WorksheetsStandard 4.00 - 5.00
Total questions: 20
Worksheet time: 10mins
Which of the following is a benefit of channels of distribution:
a. We can more easily obtain products from all over the world.
b. Producers must spend more money.
c. Retailers must spend more money.
d. We spend more time looking for products we want.
Where does a channel of distribution begin?
a. With the industrial user
b. With the ultimate consumer
c. With the producer
d. With the intermediary
Which of the following is an example of an ultimate consumer:
a. A teenager buying their first car
b. A farmer buying seed for crops that will be sold at market
c. A manager buying office supplies
d. A restaurant owner buying a new oven for the restaurant’s kitchen
Which of the following is an example of an industrial user:
a. A parent buying a picture frame for their desk
b. A hairstylist buying new scissors to perform haircuts
c. A family buying a new home computer
d. A teacher buying a book to read on vacation
Which of the following is a direct channel of distribution for consumer goods and services:
a. Producer to industrial user
b. Producer to retailer to consumer
c. Producer to ultimate consumer
d. Producer to distributor to user
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)
a. agent.
b.retailer.
c. producer.
d.wholesaler.
Which of the following is another name for operating costs:
a. Overhead
b. Capital
c. Fixed expenses
expenditures
d. Variable expenses
Which of the following intermediaries never actually owns the products they promote and sell:
a. Retailers
b.Wholesalers
c. Agents
d.Industrial users
Operating costs are the opposite of
a. utilities.
b. variable expenses.
c. fixed expenses.
d.capital expenditures.
Operating costs that do not increase or decrease with changes in production are called __________ expenses.
a. mixed
b. semi-variable
c. fixed
d. variable
A business’s rent or mortgage is a __________ expense.
a. variable
b.semi-variable
c. semi-fixed
d.fixed
Operating costs that fluctuate with changes in production are called __________ expenses.
a. fixed
b.variable
c. capital
d.total
Operating costs that are fixed until the business reaches a certain level of production and then become variable are known as __________ expenses.
a. fluctuating
b.unfixed
c. semi-variable
d.capital
The revenue a company makes after subtracting the costs of the products it has sold is called
a. a commission.
b.gross profit.
c. the break-even point.
d.depreciation.
With what do many customers associate price?
a. Quality
b. Discounts
c. Comfort
d. Location
What might happen if a business’s customers feel that they are not getting the most value for their money?
a. Sales increase.
b.Customers spend money elsewhere.
c. Customers purchase more.
d.Sales remain the same.
Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money.
a. no
b.minimum
c. little
d.optimum
To set prices, businesses must price the physical product and all of its associated
a. features.
b. services.
c. physical characteristics.
d. value.
A buyer is willing to pay $9.99 for a product. If the seller is willing to accept that amount, then $9.99 is the
a. demand.
b.value.
c. markdown.
d.exchange price.
Charise is considering how much to charge for her small business’s products. Charise is involved in
a. pricing.
b.promotion.
c. a place decision.
d.a product decision.
