Deck 18: Location,layout,and Physical Facilities

Question 1

The first phase in determining where to locate a business is:

A)choosing what state the business owner wants to move to.
B)determining which city has the demographics that fit the business best.
C)conducting an Internet search for information on the cities of choice and competitors in those cities.
D)determining what regions in the country have what the new business needs to succeed.

Answer 1

D

Question 2

An interstate trucking firm would be most concerned with which selection criterion at the state level?

A)Business climate
B)Proximity to markets
C)Proximity to raw materials
D)Wage rates

Answer 2

A

Question 3

Carlos owns a heavy equipment repair and maintenance business.Which of the following criteria for selecting a state in which to locate the business would be of greatest concern to Carlos?

A)Labor supply
B)Proximity to markets
C)Tax laws and incentives
D)Proximity to raw materials

Answer 3

B

Question 4

A glass manufacturer that requires an extremely pure,very fine type of sand in its production process would be most concerned with which location criteria?

A)Business climate
B)Proximity to raw materials
C)Proximity to markets
D)Wage rates

Question 5

TIGER:

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)records data not available through the census and includes eleven indicators of economic growth.
C)contains the names of every street in the country and detailed block statistics for 345 urban areas.
D)breaks down the population,retail sales,etc.by census region.

Question 6

The secret to selecting the ideal location for a business is:

A)the available labor pool for the business.
B)knowing the customer and what is convenient to them.
C)the tax rate of the local and state governments.
D)the security of the area and the services provided by the site to the business owner.

Question 7

________ is a useful Web site that gives entrepreneurs help in the location decision.

A)Consumer Reports
B)Index of Retail Saturation
C)ZoomProspector
D)Sales Conversion Index

Question 8

The ________ matches population demographics with lifestyle interests.

A)Rand McNally Commercial Atlas & Marketing Guide
B)Source Book of County Demographics
C)Lifestyle Market Analyst
D)Nielsen Media Guide

Question 9

A Geographic Information System (GIS):

A)is a software package combining the ability to draw detailed maps with the power to search through databases.
B)records data not available through the census and includes eleven indicators of economic growth.
C)contains the name of every street in the country and detailed block statistics for 345 urban areas.
D)breaks down the population,retail sales,etc. ,by census region.

Question 10

A small brick manufacturer would be concerned most with which location criterion?

A)Business climate
B)Labor supply needs
C)Wage rates
D)Proximity to markets

Question 11

________ would be most important to someone wishing to locate a manufacturing facility for computers.

A)Proximity of the target market
B)Business climate
C)Labor supply
D)Proximity to raw materials

Question 12

The index of retail saturation is:

A)retail expenditures times retail facilities divided by the number of customers.
B)the ratio of a trading area's sales potential to its sales capacity.
C)a buying power index.
D)retail facilities times the number of customers divided by the retail expenditures.

Question 13

A telemarketing customer service unit for the credit card business of an interstate bank would be most concerned about ________ in the choice of state.

A)proximity to markets
B)wage rates and labor supply
C)competition and business climate
D)population trends and competition

Question 14

Which of the following characteristics for selecting a city would be of greatest interest to a retail store selling fine china and collectibles?

A)Public services
B)Transportation
C)Zoning
D)Population trends

Question 15

At the broadest level of the location decision,entrepreneurs usually identify regions of the country that:

A)have many professional sports teams.
B)are experiencing substantial population growth.
C)contain many car drivers.
D)consist of the most employed inhabitants.

Question 16

When selecting a city,an entrepreneur will need to factor into her decision:

A)the population density and growth trends.
B)the nature of competition.
C)the cost of the location.
D)All of the above

Question 17

When examining a state's available labor force,the potential business owner needs to know:

A)the state's labor relations history.
B)the demographics of the target customers.
C)both the number and education of the available workforce.
D)the proximity of its customers.

Question 18

Which of the following sets of city factors does an entrepreneur need to consider when choosing a location for his/her new business?

A)The business growth potential
B)Business climate and labor market
C)Proximity to the target market and raw materials
D)The availability of transportation,public services,and police and fire protection

Question 19

________ is a system that divides a county or a city into small cells or districts to control the use of land,buildings,and sites.

A)An enterprise zone
B)Zoning
C)TIGER
D)A central business district

Question 20

When selecting a state in which to locate,one should consider:

A)the financing options available to the small business owner.
B)zoning laws.
C)the compatibility of the business with the community.
D)the proximity to one's markets.

Question 21

To ensure that a building will accommodate expansion plans,a new business should:

A)plan space requirements for one to two years into the future and update the plans every six months.
B)build,buy,or lease facilities that are 50-100% too big for their current operations.
C)buy or lease facilities that had the same type of business in them previously.
D)always build a new facility.

Question 22

A manufacturer would be most interested in which of the following criteria for the selection of a city location for a new business?

