Deck 11: Selecting a Location and Planning the Facilities

Question 1

The site location is more important for a painting contractor than for a jewellery store with respect to their customers.

Answer 1

False

Question 2

A limitation of e-commerce continues to include security and privacy of Web operations.

Answer 2

True

Question 3

The main attraction to entrepreneurs for a home-based business relates to financial and family lifestyle considerations.

Answer 3

True

Question 4

Most landlords have a standard lease form and won't negotiate.

Question 5

The goal of an eCRM system is to build customer loyalty.

Question 6

A limitation of e-commerce is the cost of developing and maintaining a website.

Question 7

From a practical business standpoint,choosing to locate a business in one's home community has no advantages.

Question 8

All new ventures should be concerned with projecting the appropriate image to customers and the public at large.

Question 9

E-commerce means buying or selling products over the Internet.

Question 10

E-commerce initially had years of very fast growth but it is currently in decline due to the increase in cyber breaches.

Question 11

It is always better for a new start-up business to begin in a new building.

Question 12

To function successfully,owners of home-based businesses need to establish both spatial and nonspatial boundaries between the business and the home.

Question 13

The Internet makes dealing with global cultures and languages much easier than in the past.

Question 14

The two most widely used layout designs in retail stores are the grid pattern and the limited-flow pattern.

Question 15

Maintaining an image of professionalism is no longer a concern for home-based business owners because customers are now accustomed to children answering a business line,for instance.

Question 16

Customer accessibility is critically important in determining the location for an industrial packaging supplier.

Question 17

Entrepreneurs who locate their business at home rarely have conflicts between family and business demands.

Question 18

If the cost of shipping the finished product is high,the factory should probably be located near a source of raw materials.

Question 19

A separate space must be clearly devoted to business activities in order for the entrepreneur to claim a tax deduction.

Question 20

It is especially important for small businesses to create the impression of being a solid,professional company.

Question 21

What do small business incubator facilities provide?

A) long-term leases
B) temporary staff
C) management advice
D) stationery supplies

Question 22

Darlene owns a retro music store.During weekdays customer traffic is low so she has just one part-time staff member working.The store layout enables the staff worker to keep an eye on any customers even when organizing products and dusting shelves.What type of layout does Darlene use for her store?

A) product
B) process
C) grid pattern
D) functional

Question 23

Thomas is the production manager for a manufacturing operation.What would the major reason be for locating?

A) personal preference
B) environmental conditions
C) operating and purchasing costs
D) customer accessibility

Question 24

Anchor tenants' per square foot leasing cost is more than smaller shops as they require more space.

Question 25

A woman is planning to establish a business in her residence.What should she do to maintain a proper balance between family and business matters?

A) establish spatial and nonspatial boundaries
B) design a business-style letterhead that gives no hint of a home location
C) buy an answering machine
D) install a computer with a modem

Question 26

Electronic Customer Relationship Marketing (eCRM)is an electronically based system that emphasizes customer relationships.

Question 27

Supermarkets generally use a free-flow layout pattern.

Question 28

A retailer's primary concern about layout is the customer's overall shopping experience.

Question 29

A cutting machine for in-ground pool liners is a type of general-purpose equipment.

Question 30

B2B is a business model based on selling to business customers electronically.

Question 31

In selecting a location for her stained glass business,Monica wanted to be close to her glass supplier and in an area where she would be able to hire part-time staff for peak seasonal periods.What kind of business does Monica likely have?

A) professional
B) retail
C) service
D) manufacturing

Question 32

Jason's company manufactures storage containers.What basic considerations would enter into Jason's choice of a region to locate his manufacturing business?

A) availability of raw materials
B) federal taxes
C) neighbouring businesses
D) general economic conditions

Question 33

Auction sites like eBay generate most of their revenue through listing fees and commissions.

Question 34

Manufacturing equipment can be categorized as general-purpose and special-purpose.

Question 35

B2C is a business model based on selling to final customers electronically.

Question 36

Ken runs a magazine distribution company.Where in retail stores would Ken want his magazines placed?

A) on bottom racks where they are easy to reach
B) near service facilities where there is high traffic
C) on top racks out of the reach of children
D) at points where customers can see them easily

Question 37

The primary factor in determining the location for a sawmill would probably be proximity to the market.

