Question 1

The difference between an agent and a broker is that an agent

Accepted Answer

The answer of The difference between an agent and a...

Question 2

An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a

Accepted Answer

A commission merchant is an agent that receives goods on consignment from local sellers and negotiates sales in large, central markets. The other options refer to different types of agents but do not match the description of a commission merchant.

Question 3

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called

Accepted Answer

Manufacturers' agents represent two or more sellers and offer customers complete product lines in a restricted territory, which matches the given definition. Commission merchants primarily handle the physical distribution of products, selling agents work exclusively for one manufacturer, truck wholesalers specialize in truck sales, and brokers generally match buyers and sellers.

Question 4

The primary purpose of a(n) ____ is to bring buyers and sellers together.

Accepted Answer

A broker's primary function is to bring buyers and sellers together. They act as intermediaries between the two parties and facilitate transactions. Commission merchants, selling agents, and manufacturers' agents are all types of intermediaries, but they may have different roles and responsibilities beyond just bringing buyers and sellers together.

Question 5

Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

Accepted Answer

Calhoun Produce acts as a commission merchant, which involves taking possession of goods, arranging for storage, and transporting them to auctions to be sold on behalf of the owner.

Question 6

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as

Accepted Answer

Agents and brokers who facilitate and negotiate purchases but do not take title to products are known as functional middlemen. They perform a valuable intermediary role in the distribution channel by connecting manufacturers and buyers, providing market information, negotiating contracts, and arranging for transportation and delivery of products.

Question 7

Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a

Accepted Answer

The ideal entity described in the scenario would be a manufacturers' agent, which is a type of sales representative that works on behalf of multiple manufacturers to sell complementary but non-competing lines. This would allow Gem Supply to outsource its sales function in the Far West region without risking competition with its own products.

Question 8

Drop shippers

Accepted Answer

The answer of Drop shippers
...

Question 9

Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from

Accepted Answer

Since Alison lives in a remote area with few good roads, it is most likely that she would rely on mail-order wholesalers to obtain the merchandise for her store. This way of obtaining merchandise eliminates the need for Alison to physically transport the goods herself, as the wholesaler would handle the logistics of shipping the items directly to her store.

Question 10

Manufacturers' agents offer products that are both

Accepted Answer

Manufacturers' agents typically represent products that are noncompeting and complementary to each other, allowing them to offer a range of products to potential buyers without conflicts of interest.

Question 11

Thad Rather works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a

Accepted Answer

Thad's company is a selling agent, which performs all marketing functions without taking title to the goods. This differs from a commission merchant, who buys and sells goods on behalf of others for a commission, and a manufacturers' agent, who represents manufacturers and sells their products to wholesalers and retailers. A sales branch is a location of the parent company that directly sells goods to customers, and a full-service wholesaler buys products from manufacturers and sells them to retailers or other businesses.

Question 12

Chelsea has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chelsea is a

Accepted Answer

Chelsea fits the definition of a broker as she connects buyers and sellers in the real estate business and offers specialized knowledge, but assumes no risks.

Question 13

What is the primary difference between an agent and a broker?

Accepted Answer

An agent represents a company on a permanent basis, acting on behalf of the company as its representative. In contrast, a broker is typically an independent party employed on a temporary basis to facilitate transactions between buyers and sellers.

Question 14

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a

Accepted Answer

Mark Bradley's company is arranging the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses, which is the definition of a drop shipper.

Question 15

A difference between manufacturers' agents and selling agents is that

Accepted Answer

The answer of A difference between manufacturers' agents and selling...

Question 16

____ provide an effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve.

Accepted Answer

Mail-order wholesalers can sell small items to customers in remote areas without the need for physical stores or warehouses, which makes it a cost-effective option for serving areas that other wholesalers might find unprofitable to serve. Customers can easily place orders online or through mail, and the products can be delivered to their doorstep.

Question 17

Karen Shapiro has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a

Accepted Answer

Karen's role as an intermediary between growers and processors, without assuming any risks, is that of a broker. A sales agent is someone who represents a company and sells its products on its behalf. A commission merchant buys, takes ownership of the product, and resells it. A sales branch is a subsidiary of a company and has its own employees, while a sales office is a smaller branch that only handles administrative tasks.

Question 18

Selling agents perform every wholesaling activity except

Accepted Answer

Selling agents perform all the listed wholesaling activities except taking title to products. They act on behalf of their clients but do not own the products they sell.

Question 19

Which of the following wholesalers never take actual possession of the goods?

Accepted Answer

Drop shippers never take actual possession of the goods. Instead, they arrange for the shipment of products directly from the manufacturer to the customer.

Question 20

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

Accepted Answer

A selling agent is a channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product. General-line wholesalers purchase and take title to products for resale, commission merchants sell products on behalf of others and take a commission on sales, manufacturers' agents are independent salespeople who represent multiple manufacturers, and brokers bring buyers and sellers together but do not take title to the product.

Quiz 15: A:retailing, Direct Marketing, and Wholesaling