Question 1

A negative consequence of manufacturer/service provider wholesaling is that a retailer has to deal with many more suppliers than it would have to if the manufacturers use merchant wholesaling.

Accepted Answer

A) True 
 B)False

Question 2

Full-service merchant wholesalers act as the sales arms of their manufacturers; selling agents act as the manufacturers' ___ departments.

Accepted Answer

A)   sales
B)   brokerage
C)   marketing
D)   physical distributionE) B) and C)
F) A) and D)

Question 3

The major difference between a selling agent and a food broker is related to the

Accepted Answer

A)   breadth of the product mix carried.
B)   breadth of the services/responsibilities mix of each agent.
C)   ownership of the merchandise carried.
D)   amount of the functional discounts each receives.E) C) and D)
F) A) and D)

Question 4

Which of these activities does NOT involve a wholesaling transaction?

Accepted Answer

A)   The sales of pharmaceuticals to U.S. medical labs
B)   The sales of pharmaceuticals to final consumers for self-testing
C)   The sales of pharmaceuticals to foreign medical labs
D)   The sales of pharmaceuticals to state government medical labsE) All of the above
F) A) and B)

Question 5

Discuss the statement, "Independent wholesalers are very much in the middle, not fully knowing whether their allegiance should be to manufacturers/service providers or their own customers." Apply this statement to an agent who is paid on a commission basis by a seller.

Accepted Answer

The statement "Independent wholesalers a...

Question 6

Which wholesale function is NOT provided by selling agents?

Accepted Answer

A)   The negotiation of price
B)   Delivery of goods to customers
C)   The granting of trade credit
D)   Taking title to productsE) A) and B)
F) None of the above

Question 7

Which type of wholesaler is best equipped to serve small and scattered accounts on a profitable basis?

Accepted Answer

A)   Rack jobber
B)   Truck/wagon wholesaler
C)   Mail-order wholesaler
D)   Franchise wholesalerE) B) and D)
F) A) and D)

Question 8

The major difference between agents and brokers is that agents are more likely to

Accepted Answer

A)   use catalogs than a personal sales force.
B)   be employed on a permanent basis.
C)   be paid by both the seller and the buyer.
D)   represent the buyer, not the seller.E) None of the above
F) B) and C)

Question 9

A manufacturer has greater channel control when it uses selling agents rather than merchant wholesalers to perform wholesaling functions.

Accepted Answer

A) True 
 B)False

Question 10

Which wholesaler is most likely to sell nonfood items to supermarkets?

Accepted Answer

A)   Truck/wagon wholesaler
B)   Rack jobber
C)   Drop shipper
D)   Franchise wholesalerE) B) and D)
F) A) and D)

Question 11

Which two wholesalers provide a similar range of services for their retailer members?

Accepted Answer

A)   Rack jobbers and cash-and-carry wholesalers
B)   Rack jobbers and drop shippers
C)   Cash-and-carry wholesalers and drop shippers
D)   Franchise wholesalers and wholesale cooperativesE) B) and D)
F) B) and C)

Question 12

Which wholesale format is owned by its member firms?

Accepted Answer

A)   Cash-and-carry wholesaler
B)   Rack jobber
C)   Franchise wholesaler
D)   Wholesale cooperativeE) B) and C)
F) A) and C)

Question 13

A retailer is more likely to use multiple specialty-merchandise wholesalers than multiple general-merchandise wholesalers.

Accepted Answer

A) True 
 B)False

Question 14

Agricultural produce is typically handled by which two types of wholesalers?

Accepted Answer

A)   Rack jobbers and franchise wholesalers
B)   General-merchandise and specialty-merchandise wholesalers
C)   Wholesale cooperatives and commission merchants
D)   Food brokers and rack jobbersE) C) and D)
F) B) and C)

Question 15

Which statement concerning drop shippers is correct?

Accepted Answer

A)   They arrange direct shipments from suppliers to customers.
B)   They do not legally own the products they store.
C)   They do not assume responsibility for unsold goods.
D)   They purchase, store, and ship products.E) B) and C)
F) A) and D)

Question 16

A manufacturer's providing liberal credit terms for its merchant wholesalers illustrates selling to the wholesaler.

Accepted Answer

A) True 
 B)False

Question 17

The smallest category of wholesalers in terms of both sales and number of establishments is agents and brokers.

Accepted Answer

A) True 
 B)False

Question 18

Which wholesaler assumes responsibility for marketing the entire output of a manufacturer?

Accepted Answer

A)   Manufacturers'/service providers' agents
B)   Commission merchants
C)   Rack jobbers
D)   Selling agentsE) A) and B)
F) A) and C)

Question 19

Merchant wholesalers may be either full service or limited service.

Accepted Answer

A) True 
 B)False

Question 20

A home improvement center could use a single specialty-merchandise wholesaler in purchasing most of its products.

Accepted Answer

A) True 
 B)False

Exam 15: Wholesaling

Which of these activities does NOT involve a wholesaling transaction?

Correct AnswerverifiedShow Answer

Which wholesale format is owned by its member firms?

Correct AnswerverifiedShow Answer

A home improvement center could use a single specialty-merchandise wholesaler in purchasing most of its products.

Correct AnswerverifiedShow Answer

Which wholesaler assumes responsibility for marketing the entire output of a manufacturer?

Correct AnswerverifiedShow Answer

Which type of wholesaler is best equipped to serve small and scattered accounts on a profitable basis?

Correct AnswerverifiedShow Answer

Which wholesale function is NOT provided by selling agents?

Correct AnswerverifiedShow Answer

Which statement concerning drop shippers is correct?

Correct AnswerverifiedShow Answer

A negative consequence of manufacturer/service provider wholesaling is that a retailer has to deal with many more suppliers than it would have to if the manufacturers use merchant wholesaling.

Correct AnswerverifiedShow Answer

Full-service merchant wholesalers act as the sales arms of their manufacturers; selling agents act as the manufacturers' ___ departments.

Correct AnswerverifiedShow Answer

Which two wholesalers provide a similar range of services for their retailer members?

Correct AnswerverifiedShow Answer

Discuss the statement, "Independent wholesalers are very much in the middle, not fully knowing whether their allegiance should be to manufacturers/service providers or their own customers." Apply this statement to an agent who is paid on a commission basis by a seller.

Correct AnswerAnswered by ExamLex AIThe statement "Independent wholesalers a...View AnswerShow Answer

A manufacturer's providing liberal credit terms for its merchant wholesalers illustrates selling to the wholesaler.

Correct AnswerverifiedShow Answer

The smallest category of wholesalers in terms of both sales and number of establishments is agents and brokers.

Correct AnswerverifiedShow Answer

Agricultural produce is typically handled by which two types of wholesalers?

Correct AnswerverifiedShow Answer

A retailer is more likely to use multiple specialty-merchandise wholesalers than multiple general-merchandise wholesalers.

Correct AnswerverifiedShow Answer

Merchant wholesalers may be either full service or limited service.

Correct AnswerverifiedShow Answer

The major difference between a selling agent and a food broker is related to the

Correct AnswerverifiedShow Answer

A manufacturer has greater channel control when it uses selling agents rather than merchant wholesalers to perform wholesaling functions.

Correct AnswerverifiedShow Answer

The major difference between agents and brokers is that agents are more likely to

Correct AnswerverifiedShow Answer

Which wholesaler is most likely to sell nonfood items to supermarkets?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The statement "Independent wholesalers a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified