Question 1

Joe wanted to start an outside café in his neighborhood.When he started the construction,the building department made him to stop since he was not in accordance to the local zone.What would be the best option for Joe?

Accepted Answer

Joe should appeal to the local zoning commission in order to see if there is any possibility of obtaining a zoning variance that would allow him to proceed with the construction of his café. This is the appropriate and legal way to handle the situation, and it may lead to a positive outcome for Joe. Quitting or resorting to illegal tactics will not solve his problem, and suing the city is unlikely to be successful unless there is evidence of wrongdoing on the part of the building department.

Question 2

Designing layouts ergonomically and seeking to automate product flows can result in:

Accepted Answer

Designing layouts ergonomically and automating product flows can lead to improving productivity by reducing the time and effort required for material handling, ultimately lowering material handling costs. However, it may not necessarily reduce the owner's initial capital outlay or eliminate the need for a layout plan.

Question 3

A major factor that could increase the wage rate in an area would be:

Accepted Answer

Unions have the ability to negotiate better working conditions and higher wages for their members, which can increase the overall wage rate in the area.

Question 4

The intangibles that an entrepreneur can determine only by visiting a particular city is:

Accepted Answer

Both the degree of compatibility a business has with the surrounding community and the quality of life cannot be fully determined without visiting a particular city. These intangibles can vary significantly from city to city, and are essential for an entrepreneur to consider when deciding where to start a business. Factors such as local attitudes toward business, access to resources, and the overall culture of a city can greatly impact the success of a business. The quality of life in a particular city can also be significant, as it can impact the overall well-being and satisfaction of the entrepreneur and their employees, which can ultimately affect the success of the business.

Question 5

Two distinct factors are important for entrepreneurs analyzing the labor supply in a potential location:

Accepted Answer

The number of workers available in the area and their level of education, training, and experience are crucial factors for entrepreneurs to analyze the labor supply in a potential location. This will give them an idea of the pool of talent they can hire from and help them determine if the local workforce has the necessary skills to meet their business needs. Cost of transportation and minimum wage are also important, but they are not as critical as the availability of qualified workers.

Question 6

A ________ is a specially designated area that allows resident companies to import materials and components from foreign countries;assemble,process,package,or manufacture them;and then ship finished products out while incurring low tariffs and duties or,in some cases,paying no tariffs or duties at all.

Accepted Answer

A Foreign Trade Zone (FTZ) is a specially designated area where companies can import materials and components from foreign countries, assemble, process, package, or manufacture them, and then ship finished products out while incurring low tariffs and duties or, in some cases, paying no tariffs or duties at all. Local Trade Zone and Duty Free Zone are not the correct terms for this definition.

Question 7

Most businesses have found that making reasonable accommodations for customers and employees have proven to:

Accepted Answer

Making reasonable accommodations for customers and employees has proven to create a more pleasant environment, attract new customers, and attract qualified employees. By making these accommodations, businesses are showing that they value diversity and inclusivity, which can improve the overall reputation and success of the business.

Question 8

Which of the following statement is correct?

Accepted Answer

The statement "The more specialized the business or the greater the relative cost of transporting the product to the customer, the more important proximity to the market is" is correct. This is because specialized businesses have a narrower customer base and need to be closer to their target market to increase their chances of reaching customers effectively. Similarly, if the cost of transporting the product to customers is high, it makes more sense to be closer to the market to avoid incurring significant transportation costs.

Question 9

The ________ of products and materials,their ________ of transportation,and their ________ functions all interact in determining how close a business needs to be to its sources of supply.

Accepted Answer

The statement talks about the cost and value of products and materials, which implies a trade-off between them. This makes B the best choice, where value is mentioned first. The second part of the statement talks about the cost of transportation, which is mentioned second in choice B. The third blank mentions functions, which implies different requirements based on the products' unique characteristics, hence the choice "unique" is not suitable. Choice C mentions price, which may not be relevant in determining proximity to sources of supply. Choice D mentions the same word in all blanks, which is not meaningful in the context.

