Ch 3: Business location decisions
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Questions and Answers

What is a crucial factor influencing business location decisions according to the text?

  • Local cuisine availability
  • Public transportation options
  • Local labor laws (correct)
  • Currency exchange rates

What types of businesses are authorities more likely to restrict in certain areas due to environmental concerns?

  • Retail stores
  • Financial institutions
  • Technology companies
  • Manufacturing entities (correct)

Why are businesses often selective about locations based on labor laws?

  • To minimize operational costs
  • To increase pollution levels
  • To align labor laws with their operational goals (correct)
  • To avoid compliance with regulations

What type of businesses are typically zoned in industrial areas due to causing air or water pollution?

<p>Factories (D)</p> Signup and view all the answers

Which of the following is NOT a critical environmental consideration for business location decisions?

<p>Economic growth rate (A)</p> Signup and view all the answers

Why do businesses need to be near permitted waste disposal facilities according to the text?

<p>To facilitate waste management (A)</p> Signup and view all the answers

Pollution from factories is typically zoned in which areas according to the text?

<p>Industrial areas. (D)</p> Signup and view all the answers

Why do businesses consider environmental factors when selecting a location?

<p>To ensure compliance with waste disposal laws. (B)</p> Signup and view all the answers

What is a common reason for businesses choosing regions where labor laws align with their operational goals and ethical standards?

<p>To ensure fair treatment in the workplace. (D)</p> Signup and view all the answers

What is the primary benefit of locating close to robust transport networks?

<p>Reducing freight costs (B)</p> Signup and view all the answers

Which industries require locations with reliable and sufficient utility supplies?

<p>Manufacturing and mining (B)</p> Signup and view all the answers

What factor is crucial for businesses to understand when locating close to the target market?

<p>Market dynamics (A)</p> Signup and view all the answers

Why is proximity to raw materials important for some businesses?

<p>To reduce transportation costs and spoilage (A)</p> Signup and view all the answers

Which factor is important for businesses requiring specialized knowledge or labor-intensive processes?

<p>Availability of appropriate labor (D)</p> Signup and view all the answers

How does climate affect operational capacity for businesses?

<p>By necessitating additional costs for climate control (C)</p> Signup and view all the answers

What are some factors businesses consider when evaluating the competitive landscape?

<p>Competitor presence (D)</p> Signup and view all the answers

How does a high crime rate impact businesses?

<p>By increasing operational costs (B)</p> Signup and view all the answers

What is the primary factor for businesses when choosing a location?

<p>Managing transport accessibility costs (A)</p> Signup and view all the answers

How do local government policies influence location decisions?

<p>By offering fiscal advantages (A)</p> Signup and view all the answers

Why do businesses consider labor regulations when deciding on a location?

<p>To align with their operational goals and ethical standards (A)</p> Signup and view all the answers

What is a key consideration for businesses when it comes to noise in terms of location decisions?

<p>Generating considerable noise in residential areas (C)</p> Signup and view all the answers

Why is proximity to permitted waste disposal facilities important for businesses?

<p>To ensure safe and legal disposal of waste (C)</p> Signup and view all the answers

Which of the following is a common reason for businesses choosing locations based on labor laws?

<p>Alignment with operational goals and ethical standards (D)</p> Signup and view all the answers

What type of businesses are typically zoned in industrial areas due to causing air or water pollution?

<p>Manufacturing companies (A)</p> Signup and view all the answers

How do environmental factors influence business location decisions?

<p>By affecting regulatory approvals and zoning restrictions (A)</p> Signup and view all the answers

What impact do local labor laws have on business location decisions?

<p>Influence on fair treatment in the workplace (C)</p> Signup and view all the answers

Which factor is crucial for businesses that rely on heavy, perishable, or expensive-to-transport products?

<p>Proximity to raw materials (C)</p> Signup and view all the answers

Which factor is essential for businesses that need specialized knowledge or labor-intensive processes?

