Test Bank for Small Business Management: Launching and Growing Entrepreneurial Ventures, 19t

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Launching and Growing Entrepreneurial Ventures,
19th Edition, Justin G. Longenecker,

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Name: Class: Date:

Chapter 09 - The Location Plan

1. A brick-and-mortar store is actually a general term that refers to a retail outlet dealing in building supplies.
a. True
b. False
ANSWER: False

2. The choice of a location for a physical facility is rarely a one-time decision.

a. True
b. False
ANSWER: False

3. While one of the six key factors in determining a good location may carry more weight for a particular business and its
unique situation, each factor should always have some influence on the final location decision.
a. True
b. False
ANSWER: False

4. Most state and city governments go to great lengths to support startups.

a. True
b. False
ANSWER: True

5. Customer accessibility is vital in industries in which the cost of shipping the finished product is high relative to the
product's value.
a. True
b. False
ANSWER: True

6. Business incubators rent space to new businesses or people wishing to start businesses but do not offer management
advice or provide any other form of assistance.
a. True
b. False
ANSWER: False

7. The primary factor in determining the location for a sawmill would most likely be customer accessibility.
a. True
b. False
ANSWER: False

8. Many small business owners recognize the value of seeking assistance from local realtors in determining site
availability and appropriateness.
a. True
b. False
ANSWER: True

9. Sometimes an attorney can add an escape clause to a lease agreement that allows the lessee to exit the agreement under

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Chapter 09 - The Location Plan

certain conditions.
a. True
b. False
ANSWER: True

10. Manufacturing equipment can be categorized as general-purpose and special-purpose.

a. True
b. False
ANSWER: True

11. Bottling machines and manufacturing robots used in factories are examples of special-purpose equipment.
a. True
b. False
ANSWER: True

12. The amount of square feet of office area per employee has increased significantly in recent years.
a. True
b. False
ANSWER: False

13. To maximize sales and profits, a discount shoe store should create an atmosphere similar to higher price point shoe
stores because the customers will expect the same atmosphere.
a. True
b. False
ANSWER: False

14. Local zoning ordinances typically do not apply to home-based businesses.

a. True
b. False
ANSWER: False

15. A home location is still almost always considered a temporary situation until the business grows.
a. True
b. False
ANSWER: False

16. E-commerce can provide a benefit to startups with early cash flow problems by compressing the sales cycle.
a. True
b. False
ANSWER: True

17. An entrepreneur who works from home may deduct costs related to space used in the home for business from any
taxes that may be owed from the venture's income, as long as he or she conforms to the rules established by the IRS.
a. True
b. False
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ANSWER: True

18. Because business-to-business (B2B) model success stories generally receive more publicity than business-to-consumer
(B2C) model ventures do, the potential for B2C opportunities are overlooked.
a. True
b. False
ANSWER: False

19. One of the disadvantages of operating a business-to-consumer (B2C) e-commerce business as opposed to a brick-and-
mortar store is lack of flexibility.
a. True
b. False
ANSWER: False

20. The dollar amounts generated by firms using a business-to-business (B2B) model are significantly greater than those
for firms without a business-to-consumer (B2C) model.
a. True
b. False
ANSWER: True

21. It is possible for an entrepreneur to do business over the Internet without creating either a website or a storefront.
a. True
b. False
ANSWER: True

22. Auction sites generate most of their revenue through listing fees and commissions.
a. True
b. False
ANSWER: True

23. A website built on the content-based model offers only information about a business, its products, and other related
matters.
a. True
b. False
ANSWER: False

24. The role of a website can range from merely offering information and basic content to enabling complex business
transactions.
a. True
b. False
ANSWER: True

25. Many e-commerce companies generate a lot of sales by merging the content- and transaction-based models into one
website.
a. True

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Chapter 09 - The Location Plan

b. False
ANSWER: True

26. Blogs and podcasts are among the emerging options for an online presence.
a. True
b. False
ANSWER: True

27. Many entrepreneurs start their online businesses as a part-time venture.

a. True
b. False
ANSWER: True

28. Research has shown that online businesses that begin as part-time ventures tend to have higher rates of failure than
those launched by owners who choose to jump in with both feet from the start.
a. True
b. False
ANSWER: True

29. Renee plans to open a gift shop in a tourist location. She will rely heavily on walk-in customers to support her
business. Renee will need a
a. clicks-and-mortar facility.
b. bricks-and-clicks facility.
c. brick-and-mortar facility.
d. professionally developed website.
ANSWER: c

