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services."},{"text":"business premises","correct":false,"explanation":"Business premises refers to the buildings used by a business, not necessarily the wider place where its activities are carried out. The correct term is business location."},{"text":"trading area","correct":false,"explanation":"A trading area describes where customers may be found, rather than the place where the business itself carries out its activities. The correct term is business location."},{"text":"distribution network","correct":false,"explanation":"A distribution network is the system used to move products to customers, not the physical place where the business operates. The correct term is business location."}]},{"id":"07c1735f-65ec-4279-842e-2666763b2519","cardType":"basic","points":2,"front":"Why is choosing a location an operations decision?","back":"It affects how goods/services are produced, stored and delivered.","mcqOptions":[{"text":"It affects how goods/services are produced, stored and delivered.","correct":true,"explanation":"Location is an operations decision because it affects the practical process of producing, storing and delivering goods or services."},{"text":"It affects how products are advertised, branded and promoted.","correct":false,"explanation":"This describes a marketing decision rather than the operational effect of location. Location affects how goods/services are produced, stored and delivered."},{"text":"It affects how employees are recruited, trained and rewarded.","correct":false,"explanation":"These are mainly human resources concerns, not the operational consequence highlighted by location. Location affects how goods/services are produced, stored and delivered."},{"text":"It affects how money is borrowed, invested and repaid.","correct":false,"explanation":"These are finance activities and do not explain why location is an operations decision. Location affects how goods/services are produced, stored and delivered."}]},{"id":"6349da60-cf9f-467e-958e-ad1ba7e38946","cardType":"cloze","points":null,"front":"A business rarely gets a [ ], so location is usually a [ ].","back":"A business rarely gets a perfect location, so location is usually a trade-off.","mcqOptions":[{"text":"A business rarely gets a perfect location, so location is usually a trade-off.","correct":true,"explanation":"A business usually cannot find a site that maximises every benefit, so it must balance advantages and disadvantages. This makes location a trade-off."},{"text":"A business rarely gets a suitable location, so location is usually a trade-off.","correct":false,"explanation":"A location may be suitable without being ideal in every respect, so ‘suitable location’ misses the idea that competing advantages must be balanced. The correct terms are perfect location and trade-off."},{"text":"A business rarely gets a perfect location, so location is usually a cost saving.","correct":false,"explanation":"Location decisions involve balancing costs and benefits, not simply choosing the cheapest site. The correct terms are perfect location and trade-off."},{"text":"A business rarely gets a competitive advantage, so location is usually a trade-off.","correct":false,"explanation":"A business may find a site with several advantages, but no site is normally perfect and location is therefore a trade-off rather than a competitive advantage."}]},{"id":"3d417550-07c6-4966-b72e-a9362b149f8a","cardType":"basic","points":1,"front":"If rent is high, what must a business usually achieve to make a profit?","back":"It needs higher sales.","mcqOptions":[{"text":"It needs higher sales.","correct":true,"explanation":"High rent increases fixed costs, so the business usually needs higher sales revenue to cover those costs and still earn a profit."},{"text":"It needs lower sales.","correct":false,"explanation":"Lower sales would make it harder to cover high rent and would reduce profit. The business needs higher sales to generate enough revenue."},{"text":"It needs higher costs.","correct":false,"explanation":"Higher costs would worsen the effect of high rent rather than help the business make a profit. The business needs higher sales to cover its costs."},{"text":"It needs lower prices.","correct":false,"explanation":"Lower prices might increase demand but would reduce revenue per sale and do not directly cover high rent. The key requirement is higher sales."