Question 38

Home-based businesses are still considered second rate to out-of-home businesses.

Question 39

For which business would customer accessibility be the most critical factor in site evaluation?

A) a store that sells pianos
B) a drugstore
C) a plumber
D) an accountant

Question 40

Manufacturers are a type of business that must be located conveniently for consumers to be successful.

Question 41

Cassandra has started a giftware distribution company in time for the trade show season.Cassandra decided to rent building space for storing product.What is Cassandra's main reason for renting the facility rather than buying a building?

A) to avoid a large cash outlay
B) to have freedom in modifying the building
C) to avoid the interest payments on a mortgage
D) to avoid lawsuits owners of property can face

Question 42

Which primary advantage does an entrepreneur gain by leasing rather than buying facilities?

A) investment tax credit
B) decrease in investment risk
C) decrease in the amount of promotion required
D) customized layout

Question 43

Melanie runs a crafts business from her home.In order to claim expenses to reduce her taxes what must Melanie do to her home?

A) create separate spaced devoted to business activities
B) incorporate and register her business address
C) apply for special zoning privileges
D) purchase home business insurance

Question 44

Harry Hardwick is starting a job-order machine shop and is buying used equipment such as lathes,planing mills,and drill presses.What is the term for this type of equipment?

A) special-purpose
B) automated
C) general-purpose
D) product-layout

Question 45

What must an owner do to operate a successful home-based business in balance with his personal life?

A) change when the business is over one year old
B) make a cost analysis that clearly divides costs between the business and home
C) establish spatial and nonspatial boundaries between the business and the home
D) create separate parking spaces for clients

Question 46

Denise operates a large organic grocery store that draws many buyers to the mall within which it is located.Which term best describes Denise's store in relation to the mall?

A) anchor tenant
B) main attraction
C) first lessee
D) lead renter

Question 47

For which of the following is resource availability particularly important in a location decision?

A) a chartered accountant
B) a manufacturer
C) a management consultant
D) a venture capitalist

Question 48

What might make special-purpose equipment easier for small manufacturers to use?

A) The plant has mostly short production runs.
B) The plant produces a given product in a large enough volume.
C) The plant is set up in a process layout.
D) The plant produces one of a kind products.

Question 49

Kelsey plans to sell one of her classic vintage 1950s sports cars.What type of web-based site should she use to advertise the car in order to get the highest price possible?

A) business to consumer
B) information-based
C) auction site
D) transaction-based

Question 50

Roger's company distributes hand crafted crystal ornaments from Italy.Roger naturally wants his retail customers to place the ornaments in a location that will maximize sales.Where does Roger want retailers to place his key chains in their stores?

A) right front
B) left front
C) right centre
D) middle centre

Question 51

A wooden door company organizes its manufacturing department based on activity.All the cutting equipment is located in one area,as is all the fastening and finishing equipment.What kind of layout does this manufacturer use?

A) process
B) product
C) grid
D) continuous-flow

Question 52

Christine is planning on starting a paralegal service.A business mentor tells her about an organization she can rent space from that provides photocopying,Internet access,and call answer services.What kind of an organization is this?

A) industrial park
B) community development centre
C) shopping centre
D) business incubator

Question 53

Art is planning to open a high-fashion clothing store for young professional women.What kind of fixtures should he acquire for the store?

A) economical
B) elegant
C) practical
D) feminine

Question 54

What is the primary concern for manufacturers regarding layout?

A) customer traffic
B) equipment storage
C) ability to rearrange
D) production operations

Question 55

Anthony creates a virtual handbook for long-distance runners and cyclists to track their progress.What e-commerce model Anthony use to sell his handbook online?

A) business to consumer
B) information-based
C) content-based
D) transaction-based

Question 56

Peter runs a custom furniture manufacturing operation.Peter wishes to reduce the turnaround time from receiving raw materials to shipping the final product and decides to relocate.What is the most likely reason Peter moved the business?

A) to reduce income taxes
B) to increase customer traffic
C) to get closer to resources
D) to provide free-flow space

Question 57

John owns and operates a greeting card and gift shop.What site characteristic is most important to John?

