An Important Issue in Facility Location Analysis Is Business Climate

question 36

Multiple Choice

An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?

• A) Similar-sized businesses nearby
• B) The willingness of local politicians to provide favorable treatment for a consideration
• C) The presence of other foreign companies in the case of international locations
• D) The local presence of companies in the same industry
• E) An established educational institution nearby

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Definitions:

Margins Earned

The difference between the cost of producing or purchasing goods and the revenue generated from selling them, typically expressed as a percentage of revenue.

Channel Member

A participant in the distribution channel that helps in bringing the product from the manufacturer to the final consumer.

Distribution Chain

The sequence of intermediaries an product or service passes through from manufacturer to final consumer, including wholesalers, distributors, and retailers.

Jiffy Lube

An American brand of automotive oil change specialty shops that also offer a variety of maintenance services.