A tinned-soup manufacturer is considering extending its product range to include fresh soups - OCR - GCSE Business - Question 11 - 2019 - Paper 1
Question 11
A tinned-soup manufacturer is considering extending its product range to include fresh soups.
Which one of the following is not likely to encourage the shareholders... show full transcript
Worked Solution & Example Answer:A tinned-soup manufacturer is considering extending its product range to include fresh soups - OCR - GCSE Business - Question 11 - 2019 - Paper 1
Step 1
Identify the option that does not encourage shareholders
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Answer
To determine which option is not likely to encourage shareholders to vote for the extension to fresh soups, we need to analyze the implications of each choice on shareholder interests.
A. The opportunity to combine ingredient costs and make higher profits: This is likely to encourage shareholders as higher profits are generally favored.
B. The opportunity to gain a reputation for producing healthy meals: Gaining a good reputation can benefit the company and is likely to please shareholders.
C. The opportunity to have more customers than other soup manufacturers: Having more customers typically leads to increased sales, which would encourage shareholders.
D. The opportunity to increase the financial risks of the business: Increased financial risks would generally be seen as negative by shareholders, as it could jeopardize profitability and stability.
Thus, the correct answer is D: The opportunity to increase the financial risks of the business.