Question 1

The terms "franchise wholesaling" and "wholesale cooperative" are virtually synonymous.

Accepted Answer

A) True 
 B)False

Question 2

Which of these wholesalers can best focus their efforts on small business accounts because of the wholesalers' low selling costs?

Accepted Answer

A)   Truck/wagon wholesalers and rack jobbers
B)   Mail-order wholesalers and cash-and-carry wholesalers
C)   Franchise wholesalers and wholesale cooperatives
D)   General- and specialty-merchandise wholesalers

Question 3

A frozen fish manufacturer wants to increase its distribution and requires a sales force that can readily call on chain-store buyers and important institutional buyers. The manufacturer should seek out a

Accepted Answer

A)   cash-and-carry wholesaler.
B)   food broker.
C)   selling agent.
D)   rack jobber.

Question 4

Wholesale cooperatives are generally classified by

Accepted Answer

A)   degree of service.
B)   geographic area. .
C)   ownership.
D)   size

Question 5

Which wholesaler does NOT have warehouse facilities?

Accepted Answer

A)   Cash-and-carry wholesaler
B)   Truck/wagon wholesaler
C)   Drop shipper
D)   Mail-order wholesaler

Question 6

Total U.S. wholesale sales are higher than total U.S. retail sales because

Accepted Answer

A)   wholesalers add more value to products than retailers.
B)   goods can be resold several times as they move through several levels of wholesalers.
C)   wholesalers have higher operating costs and markups.
D)   wholesaler sales include sales to industrial, commercial, and government institutions.

Question 7

Specialty-merchandise wholesalers have a narrower but deeper product mix than general-merchandise wholesalers.

Accepted Answer

A) True 
 B)False

Question 8

Cash-and-carry wholesaling resembles many forms of discount retailing since the customers visit the sales outlet, no delivery is provided, and no credit is extended.

Accepted Answer

A) True 
 B)False

Question 9

Wholesale cooperatives can be either producer- or retailer-owned.

Accepted Answer

A) True 
 B)False

Question 10

Manufacturers'/service providers' agents sell only noncompetitive products to

Accepted Answer

A)   spread the risks of providing trade credit to smaller customers.
B)   provide ample customer service to both small and large customers.
C)   avoid a conflict of interest among their manufacturers/service providers.
D)   handle smaller territories.

Question 11

Manufacturer/service provider wholesaling is most likely to occur if customers are few in number and important in terms of sales potential.

Accepted Answer

A) True 
 B)False

Question 12

General-merchandise (full-line) wholesalers usually provide close to one-stop shopping for their customers.

Accepted Answer

A) True 
 B)False

Question 13

The sale of personal computers to the U.S. military for tracking inventory fits within the definition of wholesaling.

Accepted Answer

A) True 
 B)False

Question 14

Unlike retail sales, wholesale sales figures reflect double or triple counting of revenues due to the multiple levels of wholesalers involved in many wholesale transactions.

Accepted Answer

A) True 
 B)False

Question 15

Compared to a manufacturers'/service providers' agent, a selling agent

Accepted Answer

A)   is more apt to take title to products.
B)   has fewer marketing responsibilities.
C)   handles a broader range of marketing-related responsibilities.
D)   is more likely to be paid by the buyer, not the seller.

Question 16

Which type of wholesale channel should be considered when a firm has a small group of large and geographically concentrated customers, and when rapid expansion is not a major goal of the firm?

Accepted Answer

A)   Agents and brokers
B)   Indirect distribution
C)   Merchant wholesaling
D)   Manufacturer/service provider wholesaling

Question 17

Selling through the wholesaler means that

Accepted Answer

A)   manufacturer/service provider wholesaling is emphasized.
B)   the wholesaler is viewed as a customer who must be researched and satisfied.
C)   the retailer or final consumer is the object of manufacturers'/service providers' interest.
D)   the retailer is the object of the wholesaler's interest.

Question 18

Food brokers, like manufacturers'/service providers' agents, operate in specific geographic locations and work for a limited number of producers/manufacturers.

Accepted Answer

A) True 
 B)False

Question 19

Selling through the wholesaler best relates to which of these marketing concepts?

Accepted Answer

A)   A pushing strategy
B)   Channel cooperation
C)   The accelerator principle
D)   Derived demand

Question 20

A manufacturer that sells through its wholesalers needs to concentrate its sales efforts on final consumers.

Accepted Answer

A) True 
 B)False

Exam 15: Wholesaling

Which type of wholesale channel should be considered when a firm has a small group of large and geographically concentrated customers, and when rapid expansion is not a major goal of the firm?

Correct AnswerverifiedShow Answer

Which wholesaler does NOT have warehouse facilities?

Correct AnswerverifiedShow Answer

Specialty-merchandise wholesalers have a narrower but deeper product mix than general-merchandise wholesalers.

Correct AnswerverifiedShow Answer

Selling through the wholesaler best relates to which of these marketing concepts?

Correct AnswerverifiedShow Answer

Food brokers, like manufacturers'/service providers' agents, operate in specific geographic locations and work for a limited number of producers/manufacturers.

Correct AnswerverifiedShow Answer

Which of these wholesalers can best focus their efforts on small business accounts because of the wholesalers' low selling costs?

Correct AnswerverifiedShow Answer

Wholesale cooperatives are generally classified by

Correct AnswerverifiedShow Answer

Unlike retail sales, wholesale sales figures reflect double or triple counting of revenues due to the multiple levels of wholesalers involved in many wholesale transactions.

Correct AnswerverifiedShow Answer

Manufacturer/service provider wholesaling is most likely to occur if customers are few in number and important in terms of sales potential.

Correct AnswerverifiedShow Answer

Compared to a manufacturers'/service providers' agent, a selling agent

Correct AnswerverifiedShow Answer

Selling through the wholesaler means that

Correct AnswerverifiedShow Answer

The sale of personal computers to the U.S. military for tracking inventory fits within the definition of wholesaling.

Correct AnswerverifiedShow Answer

A manufacturer that sells through its wholesalers needs to concentrate its sales efforts on final consumers.

Correct AnswerverifiedShow Answer

Total U.S. wholesale sales are higher than total U.S. retail sales because

Correct AnswerverifiedShow Answer

The terms "franchise wholesaling" and "wholesale cooperative" are virtually synonymous.

Correct AnswerverifiedShow Answer

Cash-and-carry wholesaling resembles many forms of discount retailing since the customers visit the sales outlet, no delivery is provided, and no credit is extended.

Correct AnswerverifiedShow Answer

Wholesale cooperatives can be either producer- or retailer-owned.

Correct AnswerverifiedShow Answer

Manufacturers'/service providers' agents sell only noncompetitive products to

Correct AnswerverifiedShow Answer

General-merchandise (full-line) wholesalers usually provide close to one-stop shopping for their customers.

Correct AnswerverifiedShow Answer

A frozen fish manufacturer wants to increase its distribution and requires a sales force that can readily call on chain-store buyers and important institutional buyers. The manufacturer should seek out a

Correct AnswerverifiedShow Answer

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