The Location Plan

773 WordsMar 11, 20124 Pages
CHAPTER 9: END OF CHAPTER QUESTIONS 1. What are the key attributes of a good business location? Which of these would probably be most important for a retail location? Why? • Customer accessibility is a key factor in the location decision of retail and service businesses. • Environmental conditions: Climate, competition, legal requirements, and the tax structure are types of environmental factors affecting the location decision. • Availability of resources such as raw materials, labor supply, and transportation are important to location decisions. • The entrepreneur’s personal preference is a practical consideration in selecting a location. • Site availability and cost: An appropriate site must be available and priced within the entrepreneur’s budget. • I believe that customer accessibility is the most important because without it how would they target customers in a convenient way. 2. What is the special appeal of an enterprise zone to an entrepreneur seeking the best site for his or her business? • Many states offer location incentives, they receive totally exemptions from the property taxes, equipment or on a new plant for 3-5 years. 3. What resource factors might be most vital to a new manufacturing venture that produces residential home furniture? Why? • The nearness to raw materials, the suitability of the supply of labor, and the availability of transportation. These would be important to a residential furniture manufacturer, because one which primarily focus on cost or price. The transportation of raw materials may be costly. 4. Is the hometown of the business owner likely to be a good location? Is it logical for an owner to allow personal preferences to influence a decision about business location? Explain your answers. • It really doesn’t matter, I personally think that if the business owner feels comfortable in their hometown will know

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