Personal reasons for choosing one's hometown as a location for a new business venture include the fact that
A) the entrepreneur knows the landmarks around his or her home community.
B) credit can be established more easily.
C) friends and relatives line up new customers.
D) this reduces the risk of operations.

Question

Quizplus · Accepted Answer

Choosing one's hometown as the location for a new business venture can help in establishing credit more easily as there may be pre-existing relationships with local banks and financial institutions. While friends and relatives may potentially bring in new customers, this may not always be the case and should not be relied upon as the sole reason for choosing a hometown location. Knowing landmarks in the area can be helpful, but is not a major factor in the decision-making process. While operating in one's hometown may reduce some risks, it may also limit the potential customer base and growth opportunities.

Personal Reasons for Choosing One's Hometown as a Location for a New