Question 1

The key to finding a suitable location is identifying the characteristics that can give a company a competitive edge and then searching out potential sites that meet those criteri
a.

Accepted Answer

The statement accurately describes the process of finding a suitable location for a company.

Question 2

Geographic Information Systems (GIS)are powerful software programs that allow entrepreneurs to pinpoint the ideal location for their businesses.

Accepted Answer

Geographic Information Systems (GIS) do allow entrepreneurs to pinpoint the ideal location for their businesses.

Question 3

When conducting a regional evaluation,one of the first places an entrepreneur should turn for information is the U.S.Census Bureau.

Accepted Answer

The U.S. Census Bureau provides a wealth of regional data on population, demographics, income, and other economic indicators. It is a valuable resource for entrepreneurs conducting regional evaluations.

Question 4

When choosing a location,a small business owner should match the characteristics of the labor force her company requires with the characteristics of an area's available labor pool.

Accepted Answer

This is true. It is important for a small business owner to consider the demographics, skills, and availability of the labor force in a potential location when deciding where to locate the business. This will help ensure that the business has access to the talent it needs to be successful.

Question 5

When the cost of transporting a product is high relative to its value,locating close to the market a manufacturer plans to serve is critical.

Accepted Answer

When the cost of transportation is high in relation to the value of a product, locating close to the market becomes essential as it reduces transportation costs and makes the product more affordable to the customer.

Question 6

A good manufacturing layout requires all but which of the following?
A)Flow/process study
B)Easy adjustment to changing conditions
C)Good housekeeping
D)An assembly line

Accepted Answer

While an assembly line may be useful in certain manufacturing layouts, it is not an absolute necessity. The other options - a flow/process study, easy adjustment to changing conditions, and good housekeeping - are essential components of an efficient and effective manufacturing layout.

Question 7

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

Accepted Answer

To ensure the success of a business, it is important to consider growth patterns in different regions of the country. This can help identify areas with higher potential for customer demand and revenue growth.

Question 8

Proximity to needed raw materials is critically important for a service firm.

Accepted Answer

Proximity to raw materials is not critical for a service firm, as they do not have physical products that require raw materials for production. Instead, they provide intangible services that can be delivered from anywhere.

Question 9

What is the 40-30-20-10 rule in retailing?
A)A way of figuring who your best and worst customers are
B)A formula for calculating the ratio of expenditures on signage,displays,advertising,and interior decorating
C)An expression of the decline of the value of store space as you move front to back in the store
D)The percentage of customers who move straight into a store,go right,go left,leave before fully entering

Accepted Answer

The 40-30-20-10 rule in retailing is an expression of the decline of the value of store space as you move front to back in the store. It suggests that the prime space closest to the entrance should be allocated for the most profitable items (40%), followed by the secondary space for lower-priced items (30%), then tertiary space for clearance and sales (20%), and finally, the remaining space for bulk storage or administrative purposes (10%).

Question 10

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.

Accepted Answer

The statement accurately describes the purpose of the TIGER file.

Question 11

Two important criteria for selecting and designing a production layout are:
A)worker effectiveness and material handling costs.
B)worker effectiveness and maximum visibility.
C)space use and proximity to raw materials.
D)material handling costs and overall convenience factors.

Accepted Answer

The answer of Two important criteria for selecting and designing...

Question 12

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

Accepted Answer

It is important for a business owner to know the type of labor needed and prepare job descriptions and specifications in advance to ensure a good match with the available labor pool. This helps to avoid wasting time and resources on hiring and training the wrong candidates.

Question 13

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

Accepted Answer

While education and training level are important factors in labor supply analysis, a small business should also consider other factors such as the size of the labor force, demographic characteristics, and wages offered by competitors.

Question 14

A process layout would be best suited to:
A)an automobile assembly plant.
B)an oil refinery.
C)a manufacturer of handmade metal gifts.
D)a textbook publishing plant.

Accepted Answer

A process layout is best suited to a manufacturer of handmade metal gifts because it involves arranging equipment and workstations according to the different processes needed to create the product. In this case, the metal gift manufacturing process likely involves multiple stages, such as cutting, shaping, welding, and polishing, each requiring different equipment and techniques. A process layout allows for easy movement of materials and products between these different stages. An automobile assembly plant, oil refinery, and textbook publishing plant would all require a product layout, which involves positioning equipment and workstations in a specific sequence along a production line.

Question 15

The most important factor when evaluating the labor supply in an area is its prevailing wage rate.

Accepted Answer

While wage rate is an important factor, it is not the only factor in evaluating the labor supply in an area. Other factors such as availability of workers, level of education and skill, and demographics also play a crucial role.

Question 16

Manufacturing layout decisions take into consideration:
A)customer buying behavior,the types of product sold,and the physical dimensions of the building.
B)the status of the building: built,bought,or leased,and the type of product sold.
C)the product,the process,the space availability within the facility,ergonomic considerations,and key economic considerations.
D)the employees,the customer,and the mechanical process used to produce the product.

Accepted Answer

Manufacturing layout decisions should consider the product being produced, the production process, the available space within the facility, ergonomic considerations, and key economic considerations such as efficiency and cost-effectiveness. Choice A only considers customer buying behavior and building dimensions, while choice B only considers the status of the building and the type of product sold. Choice D only considers employees and customers, neglecting important factors related to production.

Question 17

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

Accepted Answer

The answer of The Zip Code Atlas and Market Planner...

Question 18

Published annually,The Survey of Buying Power provides a detailed breakdown of population,retail sales,spendable income,etc.,for various census regions,states,etc.

Accepted Answer

The statement accurately describes The Survey of Buying Power.

Question 19

By collecting a wealth of data on possible locations,entrepreneurs will find that the location decision is made for them.

Accepted Answer

Collecting data on possible locations is important but does not necessarily mean that the location decision is made for the entrepreneurs. Other factors such as cost, competition, and accessibility also play a role in the final decision.

Question 20

By studying the demographics of a proposed location,a small business owner can determine how well it matches the market for the owner's product or service.

Accepted Answer

Studying the demographics of a proposed location can help a small business owner determine if there is a good match between the market for the owner's product or service and the population of the area. This can help with important decisions such as whether to open a business in that location or not.

Quiz 14: Choosing the Right Location and Layout

The key to finding a suitable location is identifying the characteristics that can give a company a competitive edge and then searching out potential sites that meet those criteri a.

Geographic Information Systems (GIS)are powerful software programs that allow entrepreneurs to pinpoint the ideal location for their businesses.

When conducting a regional evaluation,one of the first places an entrepreneur should turn for information is the U.S.Census Bureau.

When choosing a location,a small business owner should match the characteristics of the labor force her company requires with the characteristics of an area's available labor pool.

When the cost of transporting a product is high relative to its value,locating close to the market a manufacturer plans to serve is critical.

A good manufacturing layout requires all but which of the following?

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

Proximity to needed raw materials is critically important for a service firm.

What is the 40-30-20-10 rule in retailing?

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.

Two important criteria for selecting and designing a production layout are:

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

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

A process layout would be best suited to:

The most important factor when evaluating the labor supply in an area is its prevailing wage rate.

Manufacturing layout decisions take into consideration:

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

Published annually,The Survey of Buying Power provides a detailed breakdown of population,retail sales,spendable income,etc.,for various census regions,states,etc.

By collecting a wealth of data on possible locations,entrepreneurs will find that the location decision is made for them.

By studying the demographics of a proposed location,a small business owner can determine how well it matches the market for the owner's product or service.