Question detail
MetroMove serves commuters while opening a second outlet; the case evidence includes net profit margin of ?8,878, sales of 418 units, and a 41% change in costs or demand. Which option best applies Explain how availability of raw materials and labour can influence business location?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business location
Question
- A. Use location, labour, raw materials to judge labour productivity, lenders impact, and the business objective in Location factors.
- B. Give only a definition of Business location without using the case evidence.
- C. Treat fixed and variable costs as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use location, labour, raw materials to judge labour productivity, lenders impact, and the business objective in Location factors.
Explanation
This option works because Use location, labour, raw materials to judge labour productivity, lenders impact, and the business objective in Location factors. The case evidence gives ?10,378, 418 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the lenders, or ignore the business objective.
Common mistake
Location factors common mistake 1
Giving a vague answer instead of directly addressing: Explain how availability of raw materials and labour can influence business location..
Answer by clearly explaining how to explain how availability of raw materials and labour can influence business location..
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