Entrepreneurship - Distribution Channels - 4.01

A channel of distribution begins with the

• industrial user.

• producer.

• intermediary.

• ultimate consumer.

Which of the following is an example of an industrial user?

• A family buying a new home computer

• A teacher buying a book to read on vacation

• A hairstylist buying new scissors to perform haircuts

• A parent buying a picture frame for their desk

Quality Distributors buys electrical equipment and supplies from ABC Electric and sells them to local electrical contractors. Quality Distributors is an example of a(n)

• agent.

• producer.

• retailer.

• intermediary.

Walmart, Domino's, and Avis Rent-a-Car are examples of

• retailers.

• wholesalers.

• agents.

• industrial distributors.

Top-Notch Wheels buys mountain bikes from The Great Colorado Mountain Bike Company and sells them to bike shops. Top-Notch Wheels is an example of a(n)

• agent.

• retailer.

• producer.

• wholesaler.

Which of the following intermediaries never actually owns the products they promote and sell?

• Retailers

• Wholesalers

• Agents

• Industrial Users

Producers are able to match their production to the needs and wants of consumers or industrial users because intermediaries

• develop assortment of goods.

• increase distribution costs.

• enable producers to promote goods.

• extend credit services to consumers.

The most common route of distribution for an industrial good is

• producer to retailer to consumer

• producer to industrial user

• producer to agent to user

• producer to wholesaler to ultimate consumer

Which of the following is NOT a type of intermediary?

• Retailer

• Wholesaler

• Agent

• Producer

Which of the following retailers would be most likely to be part of the producer-to-retailer-to-consumer channel?

• Small Boutique

• Larger Retail Chain

• Specialty Shop

• Locally Owned Pharmacy