Question 1

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 "trading area" refers to the geographic area from which a business can reasonably expect to draw customers. Options A, B, and D are not accurate descriptions of this concept.

Question 2

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

The statement is true. The friendliness of the business environment is a crucial factor in location selection, and there are resources available to provide unbiased information for evaluation.

Question 3

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 4

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 5

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 6

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 (Option C) and is calculated as the ratio of a trading area's sales potential to its sales capacity (Option B). Option A is not a correct definition of the index of retail saturation.

Question 7

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 8

A variance is a special exemption to a zoning ordinance.

Accepted Answer

A variance is a type of relief granted by a local zoning board that allows a property owner to deviate from the strict requirements of a zoning ordinance.

Question 9

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

Accepted Answer

Many entrepreneurs prioritize quality of life when choosing where to live and work.

Question 10

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 11

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

Accepted Answer

The success of a Tiffany & Company store largely depends on its compatibility with the community it serves. A high-end luxury brand like Tiffany & Company will perform better in a location where there is a high concentration of affluent consumers who have the means and desire to buy luxury goods. Therefore, choosing a location that is compatible with the target market is crucial for the success of a Tiffany & Company store.

Question 12

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

When a location has multiple business failures within a short time frame, it can create a perception that the area is not profitable or desirable for businesses. This negative image can make it difficult for new businesses to succeed in that location.

Question 13

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

This statement is true. By knowing the type of labor needed and creating job descriptions and specifications in advance, a business owner can ensure that they are attracting and selecting candidates who have the necessary skills and qualifications for the job. This can help to ensure a better fit with the available labor pool.

Question 14

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

Matching the labor force with the available labor pool in a particular location helps ensure that the business has access to the necessary skills and expertise required to operate effectively. This can help reduce recruitment and training costs, as well as improve overall productivity and performance.

Question 15

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 principle states that shopping facilities should be placed near one another if their operations are compatible. In this case, Nature's Way being a health food store and located next to a fitness center (Silver's Gym) caters to similar customer needs and hence, follows the retail compatibility principle.

Question 16

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

Accepted Answer

The answer of Zoning is a system for mixing types...

Question 17

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...

Question 18

Refer to the following information to answer the following questions.
An entrepreneur considering two sites for a men and boys shop determines that she/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 answer of Refer to the following information to answer...

Question 19

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...

Question 20

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

Accepted Answer

While the prevailing wage rate may be a factor in evaluating the labor supply in an area, there are many other factors to consider such as the availability of skilled workers, the education level of the workforce, and the overall job market conditions.

Quiz 14: Choosing the Right Location and Layout

The region from which a business can expect to draw its customers over a reasonable time span is called its ________.

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

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 index of retail saturation ________.

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.

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.

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

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

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.

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.

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.

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?

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

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

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

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