Question detail
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?
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 to judge gross profit margin, local community 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 local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use location to judge gross profit margin, local community impact, and the business objective in Location factors.
Explanation
This is the best-supported choice because Use location to judge gross profit margin, local community impact, and the business objective in Location factors. The case evidence gives ?10,245, 500 units, and 42%, 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 local community, 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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