Exam 14: Choosing the Right Location and Layout

Because they are centrally located,central business district locations offer business owners the ability to attract customers from the entire trading area of the city.

Criteria for a "good location" are universal and apply to all types of small businesses.

When the cost of transporting a product is high relative to its value,locating close to the market a manufacturer plans to serve is critical.

Which of the following is not a characteristic of an effective business sign?

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

What other considerations should be included in the layout?

For many entrepreneurs,quality of life is one of the key determinants of their choice of locale.

By studying the demographics of a proposed location,a small business owner can determine how well it matches the market for the owner's product or service.

The U.S.Census Department's "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers.

Mary's successful clothing store was located on the back edge of the parking lot of a large mall.She did not have to pay mall rents since she was not part of the mall,but drew many customers who parked at the mall and then noticed her store.The mall developers built a movie theater on the part of the parking lot directly in front of Mary's store,basically hiding her from most mall customers.After about six months,Mary's business dropped off so much she had to move.What retailer site selection criterion forced Mary to move?

The average community net income is the key factor in Reilly's Law of Retail Gravitation to determine the point of customer indifference.

Which of the following information is not available from Census data?

Retailers design their layouts with the goal of maximizing sales revenue while manufacturers see layout as an opportunity to increase efficiency and productivity and to lower costs.

List and explain the main location criteria for retail and service businesses.

Studies show that complying with the Americans with Disabilities Act (ADA)requires businesses to spend an average of almost $17,000 to bring their buildings up to ADA standards.

One element of the location decision common to all businesses is the need to locate where customers want to do business.