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Some freight forwarders offer warehousing and customs assistance.

A) True
B) False

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In a(n) distribution system all of the organizations in the channel of distribution are owned by one firm.


A) administered
B) contractual
C) supply-based
D) corporate

E) A) and D)
F) All of the above

Correct Answer

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The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

A) True
B) False

Correct Answer

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A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

A) True
B) False

Correct Answer

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utility adds value to goods by having them available where people want them.


A) Spatial
B) Location specific
C) Place
D) Geographic

E) A) and B)
F) A) and C)

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At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides utility.


A) possession
B) form
C) secondary
D) alterational

E) A) and B)
F) B) and C)

Correct Answer

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A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

A) True
B) False

Correct Answer

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Marketing intermediaries can provide utility by offering customers affordable credit, free delivery, and product guarantees.


A) possession
B) information
C) form
D) promotion

E) All of the above
F) C) and D)

Correct Answer

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Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's more efficient.


A) internal logistics
B) outbound logistics
C) materials handling
D) factory processes

E) A) and D)
F) C) and D)

Correct Answer

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McDonald's, KFC, Baskin-Robbins, and AAMCO all make use of the form of contractual distribution system.


A) wholesale-sponsored chain
B) franchise
C) retail cooperative
D) horizontally administered

E) B) and C)
F) A) and B)

Correct Answer

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When truck trailers are placed on rail cars to travel long distances, the process is known as leapfrogging.

A) True
B) False

Correct Answer

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A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

A) True
B) False

Correct Answer

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Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

A) True
B) False

Correct Answer

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brings raw materials, packaging, other goods and services, and information from suppliers to producers.


A) Freight forwarding
B) Inbound logistics
C) Materials handling
D) Supply side logistics

E) B) and C)
F) C) and D)

Correct Answer

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In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

A) True
B) False

Correct Answer

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The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

A) True
B) False

Correct Answer

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Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?


A) Rack jobbers
B) Cash-and-carry wholesalers
C) Piggy-backers
D) Freight forwarders

E) A) and C)
F) B) and C)

Correct Answer

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Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:


A) intensive distribution.
B) selective distribution.
C) exclusive distribution.
D) limited function distribution.

E) A) and B)
F) B) and C)

Correct Answer

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In the Spotlight on Small Business box in the chapter, Copart has found a ready market for its salvaged cars in the United States but has been unable to find a market globally due to distribution problems.

A) True
B) False

Correct Answer

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Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

A) True
B) False

Correct Answer

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