A retailer seeking a stable economic environment should seek a trading area with a ________.
A) large retired population
B) diversified economic base
C) large government facility
D) booming economy

Question

Quizplus · Accepted Answer

A diversified economic base provides stability because if one industry or sector experiences a downturn, other industries can help offset the impact. A large retired population may not provide a stable economic environment as they may have fixed incomes and not as much disposable income to spend on retail goods. A large government facility may be stable but not necessarily create a stable economic environment if it is the only major employer in the area. A booming economy may seem attractive, but it can be volatile and subject to fluctuations.

A Retailer Seeking a Stable Economic Environment Should Seek a Trading