Question 1

Which of the following is an advantage of locating in a central business district?
A)Low rent
B)Easy and abundant parking
C)The ability to attract customers from the entire trading area
D)Moderate to low levels of competition

Accepted Answer

The central business district is typically located in the heart of a city, making it easily accessible to customers from surrounding areas. This increases the potential customer base and can lead to higher profits for businesses located in the area. Low rent and easy parking are unlikely in a central business district, and there is usually high competition among businesses in the area.

Question 2

________ is a system that divides a county or city into small cells or districts to control the use of land,buildings,and sites.
A)An enterprise zone
B)Zoning
C)Apportioning
D)Redistricting

Accepted Answer

Zoning is a system that divides a county or city into smaller areas or districts, each designated for a specific land use or building type. This helps to regulate and control the development of an area, ensuring that incompatible land uses are separated and that buildings and sites are used in a way that is consistent with the community's long-term goals and priorities.

Question 3

Carmen is starting a childcare center.One location closed after a murder on the property and is near a neighborhood where there are many single parents.What city site selection factor might give Carmen problems with her childcare center?
A)Transportation
B)Police and fire protection
C)The reputation of the location
D)Compatibility with the community

Accepted Answer

The reputation of the location is likely to give Carmen problems with her childcare center, especially given the fact that a murder occurred on the property in the past. Parents may be hesitant to leave their children in a location with a negative reputation, and this could impact business for the childcare center. Factors such as transportation, police and fire protection, and compatibility with the community may also be important, but they are less likely to be affected by the previous incidents on the property.

Question 4

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

Accepted Answer

The type and size of the business operation are the primary variables that influence the scope of a trading area. This is because the size and type of the business will determine the types of customers it attracts, the products or services it offers, and the distance customers are willing to travel to make purchases. While transportation networks and competing businesses can also play a role, they are secondary to the size and type of the business. Racial and political barriers are not relevant factors in determining the scope of a trading area.

Question 5

Nature's Way,a health food store,has just opened in a popular neighborhood shopping center next to Silver's Gym,a physical fitness center catering to both men and women.Nature's Way is relying on which location principle?
A)Piggybacking
B)Retail consistency
C)Retail compatibility
D)Zoning

Accepted Answer

Retail compatibility principle suggests that businesses offering complementary products or services should be located in close proximity. Nature's Way and Silver's Gym are complementary businesses as health food and physical fitness go hand in hand.

Question 6

The central business district (CBD):
A)is the traditional center of town.
B)in many cities experienced decay in years past as customers began shopping more frequently at malls and shopping centers,but are now going through revitalization programs.
C)attracts customers from the entire trading area of the city.
D)All of the above

Accepted Answer

The central business district (CBD) is the traditional center of town that in many cities experienced decay in years past as customers began shopping more frequently at malls and shopping centers, but are now going through revitalization programs. It also attracts customers from the entire trading area of the city.

Question 7

Job training for workers and reduced tax rates to financial grants and loans are examples of what some ________ offer as business ________ to locate in their jurisdictions.
A)states; motivators
B)cities; incentives
C)regions; perks
D)counties; attractions

Accepted Answer

Cities offer incentives to attract businesses to their jurisdiction, including job training programs and tax breaks. States, regions, and counties may also offer similar incentives, but the question specifically mentions cities as the jurisdiction offering these benefits. Therefore, option B, cities as incentives, is the best choice.

Question 8

According to the International Council of Shopping Centers,the average cost to lease space in a shopping center is about $17 per square foot,________ that of regional malls,lifestyle centers and power centers.
A)less than
B)about the same as
C)more than
D)twice as much as

Accepted Answer

The sentence states that the average cost to lease space in a shopping center is about $17 per square foot, which is being compared to the cost of leasing space in regional malls, lifestyle centers, and power centers. Since no specific numbers are given for these other types of centers, we cannot determine an exact comparison. However, the use of the word "less" indicates that the cost to lease space in shopping centers is lower than the cost in these other types of centers. Therefore, the best choice is A) less than.

Question 9

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?
A)Proximity of competitors
B)Visibility
C)Adequate parking
D)Room for expansion

Accepted Answer

Mary's success was largely due to her store's visibility from the parking lot, which drew in customers who parked at the mall. However, the new movie theater in front of her store obstructed her visibility, causing a significant drop in business. Therefore, the site selection criterion of visibility forced her to move.

Question 10

Which of the following are disadvantages of locating in a central business district?
A)Intense competition
B)High rental rates
C)Traffic congestion and inadequate parking facilities
D)All of the above

Accepted Answer

Locating in a central business district may lead to intense competition due to the large number of businesses in the area. Additionally, rental rates are typically higher in the central business district due to its desirable location. Traffic congestion and inadequate parking facilities can also pose challenges for businesses located in the central business district. Therefore, all of the above choices (A, B, and C) are valid disadvantages of locating in a central business district.

Question 11

A ________ is a special exemption to a zoning ordinance.
A)variance
B)exception
C)trade area
D)cluster

Accepted Answer

A variance is a special exemption that allows a property owner to deviate from the requirements of a zoning ordinance in a specific situation. This could include things like building height, setback requirements, or the use of a property. A variance is typically granted only if the property owner can show that they would suffer undue hardship if they were not granted the exemption, and if the exemption would not be detrimental to the surrounding area.

Question 12

The purpose of zoning regulations is to:
A)restrict the growth of businesses.
B)contain similar types of activities in suitable locations.
C)help new businesses "incubate" in their startup period.
D)build the traffic volume for retail and service businesses.

