Question 1

Sandy is a specialist in crude oil. She represents buyers or sellers and is generally hired on a temporary basis. She is known for her expertise in crude oil. Sandy is a(n)
A) agent.
B) limited-line wholesaler.
C) broker.
D) commission merchant.
E) full-service wholesaler.

Accepted Answer

Sandy acts as an intermediary between buyers and sellers of crude oil, and is hired on a temporary basis. She is therefore a broker. Option A (agent) implies a more permanent relationship with a principal. Option B (limited-line wholesaler) and E (full-service wholesaler) involve the sale of products directly to customers, whereas Sandy's role is to facilitate transactions between two parties. Option D (commission merchant) is similar to a broker, but typically deals with the sale of tangible goods rather than a commodity like crude oil.

Question 2

Which of the following is not an example of how a wholesaler might provide financial aid to a retailer?
A) Wholesalers may delay billing for several months on seasonal products.
B) By making frequent deliveries of merchandise, wholesalers help reduce retailers' investments in inventory.
C) Payment may not be required by the wholesaler until 30 to 90 days after the merchandise has been delivered to the retailer.
D) Wholesalers may extend financial assistance through long-term loans.
E) Retailers often need less operating capital when they use wholesalers.

Accepted Answer

The answer of Which of the following is not an...

Question 3

Trask, Inc., sells luggage and other related equipment online. When it receives an order, the order automatically goes to Williams Distribution. Williams gets the merchandise from its warehouse and ships it to the customer. Trask is in charge of all other aspects of the purchase. Williams Distribution is a ____ wholesaler.
A) full-service
B) limited-service
C) specialty-line
D) limited-line
E) commission merchant

Accepted Answer

Limited-service wholesalers, also known as merchant wholesalers, provide a narrower range of services than full-service wholesalers. They generally specialize in just a few functions, such as providing warehousing and transportation, as in the case of Williams Distribution.

Question 4

Your neighborhood grocer buys fresh shrimp from one wholesaler who carries only shellfish. This type of supplier is a ____ wholesaler.
A) specialty-line
B) full-service
C) limited-service
D) general-merchandise
E) specialty-service

Accepted Answer

A specialty-line wholesaler specializes in a specific type of product, in this case, only shellfish. As the grocer buys only fresh shrimp from this supplier, it can be assumed that the wholesaler deals only in shellfish, making them a specialty-line wholesaler.

Question 5

Wholesalers that perform the entire range of wholesaler functions are ____ wholesalers.
A) full-service
B) general-merchandise
C) limited-line
D) limited-service
E) specialty-line

Accepted Answer

Full-service wholesalers perform all of the typical wholesaler functions such as inventory management, product promotion, pricing, and customer service. General-merchandise, limited-line, and specialty-line wholesalers may not perform all of these functions. Limited-service wholesalers may only perform a few of these functions.

Question 6

Merchant wholesalers usually do not
A) operate one or more warehouses.
B) take title to goods.
C) store goods in warehouses.
D) purchase in large quantities.
E) sell to consumers.

Accepted Answer

Merchant wholesalers do not sell to consumers. The other options (A, B, C, and D) are all typical functions of merchant wholesalers.

Question 7

During certain special times, Douglas actually works at the retail outlet where his employer sells a variety of manufacturer's food products. Douglas is providing ____ in his role as a wholesaler.
A) financial aid
B) the assumption of credit risks
C) market information
D) promotion
E) intermediation

Accepted Answer

Douglas is engaging in promotion by working at the retail outlet to help sell the manufacturer's food products directly to consumers.

Question 8

The A-1 Computer Store buys computer parts from Ingram Micro, a wholesaler. All of the following are services that Ingram Micro is likely to provide to A-1 except
A) helping finance purchases.
B) keeping up-to-date computer component information.
C) manufacturing out-of-stock components.
D) arranging trade shows.
E) offering promotional incentives.

Accepted Answer

Ingram Micro is a wholesaler, which means they purchase products from manufacturers and sell them to retailers. They do not typically manufacture products themselves, so option C is not a service they would provide to A-1 Computer Store. The other options (A, B, D, and E) are all services that a wholesaler like Ingram Micro may provide to a retailer like A-1.

Question 9

Most manufacturers do not want to store large amounts of nuts, bolts, and screws, but they need to be able to get them out quickly when necessary for production. Regal Company is a wholesaler that will deliver most parts right to the factory within two hours of the order. Regal, like many other wholesalers, focuses on
A) providing unique parts.
B) service.
C) a high level of product knowledge.
D) productivity.
E) effectiveness.

Accepted Answer

Wholesalers like Regal Company focus on providing excellent service by delivering parts quickly to the factory when needed. While having unique parts and product knowledge are also important, the emphasis on quick and reliable service is what sets them apart from other suppliers.

Question 10

A sales agent provides all of the following advantages except
A) immediate entry into a territory.
B) selling experience.
C) a predetermined selling expense.
D) a warehouse.
E) regular calls on customers.

Accepted Answer

A sales agent typically does not provide a warehouse, as they are not responsible for storing or distributing products. However, they do provide the other advantages listed, including immediate entry into a territory, selling experience, a predetermined selling expense, and regular calls on customers.

Question 11

A sales agent that is owned by a manufacturer is called a
A) manufacturer's sales office.
B) sales representative.
C) jobber.
D) distributor.
E) commission merchant.

Accepted Answer

A sales agent that is owned by a manufacturer is called a manufacturer's sales office. This type of sales agent is directly employed and owned by the manufacturer, rather than being an independent contractor or separate entity.

