When Evaluating Existing Buildings, Retailers

question 106

Multiple Choice

When evaluating existing buildings, retailers:

• A) need to find the lowest cost per square foot possible due to the need for maximum display space.
• B) should locate in store space previously occupied by a similar type of business.
• C) should recognize that the store's appearance and layout create an image for the customers of the business.
• D) can discount the interior appearance of the building if it has a strong exterior appeal.

---

Definitions:

Depreciated

The decrease in the value of an asset over time due to wear and tear or obsolescence.

Modified Accelerated Cost Recovery System

A method of depreciation in the U.S. tax code that allows for faster asset depreciation in the early years of the asset's life.

U.S. Federal Income Tax

The financial charge imposed annually by the Internal Revenue Service on the income of individuals, corporations, trusts, and various legal entities.

Depreciating Assets

Assets that lose value over time due to use, wear and tear, or obsolescence, such as machinery, vehicles, and buildings.