Classify the given items and list four factors that determine business location.

Question 1

a) Classification of items:

• Premium: Sales promotion
• "The buyer": Department stores
• Fork lift: Warehousing
• Delivery note: Transport
• Free gifts: Sales promotion
• Conveyors: Warehousing
• Advice note: Transport
• Credit: Department stores

b) Four factors that determine the choice of a business location:

1. Proximity to Raw Materials: Businesses that use bulky or perishable raw materials often locate near their source to reduce transport costs and spoilage.
2. Proximity to Market/Customers: Retail businesses and service providers often locate near their target customers to maximize accessibility and sales.
3. Availability of Labour: Access to a suitable workforce with the necessary skills and at a reasonable wage rate is crucial for many businesses.
4. Availability of Infrastructure: Reliable access to essential services like electricity, water, communication networks, and good transport links (roads, ports) is vital for efficient operations.
5. Government Policies and Incentives: Governments may offer tax breaks, subsidies, or special economic zones to encourage businesses to locate in specific areas.
6. Cost of Land/Rent: The price of land or rental costs can significantly impact a business's overheads and profitability, influencing location decisions.

c) Four functions of a wholesaler to a producer:

1. Bulk Breaking: Wholesalers buy goods in large quantities from producers and then break them down into smaller, more manageable units for retailers, saving the producer from this task.
2. Warehousing and Storage: They provide storage facilities for goods, reducing the producer's need for extensive storage space and