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A tinned-soup manufacturer is considering extending its product range to include fresh soups - OCR - GCSE Business - Question 11 - 2019 - Paper 1

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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

Which one of the following is not likely to encourage the shareholders to vote for this extension to the product range?

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Answer

To determine which option is not likely to encourage shareholders, we need to analyze each option's implications:

A. The opportunity to combine ingredient costs and make higher profits: This option would generally be seen positively as it suggests potential for increased profits, which shareholders usually support.

B. The opportunity to gain a reputation for producing healthy meals: This aligns with current consumer trends toward healthier eating, encouraging shareholders, as it could lead to increased sales and profits.

C. The opportunity to have more customers than other soup manufacturers: This suggests market expansion and increased revenue, likely a motivating factor for shareholders.

D. The opportunity to increase the financial risks of the business: This option is counterproductive as shareholders typically prefer stability and lower risks. Therefore, this is the option that is least likely to encourage a vote in favor of the extension.

Thus, the correct answer is D.

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