Question 1

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

Accepted Answer

The GSA is a government unit that purchased vehicles for its fleet. Therefore, it is not operating as an industrial market or a business market, which are both types of organizations that purchase products or services for their own profit or production purposes. It is also not operating as a consumer market, which refers to individuals or households purchasing products for their own personal use. Lastly, the GSA is not a service provider, as it is not providing services to customers.

Question 2

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

Accepted Answer

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

Question 3

Which of the following is a service business within the industrial market?

Accepted Answer

Transportation is a service business within the industrial market as it provides transportation services for goods and materials between different locations.

Question 4

__________ comprise the highest percentage of firms in industrial markets.

Accepted Answer

The answer of __________ comprise the highest percentage of firms...

Question 5

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.

Accepted Answer

ADM is involved in the processing and selling of raw materials (cocoa beans, cocoa powder, cocoa butter) to other companies that manufacture consumer products containing chocolate. This indicates that ADM is operating in an industrial market, where businesses sell products or services to other businesses rather than directly to consumers.

Question 6

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

Accepted Answer

Federal, state, and local agencies that buy products and services are considered government units as they represent the government bodies responsible for the public welfare.

Question 7

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

Accepted Answer

The fact that the City of Denver is contracting with Solid Waste Management to provide a public service (trash collection) suggests that it is operating as a government unit, responsible for providing essential services to its citizenry.

Question 8

In terms of organizational markets,Amazon.com,Lands' End,and JCPenney would most likely be classified as

Accepted Answer

Amazon.com, Lands' End, and JCPenney are all companies that sell products to consumers, which would make them resellers. They are not government units, manufacturers, wholesalers, or industrial firms.

Question 9

Among organizational markets,the reseller market includes

Accepted Answer

The reseller market includes retailers and wholesalers who purchase products from manufacturers and sell them to end-users or other businesses.

Question 10

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

Accepted Answer

ESF acquires furniture from manufacturers and resells it to furniture stores, making it a reseller.

Question 11

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.

Accepted Answer

Keystone Foods is operating in the industrial market as it sources animal proteins from farms and processes them before selling them to McDonald's.

Question 12

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.

Accepted Answer

Corning, Inc. is catering to the industrial market since they are producing optical fibers for telecommunications.

Question 13

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.

Accepted Answer

Graham-Field Health Products manufactures and sells products to businesses such as hospitals, nursing homes, and healthcare retailers. This means that they are operating in an industrial market.

Question 14

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

Accepted Answer

1-800 Contacts is a reseller because it does not manufacture its own products, but instead sells contact lenses produced by other companies.

Question 15

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

Accepted Answer

Liberty Medical Supply is purchasing and reselling products directly to consumers without making any changes to them, making it a reseller.

Question 16

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA),is referred to as the

Accepted Answer

The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA), is referred to as the North American Industry Classification System (NAICS). The other options (A, B, C, and E) are either unrelated or incorrect.

Question 17

The services market sells diverse services such as legal advice,auto repair,and dry cleaning,and this market represents 75 percent of all industrial firms.Which of the following is another such service firm?

Accepted Answer

Finance is another service industry that falls under the services market.

Question 18

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Accepted Answer

NAICS (North American Industry Classification System) provides common industry definitions for the member countries of the North American Free Trade Agreement (NAFTA), which includes the United States, Canada, and Mexico.

Question 19

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 fifth digit designates

Accepted Answer

The answer of The North American Industry Classification System (NAICS)designates...

Question 20

Important characteristics in organizational buying include which of the following?

Accepted Answer

The answer of Important characteristics in organizational buying include which...

Quiz 5: Understanding Organizations As Customers

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