Question 1

The primary variable(s)that influence(s)the scope of a trading area is/are:

Accepted Answer

A) the character of the transportation network. 
B) the nature of competing businesses. 
C) the type and size of the business operation. 
D) the racial and political barriers in the local community.

Question 2

The decline in value of store space from front to back of the shop is expressed in the 40-30-20-10 rule.

Accepted Answer

A) True 
 B)False

Question 3

________ is a system that divides a county or city into small cells or districts to control the use of land,buildings,and sites.

Accepted Answer

A) An enterprise zone 
B) Zoning 
C) Apportioning 
D) Redistricting

Question 4

A type of business that does well when located near competition is:

Accepted Answer

A) one that has a unique product line,dissimilar to that of its competitors. 
B) one that carries products for which customers comparison shop. 
C) one whose location is part of its trademark. 
D) None of the above

Question 5

Space values increase as their distance from the main entry-level floor increases.

Accepted Answer

A) True 
 B)False

Question 6

The Index of Retail Saturation (IRS)is a measure of the potential sales per square foot of store space for a given product in a specific trading are
a.

Accepted Answer

A) True 
 B)False

Question 7

A bakery is an example of a business that may benefit from intentional use of ________ within the space.

Accepted Answer

A) color 
B) music 
C) smell 
D) lighting

Question 8

Which of the following are disadvantages of locating in a central business district?

Accepted Answer

A) Intense competition 
B) High rental rates 
C) Traffic congestion and inadequate parking facilities 
D) All of the above

Question 9

Which of the following is not true of home-based businesses?

Accepted Answer

A) Home-based businesses represent the fastest-growing segment of the U.S.economy. 
B) The biggest benefit of operating a business from home typically is its low cost. 
C) Home-based retail businesses represent the fastest-growing segment of all home-based businesses. 
D) None of the above

Question 10

Signs are one of the most expensive and least effective ways of communicating with customers available to small businesses.

Accepted Answer

A) True 
 B)False

Question 11

Reilly's Law of Retail Gravity uses the analogy of gravity to estimate the attractiveness of a particular business to potential customers.

Accepted Answer

A) True 
 B)False

Question 12

When choosing a state in which to locate,one must evaluate which of the following?

Accepted Answer

A) The general business climate 
B) The state's business laws,regulations,and taxes 
C) Tax incentives and/or investment credits 
D) All of the above

Question 13

Most small companies that invest in making their locations accessible to all customers under the Americans with Disabilities Act qualify for a tax credit.

Accepted Answer

A) True 
 B)False

Question 14

A ________ center combines the drawing strength of a large regional mall with the convenience of a neighborhood shopping center.

Accepted Answer

A) neighborhood 
B) power 
C) theme or festival 
D) lifestyle

Question 15

The first phase of determining where to locate a business is:

Accepted Answer

A) choosing a state in which the business owner wants to live. 
B) determining which city has the demographics that best fit the business. 
C) conducting a specific site analysis. 
D) determining which regions of the country are experiencing growth.

Question 16

The "Cost of Doing Business Index" indicates that Hawaii is the most expensive state in which to do business based on these factors:

Accepted Answer

A) wage costs based on hourly and salaried compensation. 
B) tax costs and electricity costs . 
C) industrial and office rent costs. 
D) all the above

Question 17

Few decisions are as important for retailers as the choice of a location.

Accepted Answer

A) True 
 B)False

Question 18

Any company with 15 or more employees and any buildings occupied after January 25,1993,must comply with the Americans with Disabilities Act.

Accepted Answer

A) True 
 B)False

Question 19

A publication that reports on more than 128,000 places in the United States,many of which are not available through census data,and includes eleven economic indicators for major markets is the:

Accepted Answer

A) Topological Integrated Geographic Encoding Referencing. 
B) Commercial Atlas and Marketing Guide. 
C) Zip Code Atlas and Market Planner. 
D) Sales and Marketing Management's Survey of Buying Power.

Question 20

A labor force that has technical training would be most important to a:

Accepted Answer

A) clothing store. 
B) restaurant. 
C) skiing equipment specialty store. 
D) computer company.

Exam 14: Choosing the Right Location and Layout

The primary variable(s) that influence(s) the scope of a trading area is/are:

The decline in value of store space from front to back of the shop is expressed in the 40-30-20-10 rule.

________ is a system that divides a county or city into small cells or districts to control the use of land,buildings,and sites.

A type of business that does well when located near competition is:

Space values increase as their distance from the main entry-level floor increases.

The Index of Retail Saturation (IRS)is a measure of the potential sales per square foot of store space for a given product in a specific trading are a.

A bakery is an example of a business that may benefit from intentional use of ________ within the space.

Which of the following are disadvantages of locating in a central business district?

Which of the following is not true of home-based businesses?

Signs are one of the most expensive and least effective ways of communicating with customers available to small businesses.

Reilly's Law of Retail Gravity uses the analogy of gravity to estimate the attractiveness of a particular business to potential customers.

When choosing a state in which to locate,one must evaluate which of the following?

Most small companies that invest in making their locations accessible to all customers under the Americans with Disabilities Act qualify for a tax credit.

A ________ center combines the drawing strength of a large regional mall with the convenience of a neighborhood shopping center.

The first phase of determining where to locate a business is:

The "Cost of Doing Business Index" indicates that Hawaii is the most expensive state in which to do business based on these factors:

Few decisions are as important for retailers as the choice of a location.

Any company with 15 or more employees and any buildings occupied after January 25,1993,must comply with the Americans with Disabilities Act.

A publication that reports on more than 128,000 places in the United States,many of which are not available through census data,and includes eleven economic indicators for major markets is the:

A labor force that has technical training would be most important to a: