Entrepreneurship chapter 8

entrepreneurs who set up businesses in a(n) _______________ zone-- an area that suffers from lack of employment opportunities--may be eligible for favorable tax treatment based on the number of jobs their business create

enterprise

true or false: a new retail business should never be located in a downtown area

false

true or false: because it is the most economical, fluorescent lighting is the best lighting choice for a retail business

false

true or false: is is a good, money-saving idea to use free space when setting up an online business

false

true or false: neighboring shopping centers are typically anchored by a bank

false

true or false: one disadvantage to starting an online business is that e-commerce has restricted hours

false

true or false: only retail business need to take inventory, because they are the only type of business that sell products to customers

false

true or false: the tenant is the person who owns and rents out buildings or space

false

a(n) ______________ park is a section of land that is zoned for industrial businesses only

industrial

_____________consists of the products and the materials needed to make the products that a business sells to its customers

inventory

in a gross lease, expenses such as property taxes, insurance on the building, and building maintenance are paid by the _______________

landlord

true or false: determining the amount of inventory to keep in stock is difficult for all business owners, not just new entrepreneurs

true

true or false: if convenience is a factor for your target market, customers may not be willing to travel a great distance to come to your store

true

true or false: in manufacturing business, supervisors' offices should be located near the employees

true

true or false: owning property offers a bigger tax advantage than leasing

true

true or false: the layout of a retail store should leave at least four feet of aisle space to make it easy for customers to move around in the store

true

true or false: the layout of a wholesale business needs only to be efficient and well organized

true

true or false: the percentage lease is most common for prime retail locations

true

a supplier, or ______________, is a company that sells products and services to businesses

vendor

after a business owner leases or purchases a facility, he or she needs to design the layout or a. enterprise zone b. vendor space c. trade area d. floor plan

d. floor plan

visual merchandising is very important for which of the following type of business a. a retail business b. a warehouse c. an e-commerce business d. a manufacturing business

a. a retail business

most businesses need all of the following types of supplies and equipment except a. lawn mower b. fixtures c. office space d. furniture

a. lawn mower

for this type of business, inventory consists of the parts that will go into producing the business's product as well as its finished goods a. manufacturing business b. all of the above c. retail business d. wholesale business

a. manufacturing business

which of the following types of shopping centers is the smallest a. neighborhood shopping center b. super-regional shopping center c. regional shopping center d. community shopping center

a. neighborhood shopping center

the geographic area from which you expect to attract customers is called the a. trade area b. opportunity zone c. target market d. enterprise zone

a. trade area

what are the two key factors in determining where an industrial business locates

availability of good employees and low cost are the key factors in determining where an industrial business locates

which of the following is LEAST likely to be an anchor store at a community shopping center a. home improvement store b. large dependent store c. supermarket d. super drugstore

b. large dependent store

in this type of lease, the landlord pays building insurance and the tenant pays rent, taxes, and any other expenses a. short-term lease b. net lease c. gross lease d. percentage lease

b. net lease

stand-alone stores a. often depend on drive-by traffic b. usually have competing businesses located nearby c. are usually more expensive to rent d. rarely need to use advertising

b. usually have competing businesses located nearby

the buying and selling of products or services over the internet is know as a. B2B commerce b. digital shopping c. virtual economics d. e-commerce

d. e-commerce

Julio owns a carpet-cleaning company, a service business that customers do not actually visit. What considerations should Julio take into account when choosing a location for his business

locating a service business ghat customers do not visit in an expensive area not make sense, being close to customers may be important, however, because customers are more likely to call a company located nearby

(Essay question) what are some common advantages and disadvantages of operating a home-based business

most entrepreneurs get their start by locating their business at home. it is a great way to save money when starting a business. Separate rent, utility costs, and maintenance fees for the business are eliminated, so there is more capital available for promotional activities and the purchase of inventory. In addition, home-based business owners do not have to sign a lease agreement for the business, so they are not subject to the restrictions and obligations of a lease. Also, the owner can work more flexible hours and does not have to commute to and from another location. Plus, there are tax advantages, because you can deduct a portion of your home expenses.

most businesses leave space rather than purchase property for their business. Why

most entrepreneurs lack the money to purchase property for their businesses. However, even entrepreneurs who can afford to purchase property generally prefer not to be locked into a particular location. Also, some leases require the owner of the building, not the owner of the business, to pay certain expenses, such as upkeep and maintenance of the building's exterior

customers _______________ shopping centers are mainly residents of the surrounding area who shop at these centers because of their convince

neighborhood

a(n) _____________ is an estimate for how much you will pay for the merchandise or service

quote

The _________ point is a predetermined level of inventory that signals when new stock should be ordered

reorder

the largest classification of shopping center is the _____________ shopping center

super- regional

the _____________ is the person who pays rent to occupy space owned by someone else

tenant

true or false: before you purchase supplies for your business, contact several vendors and ask them to quote you a price

true