Question

What are the factors affecting site location of industry?

Answer 1

Capital structure of the business affects the profitability and financial risk. A best capital structure is the one which results in maximizing the value of equity shareholder or which brings rise in the price of equity shares. Generally companies use the concept of financial leverage to set up capital structure.

Answer 2

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⏩ Availability of raw materials.

⏩ Cheap labours.

⏩ Availability of Market.

⏩ Place were cheap capital investment required.

⏩ Transportation facilities.

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