Deck 10: Site Selection

Question 1

A shopping area in a city or town that is usually bounded by the intersection of two major streets is a(n)_____ business district.

A)neighborhood
B)central
C)secondary
D)unplanned

Answer 1

C

Question 2

The concept stating that the type and number of stores within any planned center should complement each other as to the quality and variety of their product offerings is _____.

A)balanced tenancy
B)occupancy certainty
C)retail balance
D)the one-hundred percent location

Answer 2

A

Question 3

Limits are placed on a retailer's merchandise lines in a planned shopping center to help promote _____.

A)scrambled merchandising
B)affinities
C)balanced tenancy
D)a one-hundred percent location

Answer 3

C

Question 4

The hub of retailing in a city is considered to be the _____.

A)central business district
B)neighborhood business district
C)secondary business district
D)string

Question 5

Which planned shopping center type most commonly uses a mall layout with anchor stores at both ends?

A)string
B)regional shopping center
C)community shopping center
D)neighborhood shopping center

Question 6

In what type of location does a retailer have no adjacent stores to share or generate traffic?

A)isolated store
B)business district
C)strip
D)shopping center

Question 7

Car dealers,antique stores,and clothing stores are most likely to be located in a(n)_____.

A)neighborhood business district
B)secondary business district
C)string
D)isolated location

Question 8

The largest form of shopping center is the _____.

A)central business district
B)megamall
C)community shopping center
D)power center

Question 9

Which location type is generally characterized by no competition,good road visibility,and easy parking?

A)isolated store
B)business district
C)strip
D)shopping center

Question 10

A string is composed of _____.

A)a supermarket or a variety store and convenience-oriented stores
B)at least one major department store and a broad group of specialty stores
C)at least one junior department store,a variety store,and service shops
D)stores with similar or compatible product lines

Question 11

The largest shopping area in a city that is synonymous with the term "downtown" is the _____.

A)string
B)central business district
C)secondary business district
D)regional shopping center

Question 12

At least one major department store and a broad grouping of specialty and convenience stores are found in the _____ business district.

A)neighborhood
B)secondary
C)unplanned
D)central

Question 13

Planned shopping centers are characterized by _____.

A)central ownership or management and balanced tenancy
B)a high concentration of office buildings and retail stores
C)no adjacent retailers
D)low rental costs

Question 14

A major disadvantage to an isolated store location is that _____.

A)costs such as outside lighting and security cannot be shared
B)rental costs are high
C)leases can restrict store operations
D)neighboring retailers can cause an overstored environment

Question 15

Which of these location forms is unplanned as a unit?

A)regional shopping center
B)neighborhood shopping center
C)community shopping center
D)central business district

Question 16

A secondary business district generally is comprised of a minimum of _____.

A)several department stores and a broad group of specialty stores
B)a grouping of stores with similar merchandise lines
C)a junior department store,and several larger specialty stores
D)a supermarket and several service stores

Question 17

A major disadvantage of planned shopping centers to a retailer is that _____.

A)the arrangement of stores follows no format
B)parking is generally limited
C)there are few retailers to share costs and to generate traffic
D)merchandise to be sold can be restricted

Question 18

The greatest concentration of office buildings and retail stores occurs in the _____ business district.

A)unplanned
B)central
C)neighborhood
D)secondary

Question 19

A central business district is characterized by a concentration of _____.

A)convenience stores
B)parking facilities
C)suburban housing
D)cultural and entertainment facilities

Question 20

Which shopping location has the greatest concentration of convenience stores?

A)neighborhood business district
B)secondary business district
C)central business district
D)regional shopping center

Question 21

Stores that have similar and/or complementary merchandise offerings have which characteristic?

A)traffic count maximization
B)one-hundred percent location
C)visibility
D)affinity

Question 22

The optimum site for a particular store is called _____.

A)the retail balance gradient
B)the planned shopping center
C)the one-hundred percent location
D)affinity

Question 23

If a shopping center has proper retail balance,_____.

A)pedestrian and vehicular traffic counts are high
B)the store facilities for each merchandise or service classification is equal to the location's market size
C)transportation facilities are good
D)there are no parasite stores in the center

Question 24

Retailers can get some of the benefits of ownership and leasing through a _____.

A)sale-leaseback
B)graduated lease
C)net lease
D)straight lease

Question 25

Delineating a central business district may be difficult because _____.

A)retail balance may confuse normal boundaries
B)affinities may confuse normal boundaries
C)the Census of Population may be obsolete
D)there are no set boundaries to mark its beginning or end

Question 26

Which planned shopping center focuses its merchandise mix on convenience goods?

A)regional shopping center
B)community shopping center
C)neighborhood shopping center
D)string

Question 27

In a graduated lease,rental payments are _____.

