BUS-115 Introduction to BusinessChapter 15 – Wholesaling, Retailing & Physical DistributionPick the ONE best answer for the following 20-questions.Mark your answers on a Scantron answer sheet (erase all stray marks.For True/False questions, A=True and B=False.1. True or False? When buyers, sellers, marketing intermediaries, and facilitating agencies work together, the cooperative relationship results in compromise and adjustments that meet customer needs.2. True or False? Under a contractual vertical marketing system, the largest channel member is contracted to manage the production and distribution within the channel.3. True or False? Producers assist wholesalers by furnishing them with information regarding the wholesalers’ competition and consumer buying patterns.4. True or False? As competition among discount stores has increased, some discounters have assumed the characteristics of higher-priced department stores.5. True or False? The wheel of retailing hypothesis suggests that new retail operations usually begin at the top—in price, profits, and prestige.6. The use of only a single retail outlet in each geographic area for distribution purposes is called __________ distribution.a. exclusiveb. intentionalc. selectived. patternede. intensive7. In a(n) __________ VMS, ownership is the vehicle by which production and distribution are joined.a corporate b. administeredc. cooperatived. contractuale. agencyPage 1 of 38. All of the following are services that wholesalers offer to manufacturers excepta. providing an instant sales force.b assuming credit risks.c. furnishing market information.d. reducing inventory costs.e. providing loans.9. Which of the following is not a classification of merchant wholesaler?a. Full-serviceb. General merchandisec. General-serviced. Limited-linee. Specialty-line10. The cost of lost sales due to insufficient inventory is called __________ cost.a. stock-outb. order processingc. holdingd. inventory reductione. direct11. True or False? The most direct channel of distribution is from a producer to a retailer to the consumer.12. True or False? Producers utilizing intensive distribution place many requirements, including inventory levels and service quality, on the seller.13. True or False? A sales agent that specializes in selling a particular commodity is called a jobber.14. True or False? The largest type of shopping center is the community shopping center.15. True or False? At times marketers choose higher-cost modes of transportation due to the benefits they provide.16. A middleman that takes title to products and then sells the products to other firms is commonly referred to as a(n)a. retailer.b. agent.c. producer.d. wholesaler.e. commissioner.Page 2 of 317. __________ management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers.a. Vertical-chainb. Horizontal-chainc . Agencyd. Supply-chaine. Integrated-channel18. Retailers can be classified by ownership in two categories:a. independent and franchise.b. department stores and specialty stores.c. proprietorships and corporations.d. independent and chain.e. private and chain.19. According to the wheel of retailing hypothesis, Billy Bob’s Bait Boutique likely will begina. with a fixed advertising budget.b. by assessing a higher profit to recoup the start-up costs.c. at the bottom in price, prestige, and profits.d. by incorporating as many services as possible.e. by having as many different products as possible.20. Culpepper Plaza contains a grocery store, various restaurants, clothing stores, specialty stores, and a gas station. This is an example of a(n)__________ shopping center.a. neighborhoodb. regionalc. communityd. areae. urbanPage 3 of