Deck 16: Location,layout,and Physical Facilities

Question 1

________ is a publication that provides important data to aid entrepreneurs in their search for the best location.

A)Consumer Reports
B)Index of Retail Saturation
C)Survey of Buying Power
D)Sales Conversion Index

Answer 1

C

Question 2

Which of the following characteristics for selecting a city would be of greatest interest to a retail store selling fine china and collectibles?

A)Public services
B)Transportation
C)Zoning
D)Population trends

Answer 2

D

Question 3

An interstate trucking firm would be most concerned with which selection criterion at the state level?

A)Business climate
B)Proximity to markets
C)Proximity to raw materials
D)Wage rates

Answer 3

A

Question 4

________ is a system that divides a county or a city into small cells or districts to control the use of land,buildings,and sites.

A)An enterprise zone
B)Zoning
C)TIGER
D)A central business district

Question 5

A small brick manufacturer would be concerned most with which location criterion?

A)Business climate
B)Labor supply needs
C)Wage rates
D)Proximity to markets

Question 6

Which of the following sets of city factors does an entrepreneur need to consider when choosing a location for his/her new business?

A)The business growth potential
B)Business climate and labor market
C)Proximity to the target market and raw materials
D)The availability of transportation,public services,and police and fire protection

Question 7

The ________ matches population demographics with lifestyle interests.

A)Rand McNally Commercial Atlas & Marketing Guide
B)The Source Book of County Demographics
C)Lifestyle Market Analyst
D)Nielsen Media Guide

Question 8

Carlos owns a heavy equipment repair and maintenance business.Which of the following criteria for selecting a state in which to locate the business would be of greatest concern to Carlos?

A)Labor supply
B)Proximity to markets
C)Tax laws and incentives
D)Proximity to raw materials

Question 9

TIGER:

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)records data not available through the census and includes eleven indicators of economic growth.
C)contains the names of every street in the country and detailed block statistics for 345 urban areas.
D)breaks down the population,retail sales,etc.by census region.

Question 10

A telemarketing customer service unit for the credit card business of an interstate bank would be most concerned about ________ in the choice of state.

A)proximity to markets
B)wage rates and labor supply
C)competition and business climate
D)population trends and competition

Question 11

________ would be most important to someone wishing to locate a manufacturing facility for computers.

A)Proximity of the target market
B)Business climate
C)Labor supply
D)Proximity to raw materials

Question 12

The index of retail saturation is:

A)retail expenditures times retail facilities divided by the number of customers.
B)the ratio of a trading area's sales potential to its sales capacity.
C)a buying power index.
D)retail facilities times the number of customers divided by the retail expenditures.

Question 13

When selecting a city,an entrepreneur will need to factor into her decision:

A)the population density and growth trends.
B)the nature of competition.
C)the cost of the location.
D)All of the above

Question 14

A Geographic Information System (GIS):

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)records data not available through the census and includes eleven indicators of economic growth.
C)contains the name of every street in the country and detailed block statistics for 345 urban areas.
D)breaks down the population,retail sales,etc. ,by census region.

Question 15

When examining a state's available labor force,the potential business owner needs to know:

A)the state's labor relations history.
B)the demographics of the target customers.
C)both the number and education of the available workforce.
D)the proximity of its customers.

Question 16

A glass manufacturer that requires an extremely pure,very fine type of sand in its production process would be most concerned with which location criteria?

A)Business climate
B)Proximity to raw materials
C)Proximity to markets
D)Wage rates

Question 17

When selecting a state in which to locate,one should consider:

A)the financing options available to the small business owner.
B)zoning laws.
C)the compatibility of the business with the community.
D)the proximity to one's markets.

Question 18

At the broadest level of the location decision,entrepreneurs usually identify regions of the country that:

A)have many professional sports teams.
B)are experiencing substantial population growth.
C)contain many car drivers.
D)consist of the most employed inhabitants.

Question 19

The secret to selecting the ideal location for a business is:

A)the available labor pool for the business.
B)knowing the customer and what is convenient to them.
C)the tax rate of the local and state governments.
D)the security of the area and the services provided by the site to the business owner.

Question 20

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

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 21

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

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

Question 22

A central business district is:

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 23

The advantage to locating near competitors is found in the:

A)consumer behavior.
B)to keep an eye on the competitor.
C)localize all similar businesses close to each other.
D)make it easy for hiring.

