Deck 14: Choosing the Right Location and Layout

Question 1

What is the state's overall attitude toward your kind of business? Has it passed laws that impose restrictions on the way a company can operate? Does the state offer small business support programs of financial assistance to entrepreneurs? These questions help an entrepreneur to assess the overall:

A)population trends.
B)proximity to markets
C)labor supply.
D)business climate.

Answer 1

D

Question 2

When would a business choose to locate near the source of the raw material?

A)The company requires an important raw material that is difficult to transport.
B)The company requires an important raw material that is expensive to transport.
C)The company keeps its inventory of an important raw material low to keep costs down and counts on quick deliveries from suppliers.
D)All of the above

Answer 2

D

Question 3

A glass manufacturer that requires an extremely pure,very fine sand in its production process would be most concerned about the:

A)business climate.
B)proximity to raw materials.
C)demographic profile of the local market.
D)local wage rates.

Answer 3

B

Question 4

When examining a state's available labor force,the potential business owner needs to know:

A)the state's labor relations history.
B)the demographics of the target customers.
C)both the number and education of the available workforce.
D)the proximity of its customers.

Question 5

Which of the following information is available from U.S.Census data?

A)The value of the homes in an area
B)The number of rooms in the homes in an area
C)Number of vehicles owned
D)All of the above

Question 6

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

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

Question 7

________,published annually,provides a detailed breakdown of population,retail sales,spendable income,and other characteristics for census regions,states,metropolitan areas,counties,and cities.It also includes analyses of changes in metro markets,descriptions of newspaper and TV markets,and summaries of sales of certain merchandise.

A)The Survey of Buying Power
B)The Commercial Atlas and Marketing Guide
C)The Zip Code Atlas and Market Planner
D)A Researcher's Guide to the 1990 Census

Question 8

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

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 9

One direct way to lower annual operating costs is to locate in a state where:

A)there is an attractive business climate.
B)the labor market is highly competitive.
C)taxes and regulatory costs are lowest.
D)the key markets are relatively accessible.

Question 10

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

A)Education levels
B)Income levels
C)Expenditures on dining out
D)Occupational data

Question 11

A Geographic Information System (GIS):

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)helps entrepreneurs discover important trends and characteristics in the population that otherwise might go unnoticed.
C)can be an incredibly powerful tool for determining the ideal location based on specific criteria the entrepreneur establishes.
D)All of the above

Question 12

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

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 13

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

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 14

Geographic concentrations of interconnected companies,specialized suppliers,and service providers that are present in a region are called:

A)zones.
B)clusters.
C)trading areas.
D)variances.

Question 15

Which of the following characteristics for selecting a city would be of greatest interest to a retail store selling fine china and collectibles?

A)Public services
B)Transportation
C)Zoning
D)Population characteristics

Question 16

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)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 17

States that are generally most expensive to do business in could be described as:

A)inland states that do not have access to a coastline.
B)states with low population densities.
C)coastal "tourist" states and those will higher population densities.
D)states located in the mid-west and northwest sections of the country.

Question 18

TIGER:

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)breaks down the population,retail sales,etc.,by census region.
C)contains the names of every street in the country and detailed block statistics for 345 urban areas.
D)All of the above

Question 19

When the cost of transporting finished goods to market is high relative to their value,the key location criterion is:

A)low rental or lease rates.
B)proximity to raw materials.
C)proximity to markets.
D)zoning regulations.

Question 20

Entrepreneurs using the Census Bureau's Web site to evaluate potential locations have access to which of the following information about the residents in those locations?

A)Income levels
B)Age distributions
C)Occupational data
D)All of the above

Question 21

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

Question 22

________ 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

Question 23

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

Question 24

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.

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

A ________ is a special exemption to a zoning ordinance.

A)variance
B)exception
C)trade area
D)cluster

Question 32

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.

Question 33

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

Question 34

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.

Question 35

The index of retail saturation for site #1 is:

A)$150.21.
B)$168.51.
C)$152.30.
D)$166.19.

Question 36

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

Question 37

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.

Question 38

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

Question 39

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.

Question 40

The index of retail saturation for site #2 is:

A)$164.27.
B)$140.83.
C)$170.64.
D)$146.30.

