Question 1

A bulk foods store allows customers to select and bag spices from large bins.What kind of layout does this store use?
A) product
B) process
C) functional
D) self-service

Accepted Answer

The store uses a self-service layout where customers are responsible for selecting and bagging the spices themselves.

Question 2

Discuss two different ways e-commerce benefits a start-up.

Accepted Answer

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Question 3

Victor is starting a business to retail musical instruments.What will most influence Victor's location decision?
A) personal preference
B) resource availability
C) customer accessibility
D) environmental conditions

Accepted Answer

The most important factor that will influence Victor's location decision for a business retailing musical instruments is customer accessibility. The location must be accessible and convenient for customers to visit and purchase the products. Other factors such as personal preference, resource availability, and environmental conditions are important but are secondary to customer accessibility.

Question 4

Distinguish between general-purpose and special-purpose equipment in a factory setting,and cite the advantages of each.

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Question 5

Surge has a website that provides skiers with up-to-date information on snow conditions at all the major resorts in North America and Europe.Surge sells web space to advertisers that target the skiing market.What e-commerce model is this an example of?
A) business to consumer
B) information-based
C) content-based
D) transaction-based

Accepted Answer

Surge's website is primarily focused on providing content to its users, specifically information about snow conditions at ski resorts. While Surge does sell web space to advertisers, this is not its primary source of revenue and does not involve direct transactions between buyers and sellers. Therefore, this is an example of a content-based e-commerce model.

Question 6

Tracy sells specialty parts for hobby cars.A business consultant tells her that her town provides only a very small niche market and encourages Tracy to locate on the Internet with e-commerce capability.What is the consultant's main reason for this advice?
A) E-commerce gives small firms a market presence comparable to that of specialty stores.
B) E-commerce allows any business access to customers anywhere.
C) E-commerce expands the sales cycle.
D) E-commerce processes customer payments safely.

Accepted Answer

The consultant's main reason for recommending e-commerce is because it allows any business to access customers anywhere. This would give Tracy a much larger potential market size than just the small niche market in her town. Option A is partially correct, but does not fully capture the main reason for the recommendation. Options C and D are not relevant to the consultant's main reason.

Question 7

Marilyn owns commercial office units that she rents to businesses.Which term best describes Marilyn's role?
A) business administrator
B) office manager
C) rentee
D) lessor

Accepted Answer

Marilyn's role is that of a lessor, as she owns the property and leases it out to businesses.

Question 8

Areas of a retail store differ markedly in sales value.List these areas,from most valuable to least valuable.

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Question 9

Compare and contrast the three different e-commerce business models discussed in the textbook.

Accepted Answer

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Question 10

George's company manufactures and sells replica watches to retailers.He wants to start selling watch movements and parts online to an untapped watch collector market.What e-commerce model should George use to reach this untapped market?
A) business to consumer
B) information-based
C) auction site
D) transaction-based

Accepted Answer

To reach the untapped watch collector market, George should use the business to consumer model as it targets individual customers. Additionally, the transaction-based model would be ideal for this venture because it involves sales of goods or services directly to customers online. This will allow customers to easily purchase the watch movements and parts they need.

Question 11

Michelle's company makes glass vases.The equipment is placed strategically so that the vases start at one end in an oven to melt the raw glass and is transformed into a finished vase once it is removed from the polishing machine.What kind of layout does Michelle's company have?
A) product
B) process
C) merchandise pattern
D) free-flow pattern

Accepted Answer

Michelle's company uses a product layout, where equipment and workstations are arranged according to the sequence of operations that need to be performed to assemble a particular product. In this case, the sequence starts with melting raw glass in an oven and ends with a finished vase coming out of the polishing machine, indicating a linear flow typical of a product layout.

Question 12

Discuss the attraction of a home-based business.

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Question 13

Discuss the challenges of operating a home-based business and some of the approaches that can help minimize their impact.

