Why Is the Selection of a Retail Location So Critical

question 172

Multiple Choice

Why is the selection of a retail location so critical to a store's success?

• A)Location affects pricing decisions but does not affect store image.
• B)Customers will not drive out of their way to find a store.
• C)A location decision ties up funds that will not appreciate or gain in value.
• D)A location decision typically requires large,semipermanent commitment of resources.
• E)Employee density is affected by the area in which the store is located.

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Definitions:

Current Assets

Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer.

Property, Plant, and Equipment

Long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in normal business operations.

Adjusted Trial Balance

A financial report that lists all accounts and their balances after adjustments, used to verify the equality of debits and credits after adjustments.

Income Statement

A financial statement that reports a company's financial performance over a specific period, detailing revenue, expenses, and profits or losses.