Deck 12: Obtaining and Laying Out Operating Facilities

Question 1

Which of the following is an example of a specialty good?

A) Milk
B) Precious jewelry
C) Detergent
D) Cigarette

Answer 1

B

Question 2

_____ sell goods directly to the ultimate consumer.

A) Wholesalers
B) Retailers
C) Producers
D) Telecommuters

Answer 2

B

Question 3

Which of the following is true about small service companies?

A) The owner prefers to start the company from a rented office.
B) They should be located away from the city, where rental space is too costly.
C) They cannot take their activities "on the road" to obtain more income.
D) They have some characteristics of both retailers and producers.

Answer 3

D

Question 4

Candy bars, milk, and bread are examples of _____ goods.

A) convenience
B) shopping
C) specialty
D) premium

Question 5

For small businesses, inputs are:

A) the products produced and the satisfactions to employees and the public.
B) all the activities from obtaining raw materials through delivering the product to the customers.
C) a system for changing form, place, or time.
D) materials, people, money, information, machines, and other productive factors.

Question 6

Which of the following is a characteristic of a downtown location, in the context of small businesses?

A) It has the distinction of having low crime rates.
B) It suffers due to inadequate public transportation.
C) The shopping hours are limited.
D) There is ample parking space.

Question 7

Which of the following is true of seasonal stores in the United States?

A) They stock high-priced goods that are recognized for the exclusive nature of their clientele.
B) Christmas stores are the most prevalent among seasonal stores.
C) These stores are allowed to be open only during the "season."
D) They are usually located only in shopping centers.

Question 8

_____ goods are those that customers buy often, routinely, quickly and in any store that carries them.

A) Convenience
B) Premium
C) Specialty
D) Shopping

Question 9

Operating systems:

A) are needed only for businesses that produce goods.
B) must be different for different types of businesses.
C) consist of the inputs, processes, and outputs of a business.
D) focus on the systematic gathering, recording, and analysing of data relating to the marketing of goods and services.

Question 10

Which of the following is an example of products sold in seasonal stores?

A) Expensive video
B) Precious jewelry
C) Skiing equipment
D) Cigarette

Question 11

In the context of small businesses, which of the following is true of retailers?

A) They are concerned with people who come to, or are drawn into, the store to make a purchase.
B) They emphasize selling products through intermediaries to the ultimate consumer.
C) They convert, usually in considerable volume, materials into products.
D) They bring the buyer and seller together to negotiate purchases or sales but do not take title to, or possession of, the goods.

Question 12

______ includes all the activities from obtaining raw materials through providing the good or service to the buyer.

A) Marketing
B) Resourcing inputs
C) Processing
D) Production

Question 13

Which of the following is true about choosing a location for a small business?

A) A business owner chooses a location such that he or she can change it frequently.
B) Employees are never adversely affected when a firm changes its location.
C) Company location is a major factor in success or failure of the business.
D) Customers tend to readily follow the business whenever it shifts locations.

Question 14

______ consist of the goods and services required by customers.

A) Inputs
B) Operations
C) Outputs
D) Layouts

Question 15

_____ convert materials into products in considerable volume for others to sell to the ultimate consumer.

A) Wholesalers
B) Retailers
C) Producers
D) Telecommuters

Question 16

____ goods are are usually high-priced goods with trade names that are recognized for the exclusive nature of their clientele.

A) Convenience
B) Shopping
C) Specialty
D) Seasonal

Question 17

____ goods are high-priced goods that require capable salespeople with selling ability because customers spend much time talking to sales personnel about them.

A) Convenience
B) Shopping
C) Specialty
D) Seasonal

Question 18

In the context of operating systems for small businesses, what are processes?

A) They involve converting inputs into goods the customers want, using the employees, machines, materials, and other factors.
B) They are the products produced and the satisfactions to employees and the public.
C) They consist of the goods and services required by the customers.
D) They include all the activities from obtaining raw materials through delivering the product to the customers.

Question 19

Which of the following is the output in the restaurant business?

A) Menu display
B) Food
C) Order
D) Happy customer

Question 20

Which of the following is an example of a shopping good?

A) Cigarette
B) Detergent
C) Milk
D) Automobile

Question 21

Producers place primary emphasis on cost and service when deciding the location of the business.

Question 22

Service companies, which provide a service for customers, have some characteristics of both retailers and producers.

Question 23

Which of the following is true of setting performance standards for small businesses?

A) A good set of standards must not allow time for delays.
B) Estimates by experienced people are used to set performance standards.
C) It is easier to set performance standards for mental work than for physical work.
D) Many precise tools are available to establish standards for measuring performance.

Question 24

In the context of small businesses, _______ is the use of modern media such as fax machines, computers, modems and fax/modems, and scanners, to work from an office, home, or any location.

