Question detail
RiverRun Catering serves tourists while improving quality control; the case evidence includes average order value of ?10,993, sales of 98 units, and a 14% change in costs or demand. Which option best applies Explain how exchange rates can affect profits and sales for businesses that import?
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 exchange rates, profit, sales to judge cash inflow, local community impact, and the business objective in Exchange rates.
- B. Give only a definition of Globalisation without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use exchange rates, profit, sales to judge cash inflow, local community impact, and the business objective in Exchange rates.
Explanation
The answer is commercially strongest because Use exchange rates, profit, sales to judge cash inflow, local community impact, and the business objective in Exchange rates. The case evidence gives ?12,493, 98 units, and 14%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the local community, 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 import..
Answer by clearly explaining how to explain how exchange rates can affect profits and sales for businesses that import..
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