Question 29
DistributionUse the following information to answer questions 29 and 30.
Johnson and Bitwa Ltd is into the production of soya beans milk. The business is located at the outskirts of the city and is experiencing low patronage.
Which of the following factors could have resulted to the low demand of the product?
- A.Government tax
- B.Availability of infrastructures
- C.Proximity to the market
- D.Increasing production output
Show the answer and explanation
Answer: C (Proximity to the market)
Explanation
Being on the outskirts means the business is far from its market, so few customers come.