1.4.2 Business Location

Question 1

Factors That influence Business Location

Answer 1

• Close to Raw Materials
• Close to Competitors
• Close to employment
• Close to infrastructure

Question 2

Impacts of Business being close to those factors

Answer 2

• It Can Increase Sales for the business
• it can make a good business Image
• It can lower transport costs

Question 3

Explain why if a business is close to competition it will help it

Answer 3

• If a business is in a high street that is very crowded there will be lots of footfall (Meaning there is lots of people walking there) So they gain high sales

Question 4

Explain why if a business is close to Raw Materials it will help it

Answer 4

• If a business is close to Raw Materials it would help it because the business would need to pay less cash to the supplier

Question 5

Give a Reason That Decides Where Business Locate ( 3 Marks)

Answer 5

The business will need to be close to its suppliers (P) This will lead to lower variable costs as it requires less time for the supplies to be delivered (S) These cost savings can then be passed on to customers in the form of lower prices (S) This will increase the competitiveness of the businesses products (S)

Question 6

Explain The Impact Of Of E-Commerce Deciding On Where The Business Might Locate (3 Marker)

Answer 6

Selling online is a quicker and cheaper way to start a business (P) This is because they do not need to pay for the rent and fixtures and fittings that come with a physical store (S) They can they pass on these cost savings onto customers in the form of lower prices (S) This will enable the business to reach a larger target market - low income households (S)