Some of the Important Factors for Business Location Decision Making

question 5

Multiple Choice

Some of the important factors for business location decision making include all of the following except

• A) the frequency of the location decision
• B) the size of the investment
• C) the incentives offered by the local municipality
• D) the location of the back office

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Definitions:

EBITDA Coverage Ratio

A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Interest Charges

Costs incurred by borrowers for the use of borrowed money, typically expressed as an annual percentage rate.

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.