A)based on sales
B)known in advance by the retailer and property owner
C)based on actual increases in property expenses
D)based on a retailer's profits

Question 28

Which retailer grouping has a high level of affinity?

A)supermarket,drugstore,and meat store
B)physician,lawyer,and insurance broker
C)grocery store,variety store,and department store
D)movie theater,department store,and bowling alley

Question 29

Which retail location types generally have the largest primary trading areas?

A)regional shopping centers and central business districts
B)strings and isolated locations
C)secondary business districts and neighborhood shopping centers
D)strings and regional shopping centers

Question 30

Which of the following is not an advantage of corner influence?

A)greater pedestrian and vehicular traffic
B)ability to reduce congestion due to multiple entrances and exits
C)lower rental costs due to better leasing terms
D)increased show-window display area

Question 31

Constant payments are required each period in a lease's term in a _____ lease.

A)graduated
B)percentage
C)straight
D)net

Question 32

A type of shopping center with a large proportion of destination stores is the _____.

A)power center
B)neighborhood shopping center
C)central business district
D)regional shopping center

Question 33

A major difference between unplanned business districts and planned shopping centers is based upon _____.

A)size
B)store composition
C)trading area
D)ownership of real-estate

Question 34

A major advantage to store ownership (versus leasing)is the _____.

A)low investment
B)lower property taxes
C)freedom from lease renewal concerns
D)ability to secure regional shopping center locations

Question 35

The most common form of planned shopping center is the _____.

A)neighborhood shopping center
B)regional shopping center
C)community shopping center
D)string

Question 36

An isolated store location is most suitable to a retailer _____.

A)that is a parasite
B)that can attract and hold its target market
C)with a mass marketing strategy
D)with a multiple segmentation strategy

Question 37

A parasite cannot survive in what type of store location?

A)isolated store
B)central business district
C)string
D)regional shopping center

Question 38

Corner influence is generally positive due to _____.

A)larger trading areas
B)better retail balance
C)higher levels of affinity
D)greater visibility

Question 39

A property owner is freed from management of a facility in a _____.

A)net lease
B)graduated lease
C)maintenance-increase-recoupment provision
D)percentage lease

Question 40

A measure of a store's affinity is its _____.

A)pedestrian traffic
B)vehicular traffic
C)degree of customer interchange
D)road visibility

Question 41

A retail area with a perfect level of balanced tenancy is a(n)____ area.

A)understored
B)saturated
C)overstored
D)charted

Question 42

A retailer that owns several of its locations and desires capital to expand should consider using a _____.

A)percentage lease
B)sale-leaseback
C)short-term lease with renewal options
D)graduated lease

Question 43

A problem with balanced tenancy is that a retailer may not be able to utilize _____.

A)downsizing
B)scrambled merchandising
C)affinities
D)site visibility

Question 44

The planned shopping center whose store composition and trading area most closely matches that of a central business district is the _____.

A)neighborhood shopping center
B)closed shopping mall
C)community shopping center
D)regional shopping center

Question 45

When a store grouping increases the trading area for each store,_____.

A)one store is a parasite
B)store affinities exist
C)trading-area overlap exists
D)an area is oversaturated

Question 46

Which type of shopping center has a relatively large number of destination stores?

A)power center
B)enclosed regional mall
C)community shopping center
D)central business district

Question 47

While different retailers require different locational characteristics for a site to be considered as a one-hundred percent location,in general,such a location always has _____.

A)low traffic congestion
B)a high pedestrian traffic count
C)ample employee parking
D)excellent visibility

Question 48

Pedestrian traffic can best be monitored through _____.

A)simulation
B)experimentation
C)surveys
D)observation

Question 49

A trading-area analysis reveals that a retailer's trading area is strictly based on the trading area of a major department store anchor tenant in the regional shopping center.This can be explained by the _____.

A)center's being in retail balance
B)center's being overstored
C)retailer's being a parasite
D)retailer having a small fringe trading area

Question 50

Retailer ownership of retail facilities is least common in what location type?

A)secondary business district
B)isolated store
C)neighborhood business district
D)regional shopping center

Question 51

In comparing the isolated store to the unplanned business district and planned shopping center,the major disadvantage of the isolated store is _____.

A)high rents
B)the absence of flexibility in store operations
C)the absence of affinities
D)lack of convenience in planning

Question 52

Generally,which tenant in a regional shopping center has the largest primary trading area?

A)convenience store
B)supermarket
C)pharmacy
D)department store

Question 53

Shopping center leases generally control what merchandise lines a retailer can sell.This practice _____.

