Business Location Decisions Quiz
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Questions and Answers

Which city is historically known for its textile production?

  • Manchester (correct)
  • Birmingham
  • Leeds
  • Nottingham

    • What is one advantage of a business locating near raw materials?

  • Higher rent expenses
  • Lower transportation costs (correct)
  • Diverse labor force
  • Increased competition

    • Why might businesses choose to cluster in specific areas?

  • To decrease product variety
  • To limit labor access
  • To increase transportation costs
  • To attract more customers (correct)

    • Which city is noted for shipbuilding and steel production?

    <p>Sunderland</p> Signup and view all the answers

    What factor is important for retail businesses when choosing a location?

    <p>Availability of good parking</p> Signup and view all the answers

    What is a common reason for higher rents in shopping centers?

    <p>Greater shopper convenience</p> Signup and view all the answers

    Which area is known for its jewelry production?

    <p>Birmingham Jewellery Quarter</p> Signup and view all the answers

    What does the cluster concept benefit?

    <p>Enhances competition among businesses</p> Signup and view all the answers

    What is the primary benefit for businesses joining a trade bloc?

    <p>Reduction in business costs due to fewer trade barriers</p> Signup and view all the answers

    Which example illustrates a company benefiting from being part of a trade bloc?

    <p>An EU-based company importing textiles with minimal import taxes</p> Signup and view all the answers

    What might be a consequence for a country that is not part of a trade bloc?

    <p>Higher business operational costs due to tariffs</p> Signup and view all the answers

    Why might a country within a trade bloc be an attractive location for manufacturers?

    <p>Lower cost of importing raw materials due to reduced tariffs</p> Signup and view all the answers

    What is a significant factor for service businesses when considering their location?

    <p>Proximity to customers</p> Signup and view all the answers

    Which of the following factors is NOT typically an advantage of being in a trade bloc?

    <p>Increased barriers to foreign competition</p> Signup and view all the answers

    Which site type refers to areas that were previously used for urban development?

    <p>Brownfield site</p> Signup and view all the answers

    Which of the following is NOT a reason why manufacturing businesses might choose a specific location?

    <p>Nearby customer base</p> Signup and view all the answers

    How has the rise of the Internet affected small businesses?

    <p>They can work from home and reach customers more effectively.</p> Signup and view all the answers

    What is one way governments can influence business location decisions?

    <p>By providing financial incentives like tax breaks.</p> Signup and view all the answers

    Which of the following statements about planning permission for large businesses is TRUE?

    <p>There is often a consultation period before permission is granted.</p> Signup and view all the answers

    What effect can legal controls have on business location decisions?

    <p>They can restrict development in congested areas.</p> Signup and view all the answers

    Which factor is less crucial for service-oriented businesses when selecting a location?

    <p>Access to high-quality transport links</p> Signup and view all the answers

    What is a key factor influencing the location choice of a business focused on perishable goods?

    <p>Proximity to market</p> Signup and view all the answers

    Which of these factors is NOT typically considered when deciding on a business location?

    <p>Surrounding natural scenery</p> Signup and view all the answers

    How does the rise of e-commerce impact location decisions for businesses?

    <p>It allows businesses to operate from any location.</p> Signup and view all the answers

    What impact do legal controls have on business location decisions?

    <p>They can restrict where a business can operate.</p> Signup and view all the answers

    Which of the following descriptions best illustrates a decision influenced by proximity to labor?

    <p>Opening a restaurant in a downtown area with a young population.</p> Signup and view all the answers

    Why might a manufacturer of bulky goods choose to locate close to their customers?

    <p>To minimize transportation costs and delivery times.</p> Signup and view all the answers

    What is an advantage of starting a business in a high-traffic area?

    <p>Increased visibility and potential foot traffic.</p> Signup and view all the answers

    What is a potential challenge for a business that operates exclusively online?

    <p>Lack of physical presence and customer interaction.</p> Signup and view all the answers

    Study Notes

    Business Location Decisions

    • Businesses consider various factors when choosing a location.
    • Proximity to the market is crucial. Good customer traffic increases sales. Businesses also consider nearby services like nurseries and shops for employees.
    • Proximity to materials, especially for perishable or bulky goods, minimizes transport costs.
    • Proximity to skilled labor also influences location decisions. Certain areas have a specific industry expertise, making it attractive.
    • Proximity to competitors in a similar sector can attract customers or benefit from "cluster" effects.
    • The nature of the business (e.g., retail, service, manufacturing) affects location choices.
    • Retail businesses concentrate on shopper locations, considering parking and rent costs. Service businesses may need to be close to customers but don't need a fixed premise. Manufacturing favors locations close to roads, ports, or airports for transport efficiency.

    Internet Impact on Location

    • The internet has shifted location expectations. Start-ups can operate from home or a market stall and advertise online.
    • E-commerce opportunities reduce the need for a physical storefront.

    Legal Controls & Trade Blocs

    • Governments influence business location decisions.
    • Restrictions can occur when a location is congested, or to minimize impact on local communities.
    • Governments sometimes encourage new or existing businesses to establish in high unemployment areas through financial support.
    • Trade blocs (like the EU) reduce or eliminate import taxes for member businesses.
    • These factors may also result in long planning periods for construction or development if stakeholder input or a viability study is required.

    Key Terminology

    • Greenfield site: Previously undeveloped land, frequently on urban outskirts.
    • Brownfield site: Previously developed land—often in urban areas—suitable for redevelopment.

    Sample Exam Questions

    • Question 1: Small business owners must consider market proximity, competition, costs, and required services when selecting a location.
    • Question 2: Frog Bikes' two choices (expanding existing Chinese factory or building a new UK factory): a clear justification for the better choice requires detailing the advantages and disadvantages of each option considering costs, transport, and legislation.

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    Related Documents

    Edexcel IGCSE Business 1.4 Decisions on Location PDF

    Description

    This quiz explores the various factors businesses consider when choosing a location. It covers aspects such as market proximity, labor availability, and the nature of the business. Test your knowledge on how these elements impact decision-making in business location strategies.

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