Question 1

Match the term with its definition.
-A business that maintains its primary facility in the residence of its owner

Accepted Answer

A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances 
A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances K

Question 2

Match the term with its definition.
-A business model based on selling to business customers electronically

Accepted Answer

A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances 
A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances D

Question 3

Discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.

Accepted Answer

When specifying building requirements, an entrepreneur must avoid committing to a space that is too large or too luxurious for the company's needs. At the same time, the space should not be so small or limiting that operations are hindered or become inefficient. The general suitability of a building for a given type of business operation depends on the functional requirements of the enterprise. Other important factors to consider include the age and condition of the building, potential fire hazards, the quality of heating and air conditioning systems, the adequacy of lighting and restroom facilities, and appropriate entrances and exits. Also, the comfort, convenience, and safety of the business's employees and customers should be taken into consideration.

Question 4

Match the term with its definition.
-Machines that serve many functions in the production process

Accepted Answer

A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances 
A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances

Question 5

The primary factor in determining the location for a sawmill would most likely be customer accessibility.

Accepted Answer

A) True 
 B)False

Question 6

Match the term with its definition.
-A business model in which a website provides information (content) that attracts visitors, usually with the hope of generating revenue through advertising or by directing those visitors to other websites

Accepted Answer

A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances 
A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances

Question 7

Many entrepreneurs start their online businesses as a part-time venture.

Accepted Answer

A) True 
 B)False

Question 8

An example of special-purpose equipment for a carbonated beverage company is a(n)

Accepted Answer

A)  refrigerator that keeps the product at the appropriate temperature. 
B)  bottling machine that adjusts pressure for different flavors. 
C)  assembly line that moves the beverages to the loading dock. 
D)  mixer that combines the ingredients in the proper order. 
A)  refrigerator that keeps the product at the appropriate temperature. 
B)  bottling machine that adjusts pressure for different flavors. 
C)  assembly line that moves the beverages to the loading dock. 
D)  mixer that combines the ingredients in the proper order.

Question 9

Facilities that provide shared space, services, and management assistance to new businesses are called

Accepted Answer

A)  industrial parks. 
B)  community development centers. 
C)  shopping centers. 
D)  business incubators. 
A)  industrial parks. 
B)  community development centers. 
C)  shopping centers. 
D)  business incubators.

Question 10

Annie is starting a photography business and locating it in her family home. Which of the following aspects 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 these are correct. 
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 these are correct.

Question 11

Renee plans to open a gift shop in a tourist location. She will rely heavily on walk-in customers to support her business. Renee will need a

Accepted Answer

A)  clicks-and-mortar facility. 
B)  bricks-and-clicks facility. 
C)  brick-and-mortar facility. 
D)  professionally developed website. 
A)  clicks-and-mortar facility. 
B)  bricks-and-clicks facility. 
C)  brick-and-mortar facility. 
D)  professionally developed website.

Question 12

How does e-commerce benefit small firms?

Accepted Answer

A)  Small firms are often more "tech savvy," allowing quicker adoption of innovations. 
B)  Large firms may not push the consumer toward the Internet, resulting in small firms being able to gain customers. 
C)  E-commerce allows small firms to expand their reach beyond local markets. 
D)  The government has committed significant resources to encourage small firms to adopt an e-commerce business model. 
A)  Small firms are often more "tech savvy," allowing quicker adoption of innovations. 
B)  Large firms may not push the consumer toward the Internet, resulting in small firms being able to gain customers. 
C)  E-commerce allows small firms to expand their reach beyond local markets. 
D)  The government has committed significant resources to encourage small firms to adopt an e-commerce business model.

Question 13

Companies that depend on semiskilled or unskilled workers usually located in a(n)

Accepted Answer

A)  rural area. 
B)  area where the cost of living is low. 
C)  area with no zoning ordinances. 
D)  area with surplus labor. 
A)  rural area. 
B)  area where the cost of living is low. 
C)  area with no zoning ordinances. 
D)  area with surplus labor.

Question 14

Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product one ton of usable aluminum. Calvert should locate his smelting plant close to

Accepted Answer

A)  his customers. 
B)  the bauxite mine. 
C)  transportation. 
D)  an area with a suitable labor supply. 
A)  his customers. 
B)  the bauxite mine. 
C)  transportation. 
D)  an area with a suitable labor supply.