Question 41

A ________ contains from 12 to 50 stores and serves a population of 40,000 to 150,000 people.

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

Question 42

________ is the logical arrangement of the physical facilities in a business that contributes to efficient operations,increased productivity,and higher sales.

A)The Index of Retail Saturation
B)Layout
C)Logistics
D)The Sales Conversion Index

Question 43

Incubator facilities are established in order to:

A)revitalize central business districts.
B)enhance economic development and diversify the local economy.
C)centralize types of businesses and provide tax breaks to those businesses.
D)reuse old military bases and abandoned structures in economically depressed areas of a city.

Question 44

________ offer new businesses the protection of low-cost locations and a multitude of support services in an attempt to improve the companies' chances of success.

A)Research parks
B)Business incubators
C)Industrial parks
D)Discount malls

Question 45

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

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 46

Typically located near affluent residential neighborhoods where their target customers live,________ centers are designed to look less like shopping centers and malls and more like the busy streets in the central business districts that once existed in town and cites.

A)neighborhood
B)power
C)lifestyle
D)community shopping

Question 47

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

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

Question 48

A specially designated area in or near a U.S.customs port of entry that allows resident companies to import materials and components from foreign counties; assemble,process,manufacture,or package them,and then ship the finished product back out while either reducing or eliminating tariffs and duties is a:

A)empowerment zone.
B)foreign trade zone
C)business incubator.
D)trading area.

Question 49

Which of the following statements concerning layout is true?

A)A company's physical facilities send important messages to potential customers about its "personality."
B)The physical appearance of a building provides customers with their first impressions of a business.
C)Communicating the right signals through a business's layout and physical facilities is an important step in creating a competitive edge over rivals.
D)All of the above

Question 50

Which of the following is a potential disadvantage of a home-based business?

A)Frequent interruptions of work
B)Feelings of isolation
C)Problems with zoning laws from running a business
D)All of the above

Question 51

According to the National Business Incubation Association,graduates from incubators have a success rate of ________ percent.

A)57
B)67
C)77
D)87

Question 52

Which of the following do incubators offer their tenants?

A)Flexible rental space at below-market rates
B)Larger trading areas
C)Exemptions from zoning regulations
D)Lower,or an exemption from,state and city taxes

Question 53

When evaluating existing buildings,retailers:

A)need to find the lowest cost per square foot possible due to the need for maximum display space.
B)should locate in store space previously occupied by a similar type of business.
C)should recognize that the store's appearance and layout create an image for the customers of the business.
D)can discount the interior appearance of the building if it has a strong exterior appeal.

Question 54

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

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

Question 55

Most business incubator residents are engaged in which businesses?

A)Heavy manufacturing
B)Light manufacturing,service,or technology-related fields
C)Mixed retail and restaurant business
D)Heavy manufacturing,food preparation,and service

Question 56

Which of the following is an important consideration for an entrepreneur evaluating a shopping mall or center location?

A)In terms of customer demographics,is the mall or center a good fit for my products or services? How much foot traffic and vehicle traffic does the mall or center generate?
B)Who are the other tenants? The anchor tenants? Is there a good fit for my products and services?
C)What are the mall's or center's vacancy and turnover rates?
D)All of the above

Question 57

Which of the following is the greatest advantage of operating a home-based business?

A)The ability to save money by avoiding business startup taxes
B)The exemption that home-based businesses receive from local zoning laws
C)The low cost of setting up and operating the business
D)The ability to claim all household expenses as business deductions for tax purposes

Question 58

The most common sponsors of business incubators are:

A)colleges and universities.
B)government agencies.
C)private investment groups.
D)public/private partnerships.

Question 59

The ________ serves a large trading area (10 to 15 miles or more),contains from 50 to 100 stores,and draws customers from a population that lives within 20- to 40-minutes driving time.

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

Question 60

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

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 61

In addition to the layout of the store,behavioral experts recommend that retailers consider the impacts of ________ ,________ and ________ on customer behavior.