A)Public services
B)Transportation
C)Reputation of the location
D)Compatibility with the community

Question 23

Mary's successful clothing store was located on the back edge of the parking lot of a large mall.She didn't pay mall rents since she wasn't part of the mall,but drew a lot of customers who parked at the mall and then noticed her store.The mall developers built a movie theater on the part of the parking lot directly in front of Mary's store,basically hiding her from most mall customers and her business dropped off so much she had to move.What retailer site selection criterion forced Mary to move?

A)Proximity of competitors
B)Visibility
C)Adequate parking
D)Room for expansion

Question 24

Incubator facilities are established in order to:

A)enhance economic development and diversify the local economy.
B)revitalize central business districts.
C)centralize types of businesses and provide tax breaks to those businesses.
D)encourage businesses to locate in economically depressed areas of a city.

Question 25

Locating near ________ might be a key factor for success in businesses that sell goods that customers compare on the basis of price,quality,color,and other factors.

A)customers
B)suppliers
C)competitors
D)employees

Question 26

Shopping malls typically average ________ parking spaces per ________ square feet of shopping space.

A)10;1,000
B)5;1,000
C)15;5,000
D)3;1,000

Question 27

The ________ serves a large trading area (10 to 15 miles or more),contains from 50 to 100 stores,and has several major department stores as its anchors.

A)neighborhood shopping center
B)community shopping center
C)regional shopping mall
D)central business district

Question 28

The primary variable(s)that influence(s)the scope of a trading area is (are):

A)the character of the transportation network.
B)the nature of competing businesses.
C)the type and size of the business operation.
D)the racial and political barriers in the local community.

Question 29

The type of business that does well when located near competitors is:

A)one that has a unique product line,dissimilar to that of its competitors.
B)one that sells high-priced products that customers comparison shop for.
C)one whose location is part of its trademark.
D)one located in an incubator.

Question 30

A central business district is:

A)the traditional center of town.
B)a plan that contains 12 to 50 stores and has a department store as a leading tenant.
C)a type of "mall" that has experienced 1500 percent growth over the last 5 years.
D)a shopping area that draws its customers primarily from the immediate local area.

Question 31

A ________ is the traditional center of town.

A)hub
B)business area
C)central business district
D)community center

Question 32

The area from which a small business expects to draw customers over a reasonable time span is its:

A)trading area.
B)metropolitan statistical area.
C)enterprise zone.
D)incubator.

Question 33

Some cities develop ________ in cooperation with private industry for the benefit of manufacturers.

A)incubators
B)central business districts
C)industrial parks
D)high visibility locations

Question 34

The Americans with Disabilities Act of 1990 requires that:

A)businesses with more than 25 employees comply fully with the Act by June 1993.
B)all buildings be remodeled to accommodate any disabled customer or employee.
C)all businesses must accommodate all disabled customers or job candidates,regardless of the cost.
D)buildings occupied after January 23,1993 must be designed to accommodate disabled customers and job candidates.

Question 35

Central business districts:

A)provide ample parking in front of the stores.
B)are characterized by one-stop shopping.
C)tend to have better prices and selection than malls do.
D)are experiencing a resurgence in popularity.

Question 36

Foreign trade zones were created in:

A)2001.
B)1992.
C)1902.
D)1934.

Question 37

Entrances should invite entry.The way to accomplish this is to:

A)have large doors and attractive displays set back from the doorway that can lure customers into the store.
B)offer discounts.
C)have displays as close to the entry of the store as possible.
D)have a big sign to attract customers.

Question 38

When evaluating existing buildings,retailers:

A)need to find the lowest cost per-square-foot possible due to the need for maximum display space.
B)should locate in store space previously occupied by a similar type of business.
C)should recognize that the store's appearance and layout create an image for the customer of the business.
D)can discount the interior appearance of the building if it has a strong exterior appeal.

Question 39

As the service economy has grown,a business location being used more and more by service businesses is:

A)the industrial park.
B)home.
C)central business districts.
D)outlying areas.

Question 40

Which of the following factors influences the size of a retail store's trading area?

A)The location of competitors
B)The physical layout of the store
C)Zoning regulations
D)The nature of competing businesses

Question 41

A process layout would be best fitted to:

A)an automobile assembly plant.
B)an oil refinery.
C)a manufacturer of handmade metal gifts.
D)a textbook publishing plant.

Question 42

The boutique layout is commonly used in:

A)supermarkets.
B)self-service stores.
C)small department stores.
D)stores with a high number of impulse goods.

Question 43

Site selection begins with considering what city in which to locate and then broadening the search to consider the region and state.

Question 44

Signs are important to the small business owner because they:

A)grow in effectiveness the longer they are in place.
B)are easy to use and to change.
C)provide the maximum space for relatively complex messages.
D)are a medium that is not subject to regulation,thereby permitting maximum flexibility.

Question 45

A(n)________ layout arranges displays in a rectangular fashion with parallel aisles.It is a formal layout that controls the traffic flow through the store.

A)free-form
B)grid
C)angled
D)boutique

Question 46

When planning store,office,or plant layouts,business owners too often focus on ________,rather than enhancing employees' productivity or maximizing sales.

