Question 38
DistributionUse the following information to answer questions 37 and 38
Mr. Mike opened a frozen food retail outlet in Akure, close to JY Limited, a sole distributor of frozen food in the State.
The factor that influenced Mr. Mike's choice of location is
- A.nearness to source of supply.
- B.customer consideration.
- C.availability of labour.
- D.availability of social amenities.
Show the answer and explanation
Answer: A (nearness to source of supply.)
Explanation
He chose a site beside the only distributor of frozen food, so the deciding factor was nearness to his source of supply.