A) future advertising costs
B) the labour supply
C) raw material availability
D) customer traffic

Question 58

Ulrich signs a three-year lease because of the large discount in base rent offered by the landlord for a multi-year contract.What is this an example of?

A) initial base rent
B) contract extensions
C) leeway
D) inducements

Question 59

Francis operates a tax return service.He wishes to minimize overhead costs such as rent.How should Francis set up the location of his business?

A) sub-lease an office
B) purchase a small building
C) lease office space
D) create a home-based business

Question 60

Jessica operates a staging company from her home-based business.How should Jessica establish boundaries between the business and her family?

A) set aside specific space for the business
B) use an outside bookkeeping service
C) sell to wholesalers rather than to ultimate consumers
D) limit her participation in community activities

Question 61

A bulk foods store allows customers to select and bag spices from large bins.What kind of layout does this store use?

A) product
B) process
C) functional
D) self-service

Question 62

Discuss two different ways e-commerce benefits a start-up.

Question 63

Victor is starting a business to retail musical instruments.What will most influence Victor's location decision?

A) personal preference
B) resource availability
C) customer accessibility
D) environmental conditions

Question 64

Distinguish between general-purpose and special-purpose equipment in a factory setting,and cite the advantages of each.

Question 65

Surge has a website that provides skiers with up-to-date information on snow conditions at all the major resorts in North America and Europe.Surge sells web space to advertisers that target the skiing market.What e-commerce model is this an example of?

A) business to consumer
B) information-based
C) content-based
D) transaction-based

Question 66

Tracy sells specialty parts for hobby cars.A business consultant tells her that her town provides only a very small niche market and encourages Tracy to locate on the Internet with e-commerce capability.What is the consultant's main reason for this advice?

A) E-commerce gives small firms a market presence comparable to that of specialty stores.
B) E-commerce allows any business access to customers anywhere.
C) E-commerce expands the sales cycle.
D) E-commerce processes customer payments safely.

Question 67

Marilyn owns commercial office units that she rents to businesses.Which term best describes Marilyn's role?

A) business administrator
B) office manager
C) rentee
D) lessor

Question 68

Areas of a retail store differ markedly in sales value.List these areas,from most valuable to least valuable.

Question 69

Compare and contrast the three different e-commerce business models discussed in the textbook.

Question 70

George's company manufactures and sells replica watches to retailers.He wants to start selling watch movements and parts online to an untapped watch collector market.What e-commerce model should George use to reach this untapped market?

A) business to consumer
B) information-based
C) auction site
D) transaction-based

Question 71

Michelle's company makes glass vases.The equipment is placed strategically so that the vases start at one end in an oven to melt the raw glass and is transformed into a finished vase once it is removed from the polishing machine.What kind of layout does Michelle's company have?

A) product
B) process
C) merchandise pattern
D) free-flow pattern

Question 72

Discuss the attraction of a home-based business.

Question 73

Discuss the challenges of operating a home-based business and some of the approaches that can help minimize their impact.

Question 74

Rachel creates a website to provide information about outdoor activities hoping that it will increase the number of people that visit her camping supply store.What e-commerce model does Rachel use?

A) business to consumer
B) information-based
C) content-based
D) transaction-based

Question 75

Brenda purchased a picture frame for her mother-in-law's birthday and then decided to return to the store to have it gift wrapped.Where in the store will Brenda likely bring the frame for gift wrapping?

A) far right side of the store
B) far left side of the store
C) front of the store
D) back of the store

Question 76

Arthur runs a nature store that sells products like bird feeders,minerals,binoculars,and wind chimes.Customers are attracted to the beautiful displays and the sounds of birds or whales.Which layout type would Arthur most likely use for his store?

A) product
B) process
C) merchandise pattern
D) free-flow pattern

Question 77

Charles is reviewing a commercial unit to lease for $10 per square foot per year (psf).What is the psf cost called?

A) lease
B) base rent
C) tri-rent
D) leasehold

Question 78

Holla's home office is located in her basement,where the lighting is poor and the temperature is cool.Holla rents temporary space equipped to host meetings with important clients.What term refers to the facility Holla rents from?

A) commercial rental
B) temporary office
C) business incubator
D) all-purpose office space