Question 1

After identifying the five major factors in deciding the location for a business,summarize the impact each factor has if an entrepreneur was opening a restaurant.

Accepted Answer

∙
Entrepreneur's Personal preference.Advantages of locating in the home community include appreciation of the atmosphere,ability to establish credit,and familiarity with bankers and potential customers.A restaurant opening by a local might draw more business at first and hopefully could make customers repeat users.∙
Resource availability.Land,water supply,labor supply,transportation facilities,raw materials,and waste disposal bear on location costs.Resource availability is especially important for manufacturers.If the restaurant is using local products,then being close to these resources is important.With current transportation patterns,this factor isn't as much of an issue as other factors.Ironically being close to other restaurants might also be an advantage when ordering from food suppliers.Restaurants must also be where the labor force can get to the establishment.∙
Customer accessibility.This factor is especially important to retailers and service firms.Customers must be able to easily find,enter and exit the property.This factor ties back to the environmental business condition as customers need adequate parking.∙
Availability and costs of sites.Cost-saving alternatives include the use of shared facilities (e.g. ,business incubators,executive suites)and facility leasing (which also reduce cash outlay and investment risk).Sharing facilities might be a possibility depending on the other company.Co-branding (where two establishments share one location)might be an advantage if the customers perceives the image of both establishments matches.

Question 2

An important advantage an entrepreneur gains by leasing rather than buying a facility is

Accepted Answer

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

Question 3

One advantage B2C businesses have over traditional retailers is that they can quickly change product mixes and prices,as well as the appearance of the online store.

Accepted Answer

A) True 
 B)False  True

Question 4

A variation of the content model is sometimes called the ____ model.

Accepted Answer

A) electronic 
B) emerging 
C) information 
D) transaction 
A) electronic 
B) emerging 
C) information 
D) transaction

Question 5

Bettina has found a relatively inexpensive building that is a converted service station.Before she signs the lease,she should ask:

Accepted Answer

A) How is the location zoned? 
B) What happened to previous businesses at that location? 
C) What are the real estate taxes on the property? 
D) Is street parking allowed? 
A) How is the location zoned? 
B) What happened to previous businesses at that location? 
C) What are the real estate taxes on the property? 
D) Is street parking allowed?

Question 6

Annie is starting her photography business and is locating it in her family home.Which aspect is critical in the balance between her business and her family?

Accepted Answer

A) Making sure family members don't spoil the image of the business when clients arrive 
B) Having a professional studio area that is separate from the family area 
C) Shielding her family from the business taking over the home 
D) All of the above statements are true. 
A) Making sure family members don't spoil the image of the business when clients arrive 
B) Having a professional studio area that is separate from the family area 
C) Shielding her family from the business taking over the home 
D) All of the above statements are true.

Question 7

Melissa would like to reduce the number of phone calls she gets from customers who want to place orders.Which model would best work for Melissa?

Accepted Answer

A) The information-based model 
B) The content-based model 
C) The transaction-based model 
D) The customer relationsship-based model 
A) The information-based model 
B) The content-based model 
C) The transaction-based model 
D) The customer relationsship-based model

Question 8

Arthur's business needs a physical building.Arthur's most important decison will be:

Accepted Answer

A) where to locate. 
B) how much to spend. 
C) whether to rent or own. 
D) whether to build or purchase an existing structure. 
A) where to locate. 
B) how much to spend. 
C) whether to rent or own. 
D) whether to build or purchase an existing structure.

Question 9

List and discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.Give examples to support the answer.

Accepted Answer

* Avoid committing to a space that is to

Question 10

Helen is planning to open a high-fashion clothing store for young professional women.Which descriptor is the most important consideration for the fixtures?

Accepted Answer

A) Economical 
B) Elegant 
C) Feminine 
D) Practical 
A) Economical 
B) Elegant 
C) Feminine 
D) Practical

Question 11

Rachel is starting a daycare at her home in a suburban area.Which professional should she contact first before starting?

Accepted Answer

A) The city's planning and zoning board to make sure she can have a business in the home 
B) Her CPA to determine if she can claim a tax deduction for the business 
C) Her insurance agent to increase the policy for coverage on the equipment and business activities on site 
D) All of the professionals are equally important and should be contacted before she starts the business. 
A) The city's planning and zoning board to make sure she can have a business in the home 
B) Her CPA to determine if she can claim a tax deduction for the business 
C) Her insurance agent to increase the policy for coverage on the equipment and business activities on site 
D) All of the professionals are equally important and should be contacted before she starts the business.

Question 12

Reliable Construction created a website to post photos of some of their completed projects and display their address and phone number along with a list of the types of projects they can complete.Reliable has used the ___________ model.

