Adding a new content-type: is it possible for a field to reference an already-existing node?

For a new site I'm building, I'd like to set up an 'event' content-type, one field of which is a 'location'.

Is it possible for me to define a 'location' content-type (containing information about that location - map, opening hours etc.) and then refer to that in the 'event' type?

Ideally, when authoring an 'event' you would then be able to select a location from a drop-down list. When auhoring is complete, the location would of course be a link to the 'location' node.

Sorry for the 'newbie' question - I'm new to D7 (last used D5 some years ago) and am finding that there is a lot of outdated/irrelevant information - there doesn't seem to be a great way of filtering!!