4.5 Business location

• What does labor availability and costs refer to in business location decisions?

  Access to a skilled workforce
• The choice of business location depends on proximity to markets, transport links, labor availability, and government incentives
• Industrial parks are often situated in dedicated commercial zones
• What is a key disadvantage of a home-based online clothing retail business?

  Limited space
• A disadvantage of a home-based business is the lack of separation between work and personal life
• An industrial park location offers good infrastructure and access to skilled labor
• An out-of-town location provides ample space for expansion
• What is the weighted factor rating technique used for?

  Objectively compare locations
• Locating near suppliers reduces procurement costs.

  True
• Match the business location types with their descriptions:

  Home-based ↔️ Operated from owner's home

  High street/town center ↔️ Retail in busy commercial area

  Industrial/business park ↔️ Manufacturing or warehousing zone

  Out-of-town ↔️ Large retail or distribution
• What is an advantage of an industrial/business park location?

  Good infrastructure
• High street locations offer high customer footfall and strong brand visibility
• Match the location type with its example:

  Home-based ↔️ Online clothing retailer

  High street ↔️ Local bakery

  Industrial park ↔️ Manufacturing plant

  Out-of-town ↔️ Superstore
• Home-based businesses can operate from anywhere.

  True
• High street locations offer strong brand visibility.


  True
• Break-even analysis calculates the minimum sales volume required to cover costs.


  True
• Proximity to markets and suppliers is a critical factor in location decisions
• Good transport links facilitate the movement of goods, services, and people
• Match the infrastructure component with its purpose:

  Utilities ↔️ Supports business operations

  Telecommunications ↔️ Enables communication
• High street locations offer strong brand visibility.

  True
• Match the location type with its disadvantage:

  High street/town center ↔️ High rental costs

  Industrial/business park ↔️ Transportation dependency
• What are the advantages of a home-based business location?

  Lower overhead costs, flexible hours
• What are the disadvantages of a high street business location?

  High rental costs, limited parking
• Order the business location types from lowest to highest transportation dependency:

  1️⃣ Home-based

  2️⃣ High street/town center

  3️⃣ Industrial/business park

  4️⃣ Out-of-town
• Break-even analysis calculates the minimum sales volume required to cover fixed and variable costs
• What type of business location is often used for small-scale or online businesses?

  Home-based
• High street locations have high customer footfall but limited parking.


  True
• Home-based businesses offer lower overhead costs and flexible hours.


  True
• Out-of-town locations depend heavily on car access.


  True
• Industrial parks provide access to specialized facilities and skilled labor
• Why is location analysis critical for businesses?

  Maximizes efficiency
• What does site selection analysis consider in location evaluation?

  Proximity to markets
• What are the key factors to consider when applying location decisions to real-world businesses?

  Proximity and infrastructure
• Why is proximity to markets important for a business's location?

  Minimizes distribution costs
• Government incentives can include tax breaks or grants to attract businesses.

  True
• What are the advantages of a home-based business location?

  Lower overhead costs
• Arrange the following location types in order from lowest to highest overhead costs:

  1️⃣ Home-based

  2️⃣ Out-of-town

  3️⃣ High street/town center
• A local bakery in a town center benefits from high customer footfall.

  True
• A high street location provides strong brand visibility.


  True
• Why is an industrial park location often remote from residential areas?

  Increased transportation dependency