WorksheetsEntrepreneurship Lesson 4.02 Review
Total questions: 15
Worksheet time: 8mins
What are three types of purchasing?
Buying for resale, Buying for make-or-buy decisions, and Buying for retailers
Buying for resale, Buying for transformation, and Buying for retailers
Buying for transformation, Buying for business use, and Buying for wholesalers
Buying for resale, Buying for transformation, and Buying for business use
John purchases sterling silver jewelry from Native American artisans and then sells the items to gift shops. What kind of buyer is John?
Wholesale
Retail
Industrial
Business Use
Sydney purchase sporting goods from several different manufacturers and sells the items in her shop. What kind of buyer is she?
Wholesale
Retail
Industrial
Business Use
The Purchasing Specialist for which of the following companies is most likely to buy for transformation?
American Eagle
Target
Ford
Walmart
Why should purchasing specialists develop positive relationships with their suppliers?
To prevent supplier theft
To increase the ratio of material cost to finished product cost
To eliminate the need for a backup supplier
To ensure the supplier will follow through as promised
Which of the following is a way in which a buyer plays an important role in the success of a business
Forecasting sales
Providing a flow of goods
Determining price of finished products
Planning company's cash flow
Which of the following is the first step of the purchasing process?
Selecting supplier
Evaluating suppliers performance
Identifying needs
Negotiating with supplier
Which of the following is NOT an action taken by a buyer when selecting a supplier?
Negotiating
Reviewing credentials
Sign a purchasing contract
Search for a supplier
Which of the following is a reason why purchasing is important as a business function?
Helps with new product development
Part of strategic planning
Provides needed goods and services
Determines goals and objectives for company
If a buyer discusses potential issues and ways to resolve them with a supplier prior to making a purchase, what are the buyer and supplier doing?
Forecasting
Bidding
Negotiating
Transforming
Where does a channel of distribution begin?
With the industrial user
With the producer
With the intermediary
With the ultimate consumer
Which of the following is an example of an industrial user?
A parent buying a picture frame for their desk
A hairstylist buying new scissors to perform haircuts
A family buying a new home computer
A teacher buying a book to read on vacation
Which of the following intermediaries never actually owns the products they promote and sell?
Agents
Wholesalers
Retailers
Industrial Users
An intermediary function that makes goods available to consumers where they are wanted and needed is
extending credit
servicing sales
transporting and storing
providing management services
What distribution channel is used for high-priced industrial goods when the producer does not have its own sales force?
Producer to agent to user
Producer to industrial distributor to user
Producer to industrial user
Producer to agent to industrial distributor to user