30. Arthur's business needs a physical building. Arthur's most important decision will be
a. where to locate.
b. how much to spend.
c. whether to rent or own.
d. whether to build or purchase an existing structure.
ANSWER: a

31. Which of the following statements about location decisions is NOT true?
a. The importance of the initial decision to locate a traditional physical building is underscored by both the high
cost of such a place and the hassle of pulling up stakes and moving an established business.
b. The choice of a location for a physical facility is rarely a one-time decision.
c. The choice of a good location is much more vital to some businesses than to others.
d. Regardless of the specific resources involved, every location decision should be based on certain fundamental
principles that can guide the process.
ANSWER: b

32. Which of the following is NOT one of the five key factors in determining a good business location?
a. The entrepreneur's personal preference
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b. Business plan complexity
c. Business environment conditions
d. Site availability and costs
ANSWER: b

33. Bart is ready to look for a site for his new business. To help him in his search he should
a. contact a local real estate agent.
b. check property for sale ads in the local newspaper.
c. check into site-selection software.
d. check with the local small business development office.
ANSWER: c

34. For a hair stylist, the top priority in the location decision would be
a. his or her personal preference.
b. the availability of resources.
c. customer accessibility.
d. business environment conditions.
ANSWER: c

35. Which of the following would be a critical consideration in the location decision for a manufacturing business?
a. Future advertising costs
b. Access to key suppliers
c. An appropriate labor supply
d. Customer accessibility
ANSWER: c

36. Customer accessibility is the most critical factor in evaluating a specific site for a
a. clothing manufacturer.
b. drugstore.
c. car-parts maker.
d. software development company.
ANSWER: b

37. Callista can locate her business in any state regardless of its weather because she sells:
a. air conditioners.
b. outdoor swimming pools.
c. consumer yard irrigation systems.
d. mattresses.
ANSWER: d

38. Roger is analyzing regional differences in seeking a location for a new firm and is looking at states with favorable tax
systems for small businesses. Based on this information, he should look at which of the following states?
a. South Dakota
b. Massachusetts
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c. Ohio
d. New York
ANSWER: a

39. Which of the following statements concerning business environment conditions for a new business is true?
a. State governments will help new business by levying taxes.
b. Determining the zoning is important because it may limit a company's operations.
c. Many states offer location incentives to attract jobs to very stable areas.
d. Finding an area that has a low cost of living means a low standard of living for employees.
ANSWER: b

40. Zoning ordinances often apply to factors related to

a. nonrelated employees working in a home.
b. commercial signage.
c. the storage of hazardous materials.
d. All of these are correct.
ANSWER: d

41. Which of the following would be a critical consideration in the location decision for a restaurant?
a. Proximity to important sources of raw materials
b. Access to key suppliers
c. Access to good transportation
d. Federal income taxes
ANSWER: b

42. A good reason for relocating a typical manufacturing business is to

a. stabilize income taxes.
b. increase customer traffic.
c. be closer to a pool of highly skilled labor.
d. provide free-flow space.
ANSWER: c

43. Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which
aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product one ton of usable aluminum.
Calvert should locate his smelting plant close to
a. his customers.
b. the bauxite mine.
c. transportation.
d. an area with a suitable labor supply.
ANSWER: b

44. Daisy is planning a clothing manufacturing company. When selecting the location for her production facility, Daisy
will want to consider
a. ease of access to her customers.

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b. ease of access to transportation.
c. availability of suitable labor.
d. the overall cost of living of an area.
ANSWER: c

45. Companies that depend on semiskilled or unskilled workers usually located in a(n)
a. rural area.
b. area where the cost of living is low.
c. area with no zoning ordinances.
d. area with surplus labor.
ANSWER: d

46. Which of the following is an advantage for choosing a hometown as a location for a new business venture?
a. The entrepreneur knows the landmarks around his or her home community.
b. It may be easier to establish credit.
c. The entrepreneur is more likely than an outsider to be offered a better price on a building or land to locate his
or her business.
d. The risk is significantly reduced.
ANSWER: b

47. Dallas is considering starting his business in his hometown. Which of the following is a reason why he should?
a. He can get a more favorable tax treatment.
b. The city government may waive any startup fees he must pay.
c. His friends and relatives in the community may be quick to buy his product and also spread positive reports
about it to others.
d. All of these are correct.
ANSWER: d

48. Facilities that provide shared space, services, and management assistance to new businesses are called
a. industrial parks.
b. community development centers.
c. shopping centers.
d. business incubators.
ANSWER: d

