Question 1

Cotter & Company is a full-service wholesaler of hardware. What type of service can it perform for Hardware store owners?
A) financing
B) risk taking
C) selling
D) market information
E) all of the above

Accepted Answer

Cotter & Company, as a full-service wholesaler, can provide a range of services including financing, risk taking, selling, and market information to hardware store owners.

Question 2

Cotter & Company is a full-service wholesaler of hardware. Which of the following services is it LEAST Likely to perform for its customers?
A) market information
B) transportation
C) subdividing
D) decision making
E) financing

Accepted Answer

Cotter & Company, as a wholesaler, typically provides services such as market information, transportation, subdividing (breaking bulk), and financing to its customers. However, decision making is generally not a service provided by wholesalers, as it is primarily the responsibility of the customers themselves to make decisions regarding their purchases and business strategies.

Question 3

To maintain their competitiveness and boost profits, full-service wholesalers are striving to improve their Own operations by:
A) partnering with manufacturers.
B) expanding their assortment of services.
C) adopting advanced technology.
D) enhancing service quality.
E) doing all of the above.

Accepted Answer

Full-service wholesalers maintain competitiveness and boost profits by partnering with manufacturers, expanding their assortment of services, adopting advanced technology, and enhancing service quality, which encompasses all the options provided.

Question 4

_____ carry a selected line of perishable products and deliver them by trucks to retail stores.
A) Full-service wholesalers
B) Rack jobbers
C) Truck jobbers
D) Commission merchants
E) Drop shippers

Accepted Answer

Truck jobbers specialize in delivering perishable goods or products that require immediate delivery. They carry a selected line of products and deliver them directly to retailers, often using their own transportation, such as trucks. This is particularly common in the food industry, where products need to be moved quickly to retail locations to maintain freshness.

Question 5

Jeff Beauseigneur wants to open a convenience store in Kingsville. What kind of wholesaler should he Contact for the chewing gum, tobacco products, candy bars, and other snack foods he will sell in his Store?
A) a desk jobber
B) a commission merchant
C) a truck jobber
D) a manufacturer's sales office
E) a broker

Accepted Answer

A truck jobber specializes in delivering products directly to retailers, such as convenience stores, and often carries a variety of non-perishable items like chewing gum, tobacco products, candy bars, and other snack foods, making them the most suitable choice for Jeff Beauseigneur's needs.

Question 6

Which of the following products would most likely be distributed by a truck jobber?
A) bricks
B) radiator hoses
C) swim suits
D) chewing gum
E) ceiling tile

Accepted Answer

Truck jobbers typically distribute small, high-turnover products like chewing gum, which can be easily transported and sold directly to retailers.

Question 7

A _____ is a limited-function merchant wholesaler that does not physically handle the product it sells but Is responsible for getting the product from the producer to the customer.
A) selling agent
B) rack jobber
C) truck jobber
D) commission merchant
E) drop shipper

Accepted Answer

A drop shipper is a type of wholesaler that does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another wholesaler, or a retailer, who then ships the goods directly to the customer. This process means the drop shipper does not physically handle the product.

Question 8

A drop shipper will most likely be used by a producer-supplier that is marketing:
A) bricks.
B) bookshelves.
C) leather boots.
D) rocking horses.
E) air deodorizers.

Accepted Answer

The answer of A drop shipper will most likely be...

Question 9

Which of the following statements about agent wholesaling middlemen is True?
A) The major types are manufacturers' agents and brokers.
B) They have higher operating expenses than merchant wholesalers.
C) They are paid a flat fee for the services they perform.
D) Their relative importance has been increasing for many years.
E) They take title to the products they distribute.

Accepted Answer

Agent wholesaling middlemen, such as manufacturers' agents and brokers, do not take title to the products they distribute and typically earn commissions rather than flat fees. Their role is to facilitate sales between buyers and sellers.

Question 10

When compared to merchant wholesalers, agent wholesaling middlemen typically:
A) have fewer customers.
B) sell more technically complex products.
C) deal with a more widely dispersed customer base.
D) sell products with relatively large gross margins.
E) are accurately described by all of the above.

Accepted Answer

The answer of When compared to merchant wholesalers, agent wholesaling...

Question 11

A _____ is an independent agent wholesaling middleman that sells part or all of a manufacturer's product Mix in an assigned geographic territory.
A) truck jobber
B) manufacturers' agent
C) broker
D) selling agent
E) commission merchant

Accepted Answer

Manufacturers' agents are independent agents who sell part or all of a manufacturer's product mix in a specific geographic area. They do not take title to the goods and typically operate on a commission basis.

Question 12

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:
A) is restocked frequently, like dairy products.
B) is made to order, like a presentation guitar.
C) is being sold to geographically dispersed customers.
D) is a technologically complex computer system.
E) has a large gross margin.

Accepted Answer

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product is made to order, like a presentation guitar. This is because an agent wholesaling middleman does not take ownership of the product and is therefore not responsible for the risk of unsold inventory.

Question 13

A producer-supplier would most likely pick a merchant wholesaler instead of an agent holesaling Middleman when the product:
A) has a low gross margin.
B) is standard operating supplies, like brooms and mops.
C) can be sold with long lead times for delivery.
D) has a very small target market.
E) is made to order, like reproductions of Victorian furniture.

Accepted Answer

Merchant wholesalers are typically chosen for standard operating supplies because they can handle large volumes and provide storage, which is suitable for products like brooms and mops that are not customized and have a steady demand.

