Which of the Following Statements About Location Decisions Is NOT

question 38

Multiple Choice

Which of the following statements about location decisions is NOT true?

• A) The importance of the initial decision to locate a traditional physical building is underscored by both the high cost of such a place and the hassle of pulling up stakes and moving an established business.
• B) The choice of a location for a physical facility is rarely a one-time decision.
• C) The choice of a good location is much more vital to some businesses than to others.
• D) Regardless of the specific resources involved, every location decision should be based on certain fundamental principles that can guide the process.

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Definitions:

Vertically Integrated

A company structure where the company owns its supply chain, from raw materials to the sale of the finished product, to control costs and quality.

Expected Profit

The forecasted amount of profit calculated by multiplying potential outcomes by their probabilities of occurrence.

Expected Profit

The anticipated financial return from an investment or business activity, considering potential risks and earnings.

Optimal Quantity

The most favorable amount of goods or services, determined through analysis, to meet specific objectives like minimizing costs or maximizing profit.