WorksheetsBusiness Location Decision Worksheet
Total questions: 15
Worksheet time: 8mins
Proximity to raw materials is always the most important factor for all businesses when making location decisions.
True
False
Which of the following is primarily a qualitative factor that influences a business's location decision?
Transportation costs
Availability of skilled labor
Government tax incentives
Rental costs of premises
A business that relies heavily on exporting its goods would likely prioritize a location with:
High local competition
Easy access to transportation networks (ports, airports)
Low population density
High local taxes
Locating a retail business in an area with low foot traffic is likely to increase its revenue.
True
False
Which of the following is a potential disadvantage of locating a business in a rural area?
Higher labor costs
Limited access to infrastructure
Increased competition
Higher rental costs
A company manufacturing perishable goods would likely prioritize a location that minimizes:
Marketing expenses
Transportation time to customers
Utility costs
Research and development costs
Government grants and subsidies can be a significant quantitative factor influencing location decisions.
True
False
When analyzing potential locations, considering the local community's attitude towards new businesses is an example of evaluating a:
Quantitative factor
Qualitative factor
Financial factor
Operational factor
A business is considering two locations. Location A has lower rental costs but higher transportation costs for raw materials. Location B has higher rental costs but lower transportation costs. To evaluate these options effectively, the business should:
Only consider the rental costs.
Only consider the transportation costs.
Analyze the total costs associated with each location.
Choose the location based on the owner's preference.
The strategic importance of a location decision is limited to its impact on a business's initial setup costs.
True
False
Which of the following frameworks helps businesses make effective location decisions by considering both measurable and non-measurable aspects?
SWOT analysis
PESTLE analysis
Investment appraisal
Weighted scoring model
A multinational corporation deciding where to build a new factory would likely consider which of the following factors most strategically?
The personal preferences of the CEO
Short-term fluctuations in exchange rates
Long-term market growth potential and political stability
The color of the local buildings
For a service-based business like a hair salon, proximity to its target market is generally more important than proximity to raw materials.
True
False
An online retail business with a global customer base would likely prioritize a warehouse location based on:
Proximity to a large local population
Access to efficient and cost-effective logistics and distribution networks
The aesthetic appeal of the surrounding area
The number of competing online retailers nearby
How can a poor location decision negatively impact a business's revenue in the long term?
By increasing the motivation of employees.
By attracting a larger pool of highly skilled workers.
By limiting access to the target market and reducing sales.
By decreasing the cost of utilities.
