Deck 18: Location, Facilities, and Layout

Question 1

Geographic information systems do not include ________.

A) Demographic data
B) Extensive maps
C) Topographic data
D) Major transportation routes
E) Business success rate figures

Answer 1

E

Question 2

Primary location concerns of retail businesses with brick-and-mortar sites include which of the following?

A) Drawing power of your location
B) Demographics of the customer-drawing area
C) Ability to attract paying customers in sufficient volume
D) All of the above
E) None of the above

Answer 2

D

Question 3

The ________ method of selecting a location, go with the one you know, is commonly employed by small business owners.

A) Simplest
B) Most complex
C) Most reliable
D) Most complicated
E) None of the above

Answer 3

A

Question 4

Which of the following is not a site location consideration?

A) Exchange rates and currency risk
B) Site size and cost
C) Zoning restrictions
D) Proximity of services/supplies needed
E) Environmental-impact issues

Question 5

Which of the following is not a country location consideration?

A) Political risks, governmental regulations, national attitudes, and incentives
B) Cultural and economic issues
C) Location of markets
D) All of the above
E) None of the above

Question 6

Resources for researching the average sales per square foot in your industry include ________.

A) International Council of Shopping Centers
B) The public library reference area
C) Annual reports of publicly traded companies
D) U.S. Census Bureau
E) All of the above

Question 7

Which of the following is not one of the six basic steps of the factor-rating method?

A) Develop a list of critical success factors.
B) Determine the weight of each factor according to its relative importance.
C) Create a measurement scale for the factors.
D) Multiply the factor weight times the factor score for each factor in each location.
E) Develop a list of questions to ask other store owners in the area.

Question 8

The formula for calculating selling space is ________.

A) Sales Volume/Sales per Square Foot
B) Sales Volume/Sales per Linear Foot
C) Sales Volume/Cost per Square Foot
D) Sales Income/Sales per Square Foot
E) Net Sales/Sales per Square Foot

Question 9

Which of the following is not a major factor in retail stores' costs?

A) Rental
B) Salaries
C) Wages
D) Production
E) All of the above are major factors.

Question 10

________ are complementary businesses that attract customer traffic to the retailer's area, and can significantly increase revenue generation.

A) Traffic generators
B) Travel generators
C) Interchange generators
D) Passage generators
E) Transfer generators

Question 11

Location strategy has critical impacts on which of the following?

A) Revenues
B) International trade policy
C) Family activities
D) Social security
E) News

Question 12

In the factor-rating method, decision criteria are prioritized and weighted to eliminate ________ factors from location analysis.

A) Subjective
B) Objective
C) One-sided
D) Biased
E) Skewed

Question 13

Which of the following is a labor productivity issue?

A) Locating your business in a community with skilled workers
B) Locating your business in a family-oriented area
C) Locating your business beside a highway
D) Locating your business in a friendly city
E) Locating your business beside rail lines

Question 14

All of the following are location factors for manufacturers to consider except ________.

A) Labor
B) Suppliers
C) Costs of facilities
D) Laws and regulations
E) Religious affiliations

Question 15

For wholesalers, the ability to efficiently ________ goods to customers is the primary consideration.

A) Distribute
B) Deliver
C) Allocate
D) Issue
E) Dispense

Question 16

________ is/are not a consideration for the location of your business.

A) Media outlets
B) Access for customers
C) Climate
D) Convenience
E) Visibility

Question 17

The selection of a location is a critical business success factor, is often a one-time event, and is generally ________ to change.

A) Expensive
B) Inexpensive
C) Difficult
D) Easy
E) All of the above

Question 18

You expect that your store will generate $300,000 in annual sales with average sales per square foot of $200, so you would need about ________ square feet of selling space.

A) 1500
B) 2000
C) 1000
D) 1200
E) 1800

Question 19

Manufacturers need to meet and exceed customer ________ goals.

A) Delivery and quality
B) Service and quality
C) Response and quantity
D) Delivery and quantity
E) None of the above

Question 20

Proximity to ________ competitors as traffic generators, clustering, may be a viable strategy.

A) Direct
B) Indirect
C) Mutual
D) Non
E) Both A and B

Question 21

The oft-quoted business mantra, "product, place, presentation," is broadly accepted as critical for retail stores.