Question 15

Describe the critical resource considerations that should guide the location decision.

Accepted Answer

Access to raw materials, suitable labor,

Question 16

Dallas is considering starting his business in his hometown. Which of the following is a reason why he should?

Accepted Answer

A)  He can get a more favorable tax treatment. 
B)  The city government may waive any startup fees he must pay. 
C)  His friends and relatives in the community may be quick to buy his product and also spread positive reports about it to others. 
D)  All of these are correct. 
A)  He can get a more favorable tax treatment. 
B)  The city government may waive any startup fees he must pay. 
C)  His friends and relatives in the community may be quick to buy his product and also spread positive reports about it to others. 
D)  All of these are correct.

Question 17

Sites such as eBay and uBid.com derive most of their revenues from

Accepted Answer

A)  banner ads. 
B)  listing fees and commissions. 
C)  corporate sponsors. 
D)  investors. 
A)  banner ads. 
B)  listing fees and commissions. 
C)  corporate sponsors. 
D)  investors.

Question 18

Match the term with its definition.
-A facility that provides shared space, services, and management assistance to new businesses

Accepted Answer

A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances 
A) auction sites 
B) brick-and-mortar facility 
C) business incubator 
D) business-to-business (B2
B)  model 
E) business-to-customer (B2
C)  model
F)consumer-to-consumer (C2
C)  model
G)content-based model
H)disintermediation
I)e-commerce
J)general-purpose equipment
K)home-based business
L)information-based model
M)special-purpose equipment
N)transaction-based model
O)zoning ordinances

Question 19

Garland uses the family room of his home for his business. The children share his computer for their homework and games. The family room also contains the TV and homework space for the children. The IRS is likely to disallow his deduction for this space because

Accepted Answer

A)  a separate space must be clearly devoted to the activities of the business. 
B)  IRS regulations restrict the use of a family room as the designated space for a home-based business. 
C)  no deduction is allowed for space in the home used for a business. 
D)  the IRS designates any home-based business as a hobby, and hobby expenses are not deductible. 
A)  a separate space must be clearly devoted to the activities of the business. 
B)  IRS regulations restrict the use of a family room as the designated space for a home-based business. 
C)  no deduction is allowed for space in the home used for a business. 
D)  the IRS designates any home-based business as a hobby, and hobby expenses are not deductible.

Question 20

E-commerce refers to

Accepted Answer

A)  having an online website in addition to a brick-and-mortar facility. 
B)  the facilitation of business by making initial contact by electronic means. 
C)  the buying and selling of products or services on the Internet. 
D)  a form of business that involves online trades and auctions. 
A)  having an online website in addition to a brick-and-mortar facility. 
B)  the facilitation of business by making initial contact by electronic means. 
C)  the buying and selling of products or services on the Internet. 
D)  a form of business that involves online trades and auctions.

Exam 9: The Location Plan

Match the term with its definition. -A business that maintains its primary facility in the residence of its owner

Match the term with its definition. -A business model based on selling to business customers electronically

Discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.

Match the term with its definition. -Machines that serve many functions in the production process

The primary factor in determining the location for a sawmill would most likely be customer accessibility.

Match the term with its definition. -A business model in which a website provides information (content) that attracts visitors, usually with the hope of generating revenue through advertising or by directing those visitors to other websites

Many entrepreneurs start their online businesses as a part-time venture.

An example of special-purpose equipment for a carbonated beverage company is a(n)

Facilities that provide shared space, services, and management assistance to new businesses are called

Annie is starting a photography business and locating it in her family home. Which of the following aspects is critical in the balance between her business and her family?

Renee plans to open a gift shop in a tourist location. She will rely heavily on walk-in customers to support her business. Renee will need a

How does e-commerce benefit small firms?

Companies that depend on semiskilled or unskilled workers usually located in a(n)

Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product one ton of usable aluminum. Calvert should locate his smelting plant close to

Describe the critical resource considerations that should guide the location decision.

Dallas is considering starting his business in his hometown. Which of the following is a reason why he should?

Sites such as eBay and uBid.com derive most of their revenues from

Match the term with its definition. -A facility that provides shared space, services, and management assistance to new businesses

Garland uses the family room of his home for his business. The children share his computer for their homework and games. The family room also contains the TV and homework space for the children. The IRS is likely to disallow his deduction for this space because

E-commerce refers to

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 Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

Filters