Definition
Income statement
What is a merger?
A combination of two or more business to form a single firm
Someone wants to open a furniture store. Where should they open the store?
City streets or a mall
Where are bulk-gaining industries sited?
Closer to the market.
(Further away from raw material)
Site
the exact location of a business or industry
Net income
the funds left over after all of there firms expenses including taxes are subtracted from its sales
Do Company's start of slow or fast?
Company's start of slow but it does increase over time
Do businesses need to consider a location?
Yes they need to consider a location no matter what.
Where are Bulk-losing industries usually sited?
At or near the raw material
a business’s proximity to its customers or to the source of its inventories or necessary raw materials.
Incubators
Places where entrepreneurs can receive the training and other assistance to build a successful start- up business.
Why do businesses merge?
For faster growth, Synergy, Economies of scale, Diversification, elimination of rivals
What 2 business have to consider a location?
Start up, and corporation.
What to manufacturers prepare for?
Market shifts made by costumer demand.
Natural disaster.
Pandemics.
Range
is the distance people are willing to travel to a location where a product is sold
Crowdfunding
What two types of mergers are there?
Horizontal and Vertical
Why do business need to consider a good location
Because the location may affect how and by whom the products are made and if they are good.
Certain companies need to be within close proximity of raw materials or transportation to other companies and truck stops.
What are the three site factors?
Cost of labor + availability
Availability of suitable infrastructure
Cost of suitable land for factory construction
Cash Flow
is the total amount of new funds the business generated from operations.
Threshold
What are some advantages gained through business mergers?
Better financial strength.
New markets.
Increased market share.
Name 2 principles that guide location of industry/spatial distribution of retail faculties.
Access to transportation networks.
Proximity to raw materials.
What do these factors influence?
Internal and external operations
Vertical Merger
Different stage of manufacturing, marketing, or sales join together.