Topic 1 - Business in the real world (5. business location) Flashcards
why is choosing a location so important
a business needs to choose a location where the business would generate the most income while still thinking about the cheapest yet best option
what are the five main factors
location of materials location of market cost competition labour supply
why is the location of materials important
if raw materials are located close by it will lower transport costs.
why is the location of market important
depending on the type of business customers find it easier if a shop is located near them as it is more convenient
why is the labour supply important
if the location is close to an area of high unemployment this will keep wages low
why is competition important when locating
sometime locating near competition can be an advantage customers should know where to find skilled labour, however some businesses don’t locate near competitors as they can lose sales
why is cost important while locating
good price as well as the best location
