Question 1: Explain why a business might choose to locate its shop in a busy shopping street rather than in a quiet residential area.

Answer: A business might choose a busy shopping street to benefit from higher foot traffic, which can lead to more customers and increased sales.

Question 2: Identify three factors a business should consider when choosing a location for a new store.

Answer: Factors include customer accessibility, proximity to competitors, and the cost of rent or property.

Question 3: Describe how the location of an online-only business differs from a physical store in terms of location considerations.

Answer: An online-only business does not require a physical location for customers to visit, but it needs a reliable warehouse or distribution centre and an effective logistics network.

Question 4: Draw a simple plan of a small cafe's layout in a prime city centre location. Label key areas such as the entrance, seating area, and counter.

Answer: A correct sketch would show a rectangular layout with an entrance at one end, a seating area occupying most of the space, and a counter near the entrance or at the back, with labels for each part.

Question 5: A bakery is considering opening in a local market town. What are two advantages and two disadvantages of this location?

Answer: Advantages: lower rent costs, closer connection with local customers. Disadvantages: less foot traffic than a city centre, limited visibility to passing customers.

Question 6: Explain how the location of a manufacturing business might influence its supply chain.

Answer: A manufacturing business located near suppliers can reduce transportation costs and lead times, improving efficiency and reducing delays.

Question 7: Suggest two reasons why a business that relies on exports might choose a port city as its location.

Answer: Being near a port allows easier access to shipping and transportation of goods internationally, reducing logistics costs and time.

Question 8: What role does demographic data play in choosing a suitable location for a new retail outlet?

Answer: Demographic data helps identify the target market’s age, income, and preferences, ensuring the location attracts enough potential customers.

Question 9: Identify and explain one environmental factor that might influence a business’s choice of location.

Answer: Environmental factors such as pollution levels or flood risk can affect location choice, as businesses prefer areas with a safe and healthy environment for staff and customers.

Question 10: Sketch a diagram showing a business’s location options: one in a city centre, one in a rural area, and one on the outskirts of a town. Label the advantages of each location.

Answer: A correct sketch should depict three separate areas: a dense city centre with high footfall, a rural area with large space and lower costs, and an outskirts location with accessibility. Labels should note advantages such as high customer traffic, lower costs, and ease of access.