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Ent Ch 8 Review

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Establishing a reorder point for each product you sell can help you make sure you do not run out of stock unexpectedly.

a)

True

b)

False

2.

Home-based businesses cannot deduct their offices as a business expense even if the office is limited to business use. Mark only one oval.

a)

True

b)

False

3.

Neighborhood shopping centers are small shopping centers that serve a certain neighborhood. Mark only one oval.

a)

True

b)

False

4.

The most important factors in the layout for a retail business are attracting customers and making their experience a pleasant one. Mark only one oval.

a)

True

b)

False

5.

Enterprise zones are areas that suffer from lack of employment opportunities and may offer tax benefits to businesses. Mark only one oval.

a)

True

b)

False

6.

In a manufacturing business, safety is an important factor in positioning equipment and machinery.

a)

True

b)

False

7.

Even if customers do not visit a service business, the location is as important as it is for a retail business.

a)

True

b)

False

8.

What are the goods and materials to be sold called?

a)

Equipment

b)

Supplies

c)

Inventory

9.

To calculate rent per customer, you need to know the projected customer traffic each month.

a)

True

b)

False

10.

If customers visit a service business, the layout should be considered as carefully as for a retail business.

a)

True

b)

False

11.

Stand-alone stores depend on drive-by traffic and must have plenty of parking, good signs, and effective lighting. Mark only one oval.

a)

True

b)

False

12.

Businesses need standard equipment and supplies as well as special items specific to the type of business.

a)

True

b)

False

13.

Stand-alone stores can be good locations for businesses because

a)

Anchor stores increase traffic

b)

No competition is located next door

c)

They do not need to advertise heavily

d)

They attract walk-in customers

14.

All of the following are disadvantages of locating a business in a downtown area except

a)

Lack of parking spaces

b)

Not many customers in the evenings

c)

Presence of offices and professional buildings

d)

Suburbs are too far away

15.

Home-based businesses are ideal for small companies. Mark only one oval.

a)

If customers do not need to visit the premises

b)

If zoning laws allow you to legally operate your business from your home

c)

Because costs are reduced or eliminated

d)

All of the above

16.

A goal of the layout for a retail business should be to. Mark only one oval.

a)

Place the cash register at the entrance

b)

Use narrow aisles to allow for more merchandise

c)

Make customers' experiences pleasant so they return

d)

Make sure all supplies are easy to find

17.

The layout for a wholesale or manufacturing business. Mark only one oval.

a)

Should be designed for customer convenience

b)

Is unimportant

c)

Must be physically attractive

d)

Should emphasize efficiency and organization

18.

Which of the following is an example of a supply item?

a)

Washing machine

b)

Price tags

c)

Company computer

d)

Sweaters that will be sold to customers

19.

A possible location for a business has rent of $1,050 per month and projected traffic of 12,000 customers per month. Rent per customer is

a)

$0.08

b)

$0.09

c)

$0.11

d)

$0.43

20.

An estimate of how much you will pay for merchandise from a supplier is (a) a quote, (b) a discount, (c) the balance due, (d) an invoice.

a)

A quote

b)

A discount

c)

The balance due

d)

An invoice

21.

Which type of shopping center is designed to serve residents of many neighborhoods?

a)

Neighborhood shopping center

b)

Community shopping center

c)

Downtown areas

d)

Stand-alone stores

22.

What type of business might operate in a warehouse? Mark only one oval.

a)

Appliance dealer

b)

Beauty salon

c)

Grocery store

d)

Pizza shop

23.

What is the person called who pays rent to occupy space owned by someone else? Mark only one oval.

a)

Landlord

b)

Lessor

c)

Tenant

d)

Owner

24.

Are cash registers considered equipment, supplies, or inventory? Mark only one oval.

a)

Equipment

b)

Supplies

c)

Inventory

25.

An advantage of a warehouse location is that it is one of the least expensive rentals. Mark only one oval.

a)

True

b)

False