Small Business Mgmt- Chp 9

One of the considerations in selecting a location for a business is the availability of resources.

True. Five key factors guide the location selection process: customer accessibility, business environment conditions, the availability of resources, the entrepreneur's personal preference, and site availability and costs.

One of the benefits of e-commerce is that it allows small businesses to compete on a more level playing field with large businesses

True. The Internet blurs geographic boundaries and expands a small company's reach because e-commerce allows any business access to customers almost anywhere.

A process wherein a wholesaler decides to bypass middlemen and sell direct to end users is called _____.

disintermediation

Protecting a neighborhood's residential quality is the primary purpose of _____ laws.

zoning

A site such as e-Bay, that allows participants to list products for sale through bidding by potential buyers, is called a(n)

Auction site

Which of the following key factors in determining a good business location includes decisions about weather conditions, competition, legal requirements, and tax structure?

Environmental conditions

A business incubator produces ideas for new ventures.

False. A business incubator is a facility that provides shared space, services, and management assistance to new businesses.

In industries in which the technology is fully established and a capacity operation is assured by high sales volume, retail store equipment can reduce costs.

False. A small firm can use special-purpose equipment economically only if it makes a standardized product on a fairly large scale.

General-purpose equipment permits cost reduction in industries in which the technology is fully established and in which a capacity is assured by high sales volume.

False. General-purpose equipment requires minimal investment and is easily adapted to various operations and includes machines that serve many functions in the production process.

_____ equipment requires a minimal investment and is easily adapted to varied types of operations

General purpose

According to the Business Tax Index report, which state in 2017 had the most favorable tax systems?

Nevada. The Small Business & Entrepreneurship Council publishes a "Business Tax Index" each year and in its 2017 report, the council found that the five states with the most favorable tax systems for small businesses were, in order, (1) Nevada, (2) Texas, (3) South Dakota, (4) Wyoming, and (5) Washington.

Interestingly, many zoning laws, dating as far back as the 1930s, have never been updated.

True

All of the following are e-commerce business models EXCEPT:

a. B2B. b. B2C. c. B2A. ***correct d. Auction site.

Challenges in designing the physical facilities for a new business include finding all of the following EXCEPT:

a. a space that is too small. b. a space that is too large. c. a space that is extravagant.** correct d. a space that is practical. Buildings do not produce profits directly since they merely house the operations and personnel that do so, therefore, the ideal building will be practical, not extravagant.

Key factors in determining a good business location include all of these EXCEPT:

a. customer accessibility. b. resource availability. c. site availability and costs. d. community approval. ** correct

According to government surveys, business owners choose to run their businesses out of their homes for all of the following reasons EXCEPT:

a. quick and cheap to get up and running. b. save time and money on daily commuting. c. spend more time with family and friends. d. they do not have to maintain a professional office area. *** correct

A _____ is a facility that rents shared space, services and management assistance to new businesses or to people wishing to start businesses.

business incubator

Which of these is a key challenge of running a home-based business?

professional image

The type of equipment that reduces cost in industries in which the technology is fully established and in which a capacity operation is assured by high sales volume is called _____ purpose equipment.

special

Which of the following is a business model that provides a mechanism for buying or selling products or services and is considered the center of the e-commerce universe?

transaction-based