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Decision on location

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

Location decision is important due to the .....

a)

shareholders's opinion

b)

customers' opinion

c)

input decisions

d)

output decisions

2.

Which one is the feature of a store's location?

a)

Difficult to employ good quality labor

b)

Located on an accessible street

c)

The land size is huge but not as expensive as the land on the center of the city

d)

The location is not too crowded with potential customers

3.

What is a business location?

a)

Where business decides to sell

b)

Where business decides to operate

c)

Where business move to

4.

Why do businesses need to be close to customers?

a)

increase the transportation cost

b)

to increase sales

c)

because all services are sold directly to customers

d)

for convenience

5.

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

a)

they may need particular skills.

b)

cheaper transportation cost.

c)

they will be easier to recruit.

d)

of the higher wage.

6.

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

a)

there are no customers in the city for furniture.

b)

they want to minimise rent.

c)

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

d)

it would be difficult to transport big wood.

7.

Developing countries are attractive location to place businesses because

a)

there is a high population

b)

they are industrialise faster than developed countries

c)

labour and resources are affordable

d)

all of the above

8.

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

a)

true

b)

false

9.

What would not affect a businesses decision on location?

a)

Proximity to labour

b)

Proximity to customers

c)

Internet access

d)

Proximity to the government

10.

Where would an internet based company be most likely to locate?

a)

An area of high unemployment

b)

A developed, high income country

c)

An area with access to raw materials

d)

An area within close proximity to customers

11.

What would a business like Amazon not consider when looking for a location for their headquarters?

a)

Infrastructure

b)

Clean and modern centre

c)

Proximity to raw materials

d)

Communication links

12.

What factor would be most important to a hairdressing company?

a)

Proximity to customers

b)

Transport

c)

Proximity to raw materials

d)

Size of site

13.

For which of these businesses would proximity to customers be most important?

a)

An online bookstore

b)

A firm of international management consultants

c)

An Italian restaurant

d)

A manufacturer of supermarket products

14.

Why might a startup business want to locate in the same building as other new businesses?

a)

To increase scale of production

b)

To share ideas and facilities

c)

To protect a brand or a business idea

d)

To reach customers

15.

Choose two options for why location is an important decision for a business

a)

Determines success or failure of a business

b)

Expensive decision to reverse

c)

To avoid tax

d)

To start a successful business

16.

The most important factor to consider when deciding on locations is the amount of land to be used

a)

true

b)

false

17.

Which of the following is likely to be the main factor influencing the location of a small barber shop? Proximity to:

a)

Customers

b)

Labor

c)

Raw materials

d)

Competitors

18.

Which of the following businesses is most likely to locate close to the market?

a)

A clothes retailer with a national chain stores

b)

An internet book store

c)

A manufacturer of high performance sports cars

d)

A custom T-shirt warehouse

19.

Online businesses locate in less expensive and more remote locations because:

a)

They need to be close to the competition

b)

They do not need to be close to the market

c)

They need to be close to raw materials

d)

Costs do not matter in online business

20.

A new start-up café is most likely to locate close to its:

a)

Competitors

b)

Suppliers

c)

Employees

d)

Customers

21.

Which two of the following businesses are most likely to locate close to their competitors? Select two answers:

a)

Garden center

b)

Gas station

c)

Dry cleaners

d)

Restaurant

e)

Clothing store

22.
The ‘location decision’ for a business means:
a)
deciding where the departments of a business are located
b)
an owner deciding on the positions for products in the shop
c)
deciding where a business is going to operate from
d)
deciding where a business is going to market its products.
23.
Business location decisions are very important for all of the following reasons except that:
a)
the location might affect the sales of a product
b)
the location might affect the costs of production
c)
the location might affect the available supply of labour
d)
the location might affect the legal form of ownership.
24.
In which scenarios is location nearest to reliable suppliers likely to be most important?
a)
a manufacturing firm using Just-in-Time stock policies
b)
a bank with many personal and business customers
c)
a farmer raising sheep for meat production
d)
a specialist clothes designer who uses job production
25.
If a product gains weight during production then location of the factory is likely to be:
a)
close to the sources of raw materials
b)
close to the major markets
c)
close to supplies of skilled labour
d)
close to manufacturers of machinery used in production
26.
When a raw material loses weight during processing, location of the firm is likely to be:
a)
close to the sources of raw materials
b)
close to the major markets
c)
close to supplies of skilled labour
d)
close to manufacturers of processing machinery.
27.
All of the following are likely to affect the location of a stationary wholesaler except:
a)
the availability of government grants in certain regions
b)
transport links from suppliers and to markets
c)
external economies of scale like nearness to a food supplier
d)
availability of unskilled workers.
28.
Government location grants are most likely to be given in regions of the country having
a)
many similar businesses operating
b)
just experienced big firms closing down
c)
very high levels of employment
d)
many other firms starting up.
29.
The location of which of the firms will be influenced by the availability of skilled workers?
a)
computer software design and production
b)
large supermarket
c)
mass producer of family car models
d)
travel company’s ticket office
30.
If a business is located in the wrong area then it is likely to experience:
a)
low costs of production
b)
low inefficiency
c)
low break-even point
d)
low profits.
31.
The location decision for a retailing business is most likely to be affected by:
a)
costs of producing the goods
b)
government grants to firms in the secondary sector
c)
location of competitors
d)
location of energy sources
32.
An exporting firm might decide to set up a factory in a foreign country if:
a)
costs of transporting the finished goods fall
b)
import barriers are put up by the country it is selling to
c)
the total market size is falling in the foreign country
33.
The location decision of a firm in the primary sector is most likely to be affected by:
a)
the location of the main markets
b)
the available supplies of labour
c)
the available sources of the main raw material
34.
A car manufacturer using flow production techniques is most likely to require a location:
a)
close to shops
b)
close to land suitable for customer parking
c)
with large areas of flat land
d)
close to supplies of primary products
35.

What can location decisions have a big impact on?

a)

Costs

b)

Revenues

c)

Costs and Revenues

36.

Which of these is NOT an advantage of an efficient transport network?

a)

It enables staff to get to work easily

b)

It allows supplies to be brought in from far afield

c)

Increased time getting finished products moved to market

37.

Which of these is a challenge a business faces when setting up a business overseas?

a)

Greater control of your business activities overseas

b)

Cultural and language barriers

c)

Can provide a more personalised service to customers based locally

38.

Which is an example of infrastructure?

a)

Staff

b)

Markets

c)

Roads

39.

What is a new shop in a city centre NOT likely to benefit from?

a)

Low rents

b)

An established infrastructure

c)

Availability of a specialist support services

40.

Where are restaurants most likely to locate?

a)

In areas that are most convenient for owners

b)

In areas that are most convenient for suppliers

c)

In an area that is most convenient for customers

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