Which of the following explains how environmental factors influenced the creation of industrial factories? Factories were built far from large towns, as towns were rarely built near deposits of raw materials.
Factories were built in agrarian communities, as large workforces needed a large food supply.
Factories were built near the sea, as this allowed access to running water used to power factory machines.
Factories were built near natural resources, as the transportation of raw materials for production was limited.

Factories were built near natural resources, as the transportation of raw materials for production was limited.

Explanation:

Transportation raw materials from the source into the factories require cost of distribution (from the purchase of vehicles, labors, and gas). In order to cut down this cost, factories often built their buildings as close to the source of materials as close as possible.

This principle still exist even until today.

For example, many factories that require the use of a lot of steel that exist in United States  were built in Indiana because that state has high reserve of metals.