Question 24

Originally created to encourage companies to locate in economically depressed areas,________ offer tax breaks and federal tax breaks for hiring workers living in the immediate area.

A)industrial parks
B)small business incubators
C)trade zones
D)empowerment zones

Question 25

Incubator facilities are established in order to:

A)enhance economic development and diversify the local economy.
B)revitalize central business districts.
C)centralize types of businesses and provide tax breaks to those businesses.
D)encourage businesses to locate in economically depressed areas of a city.

Question 26

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

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

Question 27

Outlying locations become a distinct disadvantage when:

A)potential customers cannot find your location.
B)potential customers believe that there is no overriding reason to travel to your location.
C)potential customers fear for their safety either at your location or on the way to and from your location.
D)All of the above

Question 28

Which of the following factors influences the size of a retail store's trading area?

A)The location of competitors
B)The physical layout of the store
C)Zoning regulations
D)The nature of competing businesses

Question 29

Central business districts:

A)provide ample parking in front of the stores.
B)are characterized by one-stop shopping.
C)tend to have better prices and selection than malls do.
D)are experiencing a resurgence in popularity.

Question 30

The ________ serves a large trading area (10 to 15 miles or more),contains from 50 to 100 stores,and has several major department stores as its anchors.

A)neighborhood shopping center
B)community shopping center
C)regional shopping mall
D)central business district

Question 31

To ensure that a building will accommodate expansion plans,a new business should:

A)plan space requirements for one to two years into the future and update the plans every six months.
B)build,buy,or lease facilities that are 50-100% too big for their current operations.
C)buy or lease facilities that had the same type of business in them previously.
D)always build a new facility.

Question 32

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

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

Question 33

Carmen is starting a childcare center.One location,a former "biker bar" closed after a murder in the bar,is near several manufacturing plants where there are many single parents.What city site selection factor might give Carmen problems with her childcare center?

A)Transportation
B)Police and fire protection
C)The reputation of the location
D)Compatibility with the community

Question 34

When evaluating existing buildings,retailers:

A)need to find the lowest cost per-square-foot possible due to the need for maximum display space.
B)should locate in store space previously occupied by a similar type of business.
C)should recognize that the store's appearance and layout create an image for the customer of the business.
D)can discount the interior appearance of the building if it has a strong exterior appeal.

Question 35

A manufacturer or wholesaler would be most interested in which of the following criteria for the selection of a city location for a new business?

A)Public services
B)Transportation
C)Reputation of the location
D)Compatibility with the community

Question 36

The type of business that does well when located near competitors is:

A)one that has a unique product line,dissimilar to that of its competitors.
B)one that sells high-priced products that customers comparison shop for.
C)one whose location is part of its trademark.
D)one located in an incubator.

Question 37

The primary variable(s)that influence(s)the scope of a trading area is/are:

A)the character of the transportation network.
B)the nature of competing businesses.
C)the type and size of the business operation.
D)the racial and political barriers in the local community.

Question 38

Mary's successful clothing store was located on the back edge of the parking lot of a large mall.She didn't pay mall rents since she wasn't part of the mall,but drew a lot of customers who parked at the mall and then noticed her store.The mall developers built a movie theater on the part of the parking lot directly in front of Mary's store,basically hiding her from most mall customers and her business dropped off so much she had to move.What retailer site selection criterion forced Mary to move?

A)Proximity of competitors
B)Visibility
C)Adequate parking
D)Room for expansion

Question 39

As the service economy has grown,a business location being used more and more by service businesses is:

A)the industrial park.
B)home.
C)central business districts.
D)outlying areas.

Question 40

Generally speaking,the one location that most small businesses have difficulty surviving in and therefore should avoid is:

A)a power center.
B)among competitors.
C)in outlying areas.
D)a central business district.

Question 41

Signs are important to the small business owner because they:

A)grow in effectiveness the longer they are in place.
B)are easy to use and to change.
C)provide the maximum space for relatively complex messages.
D)are a medium that is not subject to regulation,thereby permitting maximum flexibility.

Question 42

When planning store,office,or plant layouts,business owners too often focus on ________,rather than enhancing employees' productivity or maximizing sales.