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Question 14

Rachel creates a website to provide information about outdoor activities hoping that it will increase the number of people that visit her camping supply store.What e-commerce model does Rachel use?
A) business to consumer
B) information-based
C) content-based
D) transaction-based

Accepted Answer

Rachel's website is providing information with the goal of attracting more visitors to her physical store, which aligns with an information-based e-commerce model.

Question 15

Brenda purchased a picture frame for her mother-in-law's birthday and then decided to return to the store to have it gift wrapped.Where in the store will Brenda likely bring the frame for gift wrapping?
A) far right side of the store
B) far left side of the store
C) front of the store
D) back of the store

Accepted Answer

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Question 16

Arthur runs a nature store that sells products like bird feeders,minerals,binoculars,and wind chimes.Customers are attracted to the beautiful displays and the sounds of birds or whales.Which layout type would Arthur most likely use for his store?
A) product
B) process
C) merchandise pattern
D) free-flow pattern

Accepted Answer

The free-flow pattern allows for a more creative and flexible arrangement of products, which suits the aesthetic and sensory experience Arthur's nature store aims to provide. This layout encourages customers to explore and discover products in a more natural and less structured environment, aligning with the store's theme.

Question 17

Charles is reviewing a commercial unit to lease for $10 per square foot per year (psf).What is the psf cost called?
A) lease
B) base rent
C) tri-rent
D) leasehold

Accepted Answer

The psf cost is called the base rent, which is the minimum amount payable by the tenant for the use of the leased property.

Question 18

Holla's home office is located in her basement,where the lighting is poor and the temperature is cool.Holla rents temporary space equipped to host meetings with important clients.What term refers to the facility Holla rents from?
A) commercial rental
B) temporary office
C) business incubator
D) all-purpose office space

Accepted Answer

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Quiz 11: Selecting a Location and Planning the Facilities

A bulk foods store allows customers to select and bag spices from large bins.What kind of layout does this store use?

Discuss two different ways e-commerce benefits a start-up.

Victor is starting a business to retail musical instruments.What will most influence Victor's location decision?

Distinguish between general-purpose and special-purpose equipment in a factory setting,and cite the advantages of each.

Surge has a website that provides skiers with up-to-date information on snow conditions at all the major resorts in North America and Europe.Surge sells web space to advertisers that target the skiing market.What e-commerce model is this an example of?

Tracy sells specialty parts for hobby cars.A business consultant tells her that her town provides only a very small niche market and encourages Tracy to locate on the Internet with e-commerce capability.What is the consultant's main reason for this advice?

Marilyn owns commercial office units that she rents to businesses.Which term best describes Marilyn's role?

Areas of a retail store differ markedly in sales value.List these areas,from most valuable to least valuable.

Compare and contrast the three different e-commerce business models discussed in the textbook.

George's company manufactures and sells replica watches to retailers.He wants to start selling watch movements and parts online to an untapped watch collector market.What e-commerce model should George use to reach this untapped market?

Michelle's company makes glass vases.The equipment is placed strategically so that the vases start at one end in an oven to melt the raw glass and is transformed into a finished vase once it is removed from the polishing machine.What kind of layout does Michelle's company have?

Discuss the attraction of a home-based business.

Discuss the challenges of operating a home-based business and some of the approaches that can help minimize their impact.

Rachel creates a website to provide information about outdoor activities hoping that it will increase the number of people that visit her camping supply store.What e-commerce model does Rachel use?

Brenda purchased a picture frame for her mother-in-law's birthday and then decided to return to the store to have it gift wrapped.Where in the store will Brenda likely bring the frame for gift wrapping?

Arthur runs a nature store that sells products like bird feeders,minerals,binoculars,and wind chimes.Customers are attracted to the beautiful displays and the sounds of birds or whales.Which layout type would Arthur most likely use for his store?

Charles is reviewing a commercial unit to lease for $10 per square foot per year (psf) .What is the psf cost called?

Holla's home office is located in her basement,where the lighting is poor and the temperature is cool.Holla rents temporary space equipped to host meetings with important clients.What term refers to the facility Holla rents from?