What is the most important factor while choosing the right location for an enterprise?
Answer and explanation
Correct answer: Access to target customers and cost
A suitable location should make it practical to reach the intended customers and should have a cost that the enterprise can afford. Depending on the business, access to suppliers, transport, workers, utilities, and regulations may also matter. A beautiful name, the owner’s convenience alone, or wall decoration cannot establish commercial suitability. Location should be selected using business needs and evidence.
Frequently asked questions
What is the correct answer to this question?
Access to target customers and cost
Why is this the correct answer?
A suitable location should make it practical to reach the intended customers and should have a cost that the enterprise can afford. Depending on the business, access to suppliers, transport, workers, utilities, and regulations may also matter. A beautiful name, the owner’s convenience alone, or wall decoration cannot establish commercial suitability. Location should be selected using business needs and evidence.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship.
