Deck 7: The Location and Layout Plan: What Facilities Do You Need

Question 1

The economy, demographics, or other factors may dictate a change in location.

Answer 1

True

Question 2

Wholesale locations generally are in _______ areas as they are not dependent upon end-user consumers.

A)less expensive
B)remote
C)more expensive
D)the same
E)elevated

Answer 2

A

Question 3

_______, such as Costco or Sam's Club, allow entrepreneurs to buy supplies in bulk at a cheaper price.

A)Discount stores
B)Other retailers
C)Wholesale clubs
D)Traditional wholesalers
E)Strip mall stores

Answer 3

C

Question 4

The _______ publishes information about the United States, dividing it into Standard Metropolitan Statistical Areas (SMSAs)

A)Internal Revenue Service
B)U)S. Census Bureau
C)U)S. Department of the Interior
D)Securities and Exchange Commission
E)Federation of Chambers of Commerce

Question 5

Which of the following are true about home-based businesses?

A)Home-based businesses have become less popular with the development of the Internet.
B)You need to have a defined work space.
C)You need to check zoning requirements.
D)Zoning restrictions are not much of an issue in most cities.
E)Home-based businesses have become more popular with the development of the Internet.

Question 6

Which of the following are possible retail choices for business locations?

A)Downtown
B)Stand-alone structures
C)Small block of stores
D)Mall
E)Mail-order

Question 7

Which of the following would be advantages of leasing facilities?

A)Regular lease payments are generally more
B)than it would take to pay to own the asset.
C)You get to use the asset--the building, the truck, or other asset--without making a large capital payment required for ownership.
D)It must cover the entire cost of the asset during the term of the lease.
E)It can allow a longer term than a loan for repayment.
F) You cannot just walk away at the end of a lease.

Question 8

Which of the following would be disadvantages of leasing facilities?

A)When the lease period is over, you must return the asset to the lessor.
B)Although the lessor can, at additional cost, extend a lease or sell you the asset, the lessor is under no obligation to do so.
C)You will not have to continue to pay off the lease, even if you are actually using the equipment.
D)A lease is a legal obligation and generally cannot be canceled.
E)Over the long run, leasing costs more than owning because included in the lease payment is a profit to the lessor.

Question 9

Which of the following are generally used for leaseback situations?

A)Inventory
B)Real estate
C)Small-ticket items such as office supplies
D)Airplanes
E)Trucks

Question 10

Which of the following are major considerations when deciding which type of facilities are appropriate to the type of business you have?

A)Construction
B)Design
C)Function
D)Price
E)Square footage alone

Question 11

Describe the important factors to consider in making a location decision.

Question 12

Discuss what communities can offer as incentives for new businesses.

Question 13

List the important location decisions that manufacturing, retailing, wholesaling, and service firms must consider.

Question 14

Discuss some of the elements of conducting marketing research on which cities are suitable for location.

Question 15

Discuss strategic factors in layout parameters for retail, wholesale, and service firms.

Question 16

A _______ market springs up not from people wanting goods for their personal use but for the use those goods have in completing a demanded product or process.

A)supply chain
B)wholesaler
C)derived demand
D)contrived demand
E)logistical

Question 17

A _______ operates out of a single building.

A)full-size mall
B)downtown store
C)strip mall
D)stand-alone structure
E)Internet

Question 18

A _______ is a collection of small stores that gets more auto traffic rather than foot traffic.

A)full-size mall
B)strip mall
C)independent store
D)foot-friendly
E)downtown store

Question 19

Few entrepreneurs decide to start new business ventures in their home community.

Question 20

It is important for most businesses to be near to or on good transportation facilities such as highways, railroads, and trucking and airline terminals.

Question 21

Tax considerations are not usually an issue when deciding where to locate a business.

Question 22

Because freight shipping costs money, firms tend to locate, if possible, at the source of a large process weight loss.

Question 23

It is now much easier to obtain the appropriate zoning variances,
licenses, and required permits because of fewer conflicting interests.

Question 24

Retail locations are particularly sensitive to specific characteristics of the surrounding area.

Question 25

Wholesalers generally sell only to retail businesses for resale, and thus they must be available in a centralized location.

Question 26

Hardly any communities offer incentives such as financial aid or tax breaks.

Question 27

In a leaseback, an entrepreneur buys an asset, sells it to another party, and then leases it back, thereby no longer owning it.

Question 28

Layout is the spatial arrangement of the physical facilities in the most efficient manner for the specific business.

Question 29

The retail layout can also be used when assembling component parts of the product or the entire product.

Question 30

A retail store has most of its total space displaying its products for shoppers to select, with a much smaller area to store (or warehouse) the products until they are placed on the sales floor.

Question 31

A _______ business is an organization based in the owner's home.

A)Internet
B)friend-based
C)freelance
D)home-based
E)homemade

Question 32

A _______ is the loss of raw materials that occurs naturally as an outcome of the manufacturing process.

A)process weight loss
B)manufacturing weight gain
C)process distribution
D)site selection
E)process reservoir

Question 33

What are the major considerations when deciding to lease, build, or buy your facilities?