A)ensures a one-hundred percent location
B)increases visibility
C)monitors affinities
D)promotes retail balance

Question 54

A characteristic of a string location is _____.

A)being bounded by two important intersections
B)balanced tenancy
C)little extension of the shopping area onto side streets
D)being a one-hundred percent location

Question 55

Planned shopping centers are concerned with retail balance in terms of one-stop shopping appeals and to ensure _____.

A)visibility
B)an adequate economic base
C)a proper level of saturation
D)an adequate traffic count

Question 56

A major advantage of ownership versus leasing is _____.

A)no difficulty in lease renewals
B)lower capital requirements
C)the long-term commitment to a given location
D)the ability to purchase locations in major shopping centers

Question 57

Which type of shopping center has the largest primary trading area?

A)power center
B)regional shopping center
C)megamall
D)central business district

Question 58

Leases for retail locations are often so complicated due to _____.

A)the need to protect creditors
B)their long time duration
C)tax laws
D)rent regulations on a federal,state,and municipal level

Question 59

A practice that combines some of the benefits of owning and leasing store locations is the _____.

A)net lease
B)graduated lease
C)sale-leaseback
D)maintenance-increase-recoupment lease

Question 60

A retailer can protect itself from a potentially poor location and most effectively ensure itself of long tenancy through what type of lease/ownership arrangement?

A)a short-term lease (5 years)with three renewal option periods of 7 years each
B)a long lease of 21 years
C)ownership of the retail property
D)a sale-leaseback for 10 years

Question 61

Which lease arrangement is a straight lease with precise dollar rental increases specified in future time periods?

A)graduated lease
B)lease with maintenance-increase-recoupment
C)net lease
D)percentage lease

Question 62

A major advantage of a straight lease versus a percentage lease is _____.

A)its long lease term
B)the known rental fees for both the retailer and the property owner
C)that inflation and maintenance cost increases are reflected in rental changes
D)its use of renewal options

Question 63

The most objectionable characteristic of a potential site for a new laundromat would be _____.

A)high renovation and plumbing expenses
B)a lease term of less than three years
C)rental terms of 10 percent above market
D)moderate pedestrian traffic levels

Question 64

A major advantage of planned shopping center locations (versus business districts)is freedom over store operations (hours,merchandise lines,days open,and so on).

Question 65

The most important single measure of a location's and site's value is the number and type of people passing by it.

Question 66

Store compatibility with adjacent retailers is generally measured by customer interchange.

Question 67

A property owner wants to base rental terms for a retail location on sales and anticipated property maintenance but wants total rental dollar amounts set for each year.The best lease type is a _____ lease.

A)straight
B)percentage
C)graduated
D)net

Question 68

A new retail location with high trading-area overlap to an existing location is preferable when _____.

A)the primary areas are circular in shape
B)the primary trading area is small
C)the primary trading area is large
D)a retailer may not be able to negotiate a satisfactory lease renewal on the present location

Question 69

A location classified as a one-hundred percent location for one retailer would be a one-hundred percent location for all retailers.

Question 70

The secondary business district is a shopping area that has emerged to satisfy the convenience-shopping needs of a neighborhood.

Question 71

Planned shopping centers are characterized by central ownership/management,central planning,and balanced tenancy.

Question 72

The major retailer in a neighborhood business district is a junior department store.

Question 73

Which lease type allows a new retailer to pay lower rent in early periods,but raises rent as sales increase?

A)maintenance-increase-recoupment provision
B)straight lease
C)net lease
D)percentage lease

Question 74

Verification of a store's sales is required for the property owner in which type of lease?

A)graduated lease
B)straight lease
C)net lease
D)percentage lease

Question 75

Which lease provisions specifically guard against operating cost increases to the property owner?

A)graduated lease and percentage lease
B)maintenance-increase-recoupment provision and net lease
C)percentage lease and straight lease
D)graduated lease and straight lease

Question 76

A retailer opening in a shopping center six months before all tenants will be ready to move in is concerned about early pedestrian traffic.This potential problem can be partially resolved through a _____.

A)net lease
B)lease with a maintenance-increase-recoupment provision
C)percentage lease
D)sliding-down-scale lease

Question 77

An unplanned business district location has no adjacent retailers with which stores can share traffic.

Question 78

Which of the following often is not an example of a knockout factor for a retail location?

A)a three-year lease for a clothing retailer
B)a landlord known for poor tenant relations
C)the opening of another competing retailer in the same regional shopping center
D)zoning restrictions restricting land use to residential purposes

Question 79

Studies of vehicular traffic counts are particularly important in downtown shopping areas with extensive mass transportation facilities.

Question 80

The largest shopping center (in terms of numbers of stores and size of trading area)is a megamall.