Opt for a location extension when you own the business and aim to attract visitors to your specific location.

• When you sell your products or services at other retailers and want to encourage people to visit the store location
• When you sell your products or services to large chain and small businesses
• When you sell products or services in stores that share the same brand
• When you own your own business and you want to encourage people to visit your location

The correct answer is: When you own your own business and you want to encourage people to visit your location

Explanation: For business owners, location extensions are the way to go, especially if paired with an existing Google Business Profile account. On the other hand, if you’re selling products in third-party stores, affiliate location extensions become the ideal choice, making use of chains or global location groups. Location extensions amplify ads with key details: your address, map routes, and proximity, guiding potential customers seamlessly. They foster engagement and in-store visits. Today’s consumers prioritize convenience. Highlighting nearby offerings is pivotal, and successful searches present a digital preview of the store, whether via location or affiliate location extensions.

Read more here: https://support.google.com/google-ads/answer/2404182