Question 1

One of the disadvantages of operating a business-to-consumer (B2C) e-commerce business as opposed to a brick-and-mortar store is lack of flexibility.

Accepted Answer

A) True 
 B)False

Question 2

Using special-purpose equipment in the manufacturing process can result in

Accepted Answer

A)  increased operator errors. 
B)  higher labor cost per unit of product. 
C)  a rise in accident rates. 
D)  greater output per machine-hour of operation. 
A)  increased operator errors. 
B)  higher labor cost per unit of product. 
C)  a rise in accident rates. 
D)  greater output per machine-hour of operation.

Question 3

Hermione decided to create a website to complement her bricks-and-mortar store. Which of the following would most likely be her primary motive for doing so?

Accepted Answer

A)  To allow her customers to preview her products before coming to her store 
B)  To attract customers from outside her local area 
C)  To keep up with the competition 
D)  To reduce her overall expenses 
A)  To allow her customers to preview her products before coming to her store 
B)  To attract customers from outside her local area 
C)  To keep up with the competition 
D)  To reduce her overall expenses

Question 4

Amazon and Best Buy are examples of _____ firms.

Accepted Answer

A)  B2B 
B)  B2C 
C)  C2C 
D)  C2B 
A)  B2B 
B)  B2C 
C)  C2C 
D)  C2B

Question 5

Many small business owners recognize the value of seeking assistance from local realtors in determining site availability and appropriateness.

Accepted Answer

A) True 
 B)False

Question 6

Bottling machines and manufacturing robots used in factories are examples of special-purpose equipment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would be a critical consideration in the location decision for a restaurant?

Accepted Answer

A)  Proximity to important sources of raw materials 
B)  Access to key suppliers 
C)  Access to good transportation 
D)  Federal income taxes 
A)  Proximity to important sources of raw materials 
B)  Access to key suppliers 
C)  Access to good transportation 
D)  Federal income taxes

Question 8

Match the term with its definition.
-A business model in which a website simply offers information about a business, its products, and other related matters

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 9

Which of the following statements about starting a business online as a part-time entity is true?

Accepted Answer

A)  While launching a business online as a part-time startup typically has a lower cost, the overall 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 an Internet-based businesses on a part-time basis increases the risk that the company will fail. 
D)  Holding on to a full-time career while launching a new venture on the side can be extremely grueling. 
A)  While launching a business online as a part-time startup typically has a lower cost, the overall 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 an Internet-based businesses on a part-time basis increases the risk that the company will fail. 
D)  Holding on to a full-time career while launching a new venture on the side can be extremely grueling.

Question 10

Callista can locate her business in any state regardless of its weather because she sells:

Accepted Answer

A)  air conditioners. 
B)  outdoor swimming pools. 
C)  consumer yard irrigation systems. 
D)  mattresses. 
A)  air conditioners. 
B)  outdoor swimming pools. 
C)  consumer yard irrigation systems. 
D)  mattresses.

Question 11

Match the term with its definition.
-The buying and selling of products or services on the Internet

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 12

Jason has neither a website nor a storefront. Instead, he lists his products for sale on a site that provides customers with the ability to list products for potential builders. Jason is using a _____ site.

Accepted Answer

A)  C2C 
B)  C2B 
C)  B2C 
D)  B2B 
A)  C2C 
B)  C2B 
C)  B2C 
D)  B2B

Question 13

Jeff's Website Design and Data Storage deals directly with corporate customers online and builds websites and data storage to specifications after an order is placed. By reducing the firm's storage and carrying costs, this example illustrates that B2B firms can create

Accepted Answer

A)  greater efficiency in their operations. 
B)  greater efficiency in their buying and selling activities. 
C)  synergies between buying and selling. 
D)  market reach through e-commerce. 
A)  greater efficiency in their operations. 
B)  greater efficiency in their buying and selling activities. 
C)  synergies between buying and selling. 
D)  market reach through e-commerce.

Question 14

Roger is analyzing regional differences in seeking a location for a new firm and is looking at states with favorable tax systems for small businesses. Based on this information, he should look at which of the following states?

