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A large cake business is going to offer a contract to another business to make their cake decorations - HSC - SSCE Business Studies - Question 19 - 2022 - Paper 1

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A large cake business is going to offer a contract to another business to make their cake decorations. Which business functions would provide input into the contrac... show full transcript

Worked Solution & Example Answer:A large cake business is going to offer a contract to another business to make their cake decorations - HSC - SSCE Business Studies - Question 19 - 2022 - Paper 1

Step 1

Which business functions would provide input into the contract details?

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Answer

To determine which business functions would provide input into the contract details for making cake decorations, we need to consider the roles these functions play in the business decision-making process.

  1. Operations: This function is crucial as it is responsible for the actual production and processes involved in cake decoration. They will need to understand what the contract entails concerning how the decorations are made, ensuring that they align with production capacity.

  2. Human Resources: While the HR department may not be directly involved in the technical aspects of the cake decoration, they play a role in managing workforce availability and contractual obligations concerning staff involved in these operations.

  3. Finance: The finance department must evaluate the costs associated with the contract, assessing if it’s financially viable and how it impacts the overall budget. They will also look at payment terms and conditions to ensure they meet the financial needs of both parties.

Given these considerations, the correct answer is: C. Operations, human resources and finance.

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