Question 1

Which of the following statements concerning business environment conditions for a new business is true?

Accepted Answer

Zoning can limit the type and scope of operations a company can undertake, making it an important consideration when choosing a location for a new business. The other statements are not true - state governments do not typically help new businesses by levying taxes, incentivizing job growth is typically done by local or regional governments, and a low cost of living does not necessarily mean a low standard of living for employees.

Question 2

Many e-commerce companies generate a lot of sales by merging the content- and transaction-based models into one website.

Accepted Answer

By merging the content- and transaction-based models, e-commerce companies are able to provide a seamless shopping experience for customers, which can lead to increased sales and loyalty.

Question 3

For a hair stylist, the top priority in the location decision would be

Accepted Answer

Customer accessibility should be the top priority for a hair stylist as they need to be located in an area where their target customers can easily reach them. A hair stylist cannot have a successful business if they are in a location where their target market cannot access their services. Therefore, customer accessibility is vital to the success of a hair stylist's business.

Question 4

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

Accepted Answer

The choice of a location for a physical facility is often a significant decision that businesses hope to make correctly the first time due to the high costs and logistical challenges associated with relocating. Thus, implying it is a one-time decision in many cases, contrary to the statement in option B.

Question 5

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

Accepted Answer

The most important decision for Arthur when it comes to acquiring a physical building is where to locate it. The location of the building can impact the success of the business, as it can determine its accessibility to customers, competitors, and suppliers. It can also affect the cost of the building, the taxes on the property, and the labor pool available for the business. Therefore, choosing the right location is critical for the business's long-term success.

Question 6

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

Accepted Answer

The answer of Which of the following would be a...

Question 7

Auction sites generate most of their revenue through listing fees and commissions.

Accepted Answer

Auction sites typically charge sellers listing fees to post their items and commissions based on the sale price of the items, which are the primary sources of their revenue.

Question 8

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

South Dakota is known for having a business-friendly tax climate, including no personal or corporate income tax, making it a favorable option for small businesses. Massachusetts, Ohio, and New York have higher tax rates and may not be as attractive for new firms seeking a favorable tax system.

Question 9

A website built on the content-based model offers only information about a business, its products, and other related matters.

Accepted Answer

A content-based website can include a variety of content types such as blogs, news, research articles, and videos, not just information about a business and its products.

Question 10

Customer accessibility is the most critical factor in evaluating a specific site for a

Accepted Answer

For a drugstore, customer accessibility is crucial as customers may need to access the store quickly when in need of medication or other health-related products.

Question 11

The role of a website can range from merely offering information and basic content to enabling complex business transactions.

Accepted Answer

A website can serve a variety of purposes, from providing basic information about a business or organization to facilitating e-commerce transactions or serving as a platform for social networking and communication. The level of functionality and complexity will vary depending on the specific needs of the website and the goals of its owners or stakeholders.

Question 12

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

Accepted Answer

Mattresses are not weather-dependent products, meaning they can be sold in any climate or state without being affected by the weather conditions. Unlike air conditioners, outdoor swimming pools, and consumer yard irrigation systems, which have sales heavily influenced by the weather, mattresses maintain a consistent demand regardless of seasonal changes.

Question 13

Research has shown that online businesses that begin as part-time ventures tend to have higher rates of failure than those launched by owners who choose to jump in with both feet from the start.

Accepted Answer

Research has indeed shown that online businesses that start as part-time ventures have higher rates of failure than those started full-time. This is because part-time owners may have less time and resources to fully devote to the business, leading to slower growth and decreased competitiveness.

Question 14

Which of the following is NOT one of the five key factors in determining a good business location?

Accepted Answer

The complexity of a business plan is not directly related to determining a good business location. Factors such as the entrepreneur's personal preference, business environment conditions, and site availability and costs are more directly influential in deciding where to establish a business.

Question 15

Zoning ordinances often apply to factors related to

Accepted Answer

Zoning ordinances can apply to a wide range of factors related to land use, including nonrelated employees working in a home, commercial signage, and the storage of hazardous materials. Therefore, all of the choices listed are correct.

Question 16

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

Renee's reliance on walk-in customers indicates that she needs a physical location, making a brick-and-mortar facility the best option. A clicks-and-mortar facility would involve online operations, which may not be necessary or efficient given her business model. A bricks-and-clicks facility would involve both physical and online operations, which may not fit Renee's needs. Similarly, a professionally developed website may not be essential for her business model, though it could be a helpful supplement to her physical location.

Question 17

Bart is ready to look for a site for his new business. To help him in his search he should

Accepted Answer

The answer of Bart is ready to look for a...

Question 18

Blogs and podcasts are among the emerging options for an online presence.

Accepted Answer

Blogs and podcasts have become increasingly popular ways for individuals and businesses to establish an online presence and share their thoughts and expertise with a wider audience.

Question 19

It is possible for an entrepreneur to do business over the Internet without creating either a website or a storefront.

Accepted Answer

An entrepreneur can use social media platforms, online marketplaces, and other digital tools to promote and sell their products or services without having a website or physical store.

Question 20

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

Accepted Answer

Many entrepreneurs start their online businesses as a part-time venture while still maintaining their full-time job or other commitments. As the business grows and becomes more profitable, they may transition to working on it full-time.

Quiz 9: The Location Plan