| LordChicken |
A "lot" is assumed to contain numerous buildings, at least one of which is the building type the kingdom has purchased. So a lot containing a house is assumed to be several residential properties of decent quality (compared to the slums of a tenement). In addition, buildings will have an appropriate support structure, so for example an inn will have areas for livestock, possibly a small bakery, a brewery, and places for the employees to live, as well as some small shops and workshops (perhaps a carpenter for furniture and a seamstress). These "supporting businesses" aren't the primary focus of the lot, but can be assumed to be present simply because of the needs of the lot, and their impact on the settlement/kingdom is rolled into the stats for the "primary business".
Because we all know that settlements are rarely tidy, and hugely unlikely to be square, you can spread lots and supporting businesses around your "real" settlement map however you like. I would suggest attempting to stick close to the limits about adjacent buildings/features, but other than that, map your city out however you wish.
Thank you.