Accepted Answer

A)  South Dakota 
B)  Massachusetts 
C)  Ohio 
D)  New York 
A)  South Dakota 
B)  Massachusetts 
C)  Ohio 
D)  New York

Question 15

An entrepreneur who works from home may deduct costs related to space used in the home for business from any taxes that may be owed from the venture's income, as long as he or she conforms to the rules established by the IRS.

Accepted Answer

A) True 
 B)False

Question 16

According to data compiled by the National Federation of Independent Business, what is the most important advantage of buying business equipment over leasing it, as reported by small business owners?

Accepted Answer

A)  Can treat the asset as they wish 
B)  Can own the asset until they want to get rid of it 
C)  Cheaper overall 
D)  Puts the asset on the books 
A)  Can treat the asset as they wish 
B)  Can own the asset until they want to get rid of it 
C)  Cheaper overall 
D)  Puts the asset on the books

Question 17

The dollar amounts generated by firms using a business-to-business (B2B) model are significantly greater than those for firms without a business-to-consumer (B2C) model.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about location decisions is NOT true?

Accepted Answer

A)  The importance of the initial decision to locate a traditional physical building is underscored by both the high cost of such a place and the hassle of pulling up stakes and moving an established business. 
B)  The choice of a location for a physical facility is rarely a one-time decision. 
C)  The choice of a good location is much more vital to some businesses than to others. 
D)  Regardless of the specific resources involved, every location decision should be based on certain fundamental principles that can guide the process. 
A)  The importance of the initial decision to locate a traditional physical building is underscored by both the high cost of such a place and the hassle of pulling up stakes and moving an established business. 
B)  The choice of a location for a physical facility is rarely a one-time decision. 
C)  The choice of a good location is much more vital to some businesses than to others. 
D)  Regardless of the specific resources involved, every location decision should be based on certain fundamental principles that can guide the process.

Question 19

Daisy is planning a clothing manufacturing company. When selecting the location for her production facility, Daisy will want to consider

Accepted Answer

A)  ease of access to her customers. 
B)  ease of access to transportation. 
C)  availability of suitable labor. 
D)  the overall cost of living of an area. 
A)  ease of access to her customers. 
B)  ease of access to transportation. 
C)  availability of suitable labor. 
D)  the overall cost of living of an area.

Question 20

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

Exam 9: The Location Plan

One of the disadvantages of operating a business-to-consumer (B2C) e-commerce business as opposed to a brick-and-mortar store is lack of flexibility.

Using special-purpose equipment in the manufacturing process can result in

Hermione decided to create a website to complement her bricks-and-mortar store. Which of the following would most likely be her primary motive for doing so?

Amazon and Best Buy are examples of _____ firms.

Many small business owners recognize the value of seeking assistance from local realtors in determining site availability and appropriateness.

Bottling machines and manufacturing robots used in factories are examples of special-purpose equipment.

Which of the following would be a critical consideration in the location decision for a restaurant?

Match the term with its definition. -A business model in which a website simply offers information about a business, its products, and other related matters

Which of the following statements about starting a business online as a part-time entity is true?

Callista can locate her business in any state regardless of its weather because she sells:

Match the term with its definition. -The buying and selling of products or services on the Internet

Jason has neither a website nor a storefront. Instead, he lists his products for sale on a site that provides customers with the ability to list products for potential builders. Jason is using a _____ site.

Jeff's Website Design and Data Storage deals directly with corporate customers online and builds websites and data storage to specifications after an order is placed. By reducing the firm's storage and carrying costs, this example illustrates that B2B firms can create

Roger is analyzing regional differences in seeking a location for a new firm and is looking at states with favorable tax systems for small businesses. Based on this information, he should look at which of the following states?

An entrepreneur who works from home may deduct costs related to space used in the home for business from any taxes that may be owed from the venture's income, as long as he or she conforms to the rules established by the IRS.

According to data compiled by the National Federation of Independent Business, what is the most important advantage of buying business equipment over leasing it, as reported by small business owners?

The dollar amounts generated by firms using a business-to-business (B2B) model are significantly greater than those for firms without a business-to-consumer (B2C) model.

Which of the following statements about location decisions is NOT true?

Daisy is planning a clothing manufacturing company. When selecting the location for her production facility, Daisy will want to consider

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

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