Question

Which of the following statements is NOT true regarding location​ decisions?

A. Location decisions are important because location has a major impact on the overall risk and profit of the company.
B. Once management is committed to a specific​ location, many costs become relatively easy to reduce.
C. Location often has the power to make or break a​ company's business strategy.
D. Location decisions to support a​ low-cost strategy require particularly careful consideration.

Answer 1

B. Once management is committed to a specific​ location, many costs become relatively easy to reduce.

Step-by-step explanation:

• As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.

• The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo. A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.