1.4.2 Business location

Question 1

What is the right location for a business depend on?

Answer 1

Nature of business
Market
labour
Materials
Competitors

Question 2

What does a business in the primary sector need?

Answer 2

To be where the raw materials are located

Question 3

What does a business in the secondary sector need?

Answer 3

To be located in areas where transport links are good so that supplies can be brought in with ease and finished products can be sent and sold
Must be near skilled labour
Might start small and then rent a factory close to where the product is sold

Question 4

Where should businesses in the tertiary sector be located?

Answer 4

Close to or with easy access to their customers

Question 5

Why is the market important when choosing a location?

Answer 5

Customers may need to have easy access to goods or services in order to buy them
Location close to other businesses can be important

Question 6

Why is labour important when choosing a location?

Answer 6

A business needs to be near suitably skilled staff who are willing to work for the wages offered by the business

Question 7

What is materials important when choosing a location?

Answer 7

Important for a business that uses raw materials that are bulky or heavy to be located close to the source of these raw materials
This will lower the production costs for the business

Question 8

Why is competitors important when choosing a location?

Answer 8

Customers want choice, so a startup business may decide to locate near competitors because that is where the customers are, allowing the business to be another option should the customer decide to shop around

Question 9

What are the impacts of the internet?

Answer 9

Sell goods on sites (ebay)
Can offer services through agency sites such as PeoplePerHour
Businesses do not need to be located close to customers