Question 1: Explain two reasons why a bakery might choose to open its shop in a busy town centre rather than in a rural area.

Answer: A bakery might choose a town centre because of higher customer footfall and better visibility, which can lead to more sales. Additionally, being in a busy area can attract more walk-in customers and increase brand awareness.

Question 2: Identify and explain one disadvantage for a business that chooses a location far from its target customers.

Answer: A disadvantage is that it may reduce the number of potential customers visiting the business, leading to lower sales and profits because customers might find it inconvenient to travel there.

Question 3: Describe how the location of a manufacturing factory differs in importance compared to a retail shop.

Answer: The location of a manufacturing factory is often chosen based on access to raw materials, transportation links, and cost of land, while a retail shop's location is more focused on foot traffic, visibility, and proximity to customers.

Question 4: List three factors a business should consider when choosing a location for a new store.

Answer: Factors include the target customer demographic, the level of competition in the area, and the accessibility and convenience of the location for customers.

Question 5: Draw a simple sketch of a retail store's layout in a shopping mall, indicating the main entrance, checkout area, and display shelves. Leave a large blank space for your drawing.

Answer: A correct sketch would include a clear entrance at one side, a checkout counter near the exit, and display shelves arranged to maximize space and customer flow.

Question 6: Explain how a business might benefit from choosing a location close to its suppliers.

Answer: Being close to suppliers can reduce transportation costs, ensure quicker delivery of raw materials, and improve supply chain efficiency.

Question 7: What could be a negative consequence of choosing a location with high rent costs?

Answer: High rent costs can increase overall expenses, which may reduce profit margins or force the business to raise prices, potentially losing customers.

Question 8: Identify two ways a business can assess whether a location is suitable before opening.

Answer: They can conduct market research to understand customer needs and analyze competitor presence in the area.

Question 9: Describe one example of a business that benefits from a rural location and explain why.

Answer: A farm benefits from a rural location because it provides space for livestock and crops, access to natural resources, and less congestion, which suits its operations.

Question 10: Sketch a plan of a small coffee shop, showing the placement of the seating area, counter, and kitchen. Leave a large blank space for your drawing.

Answer: A correct sketch would include a designated seating area, a counter near the entrance or window, and a kitchen at the back or side, with clear pathways for customers and staff.