Using Appendix 2 and other information, consider the following three possible locations for Jemi's new restaurant. Which location should Jemi choose? Justify your answer. - Location A - Location B - Location C Location A: . . . . . Location B: . . . . . Location C: . . . . . Recommendation: . . . . .

Business
IGCSE&ALevel
CAIE
Exam No:0450_s25_qp_23 Year:2025 Question No:2(b)

Answer:

Justification might include:
- Location A should be chosen as it is likely to have the highest number of customers as it is in a tourist area and in the city centre. Location B has limited opening hours so will reduce revenue earned and location C is in a small town reducing the likely number of customers.
- Location B should be chosen as it is in a shopping mall and is visited by families. Therefore, there are likely to be many families wanting to eat at the restaurant as meals containing fruit and vegetables were reported to be healthier for children leading to larger groups and high revenue.
- Location C should be chosen as it is visited by people who live in the town and should have customers all year round and the hours it can open are not limited so can open later in the evening to serve more customers and gain more revenue.





Knowledge points:

4.4.1.1. Factors relevant to the location decision of manufacturing businesses and service businesses
4.4.1.2. Factors that a business could consider when deciding which country to locate operations in
4.4.1.3. The role of legal controls on location decisions
4.4.1.4. Recommend and justify an appropriate location for a business in given circumstances

Solution:

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