Question 1

Almost 70 percent of convenience store customers live within one mile of the store.

Accepted Answer

A) True 
 B)False

Question 2

The obligations and rights of Chuck's wholesale food business within his channel are clearly defined in legal agreements with other channel members. This represents a(n)

Accepted Answer

A)  exclusive distribution arrangement. 
B)  cooperative VMS. 
C)  corporate VMS. 
D)  contractual VMS. 
E)  administered VMS. 
A)  exclusive distribution arrangement. 
B)  cooperative VMS. 
C)  corporate VMS. 
D)  contractual VMS. 
E)  administered VMS.

Question 3

Radio Shack and Hickory Farms are examples of convenience stores.

Accepted Answer

A) True 
 B)False

Question 4

A traditional specialty store carries

Accepted Answer

A)  a broad product mix with deep product lines. 
B)  only one product line. 
C)  a narrow product mix with deep product lines. 
D)  only one or two items in many product lines. 
E)  a more limited selection in its given line of products than a department store. 
A)  a broad product mix with deep product lines. 
B)  only one product line. 
C)  a narrow product mix with deep product lines. 
D)  only one or two items in many product lines. 
E)  a more limited selection in its given line of products than a department store.

Question 5

Sam's Club and Costco are examples of

Accepted Answer

A)  convenience stores. 
B)  warehouse clubs. 
C)  supermarkets. 
D)  specialty stores. 
E)  discount stores. 
A)  convenience stores. 
B)  warehouse clubs. 
C)  supermarkets. 
D)  specialty stores. 
E)  discount stores.

Question 6

How does an administered vertical marketing system (VMS) provide direction and guidance for its members?

Accepted Answer

An administered vertical marketing syste

Question 7

Although he carries electronic merchandise, Nate does not actually take title to the goods but instead negotiates sales and sets the prices for manufacturers. Nate is a(n)

Accepted Answer

A)  broker. 
B)  agent. 
C)  merchant wholesaler. 
D)  limited-service wholesaler. 
E)  commission merchant. 
A)  broker. 
B)  agent. 
C)  merchant wholesaler. 
D)  limited-service wholesaler. 
E)  commission merchant.

Question 8

The least expensive mode of transportation is by

Accepted Answer

A)  truck. 
B)  airplane. 
C)  railroad. 
D)  ship. 
E)  pipeline. 
A)  truck. 
B)  airplane. 
C)  railroad. 
D)  ship. 
E)  pipeline.

Question 9

Every channel of distribution, from the simplest to the most complex, begins with the producer and ends with either the consumer or the business user.

Accepted Answer

A) True 
 B)False

Question 10

Bill Yee was granted franchise rights from McDonald's for the community in which he lives. McDonald's practice of granting franchises for specific geographic areas is commonly known as selective distribution.

Accepted Answer

A) True 
 B)False

Question 11

Consumers who strongly feel that the distribution channel should be made as short as possible also assume that the fewer the intermediaries, the

Accepted Answer

A)  less convenient the system. 
B)  lower the price. 
C)  higher the price. 
D)  more marginal the product. 
E)  more traditional the system. 
A)  less convenient the system. 
B)  lower the price. 
C)  higher the price. 
D)  more marginal the product. 
E)  more traditional the system.

Question 12

Post Oak Mall contains two department stores, numerous specialty stores, a movie theater, and various restaurants. Since it does not contain any convenience stores, Post Oak Mall is an example of a(n) ____ shopping center.

Accepted Answer

A)  area 
B)  neighborhood 
C)  community 
D)  urban 
E)  regional 
A)  area 
B)  neighborhood 
C)  community 
D)  urban 
E)  regional

Question 13

Use of barcodes and EDI technology can be closely related to positive results in supply-chain management.

Accepted Answer

A) True 
 B)False

Question 14

Gap manufactures clothing and then sends it to its Gap, Old Navy, and Banana Republic stores. Gap is involved in

Accepted Answer

A)  contractual VMS. 
B)  corporate VMS. 
C)  intensive distribution. 
D)  administered VMS. 
E)  business VMS. 
A)  contractual VMS. 
B)  corporate VMS. 
C)  intensive distribution. 
D)  administered VMS. 
E)  business VMS.

