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Allison plans to open a boutique, a trendy retail shop. She will rely heavily on walk-in customers to support her business. Allison will need:

A brick-and-mortar facility.

1. Which emerging model of e-commerce is used to generate significant amounts of advertising revenue?


2. Which statement is true about starting a business online as a part-time entity?

a. Starting an Internet-based business on a part-time basis reduces the entrepreneur’s personal risk if the company should fail.

Arthur’s business needs a physical building. Arthur’s most important decision will be:

Where to locate.

Which statement is true about location decisions?

Franchisers assist entrepreneurs with location decisions.

Bettina has found a relatively inexpensive building that is a converted service station. Before she signs the lease, she should ask:

What happened to previous business at that location?

Bart is ready to look for a site for his new business. To help him in his search he should:

Check into site selection software.

For small service or retail businesses, the top priority in location decisions is

Customer accessibility.

Site-related factors that should be taken into consideration when selecting a retail location include

Customer accessibility.

Customer accessibility is the most critical factor in evaluating a specific site for a


Callista can locate her business in any state regardless of its weather because she sells:


Roger is analyzing regional differences in seeking a location for a new firm and is looking at states with favorable tax laws. Based on this information, he should look at which state?


Which statement is true concerning business environment conditions for a new business?

Determining the zoning is important as it may limit a company’s operations.

Zoning ordinances

May limit wht type of business can be located on the property.

Basic considerations that enter into the selection of a location for a manufacturing business normally include

Availability of raw materials.

A good reason for relocating a typical manufacturing business is to

Be closer to raw materials.

Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to produce one ton of usable aluminum. Where should Calvert locate his smelting plant?

Close to the bauxite mine.

Daisy is planning a clothing manufacturing company. When selecting the location for her production facility, Daisy will want to consider:

Availability of suitable labor.

Why are gas stations frequently located at the interchanges of interstate highways?

The site provides easy access to both customers and transportation.

An advantage for choosing a hometown as a location for a new business venture include the fact that

Credit can be established more easily.

Dallas is considering starting his business in his hometown, hoping that:

His friends and family will use his service and encourage others to follow suit.

Facilities that rent shared space, services and management only to new businesses are called

Business Incubators.

For many new firms, the most important reason to lease rather than buy a facility is

Avoidance of a large cash outlay.

An important advantage an entrepreneur gains by leasing rather than buying a facility is

A decrease in investment risk.

Emma is looking for a building for her homestyle cooking restaurant.

A major consideration would be: The building should be on one level.

According to the National Federation of Independent Business, what is the main reason entrepreneurs buy equipment as opposed to leasing?

Less Expense

Harry is starting a business where he restores homes built before 1900 and is purchasing used equipment, specifically lathes, planing mills, and drill presses. This equipment is would be an example of what type?

General purpose

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