Which of the Following Is not Generally True of an Industrial

question 11

Multiple Choice

Which of the following is not generally true of an industrial location?

• A) The farther something is transported, the higher the cost.
• B) A manufacturer tries to locate its factory as close as possible to both buyers and sellers.
• C) If inputs, such as raw materials for production (metal ores, coal, water, etc.), are more expensive to transport than products, the optimal location for a factory is near the source of inputs.
• D) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the customer.
• E) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the source of raw materials.

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Definitions:

Transferring Risk

Transferring risk involves moving potential financial loss from one party to another, commonly through insurance policies or hedging strategies.

Allocating Risk

The process of identifying and distributing the potential financial, operational, or legal hazards among parties in a transaction or agreement.

Contract Law

A branch of law that deals with agreements between parties, their rights, and obligations.

Consideration

In contract law, consideration refers to something of value exchanged between parties that is necessary for a valid contract.