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Entrepreneurship 1 4.01 Test Review Flashcards | StudBud
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Entrepreneurship 1 4.01 Test Review
Entrepreneurship 1 4.01 Test Review
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Review for Unit 4.01 Test
Flashcards
16 cards
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Questions
16
Answers
1
Which of the following is a benefit of channels of distribution:
Retailers must spend more money.
We can more easily obtain products from all over the world
Producers must spend more money.
We spend more time looking for products we want.
2
Which of the following is an example of an ultimate consumer:
A farmer buying seed for crops that will be sold at market
A restaurant owner buying a new oven for the restaurant's kitchen
A teenager buying her/his first car
A manager buying office supplies
3
An advantage for producers in using the producer-to-wholesaler-to-retailer-to consumer distribution channel is that
wholesalers do not take title to the goods
it enables them to control channel activities
wholesalers usually buy in large quantities
it enables them to reach large retailers directly.
4
Which of the following is an example of an industrial user:
A family buying a new home computer
A teacher buying a book to read on vacation
A hairstylist buying new scissors to perform haircuts
A parent buying a picture frame for his/her desk
5
Which of the following retailers would be most likely to be part of the producer-to-retailer-to-consumer channel:
small boutique
large retail chain
specialty shop
locally owned pharmacy
6
What is the most common channel of distribution for large industrial goods?
Producer to wholesaler to retailer to consumer
Producer to agent to industrial distribution to user
Producer to industrial user
Producer to wholesaler to retailer to consumer
7
An intermediary function that makes goods available to consumers where they are wanted and needed is
servicing sales
extending credit
providing management services
transporting and storing
8
Walmart, Domino's, and Avis Rent-a-Car are examples of
retailers
agents
industrial distributors
wholesalers
9
TNW buys bikes from The Great Colorado Mountain Bike Comp. & sells them to bike shops. TNW is an example of
retailer
wholesaler
agent
producer
10
Which of the following intermediaries never actually owns the products they promote and sell:
wholesalers
agents
retailers
industrial users
11
The use of intermediaries enables producers to make larger profits because intermediaries
help to reduce the per-unit costs of goods
increase the number of retailer-to-producer contacts
enable producers to use direct distribution
may sell more than the producer could sell on its own
12
Producers are able to match their production to the needs of consumers or industrial users because intermediaries
increase distribution costs
enable producers to promote goods
develop an assortment of goods
extend credit services to consumers
13
Which of the following is a direct channel of distribution for consumer goods and services:
producer to industrial user
producer to ultimate consumer
producer to distributor to consumer
producer to retailer to consumer
14
What distribution channel is used for high-priced industrial goods when the producer does
NOT
have its own sale force?
Producer to agent to industrial distributor to user
Producer to industrial distributor to user
Producer to industrial user
Producer to agent to user
15
Where does a channel of distribution begin?
With the industrial user
With the intermediary
With the producer
With the ultimate consumer
16
Which of the following services would be distributed by a producer-to-agent-to-consumer channel:
Income tax preparation
Vehicle repair
Health care
Travel planning