Decisions On Location
Overview
Choosing where to set up a business is one of the most important decisions an entrepreneur will ever make. The right location can reduce costs, attract customers, and give a firm a competitive edge, while a poor choice can mean high expenses and weak sales from day one.
In this lesson you will explore the main factors that influence location decisions, from proximity to markets and raw materials to the availability of labour and transport links. You will also examine how the internet and e-commerce have changed what 'location' means, why businesses sometimes relocate, and how legal controls and trade blocs shape where firms choose to operate.
Objectives
- Understand the main factors influencing location decisions and relocation of a business: proximity to market, labour, materials and competitors, nature of the business activity, the impact of the internet on location decisions (e-commerce and/or fixed premises), legal controls and trade blocs
Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Decisions On Location. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- Which of the following is most likely to locate near raw materials? A) A hairdressing salon B) A steel manufacturer C) An insurance company D) A restaurant chain Answer: B
- What is the main advantage of locating inside a trade bloc? A) Lower wage costs B) Tariff-free access to member countries C) Cheaper raw materials D) No planning regulations Answer: B
- Which factor has the internet made LEAST important for some businesses? A) Broadband speed B) Proximity to customers C) Cost of energy D) Availability of skilled labour Answer: B
- An enterprise zone is designed to: A) Increase taxes on large businesses B) Prevent businesses from locating in certain areas C) Attract businesses to areas of economic decline D) Force businesses to relocate overseas Answer: C
- A bakery that makes fresh bread for local shops is most likely to locate: A) Near wheat farms B) Close to its customers C) In an enterprise zone D) Near an international airport Answer: B
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
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Practice Mock Questions
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