Question 1

The main service brokers provide to their producer-suppliers is their ability to:

Accepted Answer

A)   finance.
B)   warehouse.
C)   furnish market information.
D)   create assortments.
E)   conduct market research for buyers.F) C) and D)
G) A) and B)

Question 2

Auction companies will most likely be used in the wholesaling of:

Accepted Answer

A)   bricks, slate, gravel, and sand.
B)   living room sets, bedroom sets, and dining room furniture.
C)   fruit, tobacco and used cars.
D)   computers, satellite dishes, and VCRs.
E)   store fixtures.F) A) and B)
G) A) and E)

Question 3

To see if you are looking at a manufacturer's sales branch or a manufacturer's sales office, you should
Note:

Accepted Answer

A)   the types of customers it sells to.
B)   whether it carries a stock of the products it sells.
C)   the number of services it provides.
D)   the type of manufacturer that owns it.
E)   its costs of operation.F) B) and E)
G) A) and E)

Question 4

Which of the following is an example of a wholesaling transaction?

Accepted Answer

A)   An Olympic athlete buys a plane ticket for his mother's trip to the competition.
B)   A photographer buys film for his mother's camera.
C)   An architect buys a box of pencils for his daughter's birthday.
D)   A caterer buys a gross of wine glasses to use at a wedding she is catering.
E)   A farmer buys a package of melon seeds for his garden.F) None of the above
G) B) and C)

Question 5

The transportation of a pint of strawberries grown in Florida to a manufacturer of strawberry jam made in Pennsylvania creates time utility.

Accepted Answer

A) True 
 B)False

Question 6

Collaborative planning, forecasting, and replenishment (CPFR) :

Accepted Answer

A)   is an expanded version of a market response system.
B)   supports customer relationship management.
C)   typically involves a retail chain and a wholesaler.
D)   allows buyers and sellers to interactively develop a joint sales forecast.
E)   is accurately described by all of the above.F) A) and D)
G) None of the above

Question 7

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:

Accepted Answer

A)   is restocked frequently, like dairy products.
B)   is made to order, like a presentation guitar.
C)   is being sold to geographically dispersed customers.
D)   is a technologically complex computer system.
E)   has a large gross margin.F) A) and B)
G) B) and D)

Question 8

Transaction economies occur when wholesaling middlemen are eliminated from the chain of distribution.

Accepted Answer

A) True 
 B)False

Question 9

When Fadil Karam decided to sell 5 acres of land, he contacted Christina Whiten. She showed the land To a young couple who wanted a home site, explained to them about the market for land in the area, and negotiated the sales terms. She left the final decision about the sale up to Karam and the young couple. Whiten is most likely a:

Accepted Answer

A)   selling agent.
B)   manufacturers' agent.
C)   drop shipper.
D)   broker.
E)   commission merchant.F) A) and E)
G) A) and D)

Question 10

How do package delivery firms such as FedEx Corp. differ from freight forwarders?

Accepted Answer

A)   Freight forwarders are typically owned by the manufacturer.
B)   Freight forwarders typically do not own their own transportation equipment.
C)   Only freight forwarders provide shippers with traffic management services.
D)   Package delivery firms always use intermodal transportation.
E)   There is no difference between package delivery firms and freight forwarders.F) None of the above
G) A) and C)

Question 11

KingMeritus is a wholesaler of automobile parts for the OEM market and the aftermarket. The Company is working to reduce its costs. According to a company vice president, KingMeritus will begin "monitoring its suppliers and other members of its distribution channels, and when necessary, quickly collaborating with them to improve quality and to reduce costs and solve problems early." In other words, KingMeritus is going to make greater use of:

Accepted Answer

A)   the customer-distribution matrix.
B)   the systems approach to marketing.
C)   integrated marketing distribution (IM
D)  .
D)   supply chain management.
E)   materials handling heuristics.F) A) and C)
G) A) and B)

Question 12

Years ago, sons traditionally entered the profession of their fathers. It has become much less commonplace today--but not for the Pulley family. The father Keith Pulley is a selling agent, a type of middlemen, and all four of his sons are also involved closely with distribution strategy. The oldest son Craig operates a manufacturer's sales office. George is a broker while Troy operates a trucking company. The youngest Jonathan runs a wholesale company that specializes in importing fresh-cut flowers.
-Since some of the individual flowers Jonathan handles can wholesale for $20 a stalk, he would most Likely use which transportation method to get the flowers from fields in South America to his warehouse
In Miami?

Accepted Answer

A)   air
B)   pipeline
C)   water
D)   rail
E)   highwayF) A) and D)
G) All of the above

Question 13

A selling agent will most likely be used when the seller:

Accepted Answer

A)   wants to retain considerable control over promotion and distribution policies.
B)   wants a middleman to take over all marketing tasks.
C)   wants distribution in a market currently not covered by its sales force.
D)   is strong financially and sells installation-type industrial goods.
E)   markets its products only during the summer months.F) A) and B)
G) A) and E)

Question 14

Effective supply chain management focuses strictly on the individual logistics activities and not on the synergy of those activities.

