Question 1

The NAICS provides common industry definitions for
A) Canada, the United Kingdom, and the United States.
B) North America, Asia, and Europe.
C) North America, Central America, and South America.
D) Canada, England, and Australia.
E) Canada, Mexico, and the United States.

Accepted Answer

The NAICS (North American Industry Classification System) is used by Canada, Mexico, and the United States to provide common industry definitions and facilitate economic analysis across these countries.

Question 2

Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as
A) industrial markets.
B) reseller markets.
C) consumer markets.
D) government units.
E) global markets.

Accepted Answer

Government units are the federal, state, and local agencies that purchase products and services for the constituents they serve.

Question 3

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in ________ market.
A) a consumer
B) a government
C) an industrial
D) a processor
E) a reseller

Accepted Answer

ADM is operating in an industrial market because it processes raw materials (cocoa beans) into products (cocoa powder and cocoa butter) that are used by other companies to produce consumer goods.

Question 4

The acronym NAICS stands for
A) National Association of Industrial Compliance Standards.
B) National Association of Industrial Communication Systems.
C) North American Industrial Communication Standards.
D) North American Industry Classification System.
E) North Atlantic Industrial Classification System.

Accepted Answer

NAICS stands for North American Industry Classification System, which is used to classify business establishments for statistical purposes.

Question 5

The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens. The city is operating as
A) a government unit.
B) an industrial market.
C) a business market.
D) a consumer market.
E) a service provider.

Accepted Answer

The City of Denver, as a municipal government, is operating as a government unit when it contracts with Solid Waste Management for trash collection services.

Question 6

The North American Industry Classification System (NAICS)
A) provides common industry definitions for North America, Central America, and South America to measure economic activity in the Western Hemisphere.
B) provides common industry definitions between Canada and the United States to measure economic activity and reduce barriers of trade for cross-border firms.
C) provides a classification system for products that is consistent worldwide.
D) provides a dealer network for products across North America, Central America, and South America.
E) provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in these countries.

Accepted Answer

The NAICS provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in these countries.

Question 7

European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as
A) a producer.
B) a reseller.
C) a service provider.
D) a government agency.
E) an industrial firm.

Accepted Answer

ESF is classified as a reseller because it acquires furniture from manufacturers and sells it to furniture stores, acting as an intermediary in the distribution process.

Question 8

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as
A) industrial firms.
B) reseller firms.
C) government agencies.
D) consumer product firms.
E) nonprofit firms.

Accepted Answer

Reseller firms are businesses that purchase physical products and resell them without any reprocessing.

Question 9

Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald's with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald's. Keystone is operating in ________ market.
A) a heavy goods
B) a government
C) a service
D) an industrial
E) a reseller

Accepted Answer

Keystone Foods operates in an industrial market as it processes raw materials (animal proteins) into products (breaded or frozen meats) for McDonald's, which is a business-to-business transaction.

Question 10

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The first two digits designate
A) a country of origin.
B) an industry group.
C) a specific industry.
D) an individual country-level national industry.
E) a sector of the economy.

Accepted Answer

The first two digits of the NAICS code designate the sector of the economy, which is the broadest classification within the system.

Question 11

Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand, is operating in ________ market.
A) a consumer
B) a government
C) a service
D) a reseller
E) an industrial

Accepted Answer

Corning, Inc. operates in an industrial market as it manufactures optical fiber, a product used by other businesses (telecommunications companies) rather than directly by consumers.

Question 12

Liberty Medical Supply is a home delivery service that sells diabetes testing supplies, prescription drugs, and other supplies directly to consumers to assist them in the management of their health-related conditions. Since Liberty Medical does not make any changes to the supplies that it obtains from manufacturers, it would most likely be classified as
A) an industrial service provider.
B) a health care manufacturer.
C) an industrial firm.
D) a reseller.
E) a government agency.

Accepted Answer

Liberty Medical Supply is classified as a reseller because it sells products directly to consumers without altering them, acting as an intermediary between manufacturers and consumers.

Question 13

When the General Services Administration (GSA), an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as
A) an industrial market.
B) a business market.
C) a consumer market.
D) a government unit.
E) a service provider.

Accepted Answer

The General Services Administration (GSA) is a government agency, and when it purchases vehicles, it operates as a government unit, which is a specific type of market distinct from industrial, business, or consumer markets.

Question 14

When Louisiana State University buys new laptops for its faculty, it is operating as
A) an industrial market.
B) a business market.
C) a government unit.
D) a consumer market.
E) a service provider.

Accepted Answer

The answer of When Louisiana State University buys new laptops...

Question 15

The NAICS groups economic activity to permit studies of
A) multi-language advertising.
B) market share, demand, or import competition.
C) growth potential in emerging markets.
D) best practices for manufacturers.
E) job outsourcing and trade flow impacts.

Accepted Answer

The North American Industry Classification System (NAICS) is used to classify business establishments for the purpose of analyzing and studying market share, demand, or import competition among other economic activities.

Question 16

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.
A) a consumer
B) a government
C) a service
D) an industrial
E) a reseller

Accepted Answer

Graham-Field Health Products operates in an industrial market because it manufactures products from component parts and materials and sells them to other businesses like hospitals and nursing homes.

Question 17

In terms of organizational markets, Amazon.com, Office Depot, and JCPenney would most likely be classified as
A) government units.
B) resellers.
C) manufacturers.
D) wholesalers.
E) industrial firms.

Accepted Answer

Amazon.com, Office Depot, and JCPenney are primarily involved in buying products to resell them to consumers, which classifies them as resellers.

Question 18

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as
A) an industrial service provider.
B) a health care provider.
C) a reseller.
D) an industrial firm.
E) a government agency.

Accepted Answer

1-800 Contacts is classified as a reseller because it purchases contact lenses from manufacturers and sells them to consumers.

Question 19

Among organizational markets, the reseller market includes
A) manufacturers.
B) logistics and supply chain providers.
C) government agencies.
D) end-user service providers.
E) retailers and wholesalers.

Accepted Answer

The reseller market consists of retailers and wholesalers who purchase products to resell them to other businesses or consumers.

Question 20

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the
A) Standard Industrial Code System (SICS).
B) United Nations Central Product Classification System (UNCPCS).
C) National Codes of Industry System (NCIS).
D) North American Industry Classification System (NAICS).
E) Federal System of International Organizations (FSIO).

Accepted Answer

The North American Industry Classification System (NAICS) is the system used by Canada, Mexico, and the United States to provide common industry definitions.

Quiz 6: Understanding Organizations As Customers

The NAICS provides common industry definitions for

Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in ________ market.

The acronym NAICS stands for

The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens. The city is operating as

The North American Industry Classification System (NAICS)

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The first two digits designate

Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand, is operating in ________ market.

When the General Services Administration (GSA) , an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as

When Louisiana State University buys new laptops for its faculty, it is operating as

The NAICS groups economic activity to permit studies of

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.

In terms of organizational markets, Amazon.com, Office Depot, and JCPenney would most likely be classified as

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Among organizational markets, the reseller market includes

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the