49. For many small business owners, the most important reason to lease rather than buy a facility is
a. avoidance of a large cash outlay.
b. freedom in modifying the building.
c. avoidance of interest payments.
d. avoidance of liability lawsuits.
ANSWER: a

50. An important advantage an entrepreneur gains by leasing rather than buying a facility is
a. receipt of an investment tax credit.
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b. a decrease in risk by minimizing investment.
c. a decrease in the amount of promotion required.
d. a customized layout.
ANSWER: b

51. According to the International Facility Management Association, nearly _____ percent of office spaces today follow
the _____ concept.
a. 25; flexible office
b. 45; open-design
c. 70; open-design
d. 90; flexible office
ANSWER: c

52. According to data compiled by the National Federation of Independent Business, what is the most important
advantage of buying business equipment over leasing it, as reported by small business owners?
a. Can treat the asset as they wish
b. Can own the asset until they want to get rid of it
c. Cheaper overall
d. Puts the asset on the books
ANSWER: c

53. Harry is starting a business where he restores homes built before 1900. He is purchasing used equipment, specifically
lathes, planing mills, and drill presses. This equipment is an example of _____ equipment.
a. special-purpose
b. product-layout
c. general-purpose
d. automated
ANSWER: c

54. An example of special-purpose equipment for a carbonated beverage company is a(n)

a. refrigerator that keeps the product at the appropriate temperature.
b. bottling machine that adjusts pressure for different flavors.
c. assembly line that moves the beverages to the loading dock.
d. mixer that combines the ingredients in the proper order.
ANSWER: b

55. Using special-purpose equipment in the manufacturing process can result in

a. increased operator errors.
b. higher labor cost per unit of product.
c. a rise in accident rates.
d. greater output per machine-hour of operation.
ANSWER: d

56. Helen is planning to open a high-fashion clothing store for young professional women. Which of the following
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descriptors is the most important consideration for the fixtures?
a. Economical
b. Elegant
c. Feminine
d. Practical
ANSWER: b

57. Eaton is writing the location plan for his business plan. He should be sure to identify the company's major equipment
because
a. this is the largest expense he will have for his startup.
b. he does not plan to work from home.
c. it is important to present the proper image to his clients.
d. this can ensure that the financial section of the plan will include funds for their purchase.
ANSWER: d

58. Genevieve just completed her residency and is ready to open her medical office as a general practitioner. The image
her office should convey is
a. trendy, minimalist, and futuristic with bold colors and modern art.
b. old-fashioned, dark, and somber with dark colors and heavy furniture.
c. solid, trustworthy, and confident with neutral colors and comfortable furniture.
d. light-hearted and whimsical with pastel colors and playful art.
ANSWER: c

59. Businesses that operate in the home

a. can increase profits by decreasing costs.
b. require customer traffic.
c. are called family businesses.
d. are less common today than they were 10 years ago.
ANSWER: a

60. According to government surveys, about _____ of all U.S. business owners choose to run their businesses primarily
out of their home.
a. 10 percent
b. half
c. 25 percent
d. 35 percent
ANSWER: b

61. Juanita is considering locating her consulting business in her home. Which of the following might be her greatest
challenge?
a. An increase in the amount of time needed to get the business running
b. Maintaining a professional image
c. An increase in the amount of taxes owed to the IRS
d. A decrease in the amount of time spent with friends

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ANSWER: b

62. Annie is starting a photography business and locating it in her family home. Which of the following aspects is critical
in the balance between her business and her family?
a. Making sure family members don't spoil the image of the business when clients arrive
b. Having a professional studio area that is separate from the family area
c. Shielding her family from the business taking over the home
d. All of these are correct.
ANSWER: d

63. Rachel is starting a daycare at her home in a suburban area. Which of the following professionals should she contact
first before starting?
a. The city's planning and zoning board to make sure she can have a business in the home
b. Her CPA to determine if she can claim a tax deduction for the business
c. Her insurance agent to increase the policy for coverage on the equipment and business activities on site
d. Her attorney to help draw up a business plan
ANSWER: a

64. Garland uses the family room of his home for his business. The children share his computer for their homework and
games. The family room also contains the TV and homework space for the children. The IRS is likely to disallow his
deduction for this space because
a. a separate space must be clearly devoted to the activities of the business.
b. IRS regulations restrict the use of a family room as the designated space for a home-based business.
c. no deduction is allowed for space in the home used for a business.
d. the IRS designates any home-based business as a hobby, and hobby expenses are not deductible.
ANSWER: a

