53) The manufacturing layout that arranges workers and equipment according to sequence of
operation and is best suited for highly standardized or mass-produced products is called:
A) process layout.
B) fixed-position layout.
C) function layout.
D) product layout.
54) A product layout has the disadvantage of:
A) a high fixed investment in specialized equipment.
B) the highest materials costs with lower productivity.
C) being harder to schedule and monitor.
D) dividing the work area into separate operations that are highly independent with a duplication
of equipment.
55) 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:
A) process layout.
B) fixed-position layout.
C) function layout.
D) product layout.
56) A process layout would be best fitted to:
A) an automobile assembly plant.
B) an oil refinery.
C) a manufacturer of handmade metal gifts.
D) a textbook publishing plant.
57) 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:
A) process layout.
B) fixed-position layout.
C) function layout.
D) product layout.
58) The starting point for designing a layout is:
A) creating a detailed layout design showing the space relationships.
B) discovering the single best flow for the manufacturing process.
C) arranging the equipment and materials stocking areas in the proper sequence.
D) determining how and in what sequence product parts or service tasks flow together.
59) Site selection begins with considering what city in which to locate and then broadening the
search to consider the region and state.
60) The first phase in selecting a location is determining what regions of the country are
experiencing substantial growth.
61) A variance is a special exception to a zoning ordinance.
62) The Zip Code Atlas and Market Planner provide detailed information on sales, spendable
income, etc., by census region, county, and city.
63) While GIS software allows a business owner to plot his/her existing customer base on a map,
it does not provide zip code information.
64) 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.
65) The less specialized the firm, the greater the importance of proximity in the location
decision.
66) When analyzing the labor supply, a small service business is only concerned with the level of
education and training of the labor force in the area.
67) When selecting a city, a small business owner needs to ask questions about the wage rates,
the business climate, and proximity to markets and raw materials, in order to properly analyze
the city.
68) The trends or shifts in population components, such as population age, have more meaning
for the small business owner than total population trends.
69) To calculate the IRS, a retailer needs to know the number of customers in the area, the retail
expenditures for his/her product, and the total square feet of space allocated to selling his/her
kind of product in the trading area.
70) Local laws, zoning regulations and building codes can affect the location to be chosen
depending on the type of business and its particular requirements.
71) Criteria for a “good location” are universal and apply to all types of small businesses.
72) One element of the location decision common to all businesses is the need to locate where
customers wish to do business.
73) The three factors that influence the size of the retail trading area are: type and price of
products, type of the business, and the demographics of the area.
74) When doing a traffic count, the total number of shoppers passing by is the critical factor in
evaluating the site.
75) Central business districts have convenient and safe parking.
76) When in doubt, shopping centers are always a wise location for a small business to choose.
77) The typical neighborhood shopping center contains from 3 to 12 stores, with a supermarket
or drug store as its “anchor.”
78) It is critical for all retail and service businesses to be located as far from competitors as
possible.
79) For a small business, an airport is a nontraditional location.
80) Home-based businesses represent nearly 50% of all newly created small businesses.
81) A foreign trade zone is a specially designed area that allows resident companies to import
from foreign countries what they need to do their business and ship finished products out with
minimal tariffs, etc.
82) An “incubator” is a facility with low rent that permits start-up small businesses to share
resources.
83) The purpose for establishing incubators is enhancing economic development while grouping
similar types of businesses into a consolidated economy.
84) Poorly planned layouts undermine employee productivity and create organizational chaos.
85) New businesses should only plan or buy the space for which they have immediate need, to
conserve cash.
86) A store’s external appearance plays an insignificant role in identifying its personality to
customers.
87) The Americans with Disabilities Act requires all companies to make their facilities
accessible to disabled customers and employees.
88) Any company with 15 or more employees and any buildings occupied after January 25, 1993
must comply with the Americans with Disabilities Act.
89) The key to determining what needs to be accessible is to determine what are the “primary
function” areas of the business.
90) Buildings under three stories high or with less than 3,000 square feet per floor do not have to
have elevators.
91) Signs are one of the most expensive and least effective ways available to small businesses for
communicating with customers.
92) For a sign to be effective, its message must be complete and complex enough to be thought
provoking.
93) The functional aspects of a building’s interior are more important than its exterior
considerations.
94) Changes in office design have a direct impact on workers’ job performance, job satisfaction,
and ease of communication.
95) When evaluating an existing building’s interior, the entrepreneur should pay particular
attention to the building’s structural components and the suitability for his/her business.
96) Wall coverings are expensive but essential in almost any small business for employee job
satisfaction and customer enjoyment.
97) Lighting is an inexpensive investment for improving employee performance and the overall
appearance of the business.
98) Layout of any retail facility requires the owner’s observation and understanding of customers’
buying habits.
99) Retail layout is the arrangement of merchandise in a store.
100) A retail layout should push customers into the store.
101) A retail layout should pull customers into the store.
102) Most retailers consider what customers want to experience when designing their spaces.
103) Merchandise purchased on impulse and convenience goods should be located near the front
of the store.
104) How does the entrepreneur choose the region of the country for his/her business?
105) Identify and explain the criteria a small business owner should consider when selecting the
state in which to operate his/her business.
106) What factors should the small business owner consider when selecting the city location for
his/her small business? What is the index of retail saturation and how does it help a retailer in
making this decision?
107) Joe wants to open a retail outlet. Discuss with him the factors he should consider in
conducting a site selection analysis.
108) Outline the nine areas from which the retailer and service business owner have to choose in
locating their stores. What are the advantages and disadvantages of each?
109) What factors influence the choice of location for a manufacturer?
110) What is a business incubator? What can an incubator offer an entrepreneur just starting out?
111) Why is external appearance an important consideration?
112) What impact has the Americans with Disabilities Act had on small businesses in terms of
building location and layout?
113) What is ergonomics and why is it important?