Question 14

Typically, manufacturers' agents:
A) do not operate in assigned sales territories.
B) are given a salary by their producer-suppliers.
C) are used more in dense, established markets than in newer territories.
D) handle noncompeting, but related, product lines.
E) do not work on a continuing basis with their principals.

Accepted Answer

Manufacturers' agents typically handle noncompeting, but related, product lines, allowing them to offer a range of products to their customers without conflicts of interest. This arrangement benefits both the agents and their principals by broadening the market reach for related products.

Question 15

How do manufacturers' agents help their producers-suppliers?
A) Manufacturers' agents provide postsale service.
B) Manufacturers' agents bulk-break large shipments.
C) Manufacturers' agents sell.
D) Manufacturers' agents transport the product quickly.
E) Manufacturers' agents store the product for inventory control.

Accepted Answer

Manufacturers' agents primarily help producers-suppliers by selling their products, acting as intermediaries to reach customers and markets.

Question 16

Brose, a German manufacturer, is the world's biggest producer of the components that sit inside car Doors and do the job of adjusting windows, locks, wing mirrors, and hi-fi systems. What type of agent middleman would most likely handle this manufacturer's products?
A) truck jobber
B) manufacturers' agent
C) drop shipper
D) broker
E) commission merchant

Accepted Answer

Manufacturers' agents, also known as manufacturers' representatives, are independent sales agents who represent the products of one or more manufacturers in the market. They are most likely to handle products like those produced by Brose, as they specialize in representing manufacturers and facilitating sales of their products to retailers or wholesalers, without taking ownership of the goods. This arrangement allows manufacturers to reach a wider market without the need to maintain a dedicated sales force.

Question 17

The manufacturers for which independent agent wholesaling middlemen sell are frequently referred to As:
A) channel captains.
B) licensors.
C) intermediaries.
D) principals.
E) contractors.

Accepted Answer

Manufacturers for which independent agent wholesaling middlemen sell are often referred to as principals. This term is used because these manufacturers are the primary entities in the distribution channel, owning the products that the agents sell on their behalf.

Question 18

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its Product?
A) a well-established, international company
B) a large cereal manufacturer that has developed a new eggnog-flavored cereal
C) a well-established Southwestern firm that wants to expand its market area by making its products . available for the first time in New York and New Jersey
D) an international sporting goods manufacturer that wants to add a line of snow toboggans
E) a company that wants to introduce product line extensions to its current market

Accepted Answer

A manufacturers' agent is typically used by companies looking to expand into new geographic areas where they do not have an established presence or distribution network. In this case, a well-established Southwestern firm aiming to enter the New York and New Jersey markets for the first time would benefit from the local knowledge and connections of a manufacturers' agent.

Question 19

Which of the following statements about manufacturers' agents is True?
A) Manufacturers' agents receive a flat annual fee for services performed.
B) Manufacturers' agents carry stock.
C) Manufacturers' agents are not typically equipped to furnish customers with technical support.
D) Manufacturers' agents do not work on a continuing basis with their principals.
E) Producer-suppliers hire manufacturers' agents to set prices for them.

Accepted Answer

Manufacturers' agents often specialize in specific products or industries and are equipped to provide technical support and advice to customers, distinguishing them from other types of sales agents who may not have the same level of expertise.

Question 20

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and Provides marketing information to either party.
A) selling agent
B) manufacturers' agent
C) drop shipper
D) broker
E) commission merchant

Accepted Answer

Brokers are independent agents whose primary role is to bring buyers and sellers together and often provide valuable market information to either party. Unlike selling agents, manufacturers' agents, drop shippers, or commission merchants, brokers do not take title to goods and typically do not have a long-term contractual relationship with the buyer or seller.

Quiz 16: Wholesaling and Physical Distribution

Cotter & Company is a full-service wholesaler of hardware. What type of service can it perform for Hardware store owners?

Cotter & Company is a full-service wholesaler of hardware. Which of the following services is it LEAST Likely to perform for its customers?

To maintain their competitiveness and boost profits, full-service wholesalers are striving to improve their Own operations by:

_____ carry a selected line of perishable products and deliver them by trucks to retail stores.

Jeff Beauseigneur wants to open a convenience store in Kingsville. What kind of wholesaler should he Contact for the chewing gum, tobacco products, candy bars, and other snack foods he will sell in his Store?

Which of the following products would most likely be distributed by a truck jobber?

A _____ is a limited-function merchant wholesaler that does not physically handle the product it sells but Is responsible for getting the product from the producer to the customer.

A drop shipper will most likely be used by a producer-supplier that is marketing:

Which of the following statements about agent wholesaling middlemen is True?

When compared to merchant wholesalers, agent wholesaling middlemen typically:

A _____ is an independent agent wholesaling middleman that sells part or all of a manufacturer's product Mix in an assigned geographic territory.

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:

A producer-supplier would most likely pick a merchant wholesaler instead of an agent holesaling Middleman when the product:

Typically, manufacturers' agents:

How do manufacturers' agents help their producers-suppliers?

Brose, a German manufacturer, is the world's biggest producer of the components that sit inside car Doors and do the job of adjusting windows, locks, wing mirrors, and hi-fi systems. What type of agent middleman would most likely handle this manufacturer's products?

The manufacturers for which independent agent wholesaling middlemen sell are frequently referred to As:

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its Product?

Which of the following statements about manufacturers' agents is True?

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and Provides marketing information to either party.