Question 12

A ____ is in essence a merchant wholesaler that is owned by a manufacturer.
A) sales force
B) manufacturer's sales branch
C) jobber
D) distributor
E) commission merchant

Accepted Answer

A manufacturer's sales branch is a type of wholesaler that is owned by the manufacturer itself. The purpose of the sales branch is to sell the manufacturer's products to retailers and other end-users. The sales branch acts as an intermediary between the manufacturer and the end-user, and may offer various services such as financing, delivery, and technical support.

Question 13

A functional middleman who does not take title to products and who is compensated by commissions paid by producers is called a(n)
A) retailer.
B) wholesaler.
C) jobber.
D) agent.
E) limited-line wholesaler.

Accepted Answer

A functional middleman who does not take title to products and who is compensated by commissions paid by producers is called an agent. Retailers are middlemen who take title to products and sell them directly to consumers. Wholesalers are middlemen who buy products from producers or manufacturers and sell them to retailers or other businesses. Jobbers are intermediaries who specialize in buying surplus merchandise from manufacturers and reselling it to retailers. Limited-line wholesalers are intermediaries who specialize in carrying a narrow range of products within a specific industry.

Question 14

A middleman that purchases goods in large quantities and then sells them to retailers is called a
A) retailer.
B) merchant wholesaler.
C) commission merchant.
D) manufacturer's agent.
E) manufacturer's sales branch.

Accepted Answer

A merchant wholesaler purchases goods in large quantities directly from manufacturers or other producers and then sells smaller quantities to retailers, who then sell to consumers. This is their primary function, distinguishing them from retailers and other intermediaries. The other options either do not fit this description or have additional functions beyond the purchase and sale of goods in bulk.

Question 15

A ____ wholesaler deals in a wide variety of products.
A) general-merchandise
B) limited-line
C) specialty-line
D) full-service
E) merchant

Accepted Answer

A general-merchandise wholesaler deals in a wide variety of products, unlike limited-line and specialty-line wholesalers who focus on a specific type of product. Full-service and merchant wholesalers are terms that describe the level of services offered by wholesalers and are not related to the range of products they deal in.

Question 16

Simpson Micro owns warehouses that stock computer software. It offers net terms to retail stores, offers specials and promotions, and provides customer service. Simpson Micro is a(n) ____ wholesaler.
A) general-specialty
B) general-merchandise
C) rare-service
D) specialty-line
E) agent

Accepted Answer

Simpson Micro focuses specifically on computer software, making it a specialty-line wholesaler. It offers additional services such as net terms and customer service, but its primary product line is narrow and specialized.

Question 17

All of the following are services provided by wholesalers to retailers except
A) buying in large quantities and selling in smaller quantities.
B) promoting the product.
C) supplying marketing information.
D) manufacturing a wide selection of products.
E) helping finance purchases.

Accepted Answer

Manufacturing products is not a service provided by wholesalers, it is a service provided by manufacturers. Wholesalers typically purchase products from manufacturers and distribute them to retailers.

Question 18

McLane Distributors, a wholesaler, buys large quantities of health and beauty care products, light bulbs, batteries, canned food, computer disks, and more and sells them to retailers. McLane is a(n) ____ wholesaler.
A) agent
B) limited-line
C) selected merchandise
D) specialty-line
E) general-merchandise

Accepted Answer

McLane Distributors sells a wide range of products, including health and beauty care, food, electronics, and more. This makes them a general-merchandise wholesaler.

Question 19

A middleman that carries a select group of products within a single line is called a(n) ____ wholesaler.
A) full-service
B) limited-line
C) limited-service
D) specialty-line
E) agent

Accepted Answer

The answer of A middleman that carries a select group...

Question 20

Although he carries electronic merchandise, Nate does not actually take title to the goods but instead negotiates sales and sets the prices for manufacturers. Nate is a(n)
A) broker.
B) agent.
C) merchant wholesaler.
D) limited-service wholesaler.
E) commission merchant.

Accepted Answer

The answer of Although he carries electronic merchandise, Nate does...

Quiz 14: Wholesaling, Retailing, and Physical Distribution

Sandy is a specialist in crude oil. She represents buyers or sellers and is generally hired on a temporary basis. She is known for her expertise in crude oil. Sandy is a(n)

Which of the following is not an example of how a wholesaler might provide financial aid to a retailer?

Your neighborhood grocer buys fresh shrimp from one wholesaler who carries only shellfish. This type of supplier is a ____ wholesaler.

Wholesalers that perform the entire range of wholesaler functions are ____ wholesalers.

Merchant wholesalers usually do not

During certain special times, Douglas actually works at the retail outlet where his employer sells a variety of manufacturer's food products. Douglas is providing ____ in his role as a wholesaler.

The A-1 Computer Store buys computer parts from Ingram Micro, a wholesaler. All of the following are services that Ingram Micro is likely to provide to A-1 except

A sales agent provides all of the following advantages except

A sales agent that is owned by a manufacturer is called a

A ____ is in essence a merchant wholesaler that is owned by a manufacturer.

A functional middleman who does not take title to products and who is compensated by commissions paid by producers is called a(n)

A middleman that purchases goods in large quantities and then sells them to retailers is called a

A ____ wholesaler deals in a wide variety of products.

Simpson Micro owns warehouses that stock computer software. It offers net terms to retail stores, offers specials and promotions, and provides customer service. Simpson Micro is a(n) ____ wholesaler.

All of the following are services provided by wholesalers to retailers except

McLane Distributors, a wholesaler, buys large quantities of health and beauty care products, light bulbs, batteries, canned food, computer disks, and more and sells them to retailers. McLane is a(n) ____ wholesaler.

A middleman that carries a select group of products within a single line is called a(n) ____ wholesaler.

Although he carries electronic merchandise, Nate does not actually take title to the goods but instead negotiates sales and sets the prices for manufacturers. Nate is a(n)