Which of the Following Is the Best Example of the Proximity

question 73

Multiple Choice

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

• A)Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances.
• B)Few people will travel out-of state for a haircut.
• C)Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
• D)Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers.
• E)Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source.

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company, typically when it has significant influence but does not fully control it, usually through owning 20% to 50% of the voting stock.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Goodwill

An intangible asset that represents the excess value paid over the fair market value of an acquired company's net assets.

Equity Method

A financial recording method where investments in other firms are first noted at their purchase price and later modified to reflect the investor's portion of the investee's earnings or losses.