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ANS: FManufacturers are mostly concerned with locating near raw materials and suitable labor, not with customer accessibility.PTS:1REF:p. 236OBJ:9-1 TYPE: C12.If the cost of shipping the finished product is high, the factory should probably be located near a source of raw materials.ANS: FLocating near a source of raw materials is important when these inputs are heavy and costly to ship, but this may not apply to the shipping of the finished products of that firm.PTS:1REF:p. 236OBJ:9-1 TYPE: C13.The primary factor in determining the location for a sawmill would probably be proximity to the market.ANS: FTo be economical, a business like a sawmill should locate near the source of raw materials.PTS:1REF:p. 236OBJ:9-1 TYPE: A14.From a practical business standpoint, choosing to locate a business in one's home community offers no advantages.
ANS: FLocating a business in one's home community can offer several advantages—e.g., understanding the community, establishing credit, friends as customers.PTS:1REF:p. 236OBJ:9-1 TYPE: C15.Unfortunately, choosing a hometown location for personal reasons is illogical.ANS: FLocating a business in one's home community is not necessarily illogical; in fact, doing so offers certain advantages.PTS:1REF:p. 236OBJ:9-1 TYPE: C16.Many entrepreneurs recognize the value of talking to local realtors to determine site availability and appropriateness.ANS:TPTS:1REF:p. 237OBJ:9-1 TYPE: C17.Sometimes an attorney can insert special clauses into a lease agreement that will allow the lessee to exit the agreement under certain circumstances.ANS:TPTS:1REF:p. 238OBJ:9-1 TYPE: C18.Recent observations have shown that most businesses are started in a new building.ANS: FIn reality, new businesses are typically started in an existing building with major or minor remodeling.PTS:1REF:p. 239OBJ:9-2 TYPE: C19.A building's functional attributes determine its suitability for the operation of a business.ANS:TPTS:1REF:p. 239OBJ:9-2 TYPE: C20.Manufacturing equipment can be categorized as general-purpose and special-purpose.ANS:TPTS:1REF:p. 239OBJ:9-2 TYPE: C21.Bottling machines and auto assembly line machinery are examples of general-purpose equipment.ANS: FBottling machines and auto assembly line machinery represent two kinds of special-purpose equipment.PTS:1REF:p. 240OBJ:9-2 TYPE: A22.A milking machine in a dairy is a type of general-purpose equipment.ANS: FA milking machine would be more accurately categorized as a type of special-purpose equipment.PTS:1REF:p. 240OBJ:9-2 TYPE: A
23.Small retailers need merchandise display racks and other equipment, but these are usually less expensive than that which is required for a factory operation.ANS:TPTS:1REF:p. 240OBJ:9-2 TYPE: C24.To maximize sales and profits, a discount shoe store should create an atmosphere similar to that of better department stores, with thick carpets, indirect lighting, and big easy chairs.