BUS-115 Introduction to Business Chapter 15 – Wholesaling, Retailing, and Physical Distribution QUIZ I True-False Questions Select the correct answer. 1. T F When buyers, sellers, marketing intermediaries, and facilitating agencies work together, the cooperative relationship results in compromise and adjustments that meet customer needs. 2. T F Under a contractual vertical marketing system, the largest channel member is contracted to manage the production and distribution within the channel. 3. T F Producers assist wholesalers by furnishing them with information regarding the wholesalers’ competition and consumer buying patterns. 4. T F As competition among discount stores has increased, some discounters have assumed the characteristics of higher-priced department stores. 5. T F The wheel of retailing hypothesis suggests that new retail operations usually begin at the top—in price, profits, and prestige. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. The use of only a single retail outlet in each geographic area for distribution purposes is called __________ distribution. a. exclusive b. intentional c. selective d. patterned e. intensive 7. In a(n) __________ VMS, ownership is the vehicle by which production and distribution are joined. a. corporate b. administered c. cooperative d. contractual e. agency Page 1 of 48. All of the following are services that wholesalers offer to manufacturers except a. 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-service b. General merchandise c. General-service d. Limited-line e. Specialty-line 10. The cost of lost sales due to insufficient inventory is called __________ cost. a. stock-out b. order processing c. holding d. inventory reduction e. direct Page 2 of 4QUIZ II True-False Questions Select the correct answer. 1. T F The most direct channel of distribution is from a producer to a retailer to the consumer. 2. T F Producers utilizing intensive distribution place many requirements, including inventory levels and service quality, on the seller. 3. T F A sales agent that specializes in selling a particular commodity is called a jobber. 4. T F The largest type of shopping center is the community shopping center. 5. T F At times marketers choose higher-cost modes of transportation due to the benefits they provide. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. 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. 7. __________ 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-chain b. Horizontal-chain c. Agency d. Supply-chain e. Integrated-channel 8. 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. Page 3 of 49. According to the wheel of retailing hypothesis, Billy Bob’s Bait Boutique likely will begin a. 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. 10. 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. neighborhood b. regional c. community d. area e. urban Page 4 of