Which Statement Is True About Location Decisions

question 100

Multiple Choice

Which statement is true about location decisions?

• A)Franchisers assist entrepreneurs with location decisions.
• B)Location decisions have a temporary effect on business operations.
• C)Location decisions should be made independently of consumer needs.
• D)The location decision is equally critical to all types of businesses.

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Definitions:

Ordering Cost

The expenses associated with placing an order for additional inventory, including administrative costs and the cost of obtaining goods.

Purchase Price

The amount of money paid to buy a good or service.

Safety Stock

Additional inventory held to protect against uncertainties in demand or supply, ensuring sufficient stock is available to meet customer needs.

Service Level

A measure of the quality of service provided, often defined as the percentage of customer demands that are met on time.