}]},{"id":"ad05547c-9ea4-4abf-8bdd-59eff8a691b8","cardType":"cloze","points":null,"front":"Business rates are a [ ] paid on many [ ] in the UK.","back":"Business rates are a tax paid on many commercial properties in the UK.","mcqOptions":[{"text":"Business rates are a tax paid on many commercial properties in the UK.","correct":true,"explanation":"Business rates are a tax charged on many commercial properties in the UK, helping fund local public services."},{"text":"Business rates are a rent paid on many commercial properties in the UK.","correct":false,"explanation":"Business rates are not rent: rent is paid to a landlord for occupying premises. The correct description is a tax paid on many commercial properties."},{"text":"Business rates are a tax paid on many employees in the UK.","correct":false,"explanation":"Business rates apply to properties rather than individual employees. The correct description is a tax paid on many commercial properties in the UK."},{"text":"Business rates are an advertising fee paid on many commercial properties in the UK.","correct":false,"explanation":"Business rates are not a fee for advertising and are charged on property occupation. The correct description is a tax paid on many commercial properties."}]},{"id":"014fe768-9360-4f8d-a0a8-9caac1c5a6bc","cardType":"basic","points":1,"front":"What sales risk can a cheap location far from customers create?","back":"It may reduce sales.","mcqOptions":[{"text":"It may reduce sales.","correct":true,"explanation":"Being far from customers can make the business less convenient to visit, causing some customers to choose competitors and reducing sales."},{"text":"It may increase sales.","correct":false,"explanation":"A remote site may reduce customer visits rather than increase them, because travelling is less convenient. The likely risk is that it may reduce sales."},{"text":"It may reduce production costs.","correct":false,"explanation":"Distance from customers is a sales risk, not a direct guarantee of lower production costs. The risk is that the location may reduce sales."},{"text":"It may increase profit.","correct":false,"explanation":"Customers being far away does not automatically make the business more profitable; reduced convenience can lower demand. The likely effect is that it may reduce sales."}]},{"id":"282319a0-0191-419d-9dca-c8cb3a4496b2","cardType":"basic","points":1,"front":"Side street café: revenue £110,000, rent £18,000, other costs £82,000. What profit?","back":"£10,000.","mcqOptions":[{"text":"£10,000.","correct":true,"explanation":"Profit equals revenue minus total costs: £110,000 - £18,000 - £82,000 = £10,000."},{"text":"£28,000","correct":false,"explanation":"£28,000 results from subtracting rent but forgetting the £82,000 other costs. Profit requires subtracting both costs from £110,000, giving £10,000."},{"text":"£12,000","correct":false,"explanation":"£12,000 comes from an arithmetic error when combining or subtracting the costs. Total costs are £100,000, so £110,000 revenue gives £10,000."},{"text":"£90,000","correct":false,"explanation":"£90,000 treats the other costs as if they were the profit or ignores the rent incorrectly. Subtracting total costs of £100,000 from revenue gives £10,000."}]},{"id":"5adaa243-27d1-46c2-ad55-f71876a3ef33","cardType":"basic","points":1,"front":"High street café: revenue £150,000, rent £36,000, other costs £90,000. What profit?","back":"£24,000.","mcqOptions":[{"text":"£24,000.","correct":true,"explanation":"Profit equals revenue minus rent and other costs: £150,000 - £36,000 - £90,000 = £24,000."},{"text":"£60,000","correct":false,"explanation":"£60,000 results from subtracting only the other costs and forgetting the £36,000 rent. Both costs must be deducted, leaving £24,000."},{"text":"£14,000","correct":false,"explanation":"£14,000 comes from an arithmetic mistake when subtracting the costs. Total costs are £126,000, so £150,000 revenue produces £24,000 profit."},{"text":"£114,000","correct":false,"explanation":"£114,000 is the revenue remaining after subtracting rent only, not the profit after all costs. Deducting both costs gives £24,000."}]},{"id":"18d13bc4-2057-4701-89f1-72cbde831295","cardType":"basic","points":2,"front":"Why was the high street café location financially better than the side street?","back":"Expected profit was £14,000 higher.","mcqOptions":[{"text":"Expected profit was £14,000 higher.","correct":true,"explanation":"A £14,000 difference means the high street café is expected to make £14,000 more profit than the side-street café, making it the financially better location."