With Respect to Service Facility Location, It Is Not Prudent

question 28

Multiple Choice

With respect to service facility location, it is not prudent to open:

• A) a new facility next to one's competitors.
• B) multiple facilities within the same area, thus cannibalizing one's own business.
• C) an information-based service in a downtown area with high real estate prices.
• D) all of the above.

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Definitions:

Net Capital Outflow

The difference between the domestic purchase of foreign assets and the foreign purchase of domestic assets.

Loanable Funds

The total amount of funds available in the financial markets for borrowing, which determines the market interest rates.

U.S. Grocery Chain

A set of related supermarkets or grocery stores operating under a similar brand or management in various locations across the United States.

Warehouse

A warehouse is a large building where goods are stored before they are distributed for sale or further processing.