A)construction schedules.
B)choosing an architect or designer.
C)minimizing costs.
D)None of the above

Question 43

The science of adapting work and working conditions to complement employees and to suit customers is called:

A)physiology.
B)ergonomics.
C)layout design.
D)kinesiology.

Question 44

What is the 40-30-20-10 Rule in retailing?

A)It is a formula for figuring who your best and worst customers are.
B)It is a formula for calculating the ratio of expenditures on signage,displays,advertising,and interior decorating.
C)It is an expression of the decline of the value of store space as you move front to back in the store.
D)It is the percentage of customers who move straight into a store,go right,go left,and leave before fully entering.

Question 45

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:

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

Question 46

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

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 47

A(n)________ layout divides a store into a series of individual shopping areas,each with its own theme.This layout can create a distinctive image for a business.

A)free-form
B)grid
C)angled
D)boutique

Question 48

Entrances should invite entry.The way to accomplish this is to:

A)have large doors and attractive displays set back from the doorway that can lure customers into the store.
B)offer discounts.
C)have displays as close to the entry of the store as possible.
D)have a big sign to attract customers.

Question 49

When evaluating the floors,walls,and ceilings in a retail store,the small business owner should:

A)look for dark colored ceilings that both conserve energy and project a cool feeling.
B)strive for a light and bright interior.
C)look for bare functional walls that can be recovered at the owner's expense.
D)emphasize function over attractiveness.

Question 50

The typical grocery store uses a(n)________ layout.

A)grid
B)free-form
C)boutique
D)arcade

Question 51

Which of the following statements concerning store layout is true?

A)Most shoppers turn left upon entering the store and go around it in a clockwise fashion.
B)Most shoppers turn right upon entering a store and move around it in a counterclockwise fashion.
C)Most shoppers move directly to the back of the store and work their way to the front door.
D)There is no predominate pattern for shoppers viewing merchandise in a retail store.

Question 52

A product layout has the disadvantage of:

A)a high fixed investment in specialized equipment.
B)the highest materials costs with lower productivity.
C)being harder to schedule and monitor.
D)dividing the work area into separate operations that are highly independent with a duplication of equipment.

Question 53

Manufacturing layout decisions take into consideration:

A)customer buying behavior,the types of product sold,and the physical dimensions of the building.
B)the product,the process,the facility,and key economic considerations.
C)the status of the building;built,bought,or leased and the type of product sold.
D)the employees,the customer,and the mechanical process used to produce the product.

Question 54

A(n)________ layout has the advantage of creating a relaxed,friendly shopping atmosphere encouraging shoppers to linger and increasing the number of impulse purchases.

A)free-form
B)grid
C)angled
D)boutique

Question 55

A(n)________ layout arranges displays in a rectangular fashion with parallel aisle.It is a formal layout that controls the traffic flow through the store.

A)free-form
B)grid
C)angled
D)boutique

Question 56

The boutique layout is commonly used in:

A)supermarkets.
B)self-service stores.
C)small department stores.
D)stores with a high number of impulse goods.

Question 57

For retailers,lighting:

A)is used to attract customers to a specific display.
B)is an expensive investment.
C)has little impact on the overall appearance of the business.
D)requires the same considerations as for manufacturers.

Question 58

The Americans with Disabilities Act of 1990 requires that:

A)businesses with more than 25 employees comply fully with the Act by June 1993.
B)all buildings be remodeled to accommodate any disabled customer or employee.
C)all businesses must accommodate all disabled customers or job candidates,regardless of the cost.
D)buildings occupied after January 23,1993 must be designed to accommodate disabled customers and job candidates.

Question 59

Approximately ________ of a store's customers will go more than halfway into the store.

A)one-fourth
B)one-half
C)one-third
D)three-fourths

Question 60

The best way to determine where to place merchandise,what a store's "hot" and "cold" spots are,is to:

A)conduct a kinesiology study.
B)hire a market research firm to study your business.
C)conduct focus groups with former customers.
D)simply observe customers in the store.

Question 61

Joe wanted to start an outside café in his neighborhood.When he started the construction,the building department made him to stop since he was not in accordance to the local zone.What would be the best option for Joe?

A)He should quit and consider another location.
B)He could have the subcontractors to complete the café at night so the building department will not be around.
C)Joe could appeal to the local zoning commission.
D)Joe should hire an attorney and sue the city for the money he has spend thus far.