<p>Availability of appropriate labor (C)</p> Signup and view all the answers

What factor can significantly impact market saturation for businesses?

<p>Presence of competitors (B)</p> Signup and view all the answers

Which factor can reduce operational costs for businesses that transport goods?

<p>Proximity to robust transport networks (D)</p> Signup and view all the answers

What factor is crucial for businesses that require reliable and sufficient utility supplies?

<p>Adequate infrastructure (C)</p> Signup and view all the answers

What factor can impact worker productivity and operational capacity for businesses?

<p>Climate (C)</p> Signup and view all the answers

Which factor can increase operational costs for businesses due to security expenditures and insurance premiums?

<p>High crime rates (C)</p> Signup and view all the answers

Which factor can provide fiscal advantages and minimal bureaucratic hurdles for businesses?

<p>Local government policies (A)</p> Signup and view all the answers

What factor is crucial for businesses to minimize distribution costs and enhance customer service?

<p>Potential markets (B)</p> Signup and view all the answers

Which factor can ensure reliability and reduce tardiness for businesses?

<p>Easy access to public transport for employees (A)</p> Signup and view all the answers

What impact can extreme climates have on businesses?

<p>Necessitate additional costs for climate control (C)</p> Signup and view all the answers

Why is proximity to raw materials crucial for businesses producing heavy or perishable products?

<p>To reduce transportation costs and spoilage (A)</p> Signup and view all the answers

What is a key factor businesses must assess when considering labor markets in a location?

<p>Available labor skills (C)</p> Signup and view all the answers

How can high crime rates affect businesses?

<p>Increase operational costs (C)</p> Signup and view all the answers

Why do businesses often prefer locations with adequate infrastructure and utilities?

<p>To ensure daily operations run smoothly (D)</p> Signup and view all the answers

What can choosing a business location close to the target market help businesses achieve?

<p>Minimize distribution costs (B)</p> Signup and view all the answers

How do efficient transport systems impact businesses?

<p>Enhance service delivery (D)</p> Signup and view all the answers

How can government policies influence business location decisions?

<p>Provide fiscal advantages and tax breaks (B)</p> Signup and view all the answers

Why do businesses need to carefully analyze factors when choosing a business location?

<p>To choose an optimal location based on their needs and goals (A)</p> Signup and view all the answers

How do robust transport networks impact businesses' freight costs?

<p>Reduce freight costs (D)</p> Signup and view all the answers

Which factor plays a crucial role in ensuring fair treatment in the workplace, influencing business location decisions?

<p>Labour regulations (D)</p> Signup and view all the answers

Why are businesses often selective about locations based on environmental factors?

<p>To comply with regulations and avoid restrictions (A)</p> Signup and view all the answers

What key consideration influences the zoning of factories causing significant air or water pollution?

<p>Waste management requirements (A)</p> Signup and view all the answers

Which factor is crucial for businesses requiring expertise in labor-intensive processes when deciding on a location?

<p>Specialized knowledge (D)</p> Signup and view all the answers

How do local government policies typically influence business location decisions?

<p>By restricting certain industries (B)</p> Signup and view all the answers

Why do businesses consider proximity to permitted waste disposal facilities when choosing a location?

<p>To manage hazardous wastes properly (B)</p> Signup and view all the answers

What type of businesses are authorities more likely to restrict in certain areas due to environmental concerns?

<p>Manufacturing entities that might pollute (B)</p> Signup and view all the answers

How does climate affect operational capacity for businesses requiring specialized knowledge?

<p>By impacting expert availability (A)</p> Signup and view all the answers

What is a common reason for businesses choosing regions where labor laws align with their operational goals and ethical standards?

<p>To ensure fair treatment in the workplace (C)</p> Signup and view all the answers

What factor can significantly impact market saturation for businesses located in certain areas?

<p>Local government restrictions (D)</p> Signup and view all the answers

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