},{"text":"Expected profit was £10,000 higher.","correct":false,"explanation":"A £10,000 difference understates the forecast advantage. The stated comparison is £14,000, so this figure could result from misreading or rounding the expected profits."},{"text":"Expected profit was £14,000 lower.","correct":false,"explanation":"The high street location is forecast to be more profitable, not less profitable. Reversing the direction of the difference changes which café appears financially preferable."},{"text":"Expected profit was £4,000 higher.","correct":false,"explanation":"A £4,000 difference is too small compared with the stated forecast. This may come from subtracting the figures incorrectly or using the wrong profit values."}]},{"id":"3ec429ac-ecfc-4c69-9599-6e4a0971c6ba","cardType":"cloze","points":null,"front":"[ ] is the number of people passing a location.","back":"Footfall is the number of people passing a location.","mcqOptions":[{"text":"Footfall","correct":true,"explanation":"Footfall is the term for the number of people who pass a particular location, making it an important factor when assessing potential customer exposure."},{"text":"Parking","correct":false,"explanation":"Parking describes available spaces for vehicles, not the number of pedestrians or other people passing the site. The correct location term is footfall."},{"text":"Accessibility","correct":false,"explanation":"Accessibility concerns how easily customers or workers can reach a location. The number of people passing it is measured by footfall."},{"text":"Competition","correct":false,"explanation":"Competition refers to rival businesses operating nearby. It does not measure passing people; that measure is called footfall."}]},{"id":"7280cc36-9d6d-42b0-bea1-cad6fe7880ab","cardType":"basic","points":2,"front":"How can high footfall increase sales?","back":"It raises the chance of impulse purchases.","mcqOptions":[{"text":"It raises the chance of impulse purchases.","correct":true,"explanation":"High footfall exposes the business to many potential customers, increasing the likelihood that someone will make an unplanned purchase while passing by."},{"text":"It reduces the cost of production.","correct":false,"explanation":"High footfall may increase customer opportunities, but it does not directly make production cheaper. Impulse purchases are the relevant sales effect."},{"text":"It allows the business to charge higher prices.","correct":false,"explanation":"Passing customers may notice the business, but high footfall does not automatically justify charging higher prices. Its direct benefit is more impulse purchasing."},{"text":"It increases the chance of repeat purchases.","correct":false,"explanation":"A busy location can attract new buyers, but simply passing a shop does not create loyalty or repeat visits. The expected effect is increased impulse purchases."}]},{"id":"36cc918c-fb52-4bb8-a495-be3a0019dc29","cardType":"basic","points":1,"front":"For an online retailer, what location feature helps fast delivery?","back":"Warehouses near transport routes and large populations.","mcqOptions":[{"text":"Warehouses near transport routes and large populations.","correct":true,"explanation":"Warehouses close to major transport routes and large populations can receive and dispatch goods efficiently, helping the retailer offer faster delivery to customers."},{"text":"Warehouses near residential areas and schools.","correct":false,"explanation":"Schools and residential areas may provide local demand, but they do not necessarily support efficient distribution. Fast delivery depends on transport access and population proximity."},{"text":"Warehouses near competitors and shopping centres.","correct":false,"explanation":"Being near competitors may help market awareness, but it does not ensure rapid delivery. Distribution speed depends mainly on transport routes and nearby customers."},{"text":"Warehouses near tourist attractions and parks.","correct":false,"explanation":"Tourist attractions may create temporary demand, yet they are not the key requirement for online delivery. Efficient routes and large customer populations matter more."}]},{"id":"134c8d6e-0398-4fad-b2f4-6a3ff0a7af53","cardType":"basic","points":1,"front":"Why may a self-employed plumber not need high-footfall premises?","back":"They can travel to customers.","mcqOptions":[{"text":"They can travel to customers.","correct":true,"explanation":"A self-employed plumber works at customers’ properties, so they can travel to each job rather than relying on passing trade at a high-footfall premises."