A) merchandising
B) prospecting
C) telecommuting
D) freestanding

Question 25

In the context of small businesses, inputs consist of the goods and services required by the customers.

Question 26

An operating system consists of inputs, processes, and outputs of a small business.

Question 27

______ stores are often large department stores, usually located at the ends of the arms of a mall, where they generate heavy traffic for the small stores between them.

A) Convenience
B) Freestanding
C) Anchor
D) Specialty

Question 28

Which of the following is an advantage of a product layout?

A) It requires more movement of material or people.
B) In this layout, less space is needed for aisles and storage.
C) It provides flexibility to take care of change and variety.
D) It uses the same general-purpose machines and equipment for several steps in the operation.

Question 29

For small firms, outputs are materials, people, money, information and other productive factors.

Question 30

In the context of small businesses, _____ usually involves making or processing materials into finished goods.

A) manufacturing
B) resourcing
C) prospecting
D) merchandising

Question 31

Starting a small service business out of the owner's home is not economical.

Question 32

In the context of small firms, operating systems in different businesses are dissimilar.

Question 33

Which of the following is an advantage of a process layout?

A) It provides flexibility to take care of change and variety.
B) It requires less movement of material or people.
C) It requires a smaller inventory.
D) It requires less space for aisles and storage.

Question 34

Most decisions about the location of a small firm are influenced by the type of business it conducts.

Question 35

In the context of small businesses, _____ are the buildings, machines, and other equipment needed to produce and distribute a product.

A) operations
B) layouts
C) markets
D) facilities

Question 36

______ are usually best for customers who have brand or company loyalty.

A) Convenience shops
B) Freestanding stores
C) Warehouse outlets
D) Community shopping centers

Question 37

Producers emphasize selling products through intermediaries to the ultimate consumer.

Question 38

When a small business owner chooses a location for operations, he or she generally expects to move every few years.

Question 39

Which of the following is true of freestanding stores in the United States?

A) These stores have limited parking space.
B) The cost per square foot of the location is very high.
C) Considerable advertising may be required to attract customers.
D) These stores have restricted shopping hours.

Question 40

Which of the following is a characteristic of shopping centers in the United States?

A) They attract business-oriented activities, as government and head offices of large firms.
B) They target customers for specific seasons or events.
C) They are designed to draw traffic according to the planned nature of the stores to be included in them.
D) They stock only low-priced items that are purchased often and lend themselves to self-service.

Question 41

In the context of small businesses, moving manufacturing plants off shore usually results in higher operating costs.

Question 42

Governments and financial businesses provide most of the business for retail stores in shopping centers.

Question 43

In a process layout, the facilities are laid out according to the sequence of operations to be performed.

Question 44

Kiosks are an inexpensive way of setting up a small business.

Question 45

Specialty goods are bought infrequently, often at exclusive outlets, after special effort by the customer to drive to the store.

Question 46

Specialty goods are usually low-priced items that are purchased often, are sold in many stores, are bought by habit, and lend themselves to self-service.

Question 47

A disadvantage of shopping centers is the presence of anchor stores.

Question 48

Convenience goods stores are interested in a high flow of customer traffic.

Question 49

A disadvantage of locating a small business in a shopping center is the possibility of policy changes due to change in the center's owners.

Question 50

In the United States, telecommuting leads to reduced stress since the workplace and home become one.

Question 51

A product layout tends to improve efficiency and maximize sales, especially in the automobile and fast-food industries.

Question 52

Important factors in choosing a manufacturing location are nearness to customers and vendors, and availability and cost of transportation.

Question 53

An advantage of a downtown location for a small business is a low crime rate.

Question 54

A product layout can use the same general-purpose machines and equipment for several steps in the operation.

Question 55

Convenience goods are high-priced items, which are bought infrequently, and for which the customer compares prices.

Question 56

Seasonal stores may remain open year-round or may only open seasonally.

Question 57

In a small business, the process layout requires more movement of material or people, and requires a larger inventory.

Question 58

For a small business, the advantage of a product layout includes more efficient scheduling of equipment and workers.

Question 59

In a small business, facilities must be designed or selected to produce the desired product at the lowest practical cost.

Question 60

Telecommuters in the United States may suffer from the disadvantage of a lack of DSL service.

Question 61

What is telecommuting and what are its disadvantages?

Question 62

What are freestanding stores?

Question 63

What are the drawbacks of locating a small business in a shopping center?

Question 64

How can performance standards be set in small business firms?

Question 65

In the context of small businesses, what is the difference between a product layout and a process layout?

Question 66

What is the difference between a convenience goods store and a shopping goods store?

Question 67

What are the factors that influence the location decisions of retailers and producers?

Question 68

In the context of small businesses, how can the products and methods of operation be improved?

Question 69

What is an operating system? What are the productive elements of an operating system?

Question 70

Why are shopping centers so popular?