25) Changes to adapt a leased building for a particular business are called ________.
A) Leasehold improvements
B) Leasehold developments
C) Building improvement funds
D) Client developments
E) Expensive
Learning Obj.: LO 5
AACSB: Analytical thinking
26) For manufacturing, warehousing, and distribution firms, key considerations include
________.
A) Capacity for efficient movement of materials, equipment, and people
B) Flexibility to adapt to changing business requirements
C) Loading docks and vehicle access for deliveries and outbound shipments
D) Environment conducive to work requirements
E) All of the above
Learning Obj.: LO 5
AACSB: Analytical thinking
27) In most cases, parking is required for all of the following except ________.
A) Commercial vehicles
B) Employees
C) Visitors or customers
D) Handicapped
E) VIPs
Learning Obj.: LO 5
AACSB: Analytical thinking
28) Retail facilities must meet all of the following business requirements except ________.
A) Appropriate selling area and configuration of that space
B) Space for offices, storage, restrooms, deliveries, and other special needs
C) Signage for rules/regulations
D) Parking that is adequate for the anticipated customer volume
E) Private area for female customers to attend to children
Learning Obj.: LO 5
AACSB: Analytical thinking
7
29) If a product is made through a continuous process, which layout is likely to be best?
A) Product layout
B) Process layout
C) Fixed-position layout
D) All of the above
E) None of the above
Learning Obj.: LO 5
AACSB: Analytical thinking
30) One consideration for home business is ________, the portion of your home used for
business versus your living area.
A) Space percentage
B) Room percentage
C) Space proportion
D) Gap percentage
E) Space fraction
Learning Obj.: LO 5
AACSB: Analytical thinking
31) As a retailer, you will have to concentrate on the drawing power of your location, the match
between your target market and the demographics of the customer-drawing area, and the
competitive environment.
Learning Obj.: LO 3
AACSB: Analytical thinking
32) A firm wishing to convey an upscale, high-end image will be better served by locating in an
elegant suite in a prestigious office building than in a down-scale strip mall outside of town.
Learning Obj.: LO 3
AACSB: Analytical thinking
33) The oft-quoted business mantra, “product, place, presentation,” is broadly accepted as critical
for retail stores.
Learning Obj.: LO 1
AACSB: Analytical thinking
8
34) Distribution cost efficiencies can save money and be a competitive advantage.
Learning Obj.: LO 1
AACSB: Analytical thinking
35) Visibility is one of the key factors in deciding upon a location.
Learning Obj.: LO 2
AACSB: Analytical thinking
36) A critical success factor on the country selection level is site size and cost.
Learning Obj.: LO 2
AACSB: Analytical thinking
37) What‘s important to a specialty retailer at a brick-and-mortar location will be the same for a
service business.
Learning Obj.: LO 3
AACSB: Analytical thinking
38) Manufacturing facilities have multiple-location-criteria considerations that are primarily
centered on customer service and destination.
Learning Obj.: LO 3
AACSB: Analytical thinking
39) Wholesale businesses face many of the same options and criteria as manufacturers, although
with more constraints on their operations.
Learning Obj.: LO 3
AACSB: Analytical thinking
40) Traffic generators are complementary businesses that attract customer traffic to the retailer’s
area, and can significantly increase revenue generation.
Learning Obj.: LO 3
AACSB: Analytical thinking
9
41) Selling space is actual retail floor space including storage and warehousing, administrative,
and utility areas.
Learning Obj.: LO 3
AACSB: Analytical thinking
42) Physicians, dentists, and other health care providers often locate in areas where the
population fits the service’s target demographics and frequently near other health care providers
or close to hospitals.
Learning Obj.: LO 3
AACSB: Analytical thinking
43) When evaluating locations for your business, it is safe to assume that your perceptions are
entirely correct.
Learning Obj.: LO 4
AACSB: Analytical thinking
44) Generic structures work well for businesses such as restaurants or hotels.
Learning Obj.: LO 4
AACSB: Analytical thinking
45) If you have a home-based venture, you will have to create an area in your living space where
your business operations can occur.
Learning Obj.: LO 6
AACSB: Analytical thinking
46) Apply the key factors of location for a business idea. List which items are more important,
and explain why they are important to your business success.
Learning Obj.: LO 2
AACSB: Analytical thinking
10
47) Identify the type of business you want (retail, manufacturing, wholesale, etc.) and discuss
options and criteria for choosing a location for that type of business.
Learning Obj.: LO 3
AACSB: Analytical thinking
48) What might be traffic generators for a retail business selling mid-range jewelry?
Learning Obj.: LO 3
AACSB: Analytical thinking
49) What is the best method of evaluating location for your business? Apply this method.
Learning Obj.: LO 4
AACSB: Analytical thinking
50) Name some considerations for the layout of your business. What areas of layout are more
important? Why?
Learning Obj.: LO 5
AACSB: Analytical thinking
11