65. E-commerce refers to

a. having an online website in addition to a brick-and-mortar facility.
b. the facilitation of business by making initial contact by electronic means.
c. the buying and selling of products or services on the Internet.
d. a form of business that involves online trades and auctions.
ANSWER: c

66. How does e-commerce benefit small firms?

a. Small firms are often more "tech savvy," allowing quicker adoption of innovations.
b. Large firms may not push the consumer toward the Internet, resulting in small firms being able to gain
customers.
c. E-commerce allows small firms to expand their reach beyond local markets.
d. The government has committed significant resources to encourage small firms to adopt an e-commerce
business model.
ANSWER: c

67. Hermione decided to create a website to complement her bricks-and-mortar store. Which of the following would most
likely be her primary motive for doing so?
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a. To allow her customers to preview her products before coming to her store
b. To attract customers from outside her local area
c. To keep up with the competition
d. To reduce her overall expenses
ANSWER: b

68. For small businesses, the Internet tends to blur ____ boundaries.
a. industry
b. geographic
c. skill-dependent
d. technological
ANSWER: b

69. An e-commerce operation can help a startup with early cash flow problems by
a. focusing on customization.
b. lowering labor costs.
c. providing a cheaper distribution system.
d. compressing the sales cycle.
ANSWER: d

70. In the B2B model, the customers are

a. businesses.
b. other consumers.
c. franchisees.
d. auction participants.
ANSWER: a

71. John created Acme Online to allow paper suppliers to compete for manufacturers' orders over the Internet in live
auctions. This model would best be described as
a. B2B.
b. B2C.
c. C2B.
d. C2C.
ANSWER: a

72. Jeff's Website Design and Data Storage deals directly with corporate customers online and builds websites and data
storage to specifications after an order is placed. By reducing the firm's storage and carrying costs, this example illustrates
that B2B firms can create
a. greater efficiency in their operations.
b. greater efficiency in their buying and selling activities.
c. synergies between buying and selling.
d. market reach through e-commerce.
ANSWER: b

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73. Amazon and Best Buy are examples of _____ firms.
a. B2B
b. B2C
c. C2C
d. C2B
ANSWER: b

74. Which of the following is a challenge for a B2C e-commerce business?

a. The amount of time involved in modifying the appearance of the website
b. The inability to change prices quickly
c. The inability to change merchandise mixes quickly
d. Customers who refuse to purchase a product without first seeing it
ANSWER: d

75. ShoeBiz produces shoes that until recently have been available only at the most exclusive stores. ShoeBiz decided to
create its own website and sell directly to the consumer. This strategy is known as
a. intermediation.
b. disintermediation.
c. disinterment.
d. dismantling the distribution chain.
ANSWER: b

76. Jason has neither a website nor a storefront. Instead, he lists his products for sale on a site that provides customers
with the ability to list products for potential builders. Jason is using a _____ site.
a. C2C
b. C2B
c. B2C
d. B2B
ANSWER: a

77. Sites such as eBay and uBid.com derive most of their revenues from
a. banner ads.
b. listing fees and commissions.
c. corporate sponsors.
d. investors.
ANSWER: b

78. A variation of the information-based model is sometimes called the _____ model.
a. electronic
b. emerging
c. content-based
d. transaction-based
ANSWER: c

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79. Reliable Construction created a website to post photos of some of their completed projects and display their address
and phone number, along with a list of the types of projects they can complete. Reliable has used the _____ model.
a. transaction-based
b. content-based
c. information-based
d. customer-relationship-based
ANSWER: c

80. The major difference between the information-based model and the content-based model is the
a. presence of ads in the content-based model.
b. ability to contact the site developer in the information-based model.
c. presence of an order-processing feature in the information-based model.
d. the ability for the visitor to post comments on the content-based model.
ANSWER: a

81. Melissa would like to reduce the number of phone calls she gets from customers who want to place orders. Which
model would best work for Melissa?
a. Information-based model
b. Content-based model
c. Transaction-based model
d. Customer-relationship-based model
ANSWER: c

82. Steve started a Web-based business offering a mechanism for buying and selling antiques. He has set up his company
using the ____ model.
a. transaction-based
b. content-based
c. information-based
d. premium
ANSWER: a

83. Ethical questions are being raised about the merging of the _____ and _____ models on one website.
a. information-based; content-based
b. information-based; transaction-based
c. content-based; transaction-based
d. content-based; blogging
ANSWER: c

