Chapter 6 Test Review

Channels of distribution are the routes that products take from the time they are produced to the time they arrive at a retail store.

• True

• False

No intermediaries are involved in the manufacturer to retailer to consumer channel option.

• True

• False

Retail stores can distribute their products to consumers by having convenient hours for customers, shipping directly to consumers, and being accessible through the Internet.

• True

• False

Most entrepreneurs who own service businesses sell their services directly to consumers.

• True

• False

Even businesses that do not sell goods to customers must receive goods from suppliers.

• True

• False

Intermediaries are used in

• direct channels of distribution

• indirect channels of distribution

• the manufacturer-to-consumer channel option

• all of these

The most cost-effective channel of distribution option is

• manufacturer to retailer to consumer

• manufacturer to consumer

• manufacturer to wholesaler to retailer to consumer

• consumer to retailer

Which of the following is an example of intellectual property?

• Inventions

• Songs

• Artistic designs

• All of these

Advertising=A paid form of communication sent out by a business about a product or service. Large companies generally use advertising agencies. Small businesses generally handle their own advertising.

• True

• False

Channels of Distributions are the routes that product and services take from the time they are produced to the time they are consumed.

• True

• False