Question 1

You should start the leasing process by looking for locations.

Accepted Answer

The first step in the leasing process is to determine where you want to lease the property.

Question 2

Businesses with high customer contact include such diverse operations as medical or legal offices and manufacturing businesses.

Accepted Answer

Manufacturing businesses typically have low customer contact compared to service-oriented businesses like medical or legal offices, which have high customer contact.

Question 3

A company that will warehouse your products and fill your customer's orders for you is called a multichannel firm.

Accepted Answer

A company that will warehouse your products and fill your customer's orders for you is called a fulfillment center or a third-party logistics (3PL) provider. A multichannel firm refers to a company that sells its products through multiple channels, such as online, in stores, and through third-party retailers.

Question 4

Leasing is an option with a considerably lower initial cash outlay,and it is often the only feasible choice for new businesses.

Accepted Answer

Leasing allows businesses to acquire assets without having to make a large upfront payment, making it a more feasible option for new businesses with limited capital.

Question 5

Traffic generators are other businesses that bring customers to the area.

Accepted Answer

Traffic generators are businesses or attractions that increase foot traffic to a particular area or location. Examples include restaurants, shopping malls, movie theaters, and amusement parks. These businesses can be beneficial for other businesses in the area as they attract customers who may also visit other nearby establishments.

Question 6

Direct exporting refers to selling directly to foreign countries using middlemen such as agents and export trading companies and not selling to the domestic consumers.

Accepted Answer

Direct exporting involves selling directly to foreign buyers without intermediaries, whereas using agents and export trading companies is considered indirect exporting.

Question 7

Magazines are very appropriate places for direct response advertising for business-to-business selling.

Accepted Answer

Magazines cater to specific industries and audiences, making them effective for targeting B2B customers. Direct response advertising can include coupon codes or phone numbers specifically for B2B sales representatives to contact, making it a suitable strategy for B2B selling.

Question 8

Unfortunately for the entrepreneurs,many distributors and wholesalers are not interested in taking on a start-up product.

Accepted Answer

Distributors and wholesalers often prefer to work with established or well-known products, making it difficult for start-ups to find representation in the market.

Question 9

Grid layout is the layout more typically found in upscale department stores.

Accepted Answer

The answer of Grid layout is the layout more typically...

Question 10

HVAC is the least expensive type of repair.

Accepted Answer

HVAC (heating, ventilation, and air conditioning) repairs can be quite expensive, especially if major components like the furnace or AC unit need to be replaced.

Question 11

The advantage of the United Nations having 192 member countries is that a new exporter can and should market their product since they are very similar in cultural,political,and economic environments.

Accepted Answer

The statement is incorrect. The advantage of the United Nations having 192 member countries is that it provides a platform for countries to collaborate and address global issues together. However, the cultural, political, and economic environments of these countries can vary widely, making it challenging for new exporters to market their products in all member countries. Each country has its own unique characteristics and regulations that must be considered when marketing a product.

Question 12

For payment procedures in exporting,typical methods include letters of credit or documentary drafts.

Accepted Answer

Letters of credit and documentary drafts are two common payment methods used in exporting transactions.

Question 13

Layout needs to be designed so as to eliminate unnecessary and excessive employee movement.

Accepted Answer

The statement is true. Efficient layout design aims to reduce unnecessary employee movements and improve productivity by optimizing the flow of people, materials, and equipment.

Question 14

A middleman business which buys and sells to other businesses rather than consumers is called a retailer.

Accepted Answer

A middleman business which buys and sells to other businesses is called a wholesaler, not a retailer. Retailers sell to individual consumers.

Question 15

The current rate for a direct mail address list is about $500 per thousand names.

Accepted Answer

The cost of direct mail address lists can vary widely based on factors such as the quality of the list, the specificity of the target audience, and the provider, so there is no fixed rate like $500 per thousand names.

Question 16

In exporting,the easiest payment procedure is to require up-front cash payment prior to shipment.

Accepted Answer

Requiring up-front cash payment prior to shipment is the easiest and safest payment procedure in exporting as the seller does not have to worry about non-payment or payment disputes. However, this may not always be feasible or acceptable to the buyer, especially in larger transactions or with long-standing business relationships. Other payment methods like letter of credit, documentary collection, or open account may be used in such cases.

Question 17

There are three typical locations for services: at the client's location,at the mutually accessible location,and at your firm's location.

Accepted Answer

This statement is true. The three typical locations for services are at the client's location, at the mutually accessible location, and at your firm's location.

Question 18

Usually the first technique an entrepreneur uses to get customers is word-of-mouth.

Accepted Answer

Word-of-mouth can be a powerful tool for entrepreneurs to gain customers, as satisfied customers will often recommend the business to their friends and acquaintances. This type of organic marketing can be effective in building a loyal customer base and can be a cost-effective way to generate new business.

Question 19

One of the major mistakes commonly made by U.S.businesspeople is being too sensitive to cultural differences.

Accepted Answer

One of the major mistakes commonly made by U.S. businesspeople is actually being insensitive to cultural differences, assuming that their way of doing things is the only "right" way. It is important to be aware of and sensitive to cultural differences in order to successfully navigate global business relationships.

Question 20

Door-to-door sales do offer the flexibility of having your product available around the clock and at convenient locations.

Accepted Answer

Door-to-door sales do not offer the flexibility of having your product available around the clock and at convenient locations as the salesperson can only be at one location at a time and typically operates during certain hours of the day.

Quiz 11: Small Business Distribution and Location