Ch 8-2 Review

Most entrepreneurs prefer to lease space for their businesses.

• True

• False

In a gross lease, the landlord pays property taxes and the tenant pays rents, insurance, and any other expenses.

• True

• False

The percentage lease is most common for prime retail locations.

• True

• False

You should always consult an attorney before signing a commercial lease agreement.

• True

• False

Rent per customer equals the amount of rent times the number of projected customers.

• True

• False

A scale drawing of your floor plan will help identify potential problems in your layout.

• True

• False

Wholesales should design a layout that facilitates shipping and receiving.

• True

• False

Attractiveness is the most important design factor for a manufacturing business.

• True

• False

Most entrepreneurs lease business space because

• it helps them obtain financing

• they prefer to stay in a particular location

• they lack the money to purchase property

• all of these

A lease in which the landlord pays all property expenses is a:

• net lease

• gross lease

• tax-free lease

• percentage lease