A Clothing Chain Is Considering Two Different Locations for a New

question 77

Multiple Choice

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown on the left. The manager has rated each location on each factor, on a 100-point basis, as shown on the right. $$\begin{array} { | c | c | c | } \hline \text { Factor } & \text { Factor Description } & \text { Weight } \\\hline 1 & \text { Average community income } & .40 \\\hline 2 & \text { Community growth potential } & .25 \\\hline & \text { Availability of public } & \\3 & \text { transportation } & .15 \\\hline 4 & \text { Labor cost } & .20 \\\hline\end{array}$$
$$\begin{array} { | c | c | } \hline \text { Barclay } & \text { Chester } \\\hline 30 & 20 \\\hline 40 & 30 \\\hline 20 & 20 \\\hline 10 & 30 \\\hline\end{array}$$
What is the score for Chester?

• A) 10.00
• B) 24.50
• C) 25.75
• D) 27.00
• E) 100.00

---

Definitions:

Entrepreneurial Firms

Companies that pursue opportunities, regardless of the resources they currently control, characterized by innovation, risk-taking, and proactiveness.

Investing Wisely

The process of allocating resources, typically money, in different financial instruments or assets with the aim of generating favorable returns while managing risks.

Flexible

The ability to adapt to changes and respond to varying needs and conditions with ease.

Succession Plan

A strategy for passing on leadership roles, often including the ownership of a company to an heir or successor.