Deck 10: Site Selection

Question 1

Which statement concerning the central business district (CBD)is not correct?

A) The core of a CBD rarely exceeds a square mile.
B) A CBD is typically located in the part of a city or town with the greatest concentration of office buildings and retail stores.
C) Over the past 40 years, the share of the CBD relative to the planned shopping center has increased.
D) A CBD has at least one major department store and a broad grouping of specialty and convenience stores.

Answer 1

C

Question 2

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

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

Answer 2

D

Question 3

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

A) competition with adjacent retailers is high
B) on an ongoing basis, many people will not travel very far to shop in just one store
C) rental costs are generally relatively high
D) leases can restrict store operations and merchandise carried

Answer 3

B

Question 4

A string is composed of ________.

A) a supermarket and several service stores (such as a bakery, dry cleaner, and laundromat)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar or compatible product lines
D) a junior department store, variety store, and several service shops

Question 5

A major advantage of a planned shopping center to a retailer is ________.

A) nearness to commercial and social facilities
B) the ability to cater to convenience needs of a local population
C) interest in one-stop, family shopping
D) the domination by large anchor stores

Question 6

Which business district is located in the part of a city or town with the greatest concentration of office buildings and retail stores?

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

Question 7

Which planned shopping center type has a trading area of up to 30 minutes driving time?

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

Question 8

Which location type is generally characterized by the absence of retailers with which the retailer can share traffic?

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

Question 9

To ensure ________,limits are typically placed on the product lines that can be stocked by each retailer and the types of retailers that can acquire unexpired leases.

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

Question 10

Which unplanned shopping district has at least one department store and a number of specialty and convenience stores?

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

Question 11

Which unplanned business district is generally bounded by the intersection of two major streets?

A) isolated store
B) string
C) secondary business district
D) central business district

Question 12

A major advantage of an isolated store location is that ________.

A) there are no group rules which must be abided by in operation
B) parking and security costs can be shared with other tenants
C) shoppers can be easily attracted and maintained at the location
D) advertising costs are generally low

Question 13

A major advantage of a central business district is ________.

A) access to public transportation
B) balanced tenancy
C) ease of vehicular traffic flow
D) continuity of merchandise offerings

Question 14

Which of the following location forms is not planned as a unit?

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

Question 15

A neighborhood business district generally is comprised of a minimum of ________.

A) several service stores (such as a dry cleaner and restaurant)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar merchandise lines
D) a junior department store, variety store, and several service shops

Question 16

Planned shopping centers are characterized by ________.

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

Question 17

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

A) a supermarket and several service stores (such as a bakery, dry cleaner, and laundromat)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar merchandise lines
D) a junior department store and some larger specialty stores

Question 18

The largest form of planned shopping center is the ________.

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

Question 19

A shopping area in a city or town that is the hub of retailing in a city and is synonymous with the term "downtown" is the ________ business district.

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

Question 20

Which shopping location appeals to a single residential area?

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

Question 21

Which planned shopping center is most similar to the central business district?

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

Question 22

What type of location is least appropriate for a parasite store?

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

Question 23

An isolated store location is most suitable to a retailer that ________.

A) is a parasite
B) is a category killer
C) requires affinities
D) uses a multiple segmentation strategy

Question 24

The least common form of planned shopping center is the ________.

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

Question 25

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

A) the ability to depreciate a building
B) lower property taxes
C) freedom from lease renewal concerns
D) the ability to secure regional shopping center locations

Question 26

Which planned shopping center emphasizes convenience-oriented goods and services (such as a bakery,laundry,and a dry cleaner)?

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

Question 27

A retailer's owning a store location (as opposed to leasing)is most common with ________.

A) inexpensive locations
B) locations in regional shopping centers
C) larger retail institutions
D) department stores

Question 28

Which planned shopping center is generally arranged in a strip?

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

Question 29

Stores that have similar and/or complementary merchandise offerings have ________.

A) retail balance
B) balanced tenancy
C) high affinities
D) corner influence

Question 30

Which expense is paid by the property owner in a net lease?

A) heat
B) insurance
C) electricity
D) mortgage interest

Question 31

A one-hundred percent location is the ________.

A) optimum site for a particular store
B) location with the best lease terms
C) location closest to parking facilities
D) location with the best affinities

Question 32

The most crucial locational attribute is generally ________.

A) corner influence
B) transportation facilities
C) parking facilities
D) pedestrian traffic

Question 33

While a small or medium-sized city typically has ________ central business district(s),it usually has ________ secondary business district(s).

A) one; multiple
B) multiple; one
C) one; two
D) two; three

Question 34

The major difference between unplanned business districts and planned shopping centers is based upon ________.

A) composition of stores
B) ownership
C) size in square footage
D) shopper demographics

Question 35

In retail balance,________.

A) there is a shortage of a given type of retail facility
B) the level of customer interchange among complementary stores is high
C) parking facilities are appropriate to demand
D) store facilities for each merchandise or service classification are equal to the location's market potential

Question 36

Which planned shopping center has a moderate assortment of both shopping and convenience-oriented goods and services?

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

Question 37

A power center is a form of ________.

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

Question 38

A retailer can view a lease as a variable cost in a ________.

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

Question 39

Which type of shopping center is comprised of category killer stores?

A) power center
B) regional shopping center
C) megamall
D) string

Question 40

The quality of pedestrian traffic counts can be improved by ________.

A) separating the count by time of day and day of week
B) counting all people passing a given location
C) counting only people who park their car in the lot
D) allowing the interviewer to determine who is to be counted

Question 41

"While competition among similar stores can increase the size of a trading area for all merchants,it can result in each merchant receiving a smaller market share." This statement is most applicable to a(n)________.