},{"text":"They can reduce their product range.","correct":false,"explanation":"Reducing the product range does not remove the need for customers to visit the premises. The plumber avoids high footfall because the service is delivered at customers’ locations."},{"text":"They can sell their services online.","correct":false,"explanation":"Selling online may reduce dependence on a shop, but it is not the main reason for a plumber’s location needs. Travelling to customers explains the situation."},{"text":"They can employ more staff.","correct":false,"explanation":"Employing more staff could increase operating costs and does not replace the need to reach customers. The plumber can operate without high footfall by travelling to jobs."}]},{"id":"2c3290d9-eede-4373-af56-a6a78a4d0143","cardType":"cloze","points":null,"front":"The location factor covering workers’ availability, skills and wage expectations is [ ].","back":"The location factor covering workers’ availability, skills and wage expectations is labour.","mcqOptions":[{"text":"labour","correct":true,"explanation":"Labour covers the availability of workers, their skills and the wages they expect, all of which affect the suitability and cost of a business location."},{"text":"capital","correct":false,"explanation":"Capital means finance or physical assets used by a business, not the availability, skills and wage expectations of workers. Those factors relate to labour."},{"text":"market","correct":false,"explanation":"The market concerns customers and demand for products. Worker availability, skills and wage expectations are part of the labour location factor."},{"text":"technology","correct":false,"explanation":"Technology refers to equipment, systems and processes used in production or operations. It does not describe worker availability or wage expectations."}]},{"id":"55ccb79e-1d73-4dfd-b856-e3383b456153","cardType":"basic","points":2,"front":"Why does access to suitable workers matter?","back":"Employees affect productivity, quality and customer service.","mcqOptions":[{"text":"Employees affect productivity, quality and customer service.","correct":true,"explanation":"Employees influence how efficiently work is completed, the standard of products or services, and the quality of customer interactions, affecting overall business performance."},{"text":"Employees affect rent, taxes and insurance.","correct":false,"explanation":"Rent, taxes and insurance are premises-related costs rather than the main effects of having suitable workers. Employees most directly influence productivity, quality and customer service."},{"text":"Employees affect price, promotion and branding.","correct":false,"explanation":"Price, promotion and branding are elements of the marketing mix. They are not the direct ways in which suitable employees affect business operations."},{"text":"Employees affect stock levels, packaging and transport.","correct":false,"explanation":"Stock, packaging and transport can affect operations, but they do not describe the main benefits of employing suitable workers. Those benefits concern performance and service."}]},{"id":"c0938a06-ebe2-47d1-b2fb-27211f3faed7","cardType":"basic","points":1,"front":"If unemployment is very low nearby, what labour cost problem may arise?","back":"The business may pay higher wages.","mcqOptions":[{"text":"The business may pay higher wages.","correct":true,"explanation":"When unemployment is very low, fewer suitable workers are available, so the business may need to offer higher wages to attract and retain employees."},{"text":"The business may pay lower wages.","correct":false,"explanation":"Low unemployment usually strengthens workers’ bargaining position rather than lowering wages. Competition for scarce labour can force the business to offer higher wages."},{"text":"The business may pay higher rent.","correct":false,"explanation":"Training costs may rise for other reasons, but low local unemployment specifically creates wage pressure because businesses compete for fewer available workers."},{"text":"The business may pay higher training costs.","correct":false,"explanation":"Low unemployment does not directly determine rent. Its main labour-cost effect is that attracting scarce workers may require the business to pay higher wages."}]},{"id":"dada6bba-a784-46ca-98a1-509d0162bf44","cardType":"basic","points":1,"front":"Why might a technology business locate near a university city?","back":"To access skilled graduates.","mcqOptions":[{"text":"To access skilled graduates.","correct":true,"explanation":"University cities provide a large pool of qualified graduates with specialist knowledge and technical skills, making recruitment easier for technology businesses."