A)construction schedules.
B)choosing an architect or designer.
C)minimizing costs.
D)None of the above

Question 47

For retailers,lighting:

A)is used to attract customers to a specific display.
B)is an expensive investment.
C)has little impact on the overall appearance of the business.
D)requires the same considerations as for manufacturers.

Question 48

A(n)________ layout divides a store into a series of individual shopping areas,each with its own theme.This layout can create a distinctive image for a business.

A)free-form
B)grid
C)angled
D)boutique

Question 49

Manufacturing layout decisions take into consideration:

A)customer buying behavior,the types of product sold,and the physical dimensions of the building.
B)the product,the process,the facility,and key economic considerations.
C)the status of the building;built,bought,or leased and the type of product sold.
D)the employees,the customer,and the mechanical process used to produce the product.

Question 50

A(n)________ layout has the advantage of creating a relaxed,friendly shopping atmosphere encouraging shoppers to linger and increasing the number of impulse purchases.

A)free-form
B)grid
C)angled
D)boutique

Question 51

The science of adapting work and working conditions to complement employees and to suit customers is called:

A)physiology.
B)ergonomics.
C)layout design.
D)kinesiology.

Question 52

The manufacturing layout that arranges workers and equipment according to sequence of operation and is best suited for highly standardized or mass-produced products is called:

A)process layout.
B)fixed-position layout.
C)function layout.
D)product layout.

Question 53

The manufacturing layout that groups workers and equipment according to the general function performed,and that works best with short production runs or when there are considerable variations in the finished product,is called:

A)process layout.
B)fixed-position layout.
C)function layout.
D)product layout.

Question 54

When evaluating the floors,walls,and ceilings in a retail store,the small business owner should:

A)look for dark colored ceilings that both conserve energy and project a cool feeling.
B)strive for a light and bright interior.
C)look for bare functional walls that can be recovered at the owner's expense.
D)emphasize function over attractiveness.

Question 55

When manufacturing large,bulky products,it is sometimes necessary to bring the materials to a specific spot and do the assembly in one place.This type of layout is know as a:

A)process layout.
B)fixed-position layout.
C)function layout.
D)product layout.

Question 56

The typical grocery store uses a(n)________ layout.

A)grid
B)free-form
C)boutique
D)arcade

Question 57

The best way to determine where to place merchandise,what a store's "hot" and "cold" spots are,is to:

A)conduct a kinesiology study.
B)hire a market research firm to study your business.
C)conduct focus groups with former customers.
D)simply observe customers in the store.

Question 58

A product layout has the disadvantage of:

A)a high fixed investment in specialized equipment.
B)the highest materials costs with lower productivity.
C)being harder to schedule and monitor.
D)dividing the work area into separate operations that are highly independent with a duplication of equipment.

Question 59

The first phase in selecting a location is determining what regions of the country are experiencing substantial growth.

Question 60

The starting point for designing a layout is:

A)creating a detailed layout design showing the space relationships.
B)discovering the single best flow for the manufacturing process.
C)arranging the equipment and materials stocking areas in the proper sequence.
D)determining how and in what sequence product parts or service tasks flow together.

Question 61

When in doubt,shopping centers are always a wise location for a small business to choose.

Question 62

A variance is a special exception to a zoning ordinance.

Question 63

Criteria for a "good location" are universal and apply to all types of small businesses.

Question 64

One element of the location decision common to all businesses is the need to locate where customers wish to do business.

Question 65

The U.S.Census Department's "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers.

Question 66

The less specialized the firm,the greater the importance of proximity in the location decision.

Question 67

Central business districts have convenient and safe parking.

Question 68

The Zip Code Atlas and Market Planner provide detailed information on sales,spendable income,etc. ,by census region,county,and city.

Question 69

For a small business,an airport is a nontraditional location.

Question 70

Local laws,zoning regulations and building codes can affect the location to be chosen depending on the type of business and its particular requirements.

Question 71

The typical neighborhood shopping center contains from 3 to 12 stores,with a supermarket or drug store as its "anchor."

Question 72

When analyzing the labor supply,a small service business is only concerned with the level of education and training of the labor force in the area.

Question 73

While GIS software allows a business owner to plot his/her existing customer base on a map,it does not provide zip code information.

Question 74

The three factors that influence the size of the retail trading area are: type and price of products,type of the business,and the demographics of the area.

Question 75

To calculate the IRS,a retailer needs to know the number of customers in the area,the retail expenditures for his/her product,and the total square feet of space allocated to selling his/her kind of product in the trading area.

Question 76

When selecting a city,a small business owner needs to ask questions about the wage rates,the business climate,and proximity to markets and raw materials,in order to properly analyze the city.

Question 77

Home-based businesses represent nearly 50% of all newly created small businesses.

Question 78

When doing a traffic count,the total number of shoppers passing by is the critical factor in evaluating the site.

Question 79

The trends or shifts in population components,such as population age,have more meaning for the small business owner than total population trends.

Question 80

It is critical for all retail and service businesses to be located as far from competitors as possible.