MGMT 3850 CHAPTER 14 HOMEWORK QUESTIONS AND ANSWERS

MGMT 3850 CHAPTER 14 HOMEWORK QUESTIONS AND ANSWERS Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 14 Choosing the Right Location and Layout 1) The first phase of determining where to locate a business is: A) choosing a state in which the business owner wants to live. B) determining which city has the demographics that best fit the business. C) conducting a specific site analysis. D) determining which regions of the country are experiencing growth. Answer: D Diff: 2 Page Ref: 521 AACSB: Analytic Skills Learning Obj.: 1 2) The location has far-reaching ramifications, such as high-tech companies that need: A) a highly skilled work force. B) a high traffic site. C) easy access to shipping routes. D) a nearby retail district. Answer: A Diff: 2 Page Ref: 520 AACSB: Reflective Thinking Learning Obj.: 1 3) Entrepreneurs using the Census Bureau's Web site to evaluate potential locations have access to which of the following information about the residents in those locations? A) Income levels B) Age distributions C) Occupational data D) All of the above Answer: D Diff: 1 Page Ref: 521 AACSB: Analytic Skills Learning Obj.: 1 4) Which of the following information is available from U.S. Census data? A) The value of the homes in an area B) The number of rooms in the homes in an area C) Number of vehicles owned D) All of the above Answer: D Diff: 2 Page Ref: 522 AACSB: Analytic Skills Learning Obj.: 1 5) Which of the following information is not available from Census data? A) Education levels B) Income levels C) Expenditures on dining out D) Occupational data Answer: C Diff: 1 Page Ref: 521-522 AACSB: Analytic Skills Learning Obj.: 1 6) , published annually, provides a detailed breakdown of population, retail sales, spendable income, and other characteristics for census regions, states, metropolitan areas, counties, and cities. It also includes analyses of changes in metro markets, descriptions of newspaper and TV markets, and summaries of sales of certain merchandise. A) The Survey of Buying Power B) The Commercial Atlas and Marketing Guide C) The Zip Code Atlas and Market Planner D) A Researcher's Guide to the 1990 Census Answer: A Diff: 2 Page Ref: 523 AACSB: Analytic Skills Learning Obj.: 1 7) A publication that reports on more than 120,000 places in the United States, many of which are not available through census data, and includes eleven economic indicators for major markets, is the: A) Topological Integrated Geographic Encoding Referencing. B) Commercial Atlas and Marketing Guide. C) Zip Code Atlas and Market Planner. D) Sales and Marketing Management's Survey of Buying Power. Answer: B Diff: 2 Page Ref: 523 AACSB: Analytic Skills Learning Obj.: 1 8) A Geographic Information System (GIS): A) is a software package combining the ability to draw detailed maps with the power to search through databases. B) helps entrepreneurs discover important trends and characteristics in the population that otherwise might go unnoticed. C) can be an incredibly powerful tool for determining the ideal location based on specific criteria the entrepreneur establishes. D) All of the above Answer: D Diff: 1 Page Ref: 523 AACSB: Analytic Skills Learning Obj.: 1 9) TIGER: A) is a software package combining the ability to draw detailed maps with the power to search through databases. B) breaks down the population, retail sales, etc., by census region. C) contains the names of every street in the country and detailed block statistics for 345 urban areas. D) All of the above Answer: C Diff: 2 Page Ref: 523-524 AACSB: Analytic Skills Learning Obj.: 1 10) When choosing a state in which to locate, one must evaluate which of the following? A) The general business climate B) The state's business laws, regulations, and taxes C) Tax incentives and/or investment credits D) All of the above Answer: D Diff: 1 Page Ref: 524 AACSB: Analytic Skills Learning Obj.: 1 11) Locating close to is critical for manufacturers, service providers and other companies that will be competitive. A) markets they plan to serve B) suppliers C) transportation routes D) airports and rail transportation Answer: A Diff: 1 Page Ref: 524 AACSB: Reflective Thinking Learning Obj.: 1 12) When the cost of transporting finished goods to market is high relative to their value, the key location criterion is: A) low rental or lease rates. B) proximity to raw materials. C) proximity to markets. D) zoning regulations. Answer: C Diff: 1 Page Ref: 524 AACSB: Analytic Skills Learning Obj.: 1