Which of the Following Statements Regarding Locating Demand Sensitive Businesses

question 41

Multiple Choice

Which of the following statements regarding locating demand sensitive businesses is false?

• A) Statistical methods such as linear regression are used to refine the choice of locations.
• B) The location should be chosen based on demand.
• C) GIS methods require the use of demographic information and the most current map information.
• D) The factor rating method is one of the simplest methods to use.

---

Definitions:

Valuation Consolidation

The process of combining the financial statements of separate subsidiaries or entities within a group to present as one entity for the purpose of valuation.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing in the production process.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets, representing future economic benefits from unidentifiable assets.