Business Location Quiz

What are the three key influences on where a business decides to locate?

• Proximity, manufacturing, and customers

• Proximity, nature of business activity, and Internet

• Proximity, labor, and materials

• Market, competitors, and service

Why is proximity to the market important for a fish-and-chip shop?

• To access high quality labor

• To be close to competitors

• To save transportation costs

• To be located near local residence or by the seaside

Why do tech companies like Google locate their headquarters in Silicon Valley, California?

• To be close to raw materials

• To be near their customers

• To access high quality labor

• To avoid competition

Why do some businesses need to be located close to raw materials?

• To be near their customers

• To save transportation and storage costs

• To access high quality labor

• To avoid competition

Why do some businesses like Starbucks need to be located in busy areas or city centers?

• To avoid competition

• To access high quality labor

• To be near their customers

• To be close to raw materials

Why do manufacturers usually locate their facilities out of town on industrial estates?

• To be near their customers

• To access high quality labor

• To avoid competition

• To save transportation and storage costs

What is the impact of e-commerce on the need for a physical location for businesses?

• No impact at all

• Physical location becomes less important

• Physical location becomes more important

• Physical location becomes unnecessary

What are the benefits of operating online without a physical premises?

• High operating costs and limited market access

• High operating costs and access to a larger market

• Low operating costs and limited market access

• Low operating costs and access to a larger market

What approach involves having both an online presence and a physical location?

• Bricks and clicks

• Online only

• Physical only

• Clicks and mortar

Why do some businesses like Nike decide to have both an online and physical presence?

• To increase their operating costs

• To avoid competition

• To limit their market access

• To access a larger market and operate 24/7