Answer to Question #146211 in Economics of Enterprise for muhammad ali

Question

a. Explain the fundamental factors considered when making decisions to achieve various goals of a firm?

Answer 1

The Location of the firm

The firm should be located at a strategic place where there is access to the target market.

The Capital Required

The entrepreneur must evaluate the amount of money required to start and run the business and make sure it's sustainable.

The Competitors

The firm should not start up a business that will face a lot of competition from other competitors serving the same market.

Availability of raw materials

The firm should make sure the raw materials required by the firm are readily available near the location of the firm.