},{"text":"To access cheaper premises.","correct":false,"explanation":"University cities do not necessarily have cheaper premises and may have high property costs. The key benefit is access to skilled graduates with relevant technical knowledge."},{"text":"To access local raw materials.","correct":false,"explanation":"Technology businesses are generally less dependent on local raw materials than manufacturers are. Locating near a university mainly gives them access to skilled graduates."},{"text":"To access larger warehouses.","correct":false,"explanation":"Universities do not normally make large warehouses more readily available. A technology business is attracted by the nearby supply of skilled graduates instead."}]},{"id":"b72a8084-21b7-40f9-a7ad-96f0c98260f3","cardType":"cloze","points":null,"front":"The network of suppliers, transport and storage involved in getting products to customers is the [ ].","back":"The network of suppliers, transport and storage involved in getting products to customers is the supply chain.","mcqOptions":[{"text":"supply chain","correct":true,"explanation":"The supply chain connects suppliers, transport and storage activities involved in moving materials and finished products through a business to its customers."},{"text":"market segment","correct":false,"explanation":"A market segment is a group of customers sharing similar characteristics, not the network moving products. That network is called the supply chain."},{"text":"product portfolio","correct":false,"explanation":"A product portfolio is the complete range of products sold by a business. The network of suppliers, transport and storage is the supply chain."},{"text":"recruitment process","correct":false,"explanation":"The recruitment process concerns attracting and selecting employees, rather than moving products. Suppliers, transport and storage together form the supply chain."}]},{"id":"0280150f-e004-41e3-b670-495918685562","cardType":"basic","points":2,"front":"For a food business, how can being close to materials help?","back":"It keeps materials fresher.","mcqOptions":[{"text":"It keeps materials fresher.","correct":true,"explanation":"Shorter travel times mean perishable food materials spend less time in transport, helping them remain fresher when they reach the business."},{"text":"It keeps materials more expensive.","correct":false,"explanation":"Being close to materials may reduce transport costs rather than increase their price. For a food business, the main benefit stated is that materials remain fresher."},{"text":"It keeps materials more durable.","correct":false,"explanation":"Proximity does not change the inherent durability of food materials. It reduces the time spent in transit, which helps the materials remain fresher."},{"text":"It keeps materials standardised.","correct":false,"explanation":"Standardisation depends on production methods and quality controls, not geographical distance. Being close to food materials mainly helps to keep them fresher."}]},{"id":"a4194d3c-8f1f-4063-84a5-ac92f9969c64","cardType":"basic","points":2,"front":"If suppliers are far away, what customer problem can result?","back":"Late stock can cause disappointed customers.","mcqOptions":[{"text":"Late stock can cause disappointed customers.","correct":true,"explanation":"If stock arrives late, products may be unavailable when customers want them. Customers can therefore become disappointed and may choose another business."},{"text":"Late stock can cause increased customer loyalty.","correct":false,"explanation":"Stock delays are more likely to reduce loyalty because customers cannot obtain products when expected. Late stock can therefore cause disappointed customers."},{"text":"Late stock can cause more repeat purchases.","correct":false,"explanation":"Customers are unlikely to make more repeat purchases after finding products unavailable. Late deliveries can instead create disappointed customers who shop elsewhere."},{"text":"Late stock can cause greater customer satisfaction.","correct":false,"explanation":"Late stock usually lowers satisfaction because customers face unavailable products or delays. The resulting customer problem is disappointed customers, not greater satisfaction."}]}]}],"examCountdown":{"examDate":"2027-05-12","paperLabel":"Paper 1"},"heading":"Business location","title":"Business location Flashcards","topbar":{"backHref":"/gcse/business/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"9e022fab-d8d3-5d36-9bd5-b84136ff949b","walled":"$L39"}],"$L3a","$L3b"]