Chapter 12

_____ sell goods directly to the ultimate consumer. A. Wholesalers B. Retailers C. Producers D. Telecommuters

B. Retailers

Which of the following is an advantage of a process layout? A. It provides flexibility to take care of change and variety. B. It requires minimal movement of material or people. C. It requires a smaller inventory than a product layout. D. It needs less space for aisles and storage than a product layout.

A. It provides flexibility to take care of change and variety.

Which of the following statements is true of retailers? A. They are concerned with people who come to, or are drawn into, a store to make a purchase. B. They emphasize selling products through intermediaries to the ultimate consumer. C. They convert materials into products, usually in considerable volumes. D. They bring the buyers and sellers together to negotiate purchases or sales but do not take title to, or possession of, the goods.

A. They are concerned with people who come to, or are drawn into, a store to make a purchase.

_____ goods are products that customers buy often, routinely, quickly and in any store that carries them. A. Convenience B. Premium C. Specialty D. Shopping

A. convenience

In the context of small businesses, _____ usually involves making or processing materials into finished goods. A. manufacturing B. Resourcing C. Prospecting D. merchandising

A. manufacturing

Which of the following statements is true of convenience goods? A. They are products that are bought by habit and lend themselves to self-service. B. They are usually high-priced items that are purchased infrequently. C. They are goods with trade names that are recognized for the exclusive nature of their clientele. D. They are products that target customers for specific seasons or events.

A. they are products that are bought by habit and lend themselves to self-service

Which of the following statements is true of the processes included in the operating system of a small business? A.They involve converting inputs into goods the customers want, using the employees, machines, materials, and other factors. B. They consist of the activities needed to satisfy the needs of employees and the public C. They consist of the goods and services required by the customers. D.They include all the activities from obtaining raw materials through delivering the product to the customers.

A.They involve converting inputs into goods the customers want, using the employees, machines, materials, and other factors.

Which of the following statements is true of seasonal stores in the United States? A. They stock high-priced goods that are recognized for the exclusive nature of their clientele. B. Christmas stores are the most prevalent among seasonal stores. C. These stores are allowed to be open only during the "season." D. They are usually located only in shopping centers.

B. Christmas stores are the most prevalent among seasonal stores.

Which of the following statements is true of specialty goods? A. Customers do not just buy a specialty good because of the name on the item. B. Customers do not comparison shop for specialty goods. C. Customers spend much time looking for specialty goods. D. Customers enquire about each and every detail of a specialty good with the sales personnel.

B. Customers do not comparison shop for specialty goods.

Which of the following statements is true of setting performance standards for small businesses? A. Time delays and personal requirements are avoided while setting performance standards. B. Estimates by experienced people are used to set performance standards. C. It is easier to set performance standards for mental work than for physical work. D. Many precise tools are available to establish standards for measuring performance.

B. Estimates by experienced people are used to set performance standards.

Shopping goods are high-priced goods that: A. are purchased often and are available in many stores. B. require capable salespeople with selling ability because customers spend much time talking to sales personnel about them. C. require no comparison with any product because customers just buy the name on the item. D. are produced for specific seasons or events.

B. require capable salespeople with selling ability because customers spend much time talking to sales personnel about them.

_____ are usually best for customers who have brand or company loyalty. A. Convenience shops B. Freestanding stores C. Warehouse outlets D. Community shopping centers

B. freestanding stores

Which of the following is an advantage of a product layout? A. It requires movement of material or people. B. It requires minimal space for aisles and storage. C. It provides flexibility to take care of change and variety. D. It uses the same general-purpose machines and equipment for several steps in an operation.

B. it requires minimal space for aisles and storage

Which of the following is true of freestanding stores in the United States? A. These stores have limited parking space. B. The cost per square foot of the location of the stores is very high. C. Considerable advertising may be required to attract customers. D. Limited shopping hours may repel prospective customers.

C. Considerable advertising may be required to attract customers.

23. Which of the following is a characteristic of shopping centers in the United States? A. They aim to attract business-oriented activities. B. They target customers for specific seasons or events. C. They are designed to draw traffic according to the planned nature of the stores to be included in them. D. They stock only low-priced items that are purchased often and lend themselves to self-service.

C. They are designed to draw traffic according to the planned nature of the stores to be included in them.

Which of the following is an example of products sold in seasonal stores? A. Expensive video B. Precious jewelry C. Skiing equipment D. Cigarette

C. Skiing equipment

Which of the following is a characteristic of a downtown location, in the context of small businesses? A. It has the distinction of having low crime rates. B. It suffers due to inadequate public transportation. C. The shopping hours are limited. D. The availability of ample parking space attracts customers.

C. The shopping hours are limited.

_____ stores are often large department stores, usually located at the ends of the arms of a mall, where they generate heavy traffic for the small stores between them. A. Convenience B. Freestanding C. Anchor D. Specialty

C. Anchor

Which of the following statements is true about choosing a location for a small business? A. A small business owner must choose a location that is not permanent to include the option of moving to another location. B. It is a factor that does not adversely affect the employees of a small business. C. It is a factor that can make the difference between success and failure for a small business. D. A small business owner must choose a location that is inexpensive irrespective of the accessibility to consumers.

C. It is a factor that can make the difference between success and failure for a small business.

Which of the following statements is true of an operating system? A. It is a system that helps decide how to get into a business B. It consists of researching and analyzing the market for a product before starting a business C. It consists of inputs, processes, and outputs of a business D. It is a system that helps search for a product before starting a business

C. it consists of inputs, processes, and outputs of a business

____ of an operating system consist of the goods and services required by customers. A. Inputs B. Processes C. Outputs D. Layouts

C. output

_____ convert materials into products in considerable volume for others to sell to the ultimate consumer. A. Wholesalers B. Retailers C. Producers D. Telecommuters

C. producers

_____ goods are usually high-priced goods with trade names that are recognized for the exclusive nature of their clientele. A. Convenience B. Shopping C. Specialty D. Seasonal

C. specialty

In the context of small businesses, _____ is the use of communication media and scanners to work from an office, home, or any location. A. Merchandising B. prospecting C. Telecommuting D. freestanding

C. telecommunting

Which of the following statements is true about small service companies? A. They vary in size and are designed to draw traffic in a shopping center. B. They should be located away from the city, where rental space is too costly. C. They cannot take their activities on the road to obtain more income. D. They have some characteristics of both retailers and producers.

D. They have some characteristics of both retailers and producers.

_____ includes all the activities from obtaining raw materials through providing the good or service to the buyer. A. Marketing B. Reinvention C. Processing D. Production

D. Production

n the context of small businesses, _____ include the buildings, machines, and other equipment needed to produce and distribute a product. A. intangible assets B. layouts C. market locations D. facilities

D. facilities

Which of the following is an output of a restaurant business? A. Menu display B. Bill C. Order D. Happy customer

D. happy customers

For small businesses, the inputs of an operating system: A. are the steps to integrate the support systems into an overall producing system B. nclude the activities from obtaining raw materials through delivering the product to the customers C. include the process of converting productive factors into the goods and services required by the consumers. D. include materials, people, money, machines, and other productive factors

D. include materials, people, money, machines, and other productive factors

_____ are usually higher-priced items, which are bought infrequently, and for which customers compare prices. A. Convenience goods B. Seasonal goods C. Fringe goods D. Shopping goods

D. shopping goods