P2 - U2 & U3

__________ refers to the resources (both financial and non-financial) that are used by a company to fuel its daily operations and expand its business. Examples include cash, land, building and inventory.

• Capital

• Labor

• Land

• Raw material

The industries that focus on producing small, consumer-oriented goods rather than heavy machinery or large-scale materials can be called __________.

• light industries

• heavy industries

• labor-intensive industries

• capital-intensive industries

Weight-gaining industries tend to be located close to __________.

• energy supply

• labor supply

• market

• raw materials

Primary industries are usually situated __________ because they are directly involved in the extraction of natural resources.

• in natural environments

• in rural areas

• where constant energy supply is available

• where raw materials are found

In these industries, the raw materials being used in the production process are usually lighter and less bulky. Moreover, these industries tend to be located near markets since they want to reduce transportation costs on their bulky final products. What are these industries called?

• Heavy industries

• Light industries

• Weight-gaining industries

• Weight-losing industries

From the 1960s to the mid-1990s, there was a global shift in location of large-scale manufacturing activities and a change in the types of industries. This process is known as __________.

• competitive advantage

• outsourcing

• space shrinking technology

• the trend of transference

__________ are industries that require large sums of money to be invested in machines, technology and skilled labor to set up business and to improve productivity.

• Light industries

• Heavy industries

• Labor-intensive industries

• Capital-intensive industries

Some companies may choose to hire another company to perform services or create goods that were traditionally performed in house by the company's own employees and staffs. This business practice is known as __________.

• competitive advantage

• outsourcing

• space shrinking technology

• the trend of transference

Industries supplying perishable products such as dairy products or fragile items such as porcelain are often located near their market as this allows __________.

• the consumers to conveniently obtain the goods

• the distributors to reduce the delivery costs

• the products to reach the consumers in fresh or good condition

• those industries to minimize their production costs

The availability of loans from banks and financial institutions may also attract companies to locate their operations in a particular place. The reason is that those company need to acquire financial resources to sustain their businesses and operations. In the context of business, these financial resources are known as __________.

• capital

• competitive advantages

• costs

• energy