Question detail
CraftCrate serves business clients while changing promotion; the case evidence includes supplier lead time of ?4,880, sales of 440 units, and a 43% 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 capacity utilisation, managers impact, and the business objective in Location factors.
- B. Give only a definition of Business location without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on managers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use location, labour, raw materials to judge capacity utilisation, managers impact, and the business objective in Location factors.
Explanation
This option works because Use location, labour, raw materials to judge capacity utilisation, managers impact, and the business objective in Location factors. The case evidence gives ?6,380, 440 units, and 43%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the managers, 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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