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