84. Which emerging model of e-commerce is used to generate considerable income from advertising?
a. B2C
b. Disintermediation
c. Blogging
d. Auction site
ANSWER: c
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85. Which of the following statements about starting a business online as a part-time entity is true?
a. While launching a business online as a part-time startup typically has a lower cost, the overall cost is greater as
the company grows.
b. Flexibility is the main reason why an entrepreneur will start a business in this format.
c. Starting an Internet-based businesses on a part-time basis increases the risk that the company will fail.
d. Holding on to a full-time career while launching a new venture on the side can be extremely grueling.
ANSWER: d

86. What are the benefits and drawbacks of leasing, as opposed to purchasing, a building space?
ANSWER: Although more small business owners choose to purchase rather than lease their buildings, the benefits of
leasing can sometimes outweigh the gains of owning:

• A large cash outlay is avoided, which can be especially important for a new small firm that lacks
adequate financial resources.
• Risk is reduced by minimizing investment and by postponing commitments for space until the success
of the business is assured and facility requirements are better known.
• It is usually more affordable to lease in a high-image area than to buy in a prime location.
• Leasing allows the entrepreneur to focus on running the business rather than managing a property.

However, there clearly are disadvantages to leasing as well. Those who buy will benefit financially when a
well-selected property appreciates in value, and their facilities costs will be stable and predictable over time.
Just as important, they won't need to ask permission to make future changes or additions to the property.

87. What are the advantages of locating a startup in one's home community?
ANSWER: Locating a business in one's home community may offer certain unique advantages that cannot be found
elsewhere:

• From a personal point of view, the entrepreneur may generally appreciate and feel comfortable with
the atmosphere of his or her home community.
• It may be easier to establish credit with hometown bankers who know an entrepreneur's personal
background and reputation.
• Having personal connections in the local business community can lead to invaluable business advice.
• If local residents are potential customers, the small business owner probably will have a better idea of
their tastes and preferences than would an outsider.
• Friends and relatives in the community may be quick to buy the product or service and gladly spread
positive reports about it to others.

88. Describe the critical resource considerations that should guide the location decision.
ANSWER: Access to raw materials, suitable labor, crucial suppliers, and transportation are some of the factors that have a
bearing on location selection. Proximity to important sources of raw materials and an appropriate labor supply
are particularly critical considerations in the location of most manufacturing businesses, whereas access to key
suppliers is more likely to influence site selections for retail outlets and restaurant operations.

If the raw materials required by a company's operations are not readily available in all areas, then regions in
which these materials abound will offer significant location advantages. This is especially true for businesses
that are dependent on bulky or heavy raw materials that lose much of their size or weight in the manufacturing
process.
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The suitability of the labor supply for a manufacturer depends on the nature of its production process.

• Labor-intensive operations need to be located near workers with appropriate skills and reasonable
wage requirements.
• A history of acceptable levels of labor productivity and peaceful relations with employers in a
particular area is beneficial to almost any production operation.
• Companies that depend on semiskilled or unskilled workers usually locate in an area with surplus
labor, while other firms may need to be close to a pool of highly skilled labor.

If the required talent is unavailable, relocation may be necessary, even it if means moving to another state.

Access to good transportation is important to many companies. For example, good highways and bus systems
provide customers with convenient access to retail stores, which encourages sales. For small manufacturers,
quality transportation is especially vital. They must carefully evaluate all trucking routes, considering the costs
of both transporting supplies to the manufacturing location and shipping the finished product to customers.

89. Discuss the challenges that an entrepreneur faces in designing the new operation's physical facilities.
ANSWER: When specifying building requirements, an entrepreneur must avoid committing to a space that is too large or
too luxurious for the company's needs. At the same time, the space should not be so small or limiting that
operations are hindered or become inefficient. The general suitability of a building for a given type of business
operation depends on the functional requirements of the enterprise. Other important factors to consider include
the age and condition of the building, potential fire hazards, the quality of heating and air conditioning
systems, the adequacy of lighting and restroom facilities, and appropriate entrances and exits. Also, the
comfort, convenience, and safety of the business's employees and customers should be taken into
consideration.

90. Distinguish among manufacturing equipment, retail equipment, and office equipment using a candle factory and a
candle store as examples.
ANSWER: Machines used in the candle factory would include general-purpose equipment (machines that serve many
functions in the production process) and special-purpose equipment (machines designed to serve specialized
functions in the production process).

A candle store would need retailing equipment such as merchandise-display racks and counters, storage racks,
shelving, shopping carts, cash registers, and other items to facilitate selling.

Both the candle factory and candle store would need office equipment—furniture, filing and storage cabinets,
computers, printers, telephones, and other such items.

91. Discuss the attractions and challenges of operating a home-based business.

ANSWER: Attractions include financial considerations (increasing profits by reducing costs) and family lifestyle
considerations (spending more time with family members). Challenges include managing family and business
conflicts (business and family activities that interfere with one another), preserving the firm's business image
(maintaining an image of professionalism at the home when clients visit), and dealing with legal issues
(avoiding zoning ordinance violations, complying with tax regulations, obtaining appropriate insurance
coverage).

92. List and describe the different e-commerce business models related to the type of customer served. Provide an
example of a business that uses each type of model.
ANSWER: There are three major categories of e-commerce business models:
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1. Business-to-business model. A business-to-business (B2B) model is based on selling to business

customers electronically. The dollar amounts generated by firms using a business-to-business (B2B)
model are significantly greater than those for firms with a business-to-consumer (B2C) model. B2B
operations come in all shapes and sizes, but the most popular form of this strategy emphasizes sales
transactions. By using online capabilities, a B2B firm can achieve greater efficiency in its buying and
selling activities.

Example: Hewlett-Packard

2. Business-to-consumer model. The business-to-consumer model focuses on sales of products or

services to final consumers. B2C ventures sell a wide variety of products, with offerings ranging from
clothing to pet items, computer software to groceries, and much more. The B2C model offers three
main advantages over brick-and-mortar retailing: convenient use, immediate transactions, and round-
the-clock access to a broad array of products and services.

Example: Amazon

3. Consumer-to-consumer model. The consumer-to-consumer (C2C) model is usually set up around

Internet auction sites that allow individuals to list products available for sale to potential bidders.

Example: eBay

93. Discuss the three ways of categorizing e-commerce models as they relate to a firm's intended level of online presence.
ANSWER: 1. Information-Based Model. A website built on the information-based model offers only information about a
business, its products, and other related matters. It is typically just a complement to an existing brick-and-
mortar facility.

2. Content-Based Model. The content-based model of e-commerce is a variation of the information-

based alternative in that it also features a website that provides access to information but not the
ability to make purchases. Rather than selling products or services, a content-based website provides
information (content) for those who visit it, usually with the hope of generating revenue through
advertising or by directing those visitors to other websites.

3. Transaction-Based Model. In a transaction-based model of e-commerce, a website is set up to

provide a mechanism for buying or selling products or services.

94. What are some emerging options for online businesses?

ANSWER: Emerging platforms for online ventures include blogging, podcasting, and creating a following on YouTube or
Pinterest to generate revenue from ads and sponsorships, donations, subscription charges, or fees for access to
live events.

Match the term with its definition.

a. auction sites
b. brick-and-mortar facility
c. business incubator
d. business-to-business (B2B) model

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Chapter 09 - The Location Plan

e. business-to-customer (B2C) model
f. consumer-to-consumer (C2C) model
g. content-based model
h. disintermediation
i. e-commerce
j. general-purpose equipment
k. home-based business
l. information-based model
m. special-purpose equipment
n. transaction-based model
o. zoning ordinances

95. The bypassing of a middleman by a producer or wholesaler in order to sell its product or service directly to the final
consumer
ANSWER: h

96. Web-based businesses offering participants the ability to list products for consumer bidding
ANSWER: a

97. A facility that provides shared space, services, and management assistance to new businesses
ANSWER: c

98. A business model in which a website simply offers information about a business, its products, and other related
matters
ANSWER: l

99. A business that maintains its primary facility in the residence of its owner
ANSWER: k

100. A business model in which a website provides a mechanism for buying or selling products or services
ANSWER: n

101. A business model in which a website provides information (content) that attracts visitors, usually with the hope of
generating revenue through advertising or by directing those visitors to other websites
ANSWER: g

102. Local laws regulating land use

ANSWER: o

103. A business model usually set up around Internet auction sites that allow individuals to list items available for sale to
potential bidders
ANSWER: f

104. Machines designed to serve specialized functions in the production process

ANSWER: m

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Test Bank for Small Business Management: Launching and Growing Entrepreneurial Ventures, 19t

Name: Class: Date:

Chapter 09 - The Location Plan

105. A business model based on selling to business customers electronically
ANSWER: d

106. Machines that serve many functions in the production process

ANSWER: j

107. The traditional physical facility from which businesses have historically operated
ANSWER: b

108. The buying and selling of products or services on the Internet

ANSWER: i

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