Question 62

Designing layouts ergonomically and seeking to automate product flows can result in:

A)reducing the owner's initial capital outlay in starting the business.
B)lowering the high initial fixed costs of starting a business.
C)eliminating the need for a layout plan for the business.
D)improving productivity and lowering material handling costs.

Question 63

A major factor that could increase the wage rate in an area would be:

A)federal withholding taxes.
B)Social Security and Medicare Taxes.
C)unions.
D)FICA.

Question 64

The intangibles that an entrepreneur can determine only by visiting a particular city is:

A)the degree of compatibility a business has with the surrounding community.
B)quality of life.
C)Both A and B
D)Neither A nor B

Question 65

Two distinct factors are important for entrepreneurs analyzing the labor supply in a potential location:

A)cost of transportation and minimum wage.
B)the number of workers available in the area and their level of education,training,and experience.
C)minimum wage in the area and the labor's level of education,training and experience.
D)minimum wage and the number of workers available in the area.

Question 66

A ________ is a specially designated area that allows resident companies to import materials and components from foreign countries;assemble,process,package,or manufacture them;and then ship finished products out while incurring low tariffs and duties or,in some cases,paying no tariffs or duties at all.

A)Local Trade Zone
B)Duty Free Zone
C)Foreign Trade Zone
D)All of the above

Question 67

Most businesses have found that making reasonable accommodations for customers and employees have proven to:

A)create a more pleasant environment.
B)have attracted new customers.
C)have attracted qualified employees.
D)All of the above

Question 68

Which of the following statement is correct?

A)The more specialized the business or the greater the relative cost of transporting the product to the customer,the more important proximity to the market is.
B)The less specialized the business or the greater the relative cost of transporting the product to the customer,the more important proximity to the market is.
C)The more specialized the business or the greater the relative cost of transporting the product to the customer,the less important proximity to the market is.
D)None of the above

Question 69

The ________ of products and materials,their ________ of transportation,and their ________ functions all interact in determining how close a business needs to be to its sources of supply.

A)cost;value;unique
B)value;cost;unique
C)value;price;cost
D)cost;cost;unique

Question 70

A process layout would be best fitted to:

A)an automobile assembly plant.
B)an oil refinery.
C)a manufacturer of handmade metal gifts.
D)a textbook publishing plant.

Question 71

Using GIS program,an entrepreneur can:

A)learn about different population densities.
B)get the mailing list for sending direct mail campaign.
C)download data from government sites.
D)All of the above

Question 72

Advantages of a downtown location are:

A)some CBDs are characterized by intense competition,high rental rates,traffic congestion,and inadequate parking facilities.
B)many cities have experienced difficulty in preventing the decay of their older downtown business districts as a result of "mall withdrawal."
C)they benefit from the traffic generated by the other stores clustered in the district.
D)None of the above

Question 73

When considering a location,the business owner should consider:

A)police and fire protection.
B)public services.
C)location's reputation.
D)All of the above

Question 74

Entrepreneurs must evaluate the impact of which of the following?

A)Sales tax
B)Property taxes
C)Specialized taxes
D)All of the above

Question 75

Some of the key issues when exploring a state of a business would be:

A)laws.
B)regulations.
C)taxes.
D)All of the above

Question 76

Which of the following statement is true in determining the cost of a store in a shopping center or a mall?

A)There should be a good fit with other products and brands sold in the mall or center.
B)A business owner must consider the types of companies that will be occupying as tenants.
C)Vacancy rate is important.
D)All of the above

Question 77

The manufacturing layout that groups workers and equipment according to the general function performed,and that works best with short production runs or when there are considerable variations in the finished product,is called:

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

Question 78

Which of the following variables influences a retail trading area?

A)Local attitude
B)Local cultural
C)Local barriers
D)All of the above

Question 79

The starting point for designing a layout is:

A)creating a detailed layout design showing the space relationships.
B)discovering the single best flow for the manufacturing process.
C)arranging the equipment and materials stocking areas in the proper sequence.
D)determining how and in what sequence product parts or service tasks flow together.

Question 80

When manufacturing large,bulky products,it is sometimes necessary to bring the materials to a specific spot and do the assembly in one place.This type of layout is know as a:

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