Question 22

Wholesale businesses face many of the same options and criteria as manufacturers, although with more constraints on their operations.

Question 23

For locating distribution centers, you can use a ________ method. This approach calculates the best cost location for a single distribution center serving multiple outlets, whether company retail locations or customer sites.

A) Center-of-gravity
B) Center-of-rotation
C) Center-of-importance
D) Center-of-seriousness
E) None of the above

Question 24

What's important to a specialty retailer at a brick-and-mortar location will be the same for a service business.

Question 25

One consideration for home business is ________, the portion of your home used for business versus your living area.

A) Space percentage
B) Room percentage
C) Space proportion
D) Gap percentage
E) Space fraction

Question 26

Which of the following is not considered using the center-of-gravity approach?

A) The location of the destinations
B) How much product will be shipped to them
C) The frequency of delivery
D) The cost of delivery
E) The per-unit cost of the product

Question 27

For manufacturing, warehousing, and distribution firms, key considerations include ________.

A) Capacity for efficient movement of materials, equipment, and people
B) Flexibility to adapt to changing business requirements
C) Loading docks and vehicle access for deliveries and outbound shipments
D) Environment conducive to work requirements
E) All of the above

Question 28

A decidedly more low-tech approach to assessing location is to collect ________ information via the U.S. Census Bureau to create location options for consideration.

A) Demographic
B) Psychographic
C) Geographic
D) Competitive
E) All of the above

Question 29

A critical success factor on the country selection level is site size and cost.

Question 30

Retail facilities must meet all of the following business requirements except ________.

A) Appropriate selling area and configuration of that space
B) Space for offices, storage, restrooms, deliveries, and other special needs
C) Signage for rules/regulations
D) Parking that is adequate for the anticipated customer volume
E) Private area for female customers to attend to children

Question 31

Traffic generators are complementary businesses that attract customer traffic to the retailer's area, and can significantly increase revenue generation.

Question 32

Changes to adapt a leased building for a particular business are called ________.

A) Leasehold improvements
B) Leasehold developments
C) Building improvement funds
D) Client developments
E) Expensive

Question 33

Visibility is one of the key factors in deciding upon a location.

Question 34

A firm wishing to convey an upscale, high-end image will be better served by locating in an elegant suite in a prestigious office building than in a down-scale strip mall outside of town.

Question 35

In most cases, parking is required for all of the following except ________.

A) Commercial vehicles
B) Employees
C) Visitors or customers
D) Handicapped
E) VIPs

Question 36

If a product is made through a continuous process, which layout is likely to be best?

A) Product layout
B) Process layout
C) Fixed-position layout
D) All of the above
E) None of the above

Question 37

Distribution cost efficiencies can save money and be a competitive advantage.

Question 38

As a retailer, you will have to concentrate on the drawing power of your location, the match between your target market and the demographics of the customer-drawing area, and the competitive environment.

Question 39

Manufacturing facilities have multiple-location-criteria considerations that are primarily centered on customer service and destination.

Question 40

________ is done by using cost-volume analysis.

A) Location breakeven analysis
B) Location profit analysis
C) Location competition analysis
D) Location traffic analysis
E) Location customer analysis

Question 41

Selling space is actual retail floor space including storage and warehousing, administrative, and utility areas.

Question 42

What is the best method of evaluating location for your business? Apply this method.

Question 43

If you have a home-based venture, you will have to create an area in your living space where your business operations can occur.

Question 44

Generic structures work well for businesses such as restaurants or hotels.

Question 45

Name some considerations for the layout of your business. What areas of layout are more important? Why?

Question 46

When evaluating locations for your business, it is safe to assume that your perceptions are entirely correct.

Question 47

Physicians, dentists, and other health care providers often locate in areas where the population fits the service's target demographics and frequently near other health care providers or close to hospitals.

Question 48

What might be traffic generators for a retail business selling mid-range jewelry?

Question 49

Apply the key factors of location for a business idea. List which items are more important, and explain why they are important to your business success.

Question 50

Identify the type of business you want (retail, manufacturing, wholesale, etc.) and discuss options and criteria for choosing a location for that type of business.