Accepted Answer

Zoning regulations aim to ensure that similar activities are located in appropriate areas. This helps to prevent conflicts and enhance the livability of neighborhoods. It also helps to promote economic development by ensuring that businesses are located in areas suitable for their operations. Restrictions on growth or traffic building are not the primary goals of zoning regulations.

Question 13

The typical ________ is relatively small,contains from 3 to 12 stores,and serves a population that lives within a 10-minute drive.
A)neighborhood shopping center
B)community shopping center
C)regional shopping mall
D)central business district

Accepted Answer

A neighborhood shopping center fits the given description of being small and serving a population within a 10-minute drive. Community shopping centers may have more stores and serve a larger population, while regional shopping malls are much larger and serve a wider geographical area. Central business districts are typically commercial and financial centers of a city rather than shopping centers.

Question 14

Jan and Detmar Wolcinski live in a cozy house in a beautiful old neighborhood.When they bought the 152-year-old house in which they live,they began remodeling it with one goal in mind: opening a bed and breakfast inn.The Chadwick Inn has exceeded the Wolcinski's expectations in its first year of operation,but now some neighbors are starting to complain about the increased traffic in their neighborhood and the late hours some of the Inn's guests keep.The Wolcinski's greatest challenge in the near future is most likely:
A)convincing the local historical preservation board that the modifications they made to the house are in keeping with its historical character.
B)zoning laws prohibiting commercial businesses in a residentially zoned area.
C)major hotel chains opening competing "bed and breakfast" hotels on adjacent lots.
D)encroaching shopping centers and malls that push up real estate prices.

Accepted Answer

The neighbors' complaints about increased traffic and late hours suggest that the Wolcinskis' bed and breakfast may be violating zoning laws that prohibit commercial businesses in a residential area. This is likely to be their greatest challenge in the near future.

Question 15

The index of retail saturation for site #1 is:
A)$150.21.
B)$168.51.
C)$152.30.
D)$166.19.

Accepted Answer

The answer of The index of retail saturation for site...

Question 16

Shopping malls typically average ________ parking spaces per 1,000 square feet of shopping while a typical central business district offers ________ spaces per 1,000 square feet of shopping space.
A)20; 1
B)3; 6
C)5; 3.5
D)3; 8

Accepted Answer

Shopping malls typically average 5 parking spaces per 1,000 square feet of shopping, while a typical central business district offers 3.5 spaces per 1,000 square feet of shopping space. Therefore, choice C is the correct option.

Question 17

Based on the above calculations,what is the entrepreneur's best option?
A)He should choose site #1.
B)He should choose site #2.
C)Neither site meets minimum criteria of $158 per square foot.
D)Either site will work well since both meet minimum criteria of $158 per square foot.

Accepted Answer

The answer of Based on the above calculations,what is the...

Question 18

The index of retail saturation:
A)is retail expenditures times retail facilities divided by the number of customers.
B)is the ratio of a trading area's sales potential to its sales capacity.
C)evaluates both the number of customers and the intensity of competition in a trading area.
D)B and C above

Accepted Answer

The index of retail saturation evaluates both the number of customers and the intensity of competition in a trading area (option C) and is calculated as the ratio of a trading area's sales potential to its sales capacity (option B). Therefore, the correct answer is D - both options B and C are correct. Option A is not a correct definition of the index of retail saturation.

Question 19

The region from which a business can expect to draw its customers over a reasonable time span is called its:
A)enterprise zone.
B)zoning area.
C)trading area.
D)retail draw.

Accepted Answer

The term "trading area" refers to the geographic region from which a business is likely to attract its customers over a reasonable period of time. This can be influenced by factors such as the business's location, the type of goods or services it provides, and the demographic characteristics of the surrounding population. Other options such as "enterprise zone" and "zoning area" refer to specific types of designated areas for economic development and land use regulations, respectively, and are not directly related to a business's customer base. "Retail draw" is a less common term for the trading area and may not be as widely recognized in the industry.

Question 20

The index of retail saturation for site #2 is:
A)$164.27.
B)$140.83.
C)$170.64.
D)$146.30.

Accepted Answer

The answer of The index of retail saturation for site...

Quiz 14: Choosing the Right Location and Layout

Which of the following is an advantage of locating in a central business district?

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

Carmen is starting a childcare center.One location closed after a murder on the property and is near a neighborhood where there are many single parents.What city site selection factor might give Carmen problems with her childcare center?

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

Nature's Way,a health food store,has just opened in a popular neighborhood shopping center next to Silver's Gym,a physical fitness center catering to both men and women.Nature's Way is relying on which location principle?

The central business district (CBD) :

Job training for workers and reduced tax rates to financial grants and loans are examples of what some offer as business to locate in their jurisdictions.

According to the International Council of Shopping Centers,the average cost to lease space in a shopping center is about $17 per square foot,________ that of regional malls,lifestyle centers and power centers.

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

A ________ is a special exemption to a zoning ordinance.

The purpose of zoning regulations is to:

The typical ________ is relatively small,contains from 3 to 12 stores,and serves a population that lives within a 10-minute drive.

The index of retail saturation for site #1 is:

Shopping malls typically average parking spaces per 1,000 square feet of shopping while a typical central business district offers spaces per 1,000 square feet of shopping space.

Based on the above calculations,what is the entrepreneur's best option?

The index of retail saturation:

The region from which a business can expect to draw its customers over a reasonable time span is called its:

The index of retail saturation for site #2 is: