Question 1

Poorly planned layouts undermine employee productivity and create organizational chaos.

Accepted Answer

A) True 
 B)False  True

Question 2

The U.S.Census Department's "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers.

Accepted Answer

A) True 
 B)False  True

Question 3

Identify and explain the criteria a small business owner should consider when selecting the state in which to operate his/her business.

Accepted Answer

•PROXIMITY TO MARKETS.Locating close to the markets they plan to serve is critical to manufacturers,especially when the cost of transporting finished goods is high relative to their value.Locations near customers offer a competitive advantage.
•PROXIMITY TO NEEDED RAW MATERIALS.A business that requires raw materials that are difficult or expensive to transport may need a location near the source of those raw materials.Some companies locate close to the source of raw materials because of the cost of transporting heavy low-value materials over long distances.
•LABOR SUPPLY.Two factors are important for entrepreneurs analyzing the labor supply in a potential location: the number of workers available in the area and their level of education,training,and experience.
•WAGE RATES.Wage rates provide another measure for comparison among states.Entrepreneurs should determine the wage rates for jobs that are related to their particular industry or company.In addition to published government surveys,the help wanted ads in local newspapers can give entrepreneurs an idea of the wages local companies must pay to attract workers.What trends have emerged in wage rates over time? How does the rate of increase in wage rates compare among states? Another factor influencing wage rates is the level of union activity in a state.
•BUSINESS CLIMATE.Assessing the business climate provides important information about the environment.What is the state's overall attitude toward this type of business? Has the state passed laws that impose restrictions on the way a company can operate? Does the state impose a corporate income tax? Is there an inventory tax? Does the state offer small business support programs or financial assistance to entrepreneurs? Some states have created environments that are much more "entrepreneur friendly" than others.
•TAX RATES.Another important factor entrepreneurs must consider is the tax burden that states impose on businesses and individuals.Income taxes may be the most obvious tax states impose on both business and individual residents,but entrepreneurs also must evaluate the impact of payroll taxes,sales taxes,property taxes,and specialized taxes on the cost of their operations.
•INTERNET ACCESS.Fast and reliable Internet access is another important factor in the location decision.Internet access through high-speed cable or DSL lines is essential for high-tech companies and those engaging in e-commerce.

Question 4

The Americans with Disabilities Act requires all companies to make their facilities accessible to disabled customers and employees.

Accepted Answer

A) True 
 B)False

Question 5

Wall coverings are expensive but essential in almost any small business for employee job satisfaction and customer enjoyment.

Accepted Answer

A) True 
 B)False

Question 6

An "incubator" is a facility with low rent that permits start-up small businesses to share resources.

Accepted Answer

A) True 
 B)False

Question 7

The value of the floor space in a retail store depends upon:

Accepted Answer

A) the merchandise in that area. 
B) the type of store and customer. 
C) the number of salespeople servicing the area. 
D) its proximity to aisles and entrances. 
A) the merchandise in that area. 
B) the type of store and customer. 
C) the number of salespeople servicing the area. 
D) its proximity to aisles and entrances.

Question 8

When doing a traffic count,the total number of shoppers passing by is the critical factor in evaluating the site.

Accepted Answer

A) True 
 B)False

Question 9

The first phase in determining where to locate a business is:

Accepted Answer

A) choosing what state the business owner wants to move to. 
B) determining which city has the demographics that fit the business best. 
C) conducting an Internet search for information on the cities of choice and competitors in those cities. 
D) determining what regions in the country have what the new business needs to succeed. 
A) choosing what state the business owner wants to move to. 
B) determining which city has the demographics that fit the business best. 
C) conducting an Internet search for information on the cities of choice and competitors in those cities. 
D) determining what regions in the country have what the new business needs to succeed.

Question 10

It is critical for all retail and service businesses to be located as far from competitors as possible.

Accepted Answer

A) True 
 B)False

Question 11

An automobile assembly plant is an example of the product layout.

