Question 1

Clothing manufacturers typically prefer ____ distribution.

Accepted Answer

A)   selective
B)   exclusive
C)   intensive
D)   patterned
E)   directF) A) and B)
G) A) and C)

Question 2

A middleman that buys from producers or other middlemen and sells to consumers is called a(n)

Accepted Answer

A)   retailer.
B)   wholesaler.
C)   jobber.
D)   broker.
E)   agent.F) A) and E)
G) A) and C)

Question 3

While carrying large inventories may minimize ____ costs, it is likely to maximize ____ costs.

Accepted Answer

A)   processing; shipping
B)   stock-out; holding
C)   handling; processing
D)   stock-out; handling
E)   holding; stock-outF) A) and C)
G) A) and E)

Question 4

A limited-service wholesaler assumes responsibility for a few wholesale services only.

Accepted Answer

A) True 
 B)False

Question 5

During certain special times, Douglas actually works at the retail outlet where his employer sells a variety of manufacturer's food products. Douglas is providing ____ in his role as a wholesaler.

Accepted Answer

A)   financial aid
B)   the assumption of credit risks
C)   market information
D)   promotion
E)   intermediationF) All of the above
G) B) and E)

Question 6

PepsiCo buys a can manufacturing company. This is an example of

Accepted Answer

A)   intensive distribution.
B)   vertical channel integration.
C)   exclusive integration.
D)   intensity of market coverage.
E)   contractual distribution.F) A) and B)
G) A) and C)

Question 7

Sherilyn operates a store called The Gift Garden. Her store sells pottery, candles, crafts, and other knickknacks that make good gifts for family and friends. The Gift Garden is a

Accepted Answer

A)   traditional specialty store.
B)   supermarket.
C)   narrow category store.
D)   department store.
E)   convenience store.F) All of the above
G) B) and C)

Question 8

A sales agent that is owned by a manufacturer is called a

Accepted Answer

A)   manufacturer's sales office.
B)   sales representative.
C)   jobber.
D)   distributor.
E)   commission merchant.F) None of the above
G) B) and E)

Question 9

A VMS is a centrally managed distribution channel resulting from

Accepted Answer

A)   exclusive distribution.
B)   selective distribution.
C)   intensive distribution.
D)   intensity of market coverage.
E)   vertical channel integration.F) A) and B)
G) B) and D)

Question 10

Microsoft is able to dictate when, where, and at what price its products are to be sold because it is involved in a(n)  ____ VMS with its intermediaries.

Accepted Answer

A)   agency
B)   corporate
C)   contractual
D)   administered
E)   cooperativeF) B) and D)
G) A) and C)

Question 11

The distribution channel most likely to be used for a new car is producer to

Accepted Answer

A)   wholesaler to retailer to consumer.
B)   consumer.
C)   agent to wholesaler to retailer to consumer.
D)   business user.
E)   retailer to consumer.F) C) and D)
G) B) and C)

Question 12

The cost of lost sales due to insufficient inventory is called ____ cost.

Accepted Answer

A)   stock-out
B)   order processing
C)   holding
D)   inventory reduction
E)   directF) C) and E)
G) A) and E)

Question 13

Mullin, Inc., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then sells them to other firms. Mullin, Inc., is a(n)

Accepted Answer

A)   retailer.
B)   wholesaler.
C)   functional middleman.
D)   agent.
E)   producer.F) C) and D)
G) A) and D)

Question 14

A category killer is a very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products.

Accepted Answer

A) True 
 B)False

Question 15

In a(n)  ____ VMS, one of the channel members dominates the other members, perhaps because of its large size.

Accepted Answer

A)   cooperative
B)   contractual
C)   administered
D)   corporate
E)   agencyF) C) and E)
G) C) and D)

Question 16

The most expensive mode of transportation is by

Accepted Answer

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

Question 17

A middleman that purchases goods in large quantities and then sells them to retailers is called a

Accepted Answer

A)   retailer.
B)   merchant wholesaler.
C)   commission merchant.
D)   manufacturer's agent.
E)   manufacturer's sales branch.F) A) and B)
G) A) and C)

Question 18

The types of planned shopping centers are

Accepted Answer

A)   neighborhood, convenience, and regional.
B)   convenience, community, and neighborhood.
C)   community, regional, and national.
D)   regional, community, neighborhood, and lifestyle.
E)   international, neighborhood, and national.F) A) and B)
G) B) and C)

Question 19

A large restaurant with locations throughout the United States has a long-term partnership with Tyson for its poultry and a produce distributor for its fruits and vegetables. These relationships reduce inefficiencies and costs and result in higher customer satisfaction. This restaurant is successfully using

Accepted Answer

A)   exclusive distribution.
B)   vertical channel integration.
C)   supply-chain management.
D)   intensive distribution.
E)   wholesale intermediaries.F) A) and B)
G) All of the above

Question 20

Vertical channel integration occurs when a manufacturer controls its entire supplier channel.

