990 units, and a 29% 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 capacity utilisation, owners 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 owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use sales, profit, exchange rates to judge capacity utilisation, owners impact, and the business objective in Exchange rates.
Explanation
Choose this response because Use sales, profit, exchange rates to judge capacity utilisation, owners impact, and the business objective in Exchange rates. The case evidence gives ?10,510, 990 units, and 29%, 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 owners, 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..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.