Which of the Following Is FALSE in Describing Different Categories

question 22

Multiple Choice

Which of the following is FALSE in describing different categories of trade areas?

• A)The primary trading area is the geographic area from which the shopping center or store site attracts 80% of its customers.
• B)The secondary trading area is the geographic area of secondary importance in terms of customer sales,generating about 20-30 percent of the site's customers.
• C)The tertiary trading area includes the area where customers who shop at store are coming from widely dispersed areas.
• D)The best way to define the three trade zones is based on driving time rather than distance.

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Definitions:

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to the selection of poorer-quality goods or higher-risk individuals.

Seller Ratings

Evaluations or scores given to sellers on e-commerce platforms, based on the quality of their products, shipping speed, and customer service.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks, often seen in insurance and financial sectors.

Federal Deposit

Funds deposited in a federal bank or a financial institution that is guaranteed by a government agency.