Business Decision on Location

What is a business location?

• Where business decides to sell

• Where business decides to operate

• Where business move to

Why do businesses need to be close to customers?

• increase the transportation cost

• to increase sales

• because all services are sold directly to customers

• for convenience

It is important for businesses to be close to people they want to employ because...

• they may need particular skills.

• cheaper transportation cost.

• they will be easier to recruit.

• of the higher wage.

A wood furniture manufacturer would not be suitable in the city because...

• there are no customers in the city for furniture.

• they want to minimise rent.

• there are no raw materials for the manufacturer in the big city.

• it would be difficult to transport big wood.

A call centre might not have the priority to operate in the big cities where customers are because...

• they may be charged more taxes by the government.

• they don't need a big office.

• services are not directly sold to customers.

Developing countries are attractive location to place businesses because

• there is a high population

• they are industrialise faster than developed countries

• labour and resources are affordable

• all of the above

What is the most important factor for business in agriculture?

• wage of workers.

• raw materials.

• type of land.

• rent of property.

Why does the government reduce barrier for foreign business to invest into the country?

• create employment for domestic suppliers

• to reduce countries' debt

• to have better relationship globally

• to prevent businesses to be build in certain areas

Which of these is most likely to influence business decision for a small business barbershop?

• labor

• raw materials

• customers

• competitor

The government will encourage business to open in areas where unemployment is high to evenly distribute jobs across the country.

• true

• false