Question 1

Discuss the various sources of information available to the small business owner for deciding in which region of the country to locate her/his business.

Accepted Answer

The answer of Discuss the various sources of information available...

Question 2

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 used to describe the region from which a business can expect to draw its customers is its trading area. The other options, enterprise zone, zoning area, and retail draw, do not accurately describe the region from which customers are drawn.

Question 3

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, which is described in option C. It is also calculated by taking the ratio of a trading area's sales potential to its sales capacity, as stated in option B. Therefore, options B and C are correct, making option D the best choice. Option A is not correct as it involves retail expenditures, which are not used in the calculation of the index of retail saturation.

Question 4

A location that has housed several businesses that have failed within the past few years is likely to have a bad reputation and a negative image.

Accepted Answer

A location that frequently sees businesses fail may be seen as undesirable or non-profitable, leading to a negative reputation and image.

Question 5

A variance is a special exemption to a zoning ordinance.

Accepted Answer

A variance is a special permit granted to a property owner that allows them to deviate from the requirements of a zoning ordinance.

Question 6

For many entrepreneurs, quality of life is one of the key determinants of their choice of locale.

Accepted Answer

Many entrepreneurs consider quality of life as an important factor when choosing a location for their business.

Question 7

Refer to the following information to answer the following questions.
An entrepreneur considering two sites for a men and boys shop determines that (s)he needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential customers who spend an average of $160.20 per year on men and boys wear. Two competitors occupy 14,200 square feet of space. Site #2 has 10,800 potential customers who spend an average of $152.10 per year on men and boys wear. One competitor has 10,000 square feet.
-The index of retail saturation for site #1 is $________.
A)150.21
B)168.51
C)152.30
D)166.19

Accepted Answer

The index of retail saturation is calculated by dividing the total potential sales by the total square footage of competitors. For site #1: (13,500 customers * $160.20) / 14,200 sq ft = $168.51.

Question 8

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

Accepted Answer

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

Question 9

The primary variable(s)that influence(s)the scope of a trading area is/are the ________.
A)character of the transportation network
B)nature of competing businesses
C)type and size of the business operation
D)racial and political barriers in the local community

Accepted Answer

The answer of The primary variable(s)that influence(s)the scope of a...

Question 10

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)Trade area
B)Retail consistency
C)Retail compatibility
D)Zoning

Accepted Answer

Retail compatibility, also known as co-tenancy or clustering, refers to the phenomenon of stores that complement each other's merchandise and services locating near one another to create a convenient shopping experience. In this case, Nature's Way and Silver's Gym complement each other as both promote a healthy lifestyle, making them compatible and appealing to potential customers who are health-conscious.

Question 11

Mini-Case 14-2: "It's a Great Location for a Bar"
Fred Stanford has just completed bartenders' school in Los Angeles and is ready to build a life for himself. Sunday's paper has an ad in the business opportunities section for a bar in Mesa Verde, Colorado. Fred has heard that the West is a high growth area and the quality of life in Colorado is very good. Fred's best friend, Carl, begins to ask Fred some questions about his new idea. "To begin with, Fred, where is Mesa Verde, Colorado?"
Fred decides to call the telephone number in the ad and is put in touch with Ansel King, a business broker located in Pueblo, Colorado. When asked where in Colorado Mesa Verde was, Ansel was prompt to point out that it was only 35 miles from Pueblo on the Interstate and has a population of nearly ten thousand. "Fred, this town is a great location for a bar, and I have just the kind of deal for a young man like you looking to get started."
-What city-related factors does Fred need to consider when evaluating this community as a location for a bar?

Accepted Answer

The answer of Mini-Case 14-2: "It's a Great Location for...

Question 12

The most important factor when evaluating the labor supply in an area is its prevailing wage rate.

Accepted Answer

The labor supply in an area is influenced by various factors, including but not limited to prevailing wage rate. Other important factors include demographics, education and skill level of the population, unemployment rate, availability of transportation, and prevailing industry in the area.

Question 13

The "friendliness" of the overall business environment is an important consideration in location selection and information is available to offer objective insight for this assessment.

Accepted Answer

This statement is true. The friendliness of the overall business environment can impact the success of a business and there are resources available to help assess this, such as government reports and surveys from business organizations.

Question 14

Zoning is a system for mixing types of business and industrial activities to make maximum efficient use of the area.

Accepted Answer

Zoning is a system used to designate specific areas for different types of land use, such as residential, commercial, or industrial, to ensure organized development and prevent conflicts between incompatible uses.

Question 15

The choice of the location for a Tiffany & Company should be determined by the compatibility with the community it will serve.

Accepted Answer

The location of a Tiffany & Company should be chosen based on how compatible it is with the community it will serve. This is important to ensure that the brand can effectively engage consumers and meet their needs.

Question 16

What publications could Fred use to investigate whether or not this is a good region for this bar?

Accepted Answer

The answer of What publications could Fred use to investigate...

Question 17

When choosing a location, a small business owner should match the characteristics of the labor force her/his company requires with the characteristics of an area's available labor pool.

Accepted Answer

It is important for a small business owner to consider the characteristics of the local labor force when choosing a location. This includes factors such as education level, skills, and experience needed for the company's operations. Matching these requirements with the available labor pool in a certain area can help ensure a successful business.

Question 18

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

Accepted Answer

Knowing the type of labor needed and preparing job descriptions and specifications in advance can help a business owner determine if there is a good match with the available labor pool. This proactive approach can save time and resources in the hiring process and increase the chances of finding qualified candidates.

Question 19

Identify and explain five of the eight criteria a small business owner should consider when selecting the state in which to locate her/his business.

Accepted Answer

The answer of Identify and explain five of the eight...

Question 20

Identify and briefly discuss the eight factors an entrepreneur should consider when selecting the city in which to locate her business.

Accepted Answer

The answer of Identify and briefly discuss the eight factors...

Quiz 14: Choosing the Right Location and Layout

Discuss the various sources of information available to the small business owner for deciding in which region of the country to locate her/his business.

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 ________.

A location that has housed several businesses that have failed within the past few years is likely to have a bad reputation and a negative image.

A variance is a special exemption to a zoning ordinance.

For many entrepreneurs, quality of life is one of the key determinants of their choice of locale.

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

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

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 most important factor when evaluating the labor supply in an area is its prevailing wage rate.

The "friendliness" of the overall business environment is an important consideration in location selection and information is available to offer objective insight for this assessment.

Zoning is a system for mixing types of business and industrial activities to make maximum efficient use of the area.

The choice of the location for a Tiffany & Company should be determined by the compatibility with the community it will serve.

What publications could Fred use to investigate whether or not this is a good region for this bar?

When choosing a location, a small business owner should match the characteristics of the labor force her/his company requires with the characteristics of an area's available labor pool.

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

Identify and explain five of the eight criteria a small business owner should consider when selecting the state in which to locate her/his business.

Identify and briefly discuss the eight factors an entrepreneur should consider when selecting the city in which to locate her business.