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WorksheetsEntrepreneurship 4 Unit Test (2021-2022)
Total questions: 35
Worksheet time: 18mins
Which of the following is a benefit of channels of distribution:
We can more easily obtain products from all over the world.
Retailers must spend more money.
Producers must spend more money.
We spend more time looking for products we want.
Walmart, Domino's, and Avis Rent-a-Car are examples of
retailers.
industrial distributors.
agents.
wholesalers.
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)
wholesaler.
producer.
retailer.
agent.
Which of the following intermediaries never actually owns the products they promote and sell:
Agents
Retailers
Wholesalers
Industrial users
Which of the following is a direct channel of distribution for consumer goods and services:
Producer to ultimate consumer
Producer to retailer to consumer
Producer to industrial user
Producer to distributor to consumer
Which of the following retailers would be most likely to be part of the producer-to-retailer-to-consumer channel:
Large retail chain
Specialty shop
Locally owned pharmacy
Small boutique
What is an advantage for producers in using the producer-to-wholesaler-to-retailer-to-consumer distribution channel?
Wholesalers usually buy in large quantities.
Wholesalers do not take title to the goods.
It enables them to control channel activities.
It enables them to reach large retailers directly.
Which of the following services would be distributed by a producer-to-agent-to-consumer channel:
Health care
Vehicle repair
Travel planning
Income tax preparation
Where does a channel of distribution begin?
With the producer
With the intermediary
With the ultimate consumer
With the industrial user
Which of the following is an example of an industrial user:
A hairstylist buying new scissors to perform haircuts
A parent buying a picture frame for his/her desk
A family buying a new home computer
A teacher buying a book to read on vacation
Nina oversees the buying of goods and services for her company. Which business department does she likely work in?
Purchasing
Transformation
Selling
Negotiating
What are three types of buying?
Buying for transformation, buying for business use, and buying for wholesalers
Buying for resale, buying for transformation, and buying for business use
Buying for resale, buying for transformation, and buying for retailers
Buying for resale, buying for make-or-buy decisions, and buying for retailers
Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?
Wholesale
Retail
Industrial
Business use
Suzette purchases sporting goods from several different manufacturers and sells the items in her shop, Suzy’s Sports. What kind of buyer is Suzette?
Wholesale
Retail
Industrial
Business use
Molly purchases raw materials for a factory that changes the shape or appearance of those materials through a process known as
affirmation.
negotiation.
transformation.
specification.
Why should purchasing specialists develop positive relationships with their suppliers?
To help ensure that the suppliers will follow through on their promises
To prevent supplier theft
To eliminate the need to look for back-up sources of goods and services
To increase the ratio of materials’ cost to finished product cost
If a purchasing specialist and a supplier discuss potential issues and ways to resolve them prior to making a purchase, what are the two parties doing?
Negotiating
Bidding
Transforming
Forecasting
After a purchasing specialist has determined that s/he has selected the right supplier for a job, what do s/he and the supplier develop?
Purchase agreement
Blanket purchase order
Request for bids
Invoice
Which of the following is a step in the purchasing process:
Managing the sales force
Initiating promotion
Identifying needs
Selecting subordinates
Why should a purchasing specialist evaluate supplier performance?
To determine whether s/he should use the supplier again
To assist in new product development
To purchase items to sell to wholesalers and retailers
To develop a purchase contract
Operating costs are also know as ___________
overhead
problems
management
marketing
When attempting to reduce costs, most businesses will first cut __________ costs.
operating
fixed
production
variable
Most businesses’ approach to operating costs is to
keep them as low as possible.
spare no expense on quality.
eliminate them completely.
focus on variable expenses rather than fixed ones.
Which of the following operating costs is most likely to be considered fixed by one business and variable by another business:
Pest control
Travel expenses
Depreciation
Employee benefits
Which of the following is a true statement regarding operating costs:
Some may be considered either fixed or variable.
Businesses spend more on operating costs than production costs.
They are usually divided into selling expenses and manufacturing expenses.
Purchasing a piece of equipment is an operating cost.
Sales commissions are a __________ expense.
variable
fixed
capital
one-time
Operating costs that fluctuate with changes in production are called __________ expenses.
variable
fixed
capital
total
A business’s rent or mortgage is a __________ expense
fixed
semi-fixed
semi-variable
variable
Operating costs are also know as ___________
overhead
problems
management
marketing
When attempting to reduce costs, most businesses will first cut __________ costs.
operating
fixed
production
variable
Most businesses’ approach to operating costs is to
keep them as low as possible.
spare no expense on quality.
eliminate them completely.
focus on variable expenses rather than fixed ones.
Which of the following is a true statement regarding operating costs:
Some may be considered either fixed or variable.
Businesses spend more on operating costs than production costs.
They are usually divided into selling expenses and manufacturing expenses.
Purchasing a piece of equipment is an operating cost.
Sales commissions are a __________ expense.
variable
fixed
capital
one-time
Operating costs that fluctuate with changes in production are called __________ expenses.
variable
fixed
capital
total
A business’s rent or mortgage is a __________ expense
fixed
semi-fixed
semi-variable
variable
