Question detail

CycleNest serves local families while changing supplier; the case evidence includes gross profit margin of ?4,192, sales of 792 units, and a 9% change in costs or demand. Which option best applies Explain how proximity to the market can influence business location?

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At a glance

MCQ

Type

practice

Style

Topic

Business location

Question

A. Use location to judge supplier lead time, managers impact, and the business objective in Location factors.
B. Give only a definition of Business location without using the case evidence.
C. Treat margin and markup 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 to judge supplier lead time, managers impact, and the business objective in Location factors.

Explanation

The option is correct because Use location to judge supplier lead time, managers impact, and the business objective in Location factors. The case evidence gives ?5,692, 792 units, and 9%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, 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 proximity to the market can influence business location..

Answer by clearly explaining how to explain how proximity to the market can influence business location..

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CloudCart serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?8,745, sales of 500 units, and a 42% change in costs or demand. Which option best applies Explain how proximity to the market can influence business location?