Business listings in Google Places can be:

Physical locations or mobile applications.
Entered into their own ad auction.
Location extensions in AdWords
Conversions in AdWords.

The correct answer is:

Location extensions in AdWords

Explanation: You can show business locations in your AdWords ads by using location extensions. Location extensions display your business name, address, and phone number with your ad to help customers connect with your local business.

You can read more here: https://support.google.com/adwords/answer/2382892?hl=en

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Business listings in Google Places can be:

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