Business Quiz 2

Cosmetic products are regulated by the Consumer Product Safety Commission.

• True

• False

An entrepreneur who designs a new car seat must adhere to the current National Highway Transportation Safety Administration standards.

• True

• False

Wholesalers are part of a direct distribution channel.

• True

• False

Fulfillment centers are part of a direct distribution channel.

• True

• False

Fulfillment centers acquire goods from multiple vendors and deliver them to a customer.

• True

• False

Businesses that produce medical devices such as walkers and crutches must follow Food & Drug Administration regulations.

• True

• False

Distributors use their sales force to sell another company's product.

• True

• False

A business that applies for a secured small business loan must provide collateral.

• True

• False

Most online marketplaces charge fees to vendors for listing or selling products.

• True

• False

An LLC business owner is personally liable for a small business loan if the business fails.

• True

• False