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Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate? A Council incentives offering reduced business rates B Greeting cards are destroyed if they get wet during transportation C Lots of people who work on the industrial estate will buy cards D The need to be close to the market because customers are unwilling to travel - OCR - GCSE Business - Question 9 - 2022 - Paper 1
Question 9
Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate? A Council incentiv... show full transcript
Worked Solution & Example Answer:Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate? A Council incentives offering reduced business rates B Greeting cards are destroyed if they get wet during transportation C Lots of people who work on the industrial estate will buy cards D The need to be close to the market because customers are unwilling to travel - OCR - GCSE Business - Question 9 - 2022 - Paper 1
Step 1
Identify the most likely reason for factory location
Answer
The most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate is option A: Council incentives offering reduced business rates. This option provides a financial benefit, which can significantly reduce operating costs for the manufacturer.