IB Business Management MCQ QuizIB_Business_Management_5_4 Locati

Identify the incorrect characteristic of choosing a business location.

• Location choice decisions can be difficult to reverse

• Location choice is a long-term strategic decision

• The location decision applies only to businesses in the secondary sector

• The location decision is made by senior managers

Identify the quantitative factor that influences location choice.

• Access to supply of skilled labour

• Environmental concerns

• Potential for expansion in the future

• Site costs

Bottled water is an example of a _____________ product.

• Bulk-increasing

• Bulk-reducing

• Producer

• Weight-losing

It makes sense for ___________ industries to locate close to their customers, and for ___________ industries to locate close to their raw material sources.

• Bulk-increasing, bulk-reducing

• Bulk-reducing, bulk-increasing

• Bulk-reducing, weight-losing

• Weight-gaining, bulk-increasing

Identify the term given to a region receiving government assistance due to high unemployment levels.

• Cluster

• Enterprise zone

• Less economically developed country

• Subcontractor

Identify the term used to describe a firm that is indifferent to its location choice, i.e., it receives no cost advantages by locating in a particular area.

• Bricks and mortar enterprise

• Flexible organization

• Footloose organization

• Multinational company

Identify the term used when a business is reluctant to relocate due fears that moving may upset its employees, even though no other reason to remain exists.

• Clustering

• Footloose organization

• Geographical immobility

• Industrial inertia

Identify the strategy of transferring internal business activities to external subcontractors.

• Insourcing

• Offshoring

• Outsourcing

• Relocating

Identify the incorrect benefit of subcontracting.

• It allows the firm to focus on its core activities

• It cuts costs and improves profitability

• Staff morale increases

• The subcontractor provides specialized services

Identify the incorrect criticism of subcontracting.

• Differences in language and national cultures causes miscommunications

• Quality is handed over to the subcontractor

• There may be high costs of monitoring the subcontractor’s performance

• There may be potential conflict that arises with the subcontractor