12 marks
State two factors that a service sector business should consider when deciding where to locate.
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Location Decisions (Cambridge (CIE) IGCSE Business)
Exam Questions
1 hour12 questions24 marks
Case Study
Alex started APB as a sole trader business 4 years ago. APB provides printing services for local businesses, such as leaflets and brochures. The business is located in large premises on an industrial estate. To meet an increase in demand, Alex plans to buy an additional printing machine. This will cost $1,800. Alex has to decide on an appropriate source of finance.
Outline two factors Alex may have considered when choosing where to locate his business.
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32 marks
Identify two reasons why a service business may choose to locate in out-of-town premises.
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42 marks
State two factors that a manufacturing business should consider when deciding where to locate.
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52 marks
Define 'multinational company'.
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62 marks
Define 'government grant'.
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74 marks
Case Study
Pamela is a successful entrepreneur. She is the owner of a high street gift shop selling celebration cards, toys and candy (sweets). When Pamela started her business 30 years ago, she had no help to manage the shop. She now has 5 employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce.
Outline two benefits to Pamela of locating her gift shop on a high street.
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16 marks
Do you think access to labour is the most important factor for a manufacturing business to consider when deciding where to locate a new factory? Justify your answer.
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26 marks
Do you think legal controls are the most important factor for a manufacturing business to consider when deciding which country to locate its operations in? Justify your answer.
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36 marks
Case Study
Kolo owns a successful hairdressing salon in the city centre. He has 4 part-time employees. The business has made a profit in each of the last 3 years. Kolo wants to expand by opening another hairdressing salon to take advantage of the economic boom. He plans to recruit a manager for the second salon using external recruitment. Kolo has identified 2 possible candidates for the position. Information about them is shown in the table below.
Extract from Kolo’s information on the two candidates | ||
Candidate 1 | Candidate 2 | |
Experience: | 5 years experience | 20 years experience |
Qualifications: | Advanced hairdressing certificate | Basic hairdressing certificate |
Other information: | Never managed a salon | Uses autocratic leadership style |
Explain two reasons why choosing the right location for the new salon is important for Kolo.
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112 marks
Consider the advantages and disadvantages of the three towns for the new shop shown in Appendix 3. Recommend which town Gemma should choose for the location of the new shop. Justify your answer.
Refer to the following insert when answering the question.
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212 marks
Using Appendix 2 and other information, consider the two countries VP could choose to locate its new restaurants. Which country should VP choose? Justify your answer.
Refer to the following insert when answering the question.
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