A)lighting; sound; scent
B)lighting; noise; orientation
C)lighting; sound; noise
D)signage; sound; scent

Question 62

An effective retail layout should:

A)pull customers into the store.
B)make it easy for customers to locate the merchandise they are looking for.
C)take customers past displays of items they might buy on impulse.
D)All of the above

Question 63

The Justice Department estimates that more than 20 percent of the cases customers have filed under the Americans with Disabilities Act involved changes the business owners could have made at a cost of:

A)$0.
B)$250.
C)$1,000.
D)$8,000.

Question 64

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

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

Question 65

The science of adapting work and working conditions to complement employees' strengths and to suit customers' needs is called:

A)physiology.
B)ergonomics.
C)formology.
D)kinesiology.

Question 66

Which of the following statements concerning store layout is true?

A)The farther an area is from the store's entrance,the greater its value.
B)Most shoppers turn left upon entering a store and move around it in a clockwise fashion.
C)Only about one-fourth of a store's customers will go more than halfway into a store.
D)The second quarter of the store is worth one-half of the front quarter.

Question 67

One extensive study concluded that changes in office design have a direct impact on workers':

A)performance.
B)job satisfaction.
C)ease of communication.
D)All of the above

Question 68

Products with the highest markup should be placed:

A)so as to pull customers into the store.
B)in prime selling space.
C)near the front of the store.
D)anywhere since they draw their own customers.

Question 69

To be effective,a business sign should:

A)be large enough for passersby to read from a distance.
B)contain a message that is short,simple,and clear.
C)be properly illuminated so that it is legible both day and night.
D)All of the above

Question 70

The Americans with Disabilities Act:

A)protects disabled employees,job candidates,and customers.
B)does not apply to small businesses with fewer than 15 employees.
C)requires companies to hire any disabled worker who applies for a job and then find a way to fit the job requirements to that worker's abilities.
D)All of the above

Question 71

Entrances should invite entry.The way to accomplish this is to:

A)have wide entryways and attractive displays set back from the doorway that can lure customers into the store.
B)offer discounts.
C)have displays as close to the entry of the store as possible.
D)have a big sign to attract customers.

Question 72

Which of the following sections of a retail store would be most valuable?

A)Third floor
B)Intersection of two secondary aisles
C)The front right corner of the store
D)The front left corner of the store

Question 73

The most valuable space in a store is the:

A)nonselling space.
B)main entry-level space.
C)space at the back of the store.
D)left-side,entry-level space.

Question 74

The Americans with Disabilities Act of 1990 requires:

A)buildings be remodeled to accommodate any disabled customer or employee.
B)businesses must accommodate all disabled customers or job candidates,regardless of the cost to the business.
C)that businesses have all facilities available to physically challenged customers and employees.
D)All of the above

Question 75

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

A)Includes a message that is short,simple,and clear.
B)Is illuminated so that it is readable both day and night.
C)Uses complementary color schemes and ornate typefaces.
D)Is well maintained.

Question 76

When designing the layout of a store,office,or plant,a business owner's primary focus is usually on ________; however,it should be on ________.

A)minimizing costs; maximizing security
B)enhancing workers' productivity; minimizing costs
C)increasing sales; customer accessibility
D)minimizing costs; minimizing injuries and enhancing employees' productivity

Question 77

The most progressive companies seeking environmentally-friendly designs are using:

A)all new materials,installing high efficiency lighting,and striving to meet LEED standards.
B)recycled materials,installing high efficiency lighting,and meeting building code standards.
C)recycled materials,installing high efficiency lighting,and striving to meet LEED standards.
D)recycled materials,installing high cost lighting,and striving to meet LEED standards.

Question 78

When the typical shopper enters a store,(s)he turns ________ and moves in a ________ fashion which increases the value of this section of the space.

A)left; clockwise
B)right; clockwise
C)left; counterclockwise
D)right; counterclockwise

Question 79

Under the Americans with Disabilities Act,a newly constructed:

A)building must have elevators if they are three stories or higher.
B)retail store must have checkout aisles wide enough to accommodate wheelchairs (36 inches).
C)restaurant must make five percent of its tables accessible to wheelchair-bound patrons.
D)All of the above

Question 80

Which of the following is an example of ergonomics?

A)Evaluating the climate-control needs of the work environment
B)Assessing the lighting needs and the acoustics of a business office
C)Considering the proper height of desks,chairs,etc.,when designing a work station
D)All of the above