Accepted Answer

A) transaction-based 
B) content-based 
C) information-based 
D) customer-relationship-based 
A) transaction-based 
B) content-based 
C) information-based 
D) customer-relationship-based

Question 13

Businesses that operate in the home

Accepted Answer

A) can increase profits by decreasing costs. 
B) require customer traffic. 
C) are called family businesses. 
D) are less common today than they were 10 years ago. 
A) can increase profits by decreasing costs. 
B) require customer traffic. 
C) are called family businesses. 
D) are less common today than they were 10 years ago.

Question 14

Sometimes an attorney can insert special clauses into a lease agreement that will allow the lessee to exit the agreement under certain circumstances.

Accepted Answer

A) True 
 B)False

Question 15

Juanita is considering locating her a consulting business in her home.Which consideration is the greatest challenge?

Accepted Answer

A) The increased time needed to get the business running 
B) Her business image may not be perceived as highly as a brick and mortar business 
C) The higher cost she may face for equipment and technology 
D) The decreased time she will have with friend 
A) The increased time needed to get the business running 
B) Her business image may not be perceived as highly as a brick and mortar business 
C) The higher cost she may face for equipment and technology 
D) The decreased time she will have with friend

Question 16

List and describe business environment conditions that may impact the location decision.

Accepted Answer

Factors that might be cited include the

Question 17

Which statement is true about starting a business online as a part-time entity?

Accepted Answer

A) While launching a business online as a part-time startup typically has a lower cost,the over all cost is greater as the company grows. 
B) Flexibility is the main reason why an entrepreneur will start a business in this format. 
C) Starting a Internet-based businesses on a part-time basis reduces the entrepreneur's personal risk if the company should fail. 
D) Two of the above statements are true. 
A) While launching a business online as a part-time startup typically has a lower cost,the over all cost is greater as the company grows. 
B) Flexibility is the main reason why an entrepreneur will start a business in this format. 
C) Starting a Internet-based businesses on a part-time basis reduces the entrepreneur's personal risk if the company should fail. 
D) Two of the above statements are true.

Question 18

A brick-and-mortar store is actually a general term that refers a retail outlet dealing in building supplies.

Accepted Answer

A) True 
 B)False

Question 19

The major difference between the information-based model and the content-based model is:

Accepted Answer

A) the presence of ads in the content-based model 
B) the ability to contact the site developoer in the information-based model. 
C) the presence of an order-processing feature in the information-based model. 
D) the ability for the visitor to post comments on the content-based model. 
A) the presence of ads in the content-based model 
B) the ability to contact the site developoer in the information-based model. 
C) the presence of an order-processing feature in the information-based model. 
D) the ability for the visitor to post comments on the content-based model.

Question 20

All other factors being equal,retail and services businesses will find little advantage in selecting a location near the center of the market.

Accepted Answer

A) True 
 B)False

Exam 9: The Location Plan

After identifying the five major factors in deciding the location for a business,summarize the impact each factor has if an entrepreneur was opening a restaurant.

An important advantage an entrepreneur gains by leasing rather than buying a facility is

One advantage B2C businesses have over traditional retailers is that they can quickly change product mixes and prices,as well as the appearance of the online store.

A variation of the content model is sometimes called the ____ model.

Bettina has found a relatively inexpensive building that is a converted service station.Before she signs the lease,she should ask:

Annie is starting her photography business and is locating it in her family home.Which aspect is critical in the balance between her business and her family?

Melissa would like to reduce the number of phone calls she gets from customers who want to place orders.Which model would best work for Melissa?

Arthur's business needs a physical building.Arthur's most important decison will be:

List and discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.Give examples to support the answer.

Helen is planning to open a high-fashion clothing store for young professional women.Which descriptor is the most important consideration for the fixtures?

Rachel is starting a daycare at her home in a suburban area.Which professional should she contact first before starting?

Reliable Construction created a website to post photos of some of their completed projects and display their address and phone number along with a list of the types of projects they can complete.Reliable has used the ___________ model.

Businesses that operate in the home

Sometimes an attorney can insert special clauses into a lease agreement that will allow the lessee to exit the agreement under certain circumstances.

Juanita is considering locating her a consulting business in her home.Which consideration is the greatest challenge?

List and describe business environment conditions that may impact the location decision.

Which statement is true about starting a business online as a part-time entity?

A brick-and-mortar store is actually a general term that refers a retail outlet dealing in building supplies.

The major difference between the information-based model and the content-based model is:

All other factors being equal,retail and services businesses will find little advantage in selecting a location near the center of the market.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, legal Structures, alliances, and Directors

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

Filters