(C) is incorrect because it uses "or" in the place of "and."
The passage says that the store needs to be in a high-visibility site WITH good growth potential. [In this sense, "with" serves the same function as "and."] It then goes on to eliminate two locations because they each fail to meet one of the identified criteria.
Answer choice (C), however, says that Finch will travel if he gets inexpensive tickets OR stays with a friend. Options cannot therefore be eliminated for failing to meet either criteria, because (C) says "or" rather than "and."
Does that make sense? Please let us know if you have any other questions!