Question 1

Dash-N-Dee is an independent distributer that distributes cosmetics to various retailers. The company takes legal possession of the goods it distributes. The company warehouses the products but does not ship them to the retailers. It is evident that Dash-N-Dee is a(n) _____.

Accepted Answer

Dash-N-Dee is a limited-service merchant wholesaler because it takes legal possession of the goods and warehouses them but does not provide the full range of services like shipping to retailers.

Question 2

Neptune Corp. buys a wide range of products from automobile parts manufacturers, motorcycle riding gear manufacturers, and commercial paint manufacturers. It then sells these products to a wide range of different customers. It is evident that Neptune Corp. is a(n) _____.

Accepted Answer

Neptune Corp. buys products from manufacturers and sells them to various customers, which is the role of an independent wholesaling business.

Question 3

_____ service customers who are too small to merit in-person sales calls from wholesaler reps.

Accepted Answer

Cash and carry wholesalers service small customers who do not justify the cost of in-person sales calls, allowing them to purchase goods directly from the wholesaler's warehouse.

Question 4

Delvry Inc. is a solid fuel supplier. It supplies coal to different thermal power plants. The company takes legal possession of the coal, and they hire outside transporters to aid the delivery process. In this scenario, Delvry Inc. is a(n) _____.

Accepted Answer

Delvry Inc. is a drop shipper because they take legal possession of the coal but do not handle the physical delivery themselves, instead hiring outside transporters.

Question 5

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

Accepted Answer

Merchant wholesalers take legal title to the goods they distribute, allowing them to develop their own marketing strategies, including pricing strategies.

Question 6

Techilex delivers timber directly to furniture manufacturers. The company takes legal possession of the timber it distributes. The company does not physically process timber but it facilitates timber's safe delivery to the clients. In this scenario, Techilex is a(n) _____.

Accepted Answer

Techilex is a drop shipper because it takes legal possession of the timber and facilitates its delivery without physically processing it.

Question 7

Spade Archer buys surgical knives, scissors, forceps, needle holders, and retractors from a surgical equipment manufacturer and sells them to local hospitals. In this scenario, Spade Archer is a _____.

Accepted Answer

Spade Archer buys products from a manufacturer and sells them to hospitals, which makes him a wholesaler.

Question 8

In the context of limited-service merchant wholesalers, which of the following statements is true of cash and carry wholesalers?

Accepted Answer

Cash and carry wholesalers require customers to visit the wholesaler's location to pick up and transport their own products, offering limited services compared to full-service wholesalers.

Question 9

Mars is an independent distributer that distributes goods, such as keyboards, monitors, and computer cabinets to various business users. The company takes legal possession of the goods it distributes. The company warehouses the products, ships them to its customers, provides promotional assistance to the manufacturers, provides product repairs, and credit to customers. It is evident that Mars Inc. is a _____.

Accepted Answer

Mars Inc. is a full-service merchant wholesaler because it takes legal possession of goods, warehouses them, ships them, provides promotional assistance, product repairs, and credit to customers, which are all characteristics of a full-service merchant wholesaler.

Question 10

Which of the following statements is true of the members of a distribution channel?

Accepted Answer

Some distributors can act as both wholesalers and retailers, buying products in bulk and selling them to both businesses and individual consumers.

Question 11

Rosy's Sweet Treats is a small-scale restaurant that gets its supplies from Widget Suppliers that takes legal possession of the goods it distributes. The employees of Rosy's Sweet Treats make a monthly trip to Widget Suppliers to cart their own products back to the restaurant because Rosy's Sweet Treats is too small to merit in-person sales calls from customer care reps. In this scenario, Widget Suppliers is a(n) _____.

Accepted Answer

Widget Suppliers is a cash and carry wholesaler because Rosy's Sweet Treats picks up the products themselves, indicating that the supplier does not deliver the goods.

Question 12

Plut Enterprise is an independent distributor that distributes paper cups, pens, pencils, and notepads to other firms on a large scale and takes legal possession of the goods it distributes. In this scenario, it can be said that Plut Enterprise is a(n) _____.

Accepted Answer

Plut Enterprise is a merchant wholesaler because it takes legal possession of the goods it distributes, unlike brokers or agents who do not take ownership of the goods.

Question 13

JEMS Enterprise buys wooden furniture, such as tables and chairs, from a furniture manufacturer and sells them to government schools. In this scenario, JEMS Enterprise is a _____.

Accepted Answer

JEMS Enterprise is a wholesaler because it buys furniture from a manufacturer and sells it to government schools, acting as an intermediary in the distribution process.

Question 14

Newzon Coal Supply takes possession of coal from local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining companies to their customers. This type of arrangement suggests that Newzon Coal Supply is a _____.

Accepted Answer

Newzon Coal Supply is a drop shipper because it takes orders and arranges for the shipment of goods directly from the supplier to the customer without handling or storing the goods themselves.

Question 15

Merc Enterprise is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Merc Enterprises is a(n) _____.

Accepted Answer

Merc Enterprise is a merchant wholesaler because it takes legal possession of the goods and provides a range of services such as warehousing, shipping, and credit, which are typical functions of a merchant wholesaler.

Question 16

Transcone is an independent distributer that distributes home décor related products to various retailers. The company takes legal possession of the goods it distributes. It warehouses the products and ships them to the retailers, but it does not provide credit or marketing assistance. It is evident that Transcone is a(n) _____.

Accepted Answer

Transcone is a limited-service merchant wholesaler because it takes legal possession of goods and handles warehousing and shipping but does not provide credit or marketing assistance.

Question 17

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shockwave Enterprise, which in turn sells those bulbs to final consumers. In this scenario, Shockwave Enterprise is a _____.

Accepted Answer

Shockwave Enterprise is a retailer because it sells the LED bulbs to final consumers.

Question 18

Shell Enterprise is a soft toy manufacturer. It sells its toys to ToySpot, a company that sells a wide range of toys to the public at a single location. In this scenario, ToySpot is a _____.

Accepted Answer

ToySpot is a retailer because it sells toys directly to the public at a single location.

Question 19

Which of the following statements is true of independent wholesalers?

Accepted Answer

Merchant wholesalers are the most common type of independent wholesalers and they take legal ownership of the goods they distribute, which is why they comprise about 80 percent of all wholesalers.

Question 20

Distributors that provide service utility typically:

Accepted Answer

The answer of Distributors that provide service utility typically:
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Quiz 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price