1.4.2 Business location

• What are the key factors affecting a business's location grouped into categories?

  Infrastructure, labor, market, resources, government
• Proximity to customers is a key consideration in location decisions


  True
• Urban locations typically have better access to transportation and other utilities
• Governments may provide incentives to encourage rural development
• Retail parks offer ample parking but are often further from residential areas
• A larger labor pool is available in urban locations, but labor costs are generally higher
• Companies must weigh the advantages and disadvantages of urban versus rural settings when choosing a business location.


  True
• Why might a rural location be attractive in terms of the market factor?

  Less competition
• The factors affecting a business's location can be grouped into categories such as infrastructure, labor, market, resources, and government
• Proximity to competitors is a consideration under the market factor.
• Match the urban versus rural factors with their characteristics:

  Infrastructure in urban locations ↔️ Better transportation

  Labor costs in rural locations ↔️ Potentially lower

  Proximity to markets in urban locations ↔️ Closer to customers

  Land availability in rural locations ↔️ More abundant
• Urban locations typically have better transportation infrastructure than rural locations.


  True
• What is often more scarce and expensive in urban locations compared to rural locations?

  Land
• A home-based business offers low overhead costs but may suffer from limited space
• Which type of location provides access to specialized infrastructure and lower rents?

  Industrial estate
• Proximity to customers is especially critical for retail and service businesses.

  True
• Businesses require good transportation links to suppliers, customers, and distribution channels.


  True
• Infrastructure is a critical factor that businesses must consider when choosing a location
• Match the factor affecting business location with its description:

  Labor ↔️ Availability of skilled workers

  Market ↔️ Proximity to target customers

  Resources ↔️ Access to raw materials

  Government ↔️ Tax incentives and regulations
• A furniture manufacturer may choose a location near timber forests to reduce transportation costs.


  True
• Governments may provide incentives to encourage rural development.


  True
• High street locations offer ample parking for customers.

  False
• What is a potential cost of locating near customers?

  Higher real estate costs
• Reliable access to electricity, water, and internet is part of utilities
• Locations with well-developed infrastructure often have higher real estate costs
• Proximity to target customers is a key aspect of the market factor affecting business location.
• What is a key advantage of rural locations in terms of markets?

  Less competition
• Match the location type with its advantage:

  Home-based ↔️ Low overhead costs

  High street ↔️ High foot traffic

  Industrial estate ↔️ Access to specialized infrastructure
• Infrastructure quality affects a business's ability to access resources and logistics efficiently.


  True
• What does the 'labor' factor in business location decisions refer to?

  Availability of skilled workers
• Match the urban vs. rural location factors with their descriptions:

  Urban Locations ↔️ Better infrastructure, larger labor pool

  Rural Locations ↔️ Lower labor costs, less competition
• Why might a business choose a rural location over an urban one?

  Lower labor costs
• What is a disadvantage of a high street location?

  High rents
• What factors determine the optimal location for a business?

  Type of business and target market
• Tax incentives, regulations, and grants are examples of the impact of the government
• Urban locations may have higher labor costs due to a larger pool of skilled workers
• What may be more abundant in rural locations but scarcer in urban areas?

  Land
• What is a key consideration under the labor factor when choosing a business location?

  Labor costs
• What type of policies can governments use to influence business location decisions?

  Tax incentives
• What three factors must businesses balance when choosing a location?

  Cost, resources, market