Chapter 8-1 Questions

Warehouses are general one of the most inexpensive rental facilities for a retail business.

• True

• False

An advantage of working at home is that many costs are reduced or eliminated.

• True

• False

The cost of maintaining an online business is much less than the cost of buying or leasing a building.

• True

• False

A business has the choice to locate at Site A, which is close to the market, or Site B, which is close to materials and labour. The benefit of choosing Site A over Site B is that it is close to:

• Customers

• Suppliers

• Raw materials

• Employees

Which of the following businesses is most likely to locate close to the market?

• A clothes retailer with a national chain stores

• An internet book store

• A manufacturer of high performance sports cars

• A custom T-shirt warehouse

The ‘location decision’ for a business means:

• deciding where the departments of a business are located
• an owner deciding on the positions for products in the shop
• deciding where a business is going to operate from
• deciding where a business is going to market its products.

In which scenarios is location nearest to reliable suppliers likely to be most important?

• a manufacturing firm using Just-in-Time stock policies
• a bank with many personal and business customers
• a farmer raising sheep for meat production
• a specialist clothes designer who uses job production

Neighborhood shopping centers are often called strip malls.

• True

• False

Community shopping centers are small shopping centers that serve a certain neighborhood.

• True

• False

Wholesale companies need a location that attracts a lot of retail traffic.

• True

• False