Accepted Answer

A) True 
 B)False

Question 15

To maintain their competitiveness and boost profits, full-service wholesalers are striving to improve their Own operations by:

Accepted Answer

A)   partnering with manufacturers.
B)   expanding their assortment of services.
C)   adopting advanced technology.
D)   enhancing service quality.
E)   doing all of the above.F) A) and E)
G) A) and B)

Question 16

Years ago, sons traditionally entered the profession of their fathers. It has become much less commonplace today--but not for the Pulley family. The father Keith Pulley is a selling agent, a type of middlemen, and all four of his sons are also involved closely with distribution strategy. The oldest son Craig operates a manufacturer's sales office. George is a broker while Troy operates a trucking company. The youngest Jonathan runs a wholesale company that specializes in importing fresh-cut flowers.
-In his business, the Pulley father would most likely handle:

Accepted Answer

A)   real estate.
B)   textbooks.
C)   video and audio tapes.
D)   computer software.
E)   textiles.F) D) and E)
G) C) and D)

Question 17

A strategic use of physical distribution is to:

Accepted Answer

A)   keep all costs low, even if it means sacrificing customer satisfaction.
B)   stabilize prices in different markets by adjusting for gluts and shortages.
C)   create place and form utility.
D)   avoid conflicts by keeping physical distribution issues and channel selection decisions separate.
E)   accelerate seasonality in production and consumption cycles.F) None of the above
G) A) and B)

Question 18

According to the text, opportunities to cut costs, gain a competitive edge, and/or better satisfy customers Through changes in physical distribution have been made possible by:

Accepted Answer

A)   the stringent rewriting of international import-export regulations.
B)   deregulation in the transportation industry.
C)   the development of larger, lightweight barges.
D)   the development and implementation of computer-controlled-distribution (CC
D)   software.
E)   the development of on-site distribution centers.F) A) and C)
G) B) and E)

Question 19

Merchant wholesalers:

Accepted Answer

A)   are the smallest segment of wholesaling firms when measured by number of establishments.
B)   are independently owned firms that engage primarily in wholesaling and take title to products beingDistributed.
C)   are independently owned firms that do not take title to the products being distributed.
D)   are manufacturer-owned organizations that perform primarily wholesaling tasks for their ownerCompanies.
E)   engage in both wholesaling and retailing activities for manufacturers and consumers.F) B) and E)
G) A) and B)

Question 20

Which of the following statements about a market-response system is True?

Accepted Answer

A)   Products are pushed through distribution channels with a market-response system.
B)   A market-response system focuses on production.
C)   A market-response can often produce excess inventory.
D)   A market-response system is more concerned with the relationship between producers and their . suppliers than with the relationship between middlemen and final consumers.
E)   None of the above statements about a market-response system is True.F) None of the above
G) C) and D)

Exam 16: Wholesaling and Physical Distribution

The main service brokers provide to their producer-suppliers is their ability to:

Correct Answer
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How do package delivery firms such as FedEx Corp. differ from freight forwarders?

Correct Answer
verified

According to the text, opportunities to cut costs, gain a competitive edge, and/or better satisfy customers Through changes in physical distribution have been made possible by:

Correct Answer
verified

Correct Answer
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A strategic use of physical distribution is to:

Correct Answer
verified

The transportation of a pint of strawberries grown in Florida to a manufacturer of strawberry jam made in Pennsylvania creates time utility.

Correct Answer
verified

Transaction economies occur when wholesaling middlemen are eliminated from the chain of distribution.

Correct Answer
verified

Which of the following statements about a market-response system is True?

Correct Answer
verified

Correct Answer
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Effective supply chain management focuses strictly on the individual logistics activities and not on the synergy of those activities.

Correct Answer
verified

Correct Answer
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A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:

Correct Answer
verified

Correct Answer
verified

Auction companies will most likely be used in the wholesaling of:

Correct Answer
verified

Collaborative planning, forecasting, and replenishment (CPFR) :

Correct Answer
verified

Which of the following is an example of a wholesaling transaction?

Correct Answer
verified

To maintain their competitiveness and boost profits, full-service wholesalers are striving to improve their Own operations by:

Correct Answer
verified

Merchant wholesalers:

Correct Answer
verified

A selling agent will most likely be used when the seller:

Correct Answer
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To see if you are looking at a manufacturer's sales branch or a manufacturer's sales office, you should Note:

Correct Answer
verified

Exam 16: Wholesaling and Physical Distribution

The main service brokers provide to their producer-suppliers is their ability to:

Correct AnswerverifiedShow Answer

How do package delivery firms such as FedEx Corp. differ from freight forwarders?

Correct AnswerverifiedShow Answer

According to the text, opportunities to cut costs, gain a competitive edge, and/or better satisfy customers Through changes in physical distribution have been made possible by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A strategic use of physical distribution is to:

Correct AnswerverifiedShow Answer

The transportation of a pint of strawberries grown in Florida to a manufacturer of strawberry jam made in Pennsylvania creates time utility.

Correct AnswerverifiedShow Answer

Transaction economies occur when wholesaling middlemen are eliminated from the chain of distribution.

Correct AnswerverifiedShow Answer

Which of the following statements about a market-response system is True?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Effective supply chain management focuses strictly on the individual logistics activities and not on the synergy of those activities.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Auction companies will most likely be used in the wholesaling of:

Correct AnswerverifiedShow Answer

Collaborative planning, forecasting, and replenishment (CPFR) :

Correct AnswerverifiedShow Answer

Which of the following is an example of a wholesaling transaction?

Correct AnswerverifiedShow Answer

To maintain their competitiveness and boost profits, full-service wholesalers are striving to improve their Own operations by:

Correct AnswerverifiedShow Answer

Merchant wholesalers:

Correct AnswerverifiedShow Answer

A selling agent will most likely be used when the seller:

Correct AnswerverifiedShow Answer

To see if you are looking at a manufacturer's sales branch or a manufacturer's sales office, you should Note:

Correct AnswerverifiedShow Answer

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