ENTREPRENEURSHIP

CHAPTER 8 QUIZ

Name:___________________________ Date:___________

I. Matching Type. Match each statement with the term that best defines it.

A. e-commerce H. percentage lease

B. enterprise zones I. quote
C. gross lease J. reorder point
D. industrial park K. tenant
E. inventory L. trade area
F. landlord M. vendors
G. net lease N. visual merchandising

D 1. A section of land that is zoned for industrial businesses only.

M 2. Companies that sell products and services to businesses.
L 3. The area from which a business expects to attract customers.
I 4. An estimate of how much you will pay for merchandise or services.
F 5. The person who owns and rents out buildings or space.
C 6. A lease in which the tenant pays rent each month for the space occupied,
and the landlord covers all property expenses for that space.
G 7. A lease in which the landlord pays building insurance and the tenant pays
rent, taxes, and any other expenses.
B 8. Areas that suffer from lack of employment opportunities.
A 9. Buying and selling products or services over the Internet.
J 10. A predetermined level of inventory that signals when new stock should be
ordered

II. Multiple choice

11. Which of the following is not a location option for a retail business?
A. downtown area
B. industrial park
C. community shopping center
D. warehouse

12. Which of the following service businesses would consider the same location factors as a
retail business?
A. exterminating company
B. lawn service
C. hair salon
D. on-site computer repair service

13. Which of the following is not a good reason to locate a business in the home?
A. saves money
 B. more freedom
C. limited space
D. convenience

14. In which type of lease does a landlord receive a portion of the tenant’s revenue each
month in addition to a base rent?
A. gross lease
B. net lease
C. percentage lease
D. tenant-landlord lease

15. Which of the following is the least important consideration when organizing the layout
of a retail business?
A. lighting
B. window displays
C. aisle space
D. organization of supplies

16. Which of the following is the least important consideration for the layout of a wholesale
business?
A. organization
B. efficiency
C. safety
D. appearance

17. Which of the following is not considered inventory?

A. dolls for a toy store
B. component parts of a product
C. vacuum cleaners owned by a maid service
D. all of the above are considered inventory

18. True or False Availability of parking would be an important consideration for the
location of a coffee shop.
19. True or False Most entrepreneurs start out by purchasing the site where their business
will be located.
20. True or False When purchasing supplies, equipment, and inventory, it is always best to
purchase from the lowest-cost vendor.