A) isolated location
B) category killer retailer
C) department store
D) string

Question 42

Which location and site evaluation aspects can best be monitored by observation?

A) transportation quality as judged by consumers
B) pedestrian and vehicular traffic
C) parking adequacy perceptions
D) retail balance

Question 43

A shopping center that properly employs retail balance has a(n)________ trading area.

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

Question 44

In conducting a vehicular traffic count for a car wash,the service retailer should be careful to discount the number of vehicles that ________.

A) are going slower than 35 miles per hour
B) must cross a two-lane divided highway to enter the retailer's facility
C) have out-of-state license plates
D) have less than three passengers

Question 45

Ownership of retail facilities is most common in what location type?

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

Question 46

When a central business district closes a street to vehicular traffic as part of a renovation project,it plans to simulate a(n)________ mall.

A) open
B) closed
C) discount
D) enclosed

Question 47

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

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

Question 48

Which retail location type would generally have the largest overall trading area?

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

Question 49

A balanced tenancy (wherein a store's merchandise lines are limited and controlled)may be incompatible with which retail strategy?

A) the wheel of retailing
B) the retail life cycle
C) scrambled merchandising
D) discounting

Question 50

The addition of retail stores to a shopping center increases the trading area for each store.This indicates that ________.

A) trading-area overlap exists between the old and new retailers
B) the retail area is saturated
C) the new stores are parasites
D) store affinities exist between the new and existing stores

Question 51

In a string location,a retailer has affinities with ________.

A) compatible retailers
B) retailers selling the same product lines
C) a parasite store
D) a planned shopping center

Question 52

A retail area with balanced tenancy is a(n)________.

A) understored area for all merchandise classifications
B) overstored area for all merchandise classifications
C) saturated area for all merchandise classifications
D) saturated area for selected merchandise classifications

Question 53

A major difference between a central business district (CBD)and a regional shopping center is the existence of ________ in the CBD.

A) a major concentration of office buildings
B) free parking
C) merchants associations
D) vertical malls

Question 54

Which type of retail location has two or more destination stores?

A) isolated location
B) power center
C) megamall
D) string

Question 55

A one-hundred percent location for an off-price retail chain is a(n)________.

A) isolated location
B) corner store location in a regional shopping center
C) location adjacent to a department store in a megamall
D) location adjacent to a used car lot in a string

Question 56

A string location is most appropriate for ________.

A) a chain retailer
B) a destination store
C) retailers that sell shopping goods
D) a category killer

Question 57

A megamall is a form of a ________.

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

Question 58

What statement about the isolated store is correct?

A) Isolated stores typically have high rents.
B) Isolated stores have high trading-area overlap with adjacent shopping centers.
C) Isolated stores have no affinities.
D) Isolated stores are parasite stores.

Question 59

The retail location types with the largest primary trading areas are ________.

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

Question 60

A major advantage of ownership versus leasing is ________.

A) the increased ability to predict occupancy costs in future time periods
B) the ability to purchase superior locations in major shopping centers
C) lower capital requirements
D) lower financial risk

Question 61

Pedestrian and vehicular traffic counts are typically measured through observation.

Question 62

Which lease type gears a retailer's rental costs to its ability to pay?

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

Question 63

A major advantage of a percentage lease versus a straight lease from the perspective of the property owner is ________.

A) its simplicity
B) that rental income is known
C) that rental income more accurately reflects increases in a property's value and inflation
D) that retail sales do not have to be audited

Question 64

Many CBDs have been revitalized based on modernization programs by merchants.

Question 65

Balanced tenancy is generally obtained through lease restrictions relating to store hours,days open,and interior design.

Question 66

Retailers with compatible merchandise lines can often increase their trading area by locating in a string versus an isolated location.

Question 67

There are fewer regional shopping centers than community or neighborhood shopping centers.

Question 68

An isolated store has no adjacent retailers with which stores can share traffic.

Question 69

A major advantage of leasing over ownership is the ________.

A) ability to plan on using a location over the long term
B) freedom from restrictive leasing clauses
C) ability to depreciate a property's building
D) freedom from tying up capital in real-estate

Question 70

A retailer can achieve some of the benefits of both owning and leasing a store through the use of a ________.

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

Question 71

A secondary business district generally exists in the part of a city or town with the greatest concentration of office buildings and retail stores.

Question 72

The kinds of goods and services sold in a secondary business district are similar to those found in a neighborhood business district.

Question 73

Which form of lease/ownership arrangement has the greatest flexibility from the perspective of the retailer?

A) a 15-year lease
B) purchase of the property with 10 percent down; a mortgage loan is taken out for the balance
C) a sale-leaseback for 15 years
D) a short-term lease (5 years) with two renewal option periods of 5 years each

Question 74

A retailer is currently in a shopping center with a large number of vacancies.Several of the vacant retail locations have high affinities with the existing retailer.The loss in pedestrian traffic can be partially offset through which form of lease?

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

Question 75

A retailer's sales must be audited by the property owner in which type of lease?

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

Question 76

A power center is a form of regional shopping center.

Question 77

A retailer has the greatest control over property maintenance in which rental form?

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

Question 78

Leases for retail locations are often very complicated due to ________.

A) governmental regulations on permitted rent increases
B) their long time duration
C) the uncertain cost of interest over the lease time period
D) the possibility of tenant bankruptcy

Question 79

Which two lease provisions set rental terms on the basis of actual operating costs?

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

Question 80

The most important single measure of a location's and site's value is the number and quality of its vehicular traffic.