Unit 5: Business Location and Finance

What are some factors that influence the choice of location of a retailing business?

• Proximity to suppliers

• Availability of parking space

• Local government regulations

• All of the above

Why might a business choose to locate near other businesses?

• To benefit from shared resources and infrastructure

• To avoid competition

• To increase transportation costs

• To isolate from the market

What is the role of legal controls on location decisions?

• Legal controls ensure compliance with zoning laws and regulations.

• Legal controls have no impact on location decisions.

• Legal controls are only concerned with environmental issues.

• Legal controls are optional for businesses.

Two types of measures used by the government to influence where firms are located are:

• tax incentives and subsidies

• regulations and tariffs

• loans and grants

• advertising and marketing

A business needs finance because:

• it wants to expand its operations.

• it needs to pay its employees.

• it has to invest in new projects.

• all of the above.

Capital expenditure is:

• A type of expense for acquiring or upgrading physical assets

• A regular operational cost

• An intangible asset

• A short-term financial obligation

What is revenue expenditure?

• Revenue expenditure refers to the spending on day-to-day operations and maintenance of a business.

• Revenue expenditure is the investment in long-term assets that will benefit the business for many years.

• Revenue expenditure is the income generated from the sale of goods and services.

• Revenue expenditure is the profit earned by a company after all expenses have been deducted.

List the responsibilities of the finance department.

• Budgeting and forecasting

• Marketing and sales

• Product development

• Customer service

What are the primary sources of capital?

• Equity and Debt

• Savings and Investments

• Loans and Grants

• Revenue and Profit

Factors that influence the decision of which country to locate operations in include:

• Economic stability, labor costs, and market access

• Climate, culture, and language

• Historical ties, tourism potential, and cuisine

• Fashion trends, sports popularity, and entertainment options