Lesson 1.4.2b

1.4.2b Impact of the internet on location decisions Quiz: Pearson Edexcel Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.4.2b, Impact of the internet on location decisions: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 4: Making the business effective, written with Revision Ninja.

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The 20 questions

  1. How has the growth of e-commerce affected location decisions for many retail businesses?

    • Mandatory high-street shops
    • Eliminated delivery needs
    • Increased rent costs
    • Reduced fixed premises

  2. Which type of business is most likely to operate entirely without a high-street shop?

    • An e-commerce retailer
    • A high-street restaurant
    • A hairdressing salon
    • A local dental surgery

  3. What is a major financial advantage of using e-commerce instead of a traditional high-street shop?

    • Higher wage costs
    • Higher business rates
    • Increased transport fees
    • Lower rent costs

  4. What is a common disadvantage for customers buying from an online-only business without physical premises?

    • Fewer payment methods
    • Limited website hours
    • Cannot examine products
    • Slower internet speeds

  5. A shop on a busy high street mainly benefits from which location factor?

    • Quiet environment
    • Proximity to quarries
    • Low land prices
    • Proximity to market

  6. Why might a digital software company choose a rural location with cheap rent and good broadband?

    • Abundant factory labour
    • Global online reach
    • High passing trade
    • Local steel supply

  7. How does selling books online typically affect the importance of proximity to market?

    • Doubles costs
    • Stays the same
    • Reduces importance
    • Increases importance

  8. What term describes a business that uses both a physical high-street store and an online website?

    • Multi-channel retailing
    • Pure e-commerce
    • Sole trader manufacturing
    • Wholesale distribution

  9. Why would an e-commerce business choose a warehouse located directly next to a major motorway?

    • Fast nationwide dispatch
    • High street footfall
    • In-person customer browsing
    • Cheap office printing

  10. Which type of business location decision is least affected by the growth of the internet?

    • Online clothing retailers
    • In-person service premises
    • Global download stores
    • Digital software startups

  11. What is the strongest financial reason for a small business to choose an online-only model over a physical shop?

    • Zero transport needs
    • Lower premises costs
    • Higher marketing budgets
    • Guaranteed local footfall

  12. What is a common effect of the internet on traditional high street shops?

    • Lower staff training needs
    • Higher raw material costs
    • Focus on experience
    • Need larger warehouses

  13. Which infrastructure factor is most critical for a business relying solely on e-commerce?

    • Store frontage
    • Reliable broadband
    • Passing traffic
    • Footfall

  14. How does e-commerce typically affect a business's need for proximity to customers?

    • Eliminates entirely
    • Increases importance
    • Causes no change
    • Reduces importance

  15. Moving a retail business entirely online typically decreases which specific business cost?

    • Website maintenance
    • Warehousing costs
    • Rent and premises
    • Delivery costs

  16. Why might a business choose fixed retail premises instead of e-commerce?

    • Easier stock control
    • In-person service needs
    • Lower operating costs
    • Wider global reach

  17. How does the internet allow businesses to change their location strategy in the future?

    • Choose low-cost sites
    • Ignore customer needs
    • Stop paying tax
    • Avoid all transport

  18. Which type of business depends most heavily on fixed premises?

    • Hairdresser
    • Online retailer
    • Dropshipping firm
    • Software developer

  19. What determines the best location choice for a modern retail business?

    • Owner home address
    • Number of employees
    • Customer buying habits
    • Government grants

  20. What is a key advantage of e-commerce regarding business location and customers?

    • Free warehouse space
    • Broader geographic reach
    • Zero transport costs
    • Instant local delivery

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