Lorie Mae L.

Jagmis Palawan State University

BSA1-3 Management Science

1. If you own a business what do you prefer to your location? (own or lease)
Answer:
When it comes to owning a business, there are many factors to consider in regards to choosing
between owning or leasing your business location. Both options have their advantages and
disadvantages, and it is important to understand the implications of each before making a decision.
For me, I prefer owning my location. Why?

Owning a business location can offer a great degree of financial and personal security. Loans can be
used to finance the purchase of a property, which may be cheaper than leasing in the long run, as
most loans are spread out over a longer period of time. Additionally, owning a property gives you the
freedom to make modifications or improvements to the property to suit your business needs.
Moreover, when you own the property you can use the capital gains from selling the property to
invest in other business ventures. However, owning a business property also means that you are
responsible for all of the costs associated with the property, such as maintenance, insurance, taxes,
and loan payments. If your business encounters tough times and you fall behind on payments, there
is a strong chance you could face foreclosure.

In conclusion, when considering the choice between owning or leasing a business location, each
option can be beneficial depending on individual business needs. Ultimately, it is important to weigh
each option carefully to ensure that you make the right choice for your business and I think owning a
business location has more advantages than leasing.

2. Think of 3 complimentary business and explains why they operate much better when they close
to each other.
Answer:
In today's economy, there are numerous opportunities for businesses to thrive when they close to
each other. Three types of complementary businesses that would benefit from being located
together are a grocery store, a pharmacy, and a restaurant. These three businesses can stand to gain
substantially from being located close to each other for several reasons.

Firstly, grocery stores and pharmacies have been known to have a symbiotic relationship when
located in close proximity. By having both of these businesses within a short distance of each other,
customers can access them quickly and conveniently, as opposed to having to make two separate
trips. Additionally, locating a pharmacy inside a grocery store is becoming more common, providing
customers the ease of having their prescriptions filled while picking up their groceries. For the
grocery store, this arrangement also helps to drive more customers to the store, as most people
value convenience in their shopping experience.

Moreover, having a restaurant near these two can be highly beneficial. Customers who require
medication can get their prescriptions at the pharmacy and nourish their bodies with a good meal in
the restaurant afterwards. This serves as an incentive for customers to stay longer in the area and
increases the chances of them making additional purchases. Furthermore, customers who shop at
the grocery store can purchase supplies to make meals at home, or else choose to enjoy a meal in
the restaurant instead.

The advantages of these three businesses working together make this a powerful business model. By
being located in close proximity, each of the businesses can benefit from being in the same area and
more customers will be likely to visit the other businesses in the complex. Therefore, by
implementing this model, all three businesses can benefit from increased sales, a greater local reach
and better returns on investment.