Question 1

Apex Therapeutic buys medical supplies and services for people with hemophilia and other related blood diseases from a multitude of sources. It then sells these products to anyone who needs them. When it sells directly to a person who is a hemophiliac, it would be classified as a(n):

Accepted Answer

Apex Therapeutic is buying medical supplies and services from multiple sources and reselling them to individuals who need them. Therefore, it would be classified as a reseller in this scenario.

Question 2

The system that provides common industry definitions for Canada, Mexico, and the United States to facilitate the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA)is called:

Accepted Answer

The North American Industry Classification System (NAICS) is the system that provides common industry definitions for Canada, Mexico, and the United States to facilitate the measurement of economic activity in the three member countries of NAFTA. Federated Trade Codification (FTC), Federated Domestic and International Classification (FDIC), and Strategic International Classification (SIC) are not appropriate options as they do not relate to the specific purpose of providing common industry definitions for the NAFTA member countries.

Question 3

Itex Corporation, marketer of Photostat products used in the graphic arts field, buys sensitized paper from Eastman Kodak Company, packages it with the Photostat brand name on it, and sells it directly to amateur photographers. In this context, Itex
Corporation should be classified as a(n):

Accepted Answer

Itex Corporation buys a product from Eastman Kodak Company and then resells it to amateur photographers. Therefore, Itex Corporation should be classified as a reseller.

Question 4

Concern about terrorists using biological warfare has caused the U.S. government to create stockpiles of specific drugs. The federal government has purchased Cipro, the only drug specifically approved by the FDA to treat inhaled anthrax from Bayer, the German drug and chemical company. The U.S. government has also purchased smallpox vaccine from Acambis, a British drug company. These transactions are examples of:

Accepted Answer

The transactions described involve the purchase of drugs and vaccines by the U.S. government from foreign drug companies, indicating the presence of a global organizational market.

Question 5

Which of the following statements about the North American Industry Classification System (NAICS)is false?

Accepted Answer

The fifth digit does not designate company name. Instead, it designates industries that are more specific than the industry group designated by the fourth digit.

Question 6

As a market research analyst for Bain & Co., your Senior Partner asks you to determine the NIACS code for the manufacturing industry. This will be used to help facilitate the measurement of economy activity for the:

Accepted Answer

The North American Industry Classification System (NIACS) is used to classify business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy. Therefore, the correct answer is C, as the NIACS code for the manufacturing industry would be relevant to NAFTA, which is a trade agreement between the United States, Canada, and Mexico.

Question 7

As an organizational buyer, if you worked directly with your suppliers to improve their efficiency and product quality to enhance your business, you would be focused on:

Accepted Answer

Supplier development is the process of working with suppliers to improve their efficiency and product quality to enhance the buyer's business. This includes providing training, support, and resources to help suppliers improve their processes and ultimately deliver higher quality goods or services to the buyer. The other options, supplier partnerships, partner development, and upstream development, are related concepts but not specifically focused on working directly with suppliers to improve their efficiency and quality.

Question 8

When the Canadian Broadcasting Corporation buys new computers, monitors, and printers for its various newsrooms, it is operating as a(n):

Accepted Answer

The answer of When the Canadian Broadcasting Corporation buys new...

Question 9

Pratt & Whitney sells aircraft engines to Europe's Airbus Industries, which sells passenger airplanes to Japan Airlines, which flies businesspeople around the world. This is an example of:

Accepted Answer

This is an example of global organizational markets as it involves the sale of products across international boundaries between different organizations involved in the production and delivery of a final product.

Question 10

A disadvantage of the North American Industry Classification System (NAICS)is that:

Accepted Answer

Large firms that engage in multiple economic activities may not be accurately represented by only one NAICS code, which can result in inaccurate data analysis and market research.

Question 11

Europe's Airbus Industrie, the world's largest aircraft manufacturer, sells its passenger airplanes to Air Canada, which flies Canadian businesspeople to Asia. This is an example of:

Accepted Answer

This scenario involves global organizational markets, as it depicts the sale of Airbus passenger airplanes by a European manufacturer to Air Canada, a Canadian airline, which in turn uses them to transport Canadian businesspeople to Asian markets. This illustrates how firms in different countries are interconnected and depend on each other's products and services to stay competitive in the global marketplace.

Question 12

Canadian Crown corporations, such as CBC, VIA Rail, and the Royal Canadian Mint are examples of:

Accepted Answer

Crown corporations are government-owned entities that operate independently and perform commercial or industrial activities on behalf of the government. Therefore, they are government units.

Question 13

Which of the following statements about the North American Industry Classification System (NAICS)is false?

Accepted Answer

In Canada, there are actually 20 sectors in the NAICS, not 25.

Question 14

A reseller purchases products from a manufacturer and then________ before selling them to the end customer.

Accepted Answer

A reseller typically purchases products from a manufacturer and then resells them without further processing or modifications. The other options (A, C, D) involve some kind of alteration or customization of the original product, which is not the role of a reseller.

Question 15

The NAICS divides the economy into sectors using a ________coded system.

Accepted Answer

The North American Industry Classification System (NAICS) uses a six-digit coded system to classify businesses into industries based on their economic activities.

Question 16

NAICS is an acronym for:

Accepted Answer

NAICS stands for North American Industry Classification System, which is a standardized system for classifying industries in Canada, Mexico, and the United States based on their economic activity.

Question 17

In terms of organizational buyers, Amazon.com, Lands' End, and J.C. Penney would all be classified as:

Accepted Answer

Amazon.com, Lands' End, and J.C. Penney are all retailers that purchase products from suppliers and then resell them to consumers. Therefore, they can be classified as resellers in terms of organizational buying.

Question 18

Federal, provincial, and local agencies that buy goods and services for the constituents they serve are known as:

Accepted Answer

Government units are agencies that purchase goods and services on behalf of their constituents. Industrial markets refer to businesses that purchase goods and services for their own use, cooperative markets refer to organizations owned and operated by their members who purchase goods and services collectively, and reseller markets refer to businesses that purchase goods and services for the purpose of reselling them to consumers.

Question 19

John Deere employees almost 100 supplier-development engineers that focus on working with suppliers to:

Accepted Answer

The article states that the supplier-development engineers work to "improve efficiency" with suppliers, which is option D. The other options are not mentioned in the article.

Question 20

Many of Canada's top exporters, including Bombardier and Maple Leaf Foods, focus on ________, not________ _.

Accepted Answer

The question is asking about the focus of Canada's top exporters, and it mentions Bombardier and Maple Leaf Foods as examples. Both of these companies primarily sell to organizational customers (i.e. other businesses), rather than ultimate consumers (i.e. individual people). Therefore, the best choice is D, which matches this distinction.

Quiz 6: Understanding Organizations As Customers

Apex Therapeutic buys medical supplies and services for people with hemophilia and other related blood diseases from a multitude of sources. It then sells these products to anyone who needs them. When it sells directly to a person who is a hemophiliac, it would be classified as a(n) :

The system that provides common industry definitions for Canada, Mexico, and the United States to facilitate the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is called:

Itex Corporation, marketer of Photostat products used in the graphic arts field, buys sensitized paper from Eastman Kodak Company, packages it with the Photostat brand name on it, and sells it directly to amateur photographers. In this context, Itex Corporation should be classified as a(n) :

Which of the following statements about the North American Industry Classification System (NAICS) is false?