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Channels of Distribution Quiz

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

What is Direct Distribution?

a)

Products are sold directly from the manufacturer to the consumer without any intermediaries.

b)

Products are sold through intermediaries before reaching the consumer.

c)

Distribution that only occurs online.

d)

A method of distribution exclusively used by wholesalers.

2.

Which of the following is an example of Indirect Distribution?

a)

A farmer selling vegetables directly at a local market.

b)

An author selling their book directly on their personal website.

c)

A clothing brand selling its products through various retail stores.

d)

A bakery selling bread directly to customers in its shop.

3.

What role do Wholesalers play in the distribution channel?

a)

They sell products directly to the end consumers.

b)

They create the products to be distributed.

c)

They buy large quantities of products and sell them to retailers or other intermediaries.

d)

They only operate in e-commerce channels.

4.

Which of the following best describes Retailers?

a)

Entities that produce the goods.

b)

Entities that buy goods in bulk and sell them in smaller quantities to consumers.

c)

Entities that facilitate online transactions.

d)

Entities that transport goods from one place to another.

5.

What is a characteristic of E-commerce Channels?

a)

They require a physical storefront to operate.

b)

They allow consumers to buy goods and services online.

c)

They do not allow for international sales.

d)

They exclusively sell digital products.

6.

Physical Distribution involves which of the following activities?

a)

Designing the product.

b)

Setting the price of the product.

c)

Transporting and storing products.

d)

Promoting the product through advertising.

7.

Which distribution channel is typically the fastest for delivering goods directly to consumers?

a)

Direct Distribution

b)

Indirect Distribution through wholesalers

c)

Indirect Distribution through retailers

d)

E-commerce Channels

8.

In which scenario would a company most likely use a wholesaler?

a)

When selling customized products directly to consumers.

b)

When needing to store large quantities of goods before distribution.

c)

When selling digital products online.

d)

When distributing perishable goods locally.

9.

What advantage do e-commerce channels offer over traditional retail channels?

a)

Higher costs due to shipping.

b)

Limited reach to local markets.

c)

24/7 availability to customers.

d)

Requirement for physical inventory space.

10.

Which of the following is NOT a function of physical distribution?

a)

Product promotion

b)

Inventory management

c)

Order processing

d)

Transportation

11.

Which of the following is a reseller's permit?

a)

A permit to purchase good's tax free from wholesaler's and collect sales tax from final buyers.

b)

A permit to purchase good's tax free from retailers and collect sales tax from final buyers.

c)

none of the choices are correct

12.

Wholesaling and retailing business may sometimes be referred to as ................

a)

Trade Businesses

b)

Service Businesses

c)

none of the choices are correct

d)

Manufacturing Businesses

13.

An intermediary is a bridge

a)

between producer and a consumer and may include agents, brokers, wholesalers and retailers

b)

only between two producers may include agents, brokers, wholesalers and retailers

c)

none of the choices are correct

d)

ONLY between Manufacturers and Wholesalers

14.

An markup is a price increase imposed by each link in a distribution chain or channel

a)

FALSE

b)

TRUE

15.

LOGISTICS is the handling and organizing of materials, equipment, goods and workers

a)

FALSE

b)

TRUE

16.

Free on Board - Is a delivery term that means at a specific location the ownership responsibility for a shipment switches from the BUYER to the seller.

a)

That is FALSE - Free on Board (FOB) Is a delivery term that means at a specific location the ownership responsibility for a shipment switches from the SELLER to the buyer.

b)

That is TRUE

17.

One of the primary characteristics of a MANUFACTURING business is that

a)

they create things

b)

they buy in bulk

c)

they sell to customers in small/individual sizes

d)

they provide a wide variety of professional, technical and everyday services that people need

18.

One of the primary characteristics of a RETAIL business is that

a)

they create things

b)

they buy in bulk

c)

they sell to customers in small/individual sizes

d)

they provide a wide variety of professional, technical and everyday services that people need

19.

One of the primary characteristics of a SERVICE business is that

a)

they create things

b)

they buy in bulk

c)

they sell to customers in small/individual sizes

d)

they provide a wide variety of professional, technical and everyday services that people need

20.

One of the primary characteristics of a WHOLESALE business is that

a)

they create things

b)

they buy in bulk

c)

they sell to customers in small/individual sizes

d)

they provide a wide variety of professional, technical and everyday services that people need