What this practice covers
These questions are drawn from past CIE 0264 Business papers and filtered to location decisions. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising practice questions →
What examiners see students get wrong here
These are the errors that cost marks on location decisions, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Giving factory factors for a service business, or the reverse.
- Listing factors without saying which matters most for this business, which leaves the evaluation marks unclaimed.
- Saying a business should choose the cheapest site, with no mention of what the cheap site costs it in customers.
- Treating "near raw materials" and "near the market" as alternatives that apply equally. Which one wins depends on whether the inputs or the finished goods are more expensive to move.
- Ignoring the data in the stem and answering from memory.
- Saying low wages abroad are always an advantage, without checking the skills, the transport cost of shipping goods back, or the exchange rate.
- Writing a recommendation that repeats an advantage already explained instead of weighing the options against each other.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Location decisions revision notes.