Question 1: Define the term 'business location' and explain why it is an important factor for a company to consider when starting a new business.

Answer: Business location refers to the geographical area where a business operates. It is important because it affects customer access, costs, competition, and the ability to supply goods or services efficiently.

Question 2: Describe two advantages of locating a retail shop in a busy shopping district compared to a rural area.

Answer: Advantages include higher foot traffic leading to increased potential sales, and greater visibility which can attract more customers.

Question 3: Identify and explain two potential disadvantages for a manufacturing business choosing a remote rural location.

Answer: Disadvantages include higher transportation costs for raw materials and finished goods, and potential difficulties in recruiting skilled staff.

Question 4: A clothing retailer is considering opening a new store in a city centre. Discuss two factors they should consider about the location before making a decision.

Answer: They should consider the level of foot traffic and accessibility to potential customers, and the rental costs or property prices in the area to ensure affordability.

Question 5: Explain why a service-based business, such as a hairdresser, might prefer a location close to residential areas rather than near industrial parks.

Answer: Because residential areas have a higher concentration of potential customers who need hairdressing services, making it more convenient for clients and increasing customer likelihood.

Question 6: Sketch a simple map showing the ideal placement of a new cafe in a town. Include key features such as roads, parking, and nearby attractions or facilities.

Answer: A correct sketch would show a main road with the cafe situated near a busy intersection or shopping area, with parking facilities nearby, and possibly some local attractions or offices that generate foot traffic.

Question 7: A business is considering relocating to reduce costs. List and briefly explain two factors they should analyze before moving.

Answer: They should analyze the impact on customer accessibility and the costs of moving, including potential loss of customers or increased logistics expenses.

Question 8: Explain how the location of a business can influence its marketing strategy.

Answer: Location determines the target market and how the business promotes itself; for example, a business in a high-footfall area might rely on visual advertising and street promotions, while a remote business might focus on online marketing.

Question 9: Identify one reason why a business might choose to operate online rather than establishing a physical location.

Answer: Operating online reduces costs associated with physical premises and allows access to a wider national or international customer base.

Question 10: Discuss how the choice of location can impact a business’s competition with other local businesses.

Answer: A good location may reduce competition by being in an area with few similar businesses, or increase competition if many similar businesses are nearby, influencing pricing and marketing strategies.