Business location
AQA GCSE Business Studies revision on Business location. Aligned to the AQA GCSE Business 8132 specification. This bank has 10 practice questions on this topic.
Sample questions (3 of 10)
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Question 1
Which of the following is a primary reason for a retail business to choose a high footfall location?
- A) To reduce rent costs
- B) To increase potential customer exposure
- C) To be closer to raw materials
- D) To avoid competition from other shops
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Answer: To increase potential customer exposure
Retailers rely on passing trade to generate spontaneous sales. By locating in busy areas like high streets or shopping centres, businesses maximise their visibility to a larger target audience, which typically leads to higher revenue.
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Question 2
What term describes the decision to locate a business based on its proximity to the suppliers of its components?
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Answer: Proximity to suppliers
Businesses that use heavy or perishable raw materials often choose to locate near suppliers to minimise logistics costs and the risk of supply chain delays. This helps to improve operational efficiency and reduces the carbon footprint associated with transport.
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Question 3
Which factor is most likely to influence an e-commerce business to choose a warehouse location rather than a shop front?
- A) Access to high street footfall
- B) Proximity to major transport links
- C) Proximity to local competitors
- D) The need for a premium shop window
Show answer
Answer: Proximity to major transport links
Since online businesses do not rely on walk-in customers, they prioritise locations that allow for fast dispatch and delivery. Being near motorways or distribution hubs ensures orders reach customers quickly, which is a key competitive advantage in online retail.
Want to test yourself on the remaining cards for this topic?
7 more questions on Business location — plus mistakes tracking and spaced repetition across the whole Business Studies spec.