Accepted Answer

A) True 
 B)False

Question 12

The manufacturing layout that arranges workers and equipment according to sequence of operation and is best suited for highly standardized or mass-produced products is called:

Accepted Answer

A) process layout. 
B) fixed-position layout. 
C) function layout. 
D) product layout. 
A) process layout. 
B) fixed-position layout. 
C) function layout. 
D) product layout.

Question 13

Some cities develop ________ in cooperation with private industry for the benefit of manufacturers.

Accepted Answer

A) incubators 
B) central business districts 
C) industrial parks 
D) high visibility locations 
A) incubators 
B) central business districts 
C) industrial parks 
D) high visibility locations

Question 14

The three factors that influence the size of the retail trading area are: type and price of products,type of the business,and the demographics of the area.

Accepted Answer

A) True 
 B)False

Question 15

Shopping malls typically average ________ parking spaces per ________ square feet of shopping space.

Accepted Answer

A) 10;1,000 
B) 5;1,000 
C) 15;5,000 
D) 3;1,000 
A) 10;1,000 
B) 5;1,000 
C) 15;5,000 
D) 3;1,000

Question 16

Central business districts have convenient and safe parking.

Accepted Answer

A) True 
 B)False

Question 17

Lighting is an inexpensive investment for improving employee performance and the overall appearance of the business.

Accepted Answer

A) True 
 B)False

Question 18

A central business district is:

Accepted Answer

A) the traditional center of town. 
B) a plan that contains 12 to 50 stores and has a department store as a leading tenant. 
C) a type of "mall" that has experienced 1500 percent growth over the last 5 years. 
D) a shopping area that draws its customers primarily from the immediate local area. 
A) the traditional center of town. 
B) a plan that contains 12 to 50 stores and has a department store as a leading tenant. 
C) a type of "mall" that has experienced 1500 percent growth over the last 5 years. 
D) a shopping area that draws its customers primarily from the immediate local area.

Question 19

Michael Porter defines clustering as: "geographic concentrations of interconnected companies and institutions in a particular field that encompass an array of linked industries and other entities important to competition."

Accepted Answer

A) True 
 B)False

Question 20

The area from which a small business expects to draw customers over a reasonable time span is its:

Accepted Answer

A) trading area. 
B) metropolitan statistical area. 
C) enterprise zone. 
D) incubator. 
A) trading area. 
B) metropolitan statistical area. 
C) enterprise zone. 
D) incubator.

Exam 16: Location,layout,and Physical Facilities

Poorly planned layouts undermine employee productivity and create organizational chaos.

The U.S.Census Department's "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers.

Identify and explain the criteria a small business owner should consider when selecting the state in which to operate his/her business.

The Americans with Disabilities Act requires all companies to make their facilities accessible to disabled customers and employees.

Wall coverings are expensive but essential in almost any small business for employee job satisfaction and customer enjoyment.

An "incubator" is a facility with low rent that permits start-up small businesses to share resources.

The value of the floor space in a retail store depends upon:

When doing a traffic count,the total number of shoppers passing by is the critical factor in evaluating the site.

The first phase in determining where to locate a business is:

It is critical for all retail and service businesses to be located as far from competitors as possible.

An automobile assembly plant is an example of the product layout.

The manufacturing layout that arranges workers and equipment according to sequence of operation and is best suited for highly standardized or mass-produced products is called:

Some cities develop ________ in cooperation with private industry for the benefit of manufacturers.

The three factors that influence the size of the retail trading area are: type and price of products,type of the business,and the demographics of the area.

Shopping malls typically average ________ parking spaces per ________ square feet of shopping space.

Central business districts have convenient and safe parking.

Lighting is an inexpensive investment for improving employee performance and the overall appearance of the business.

A central business district is:

Michael Porter defines clustering as: "geographic concentrations of interconnected companies and institutions in a particular field that encompass an array of linked industries and other entities important to competition."

The area from which a small business expects to draw customers over a reasonable time span is its:

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

Filters

Shopping malls typically average parking spaces per square feet of shopping space.