How to choose a location for a retail business - Exam
  • 1. What is the MOST important factor to consider when choosing a retail location?
A) Proximity to the owner's home
B) Landscaping
C) Building aesthetics
D) Customer traffic
  • 2. What is meant by 'foot traffic'?
A) The number of employees
B) The number of people walking past a potential location
C) Car traffic
D) Shipping deliveries
  • 3. Which of these describes a complementary business?
A) A law firm above a bakery
B) Two competing clothing stores
C) A coffee shop next to a bookstore
D) A pet store selling electronics
  • 4. What is 'zoning'?
A) Local laws regulating land use
B) The building's security system
C) The store's return policy
D) The price of real estate
  • 5. Why is understanding demographics important?
A) To choose the best paint color
B) To get better loan rates
C) To predict the weather
D) To ensure the location's customers match your target market
  • 6. What is a 'trade area'?
A) The geographic area from which a business draws its customers
B) The area with the lowest property taxes
C) The area where employees live
D) The area where the business receives shipments
  • 7. What does 'visibility' refer to in location selection?
A) The number of employees working
B) The cleanliness of the store
C) How easily customers can see your business from the street
D) The brightness of the lights
  • 8. What is a 'anchor tenant' in a shopping center?
A) The store with the most employees
B) A large, well-known store that attracts customers
C) The store with the longest lease
D) The store closest to the entrance
  • 9. What is a potential downside of locating in a high-traffic area?
A) More employee applicants
B) Lower operating costs
C) Better parking availability
D) Higher rent
  • 10. Which of the following is a 'pull factor'?
A) A unique product or service
B) Lack of parking
C) Poor visibility
D) High crime rate
  • 11. What is the significance of parking availability?
A) Convenient parking attracts more customers
B) Parking is irrelevant to retail success.
C) Parking generates revenue for the store
D) Parking reduces insurance costs
  • 12. What is the best approach for evaluating potential sites?
A) Trust your gut feeling
B) Choose the location closest to your home
C) Compare multiple locations using defined criteria
D) Choose the cheapest option
  • 13. What is the typical timeframe for a commercial lease?
A) 6 months
B) 3-5 years
C) 10+ years
D) 1 year
  • 14. What should you do before signing a lease?
A) Assume all leases are standard
B) Consult with a real estate attorney
C) Rely solely on the landlord's advice
D) Skip reading the lease to save time
  • 15. What is a 'NNN' lease?
A) A lease that is always a bad deal.
B) Landlord pays all expenses.
C) Tenant pays rent, property taxes, insurance, and maintenance.
D) Tenant pays only rent.
  • 16. What is the definition of 'Gross Leasable Area (GLA)'?
A) The area used for storage only.
B) The total floor area designed for tenant occupancy and exclusive use.
C) The total area of the entire building.
D) The parking lot area.
  • 17. Why is accessibility important?
A) Easy access for all customers, including those with disabilities
B) Only important for delivery trucks
C) Irrelevant if you have good marketing
D) Only matters for online businesses
  • 18. What is a 'drive-by location'?
A) A location easily seen by people driving by
B) A location next to a highway off-ramp
C) A location with a drive-through window
D) A location with a car wash
  • 19. Which location would be ideal for a high-end clothing boutique?
A) Industrial park
B) Upscale shopping district
C) Rural area
D) Next to a factory
  • 20. What type of retail business would benefit most from a location near a college campus?
A) Luxury car dealership
B) Bookstore
C) Golf supply store
D) Antique store
  • 21. What is a 'lease option'?
A) The right to buy the building
B) The right to sublet the space
C) The right to extend the lease term
D) The right to terminate the lease early without penalty
  • 22. What does 'CAM' stand for in a lease agreement?
A) Customer Acquisition Marketing
B) Cash Asset Management
C) Common Area Maintenance
D) Company Advertising Management
  • 23. Which of the following is a 'push factor'?
A) Good visibility
B) Affordable rent
C) High customer traffic
D) High crime rate in the area
  • 24. What is 'market saturation'?
A) Low customer demand.
B) Too many similar businesses in the same area.
C) A business dominating the market.
D) High levels of competition.
  • 25. Why is competition analysis important?
A) To understand the strengths and weaknesses of your competitors.
B) Competition isn't important
C) To copy your competitors' strategies.
D) To avoid competition altogether.
  • 26. What is the meaning of 'site frontage'?
A) The length of the property line facing the street.
B) The depth of the store.
C) The height of the building.
D) The area of the parking lot.
  • 27. Which is usually the biggest impact on sales?
A) Location
B) Customer Service
C) Product Quality
D) Marketing
  • 28. What is a 'percentage lease'?
A) Lease based on the Landlord's tax percentage.
B) Rent increases by a fixed percentage each year.
C) Rent is a percentage of the store's revenue.
D) Rent paid in percentages.
  • 29. What does 'build-out' refer to?
A) Demolishing a building
B) Constructing a new building
C) Customizing a space for a specific business
D) Painting the walls.
  • 30. What is the first step in choosing a location?
A) Purchase equipment
B) Find a real estate agent.
C) Define your target customer.
D) Sign a lease immediately.
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