To Ensure Ready Access to Raw Materials and to Customers

question 190

True/False

To ensure ready access to raw materials and to customers, a manufacturer should consider the quality of an area's transportation network when choosing a location.

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Definitions:

Cash Flow Operations

The net amount of cash and cash-equivalents being transferred into and out of a business, specifically from its operational activities.

Tax Shield Approach

A method used in finance to reduce taxable income by properly deducting expenses like mortgage interest, which decreases overall taxes owed.

Operating Cash Flows

The amount of cash generated by a company's regular business operations.