A good conclusion makes a decision and ties it to the objective the business has stated. It uses your strongest evidence, admits one limit, and does not simply summarise.
This lesson follows developing two conditional alternatives and belongs to case analysis and evaluation.
What must a conclusion contain?
- A recommendation: the option you choose, or the condition under which you choose it.
- A reason from the case: the figure or fact that supports it most.
- A link to the objective: why this choice serves what the business wants.
- A limit: what the evidence does not show, or what would change your mind.
The objective matters most. Without it, the conclusion has nothing to be judged against.
Worked example
Keropok Lekor Mak Zah in Kuala Terengganu is a small food business. The owner is considering a machine costing RM18,000 that saves RM1,500 a month in labour. The business has RM9,000 in the bank.
Step 1, payback: 18,000 ÷ 1,500 = 12 months.
Step 2, three-year saving: 36 months × RM1,500 = RM54,000 before running costs. Less the cost of RM18,000, that is RM36,000.
Step 3, affordability: the machine costs RM18,000, and cash is RM9,000. The shortfall is 18,000 − 9,000 = RM9,000.
Objective A, stay able to pay bills over the next six months:
“Mak Zah should not buy the machine outright. It costs RM18,000 but the business holds only RM9,000, so paying would leave it unable to cover bills, which conflicts with the objective of staying liquid. She could revisit the purchase if she can finance part of the cost.”
Objective B, lower costs over the next three years:
“Mak Zah should buy the machine. It saves RM1,500 a month and pays back in 12 months, which gives about RM36,000 net over three years before running costs. This supports the aim of lowering costs, provided she can find the funds and the labour saving is as expected.”
The evidence did not change. The objective did, and so did the conclusion. The cash versus profit bridge shows why the cash position and the profit saving can point in different directions.
The mistake to watch for
A common slip is to finish with a summary or a vague balance.
Mistaken answer: “To sum up, the machine has advantages and disadvantages, so the owner should think carefully.”
It makes no decision, names no evidence and ignores the objective.
The correction is to choose, give the evidence and name the objective: “Buy, because payback is 12 months, which supports the aim of lowering costs.” Then add one limit.
Check yourself
Try these on paper, then open each answer.
1. Which part is missing? “The firm should expand because it will be good for the business.”
Show answer
It has a recommendation but no case evidence, no link to a stated objective and no limit. “Good for the business” is too general to test.
2. A machine costs RM24,000 and saves RM1,000 a month. What is the payback period?
Show answer
24,000 ÷ 1,000 = 24 months.
3. A firm needs to keep cash for the next six months. It holds RM9,000 and a machine costs RM18,000. How far short is it, and how does that affect a conclusion for that objective?
Show answer
18,000 − 9,000 = RM9,000 short. For an objective about keeping cash, this supports not paying outright, even if the machine saves money later.
Where this leads next
The final skill is checking your own judgement in checking that a judgement follows the evidence. The mixed practice set includes conclusion questions with different objectives. The ratios tool helps with percentages and payback reasoning.
Students sometimes write sound analysis and then lose marks in the last few lines. Our teachers can review how your conclusions read in online one-to-one Business tuition.