Deck 6: Suppliers

Question 1

Manufacturers, miners, and farmers are known as functional middlemen.

Answer 1

False

Question 2

Wholesalers buy from producers and take title for the goods.

Answer 2

True

Question 3

Functional or agent middlemen operate as wholesalers but do not take title to the goods.

Answer 3

True

Question 4

Merchandise brokers are a type of producer.

Question 5

Resident buying officers represent, and provide services to, a group of retailers.

Question 6

Most suppliers will extend 30 days credit to a business when it first opens.

Question 7

Possible sources for finding suppliers includes the Yellow Pages, The Encyclopedia of Associations, and The Thomas Register.

Question 8

Manufacturers, miners, and farmers are types of

A) merchandise brokers.
B) resident buying officers.
C) wholesalers.
D) producers.

Question 9

A wholesaler who takes title for the goods is also known as a(n)

A) producer.
B) merchant middleman.
C) agent middleman.
D) merchandise broker.

Question 10

Wholesalers who do not take title to the goods are known as

A) producers.
B) merchant middlemen.
C) agent middlemen.
D) merchandise wholesalers.

Question 11

An agent middleman who represents manufacturers and brings buyers and sellers together is known as a

A) resident buying officer.
B) merchandise broker.
C) merchant middleman.
D) manufacturers' middleman.

Question 12

A middleman who represents a group of retailers and offers a variety of services to them is known as a

A) producer.
B) merchant middleman.
C) wholesaler.
D) resident buying officer.

Question 13

Uncontrollable risks are risks that cannot be covered by insurance.

Question 14

Every business faces two types of risks-consumer and trade.

Question 15

Controllable risks are those that can be prevented.

Question 16

Risks such as fires, vandalism, and damage from storms are considered uncontrollable.

Question 17

If a business plan is prepared for an existing business, the conclusion of the plan will summarize the future of the firm.

Question 18

The purpose in identifying uncontrollable risks is to develop a strategy to address those risks.

Question 19

Every business faces two types of risks-

A) trade and consumer.
B) commercial and industrial.
C) controllable and uncontrollable.
D) marketing and distribution.

Question 20

An example of an uncontrollable risk is

A) a new competitor locating nearby.
B) a recessionary economy.
C) changes in technology.
D) all of the above.

Question 21

Which of the following is an uncontrollable risk?

A) Fire
B) Vandalism
C) A price war by competitors
D) All of the above

Question 22

Which of the following is not an uncontrollable risk?

A) A new competitor locating nearby
B) A fire
C) Changes in technology
D) A recessionary economy

Question 23

The purpose in identifying uncontrollable risks is to

A) understand the high risk of entrepreneurship.
B) determine if you really want to own a business.
C) develop a strategy to address the risks.
D) eliminate the risks.