Chapter 9-Locating The Business

Question 0

How does technology influence location?

Answer 0

Communications technology, such as mobile phones and the internet, make it much easier for entrepreneurs to work from home or away from a centralised base.

Question 1

Name the main factors influencing location

Answer 1

• Technology
• Cost
• Infrastructure
• The Market
• Qualitative Factors

Question 2

Name the three main benefits of operating at home

Answer 2

• Cheap
• Easier Growth
• Flexibility

Question 3

How does cost influence location?

Answer 3

Firms located at the least cost site with their main cost to consider being land; labour costs; transport cost for both raw materials and goods

Question 4

How does infrastructure influence location?

Answer 4

Infrastructure is the network of utilities, such as transport links, sewage, telecommunications systems, health services and educational facilities.

Question 5

How does the market influence location?

Answer 5

Market is the most important influence. As in the UK’s economy is predominately based in tertiary production, this makes the market a crucial factor in determining the location of many UK firms.

Question 6

How do Qualitative Factors influence location?

Answer 6

Ultimately, all business decisions are taken by individuals. Owners may include personal opinions in their choice of location which could include being nearer to home or a place that attracts customers

Question 7

How to locate small businesses?

Answer 7

• Demographic Factors
• Economic Wealth of local area
• Pedestrian Traffic Flow(Football) during opening time
• Parking Factors
• Competitors Location