In Location Planning,the Location of Raw Materials,the Location of Markets

question 5

Multiple Choice

In location planning,the location of raw materials,the location of markets and labour factors are considered:

• A)regional factors.
• B)community factors.
• C)site-related factors.
• D)the basis of negotiating government subsidies.

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Definitions:

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as mortgage interest or depreciation.

Coupon Rate

Yearly rate of interest paid on a bond, expressed in terms of percentage of its face value.

Unlevered Firm

A firm that operates without any debt in its capital structure, using only equity for financing.

After-Tax Net Income

The amount of money that remains after all taxes have been deducted from a company's gross income.