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Final Exam Multiple Choice Review Questions (15%)
CHAPTER 9
1. Facilities that rent shared space, services and management only to new businesses are called
a.
industrial parks.
b.
community development centers.
c.
shopping centers.
d.
business incubators.
REF: p. 268
4. A good reason for relocating a typical manufacturing business is to
a.
stabilize income taxes.
b.
increase customer traffic.
c.
be closer to raw materials.
d.
provide free-flow space.
REF: p. 267
6. For small service or retail businesses, the top priority in location decisions is
a.
personal preference.
b.
resource availability.
c.
customer accessibility.
d.
environmental conditions.
REF: p. 264
7. Basic considerations that enter into the selection of a location for a manufacturing business normally include
a.
availability of raw materials.
b.
customer accessibility.
c.
neighborhood conditions.
d.
federal income taxes.
REF: p. 267
12. The primary advantage an entrepreneur gains by leasing rather than buying a facility is
a.
receipt of an investment tax credit.
b.
a decrease in investment risk.
c.
a decrease in the amount of promotion required.
d.
a customized layout.
REF: p. 270
13. For many new firms, 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.
REF: p. 270
17. In a location decision, the availability of raw materials for the following companies is most important for a
a.
CPA.
b.
manufacturer.
c.
management consultant.
d.
venture capitalist.
REF: p. 267
24. Zoning ordinances
a.
may limit what type of business can be located on the property.
b.
will prevent commercial signs.
c.
typically will allow parking of customers but not employees.
d.
All of the above statements are true about zoning ordinances.
REF: p. 273
26. Businesses that operate in the home
a.
can increase profits
CHAPTER 9
1. Facilities that rent shared space, services and management only to new businesses are called
a.
industrial parks.
b.
community development centers.
c.
shopping centers.
d.
business incubators.
REF: p. 268
4. A good reason for relocating a typical manufacturing business is to
a.
stabilize income taxes.
b.
increase customer traffic.
c.
be closer to raw materials.
d.
provide free-flow space.
REF: p. 267
6. For small service or retail businesses, the top priority in location decisions is
a.
personal preference.
b.
resource availability.
c.
customer accessibility.
d.
environmental conditions.
REF: p. 264
7. Basic considerations that enter into the selection of a location for a manufacturing business normally include
a.
availability of raw materials.
b.
customer accessibility.
c.
neighborhood conditions.
d.
federal income taxes.
REF: p. 267
12. The primary advantage an entrepreneur gains by leasing rather than buying a facility is
a.
receipt of an investment tax credit.
b.
a decrease in investment risk.
c.
a decrease in the amount of promotion required.
d.
a customized layout.
REF: p. 270
13. For many new firms, 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.
REF: p. 270
17. In a location decision, the availability of raw materials for the following companies is most important for a
a.
CPA.
b.
manufacturer.
c.
management consultant.
d.
venture capitalist.
REF: p. 267
24. Zoning ordinances
a.
may limit what type of business can be located on the property.
b.
will prevent commercial signs.
c.
typically will allow parking of customers but not employees.
d.
All of the above statements are true about zoning ordinances.
REF: p. 273
26. Businesses that operate in the home
a.
can increase profits