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Multiple Choice Quiz
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1
The location of many businesses is often a function of where the originator was located at the time the business was started.
A)True
B)False
2
Zoning and land costs can be key regional considerations in location analysis.
A)True
B)False
3
Regional factors can include location of markets or location of raw materials.
A)True
B)False
4
Factors used in location analysis for services and manufacturing are often quite similar.
A)True
B)False
5
The benefits of having global locations generally outweigh the disadvantages:
A)True
B)False
6
Companies may seek global locations to overcome miscommunication and cultural differences.
A)True
B)False
7
Factor rating includes both qualitative and quantitative inputs.
A)True
B)False
8
In the factor rating system, the most important factor is given a rating of 10, and less important factors are given lower ratings.
A)True
B)False
9
The center of gravity method is used to minimize travel distances.
A)True
B)False
10
A breakeven point in location analysis is where location alternatives have the same total cost.
A)True
B)False
11
The transportation model is used to decide which form of transportation will minimize costs.
A)True
B)False
12
The center of gravity method treats shipping cost as a linear function of the shipping distance.
A)True
B)False
13
A microfactory is a small factory that has a narrow product focus and is located near major markets.
A)True
B)False
14
Climate and taxes are often key site considerations in location planning.
A)True
B)False
15
When businesses of the same type locate near similar businesses, that is referred to as clustering.
A)True
B)False
16
In location analysis, service organizations tend to be revenue focused, whereas manufacturers tend to be cost focused.
A)True
B)False
17
The first step in location planning and analysis is:
A)Develop a reasonable set of alternatives.
B)Determine the criteria upon which the decision will be made.
C)Identify factors that are important.
18
Which statement about location decisions is not true?
A)Mistakes can be difficult to overcome.
B)The goal is to find the optimal location.
C)Both fixed and variable costs can be affected.
D)Decisions are often long term.
19
Multiple plant manufacturing strategies include all of these except:
A)product plant
B)process plant
C)market area plant.
D)core plant
20
Which reason would not generally be cited for locating in a third world country?
A)nearness to raw materials.
B)lower labor costs.
C)increased output quality.
D)nearness to markets.
21
Which one is not usually listed as a regional factor in location decisions?
A)taxes
B)nearness to raw materials.
C)labor costs.
D)nearness to markets.
22
The tool that is provides demographic information for location analysis is:
A)factor rating method
B)geographic information system
C)center of gravity method
D)transportation model
23
Location planning for secondary schools would most likely focus on factors of a
A)region
B)community
C)site





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