Question 10

A process layout would be best fitted to:

Accepted Answer

A process layout is best suited for job shops and batch production, where different types of products are produced in small quantities. Handmade metal gifts manufacturer falls in this category, as they produce different types of products based on customer orders and requirements. On the other hand, an automobile assembly plant and an oil refinery use a product layout, where a single product is manufactured on a large scale. A textbook publishing plant may use a hybrid layout, where some processes are done by product while others are done by process. However, the primary focus of textbook publishers is on content creation and design rather than manufacturing, so layout is not as critical for their operations.

Question 11

Using GIS program,an entrepreneur can:

Accepted Answer

The answer of Using GIS program,an entrepreneur can:
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Question 12

Advantages of a downtown location are:

Accepted Answer

Downtown locations benefit from the traffic generated by other stores clustered in the district, which can bring in more customers and potentially increase sales. While there may be some drawbacks such as competition and traffic congestion, the benefits of a downtown location can outweigh these factors. Option A and B describe potential challenges rather than advantages.

Question 13

When considering a location,the business owner should consider:

Accepted Answer

A business owner should consider all of the above factors when choosing a location. Police and fire protection are important for the safety of the business and its employees. Public services such as transportation, utilities, and schools can affect the quality of life for employees and their families. The location's reputation can also impact the perception of the business and its potential success.

Question 14

Entrepreneurs must evaluate the impact of which of the following?

Accepted Answer

Entrepreneurs must consider the impact of all types of taxes, including sales taxes, property taxes, and specialized taxes such as payroll taxes or excise taxes. This evaluation is necessary to accurately forecast expenses and revenues and to determine the overall financial viability of their business.

Question 15

Some of the key issues when exploring a state of a business would be:

Accepted Answer

When exploring the state of a business, it is important to consider laws, regulations, and taxes as they can significantly impact its operations and financial performance. Ignoring any of these key issues may lead to legal and financial troubles for the business in the long run. Therefore, all of the above choices should be considered.

Question 16

Which of the following statement is true in determining the cost of a store in a shopping center or a mall?

Accepted Answer

All of the above statements are true when determining the cost of a store in a shopping center or a mall. The location of a store should complement the other products and brands sold in the mall or center. A business owner needs to consider the types of companies that will be occupying as tenants because they will influence the amount of foot traffic that the store will receive. The vacancy rate is also an important factor to consider because a high vacancy rate can indicate low demand for space, leading to lower rents. Therefore, a business owner should consider all of these factors before deciding on a rental cost for the store.

Question 17

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:

Accepted Answer

Process layout groups workers and equipment based on similar processes or functions. It is suitable for short production runs and when there are significant variations in the product, as it allows for flexibility in the production process.

Question 18

Which of the following variables influences a retail trading area?

Accepted Answer

All of the above variables can influence a retail trading area. Local attitude refers to the opinions and perceptions of consumers towards a particular retailer or the industry as a whole. Local culture can affect the types of products and services that are in demand in a specific area. Local barriers can include physical, legal, or economic factors that may limit or encourage the development of retail businesses in a given area. Therefore, all of these factors can have an impact on the success or failure of a retailer operating in a particular trading area.

Question 19

The starting point for designing a layout is:

Accepted Answer

The starting point for designing a layout is determining how and in what sequence product parts or service tasks flow together. This helps in creating a layout design showing the space relationships, arranging the equipment and materials stocking areas in the proper sequence, and discovering the single best flow for the manufacturing process.

Question 20

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:

Accepted Answer

The fixed-position layout is the best choice for manufacturing large, bulky products as it involves bringing the materials to a specific spot and doing the assembly in one place. This layout is commonly used in shipbuilding, aircraft manufacturing, and construction projects. The other layout options (process, function, and product) are not suitable for this type of manufacturing as they involve either arranging equipment based on the sequence of operations, grouping similar processes together, or arranging equipment based on the flow of the product.

Quiz 16: Location,layout,and Physical Facilities