Question detail
Harbour Hire serves commuters while opening a second outlet; the case evidence includes net profit margin of ?5,831, sales of 146 units, and a 26% 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 average order value, shareholders 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 shareholders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use location to judge average order value, shareholders impact, and the business objective in Location factors.
Explanation
This is the best-supported choice because Use location to judge average order value, shareholders impact, and the business objective in Location factors. The case evidence gives ?7,331, 146 units, and 26%, 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 shareholders, 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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