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Business Management: Chapter 21 Test Review

Total questions: 36

Worksheet time: 18mins

Name
Class
Date
1.

Products never include services.

a)

True

b)

False

2.

Marketing channel discrepancies are differences between the offerings of a business and the requirements of a consumer.

a)

True

b)

False

3.

When distribution involves a producer and a consumer, the channel of distribution is an indirect channel.

a)

True

b)

False

4.

Customers have no influence on the development of distribution channels.

a)

True

b)

False

5.

An advantage provided by retailers in a channel of distribution is that they can provide the products of many manufacturers in one location.

a)

True

b)

False

6.

Producers prefer to sell products to retailers that buy in large quantities.

a)

True

b)

False

7.

Wholesalers sell consumer products but not business products.

a)

True

b)

False

8.

A channel in which one organization takes a leadership position to benefit all channel members is known as an administered channel.

a)

True

b)

False

9.

Highly perishable products are most likely to be distributed through indirect channels of distribution.

a)

True

b)

False

10.

The number of times that a product is handled adds to the cost of distribution, increases delivery time, and increases the opportunity for damage to occur.

a)

True

b)

False

11.

Unilever's products include dishwashing liquid, soap, body wash, toothpaste, and hand lotion. This is an example of

a)

a product line

b)

a product assortment

c)

brand names

d)

extended products

12.

Packaging

a)

protects products

b)

provides information

c)

can make the product easier to use

d)

all of these

13.

Most often, retailers sell to

a)

producers

b)

consumers

c)

wholesalers

d)

other retailers

14.

The number and type of businesses in a channel of distribution are determined by the

a)

product assortment

b)

number of consumers

c)

activities that need to be performed

d)

cost of product

15.

Which type of utility is created when customers are able to purchase a product when they need it?

a)

time utliity

b)

place utility

c)

possession utility

d)

form utility

16.

A business that owns the organizations at other levels of a channel of distribution is involved in

a)

wholesaling

b)

channel integration

c)

an administered channel

d)

illegal trade practices

17.

Products such as soap, books, candy and pens are

a)

distributed through a direct channel

b)

distributed through more than one channel

c)

are distributed through an administered channel

d)

are distributed through an integrated channel

18.

Which of the following is NOT a factor that producers consider when deciding which channels to select for distribution?

a)

perishability

b)

special handling

c)

number of users

d)

containerization

19.

A company that produces only one product is most likely to sell that product to

a)

wholesalers

b)

retailers

c)

consumers

d)

other producers

20.

The principal advantage of railroad transportation is

a)

speed

b)

direct service to most towns

c)

low cost for bulky items

d)

all of these

21.

The transportation method frequently used for short-distance shipping is

a)

railroad

b)

truck

c)

airplane

d)

pipeline

22.

The slowest method of transporting goods is

a)

the US Postal Service

b)

railroads

c)

water transporation

d)

piggyback

23.

Packing products in large quantities at the factory so they can be moved by several transportation methods while reducing the amount of product handling and product damage is known as

a)

parcel shipment

b)

express service

c)

direct distribution

d)

containerization

24.

Product identification labels that can be read by scanners and that are used to track product shipments are

a)

bar codes

b)

container IDs

c)

ISO markers

d)

piggyback labels

25.

Because consumers do not usually buy products as soon as they are produced, products need to be

a)

distributed

b)

stored

c)

transported

d)

promoted

26.

A facility used by a wholesaler or retailer to receive products from a number of manufacturers, repackage the products, combine they with others, and ship them for sale is a

a)

warehouse

b)

distribution center

c)

piggyback service

d)

telemarketing facility

27.

Complete set of products offered by a business to the market.

a)

product assortment

b)

extended product

c)

brand

d)

warehouses

28.

Placing loaded truck trailers on railroad cars and shipping them to the final destination.

a)

piggyback service

b)

containerization

c)

indirect distribution

d)

direct distribution

29.

Building in which large quantities of products are stored until sold.

a)

warehouses

b)

distribution centers

c)

piggyback services

d)

containerization

30.

Name, symbol, or design used to identify a product, service, or company.

a)

brand

b)

economic utility

c)

extended product

d)

trademark

31.

Producers selling directly to the ultimate consumer.

a)

direct distribution

b)

indirect distribution

c)

economic utility

d)

extended product

32.

Satisfaction received from using a product or service.

a)

economic utility

b)

containerization

c)

indirect distribution

d)

extended product

33.

Marketing goods and services by telephone.

a)

telemarketing

b)

piggyback service

c)

possession utility

d)

product assortment

34.

Product with additional features that are not part of the physical product but increase its usability.

a)

extended product

b)

economic utility

c)

basic product

d)

product assortment

35.

Distribution that takes place via channel members.

a)

indirect distribution

b)

direct distribution

c)

piggyback service

d)

containerization

36.

Utility created by developing a product consumers can afford.

a)

possession utility

b)

form utility

c)

time utility

d)

place utility