Question 15

A transportation firm whose services are available to all shippers is called a(n)

Accepted Answer

A)  freight forwarder. 
B)  private carrier. 
C)  common carrier. 
D)  express carrier. 
E)  contract carrier. 
A)  freight forwarder. 
B)  private carrier. 
C)  common carrier. 
D)  express carrier. 
E)  contract carrier.

Question 16

McCormick Trucking serves as a carrier for several private oilfield supply companies; it is classified as a ____ carrier.

Accepted Answer

A)  heavy-equipment 
B)  long distance 
C)  contract 
D)  private 
E)  common 
A)  heavy-equipment 
B)  long distance 
C)  contract 
D)  private 
E)  common

Question 17

Most of the commodities carried by railroads could just as easily be transported by some other mode.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true about wholesalers?

Accepted Answer

A)  Wholesalers and the functions they perform are unnecessary in the marketing channel. 
B)  While wholesalers can be avoided, the functions they provide are necessary. 
C)  Eliminating a wholesaler will always decrease distribution costs. 
D)  Wholesalers typically sell their products to end customers. 
E)  Most marketing channels have at least two wholesalers involved in the distribution of goods. 
A)  Wholesalers and the functions they perform are unnecessary in the marketing channel. 
B)  While wholesalers can be avoided, the functions they provide are necessary. 
C)  Eliminating a wholesaler will always decrease distribution costs. 
D)  Wholesalers typically sell their products to end customers. 
E)  Most marketing channels have at least two wholesalers involved in the distribution of goods.

Question 19

Trey, an entrepreneur, intends to open a chain of very large retail stores that specialize solely in men's pants. He wants to stock pants for every occasion and from every country on the planet. Trey believes he can sell the enormous variety of pants at 10 to 30 percent below his competitors' prices and still make a profit. His store, Just Pants, would be classified as a

Accepted Answer

A)  category killer. 
B)  discount store. 
C)  superstore. 
D)  traditional specialty store. 
E)  department store. 
A)  category killer. 
B)  discount store. 
C)  superstore. 
D)  traditional specialty store. 
E)  department store.

Question 20

A transportation firm whose services are available to all shippers is a common carrier.

Accepted Answer

A) True 
 B)False

Exam 14: Wholesaling, Retailing, and Physical Distribution

Almost 70 percent of convenience store customers live within one mile of the store.

The obligations and rights of Chuck's wholesale food business within his channel are clearly defined in legal agreements with other channel members. This represents a(n)

Radio Shack and Hickory Farms are examples of convenience stores.

A traditional specialty store carries

Sam's Club and Costco are examples of

How does an administered vertical marketing system (VMS) provide direction and guidance for its members?

Although he carries electronic merchandise, Nate does not actually take title to the goods but instead negotiates sales and sets the prices for manufacturers. Nate is a(n)

The least expensive mode of transportation is by

Every channel of distribution, from the simplest to the most complex, begins with the producer and ends with either the consumer or the business user.

Bill Yee was granted franchise rights from McDonald's for the community in which he lives. McDonald's practice of granting franchises for specific geographic areas is commonly known as selective distribution.

Consumers who strongly feel that the distribution channel should be made as short as possible also assume that the fewer the intermediaries, the

Post Oak Mall contains two department stores, numerous specialty stores, a movie theater, and various restaurants. Since it does not contain any convenience stores, Post Oak Mall is an example of a(n) ____ shopping center.

Use of barcodes and EDI technology can be closely related to positive results in supply-chain management.

Gap manufactures clothing and then sends it to its Gap, Old Navy, and Banana Republic stores. Gap is involved in

A transportation firm whose services are available to all shippers is called a(n)

McCormick Trucking serves as a carrier for several private oilfield supply companies; it is classified as a ____ carrier.

Most of the commodities carried by railroads could just as easily be transported by some other mode.

Which of the following statements is true about wholesalers?

A transportation firm whose services are available to all shippers is a common carrier.

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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