Factors Affecting Business Location

What is a common factor affecting the location of both manufacturing and retailing businesses?

• Proximity to raw materials

• Parking

• Government influences

• Availability of labour

Which factor is specific to the location of a retailing business?

• Proximity to market

• Communications

• Nearby shops

• Production method

What factor is important for a manufacturing business but not listed for a retailing business?

• Parking

• Proximity to raw materials

• Security

• Rent/taxes

What is a factor that might influence a business to relocate?

• Decreasing labour costs

• Government grants

• Stable market conditions

• Abundant water supply

What is a BULK REDUCING industry?

• An industry that takes smaller raw materials and makes them into larger products

• An industry that takes larger bulky raw materials and breaks them into smaller finished products

• An industry that focuses on reducing the bulk of its workforce

• An industry that reduces the bulk of its marketing efforts

What is INDUSTRIAL INERTIA?

• The tendency of businesses to relocate frequently

• The tendency of businesses to stay in their original location despite changes

• The tendency of businesses to expand rapidly

• The tendency of businesses to reduce their workforce

What is a consideration for businesses regarding the purchase or rental of land?

• The color of the paint on the buildings

• Whether the land must be purchased or is available for renting

• The type of trees on the land

• The number of doors in the buildings

What is one of the main reasons the government encourages businesses to locate in certain areas?

• To increase competition

• To reduce unemployment

• To raise taxes

• To limit foreign investment

Which of the following is a financial incentive offered by the government to foreign companies?

• Free advertising

• Inward investment grants

• Reduced import duties

• Subsidized utilities

Why is a good communication system important for businesses?

• To reduce costs

• To transmit information easily

• To attract more customers

• To improve employee satisfaction