Question 1

Using special-purpose equipment in the manufacturing process typically results in

Accepted Answer

Special-purpose equipment is designed to perform specific functions efficiently and reliably, often with minimal human intervention. This results in higher productivity and output per machine-hour of operation. It may also improve product quality and reduce costs of processing over time. However, there may be initial costs associated with the acquisition, installation, and maintenance of such equipment. There is no evidence to suggest that special-purpose equipment increases operator errors or accident rates.

Question 2

The heart of Electronic Customer Relationship Marketing is a

Accepted Answer

The heart of Electronic Customer Relationship Marketing (e-CRM) is a consumer-centric data warehouse. E-CRM relies heavily on data collection, storage, and analysis to better understand consumer behavior and preferences. The data warehouse serves as the central repository for this information which can be used to tailor marketing messages and offers to individual customers. Customization, conscientious work force, and flexible distribution systems can also be important components of e-CRM, but the data warehouse is the central focus.

Question 3

The Internet has brought new life and technology to the old-fashioned notion of

Accepted Answer

The Internet has changed the way companies approach customer service, allowing for faster response times, increased accessibility, and more personalized interactions with customers.

Question 4

In the B2B model, the customers can best be described as

Accepted Answer

B2B stands for "business-to-business," meaning that the model is focused on transactions between two businesses rather than between a business and a consumer (B2C). Therefore, the customers in the B2B model are businesses. Franchisees and auction participants may fall under the B2B umbrella, but they are not the primary customers in this model.

Question 5

The functional requirements of a business should determine the

Accepted Answer

Functional requirements of a business dictate the suitability of a building as they determine the necessary facilities and infrastructure needed to support business operations.

Question 6

E-commerce refers to

Accepted Answer

E-commerce primarily involves the paperless exchange of business information via the Internet, encompassing online transactions and digital communication.

Question 7

An example of special-purpose equipment is a

Accepted Answer

A bottling machine is a special-purpose equipment as it is designed specifically for the task of bottling products. It is not meant for general-purpose use like the other options given - a lathe, drill press, and ripsaw can be used for a variety of cutting and shaping tasks.

Question 8

Harry Hardwick is starting a job-order machine shop and is buying such used equipment as lathes, planing mills, and drill presses. The equipment he plans to use is

Accepted Answer

The equipment that Harry Hardwick is buying, such as lathes, planing mills, and drill presses, are general-purpose equipment. This means that they can be used to perform a variety of tasks and are not specialized for one particular product or process.

Question 9

The Internet provides an alternative to

Accepted Answer

The Internet provides an alternative to traditional brick-and-mortar stores by allowing customers to shop online from the comfort of their own homes.

Question 10

A group of shared characteristics, behaviors, and goals that a firm follows in a particular business situation is known as a

Accepted Answer

A business model is a framework for how a company creates value, delivers it to customers, and captures profits. It encompasses shared characteristics, behaviors, and goals in a business context.

Question 11

For small businesses, the Internet tends to blur ____ boundaries.

Accepted Answer

The Internet allows small businesses to reach customers beyond their geographic boundaries, making it easier to expand their customer base and compete with larger businesses. The other options do not make as much sense in the given context.

Question 12

Why does electronic commerce benefit small firms?

Accepted Answer

Electronic commerce allows small firms to expand their customer base beyond their local markets without the need for expensive physical store locations or traditional advertising. This can lead to cost savings and increased revenue for small businesses. Additionally, e-commerce platforms often have lower barriers to entry, making it easier for smaller firms to establish an online presence compared to traditional brick-and-mortar stores.

Question 13

A home-based business is one located in

Accepted Answer

A home-based business is one that is operated from the business owner's personal residence, meaning it is located in their home.

Question 14

The traditional physical store is sometimes referred to as the ____ store.

Accepted Answer

The term "bricks-and-mortar" is commonly used to refer to traditional physical stores that customers can physically enter and shop in. The term emphasizes the tangible and physical nature of these types of retail spaces.

Question 15

Helen Artz is planning to open a high-fashion clothing store for young professional women. She knows that the fixtures she acquires for the store should be

Accepted Answer

The fixtures should be elegant to align with the high-fashion theme and attract young professional women who are likely looking for a sophisticated shopping experience.

Question 16

Dell Computer Corporation deals directly with corporate customers online and builds computers to specifications after an order is placed, which reduces the firm's storage and carrying costs. This illustrates that B2B firms can create

Accepted Answer

Dell's direct dealings with corporate customers online allow for greater efficiency in their selling by reducing storage and carrying costs.

Question 17

Which of the following is not one of the major categories of e-commerce businesses?

Accepted Answer

The answer of Which of the following is not one...

Question 18

John Pearson created Acme Online to allow paper suppliers to compete for manufacturers' orders over the Internet in live auctions. This model would best be described as

Accepted Answer

The model of Acme Online involves suppliers (businesses) competing for manufacturers' orders (also businesses) over the Internet in live auctions. This establishes business-to-business (B2B) relationships, making option C the best choice.

Question 19

Businesses that operate in the home

Accepted Answer

By operating in the home, businesses can save on costs such as rent, utilities, and transportation, which can help increase profits. Customer traffic is not a requirement for businesses that operate in the home, and they are not necessarily family businesses. While the prevalence of home-based businesses may fluctuate over time, there is no evidence to suggest they are less common today than they were 10 years ago.

Question 20

Special-purpose equipment is generally difficult for small manufacturers to use unless

Accepted Answer

Small manufacturers may not have the resources or capacity to invest in specialized equipment that can only be used for a limited range of products or processes. However, if the plant produces a standardized product in large enough volumes, it may be worthwhile to invest in special-purpose equipment to improve efficiency and reduce costs. This also helps to ensure that the cost of the equipment can be spread out over a larger number of units, making it more financially feasible.

Quiz 9: The Location Plan