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Retail
Nonretail
Lease or Buy
Layout
Purchasing
100
What is a disadvantage of locating a retail business in a downtown area?

a. Rent is high making it difficult to make a profit.
b. Customers only come from immediate area.
c. Often lose business to suburbs.
d. Workers from downtown offices may shop.
c. Often lose business to suburbs.
100
For which of the following service businesses would location NOT be a big priority?

a. Edward's Restaurant.
b. Central Heating & Plumbing.
c. Lisa Renee's Beauty Salon.
d. Anytime Fitness.
b. Central Heating & Plumbing.
100
A tenant is the person that

a. pays rent to occupy a space owned by a landlord.
b. owns and rents out a building or a space.
c. comes to a nonretail business to purchase services.
d. is also known as a landlord.
a. pays rent to occupy a space owned by a landlord.
100
The floorplan of a business must include space for which of the following?

a. Equipment.
b. Restrooms.
c. Storage.
d. All of the above.
d. All of the above.
100
Types of furniture needed by most businesses include all of the following except:

a. Chairs.
b. Bookcases.
c. Filing Cabinets.
d. Computers.
d. Computers.
200
What is a key advantage of a Stand-Alone Store?

a. Offer depth and variety of products or services.
b. Competing business is less likely to be next to store.
c. Affordable rent, can earn higher profit.
d. Workers from downtown offices may shop.
b. Competing business is less likely to be next to store.
200
Disadvantages of a Home Based Business include all of the following except:

a. Lack of space can limit expansion.
b. Cost savings.
c. Hard to keep business and family life separate.
d. Feel isolated from business community.
b. Cost savings.
200
Advantages to leasing include all of the following except:

a. Less money needed upfront than buying.
b. Not locked into a particular location.
c. Owner of property may have to pay upkeep on physical location; not business owner.
d. Bigger tax advantage when compared to buying.
d. Bigger tax advantage when compared to buying.
200
Which of the following local businesses has Appearance as its primary layout goal?

a. Central Heating & Plumbing
b. Paul's Beverages
c. McDonald's
d. Klafter's
c. McDonald's
200
Maintenance supplies needed by most businesses include all of the following except:

a. Mops.
b. Brooms.
c. Coffee Maker.
d. Window Cleaner.
c. Coffee Maker.
300
Which of the following is an example of a Super-Regional Shopping Center?

a. Ross Park Mall.
b. Field Club Commons.
c. Shenango Valley Mall.
d. Lawrence Village Plaza.
a. Ross Park Mall.
300
Why is location not a priority for a carpet cleaning business?

a. Customers will visit no matter where the business is located.
b. Customers do not normally visit.
c. Customers are provided other incentives to visit.
d. None of the above.
b. Customers do not normally visit.
300
What is one way of comparing the costs of one location versus another?

a. Compare merchandise costs at one location versus the other.
b. Calculating rent per customer, based on projected customer traffic per month for each location.
c. Check employee benefits costs for each location.
d. Verify fire insurance costs at each location.
b. Calculating rent per customer, based on projected customer traffic per month for each location.
300
A type of store layout designed to lead customers throughout the store and back to the front is called a

a. Grid.
b. Loop.
c. Free Flow.
d. Spine.
b. Loop.
300
Factors to consider when purchasing inventory include:

a. Having enough inventory to sell to customers.
b. The storage cost of inventory.
c. Reorder point.
d. All of the above.
d. All of the above.
400
A Strip Mall is

a. A containment of stores serving a large area that is usually an enclosed building with an adjacent parking lot.
b. An unenclosed shopping area that has evolved without a lot of planning and features a variety of stores.
c. A store that is unattached to other stores.
d. A neighborhood space composed of a group of separate stores connected by sidewalks and have parking lots in front of the stores.
d. A neighborhood space composed of a group of separate stores connected by sidewalks and have parking lots in front of the stores.
400
An Industrial Park is

a. An area that suffers from lack of employment opportunities.
b. A neighborhood space composed of a group of separate stores.
c. Land that is zoned for industrial businesses.
d. A containment of stores serving a large area.
c. Land that is zoned for industrial businesses.
400
A type of lease in which the tenant pays for everything except building insurance is known as a

a. Gross Lease
b. Percentage Lease
c. Net Lease
d. Sales Lease
c. Net Lease
400
Store furnishings that are used to hold and display merchandise are known as

a. Fixtures.
b. Aisles.
c. Containers.
d. Caps.
a. Fixtures.
400
An inventory system that keeps track of stock items on a continual basis is known as a

a. Physical Inventory System.
b. Periodic Inventory System.
c. Perpetual Inventory System.
d. Specialized Inventory System.
c. Perpetual Inventory System.
500
You are considering leasing a store site that has 1,200 square feet. The landlord is asking for a rent of $60 per square foot, per year. How much is the rent per month?

a. $25,000
b. $17,000
c. $6,000
d. $4,000
c. $6,000
500
For which of the following local service businesses is location important?

a. Soni's Restaurant.
b. DiCaprio Cleaning Service.
c. High Hill Lawn Service.
d. Bintrim Plumbing & Heating.
a. Soni's Restaurant.
500
You must make a decision about whether to purchase new merchandise displays for your store. You can buy displays for $5,000. You don't have the money to buy the displays so you will have to get a 5 year loan at a 9% interest rate. If you buy the displays, what is the total amount of money you will have paid for them over 5 years? [Hint: You can Google "loan calculator" to help you answer this question.]

a. $5,340.19
b. $12,892.25
c. $6,227.40
d. $9,581.12
c. $6,227.40
500
A type of store layout for merchandise that is characterized by long rows of shelves with aisles between rows is known as

a. Loop.
b. Grid.
c. Free Flow.
d. Spine.
b. Grid.
500
The stock turnover for Woolworth's Department Store has been falling in recent months. It was 5 in January, 4.2 in February, and 3.8 in March. What is a possible explanation for this?

a. Sales may be down.
b. Average inventory may be decreasing.
c. Operating expenses have increased.
d. All of the above.
a. Sales may be down.