Accepted Answer

A) True 
 B)False

Exam 14: Wholesaling, Retailing, and Physical Distribution

The most expensive mode of transportation is by

Correct Answer
verified

In a(n) ____ VMS, one of the channel members dominates the other members, perhaps because of its large size.

Correct Answer
verified

Microsoft is able to dictate when, where, and at what price its products are to be sold because it is involved in a(n) ____ VMS with its intermediaries.

Correct Answer
verified

PepsiCo buys a can manufacturing company. This is an example of

Correct Answer
verified

Clothing manufacturers typically prefer ____ distribution.

Correct Answer
verified

A VMS is a centrally managed distribution channel resulting from

Correct Answer
verified

A middleman that buys from producers or other middlemen and sells to consumers is called a(n)

Correct Answer
verified

While carrying large inventories may minimize costs, it is likely to maximize costs.

Correct Answer
verified

During certain special times, Douglas actually works at the retail outlet where his employer sells a variety of manufacturer's food products. Douglas is providing ____ in his role as a wholesaler.

Correct Answer
verified

Sherilyn operates a store called The Gift Garden. Her store sells pottery, candles, crafts, and other knickknacks that make good gifts for family and friends. The Gift Garden is a

Correct Answer
verified

A middleman that purchases goods in large quantities and then sells them to retailers is called a

Correct Answer
verified

Vertical channel integration occurs when a manufacturer controls its entire supplier channel.

Correct Answer
verified

A category killer is a very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products.

Correct Answer
verified

The distribution channel most likely to be used for a new car is producer to

Correct Answer
verified

The types of planned shopping centers are

Correct Answer
verified

The cost of lost sales due to insufficient inventory is called ____ cost.

Correct Answer
verified

A sales agent that is owned by a manufacturer is called a

Correct Answer
verified

Correct Answer
verified

A limited-service wholesaler assumes responsibility for a few wholesale services only.

Correct Answer
verified

Mullin, Inc., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then sells them to other firms. Mullin, Inc., is a(n)

Correct Answer
verified

Exam 14: Wholesaling, Retailing, and Physical Distribution

The most expensive mode of transportation is by

Correct AnswerverifiedShow Answer

In a(n) ____ VMS, one of the channel members dominates the other members, perhaps because of its large size.

Correct AnswerverifiedShow Answer

Microsoft is able to dictate when, where, and at what price its products are to be sold because it is involved in a(n) ____ VMS with its intermediaries.

Correct AnswerverifiedShow Answer

PepsiCo buys a can manufacturing company. This is an example of

Correct AnswerverifiedShow Answer

Clothing manufacturers typically prefer ____ distribution.

Correct AnswerverifiedShow Answer

A VMS is a centrally managed distribution channel resulting from

Correct AnswerverifiedShow Answer

A middleman that buys from producers or other middlemen and sells to consumers is called a(n)

Correct AnswerverifiedShow Answer

While carrying large inventories may minimize ____ costs, it is likely to maximize ____ costs.

Correct AnswerverifiedShow Answer

During certain special times, Douglas actually works at the retail outlet where his employer sells a variety of manufacturer's food products. Douglas is providing ____ in his role as a wholesaler.

Correct AnswerverifiedShow Answer

Sherilyn operates a store called The Gift Garden. Her store sells pottery, candles, crafts, and other knickknacks that make good gifts for family and friends. The Gift Garden is a

Correct AnswerverifiedShow Answer

A middleman that purchases goods in large quantities and then sells them to retailers is called a

Correct AnswerverifiedShow Answer

Vertical channel integration occurs when a manufacturer controls its entire supplier channel.

Correct AnswerverifiedShow Answer

A category killer is a very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products.

Correct AnswerverifiedShow Answer

The distribution channel most likely to be used for a new car is producer to

Correct AnswerverifiedShow Answer

The types of planned shopping centers are

Correct AnswerverifiedShow Answer

The cost of lost sales due to insufficient inventory is called ____ cost.

Correct AnswerverifiedShow Answer

A sales agent that is owned by a manufacturer is called a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A limited-service wholesaler assumes responsibility for a few wholesale services only.

Correct AnswerverifiedShow Answer

Mullin, Inc., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then sells them to other firms. Mullin, Inc., is a(n)

Correct AnswerverifiedShow Answer

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While carrying large inventories may minimize costs, it is likely to maximize costs.

Correct Answer
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