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WorksheetsUnit 4 Practice Test
Total questions: 60
Worksheet time: 30mins
What is the main goal of a distribution channel?
To increase the price of goods
To deliver products to consumers
To reduce the need for marketing
To eliminate competition
Who is considered the final user in a distribution channel?
Retailer
Producer
Wholesaler
Ultimate consumer
What role do wholesalers play in a distribution channel?
Create products
Buy large quantities and resell smaller amounts
Use the product
Set government policies
What is an example of a direct channel of distribution?
Farmer selling produce at a local market
Retail store selling clothes
Warehouse shipping goods to stores
Wholesaler supplying parts
Why are middlemen important in a distribution channel?
They replace the need for producers
They handle legal paperwork
They make distribution more efficient
They design the product
Which business is an example of an industrial user?
A student buying a backpack
A family shopping for food
A bakery buying flour
A teenager buying sneakers
What is the definition of a retailer?
A person who uses a product
A business that sells to final consumers
A company that makes products
A large factory
Which channel is most likely for selling heavy machinery to other businesses?
Retail channel
Service channel
Industrial channel
Direct-to-consumer channel
What type of good would most likely go through an indirect channel?
Homemade cookies at a bake sale
Custom artwork
Grocery store items
Tutoring services
A producer uses a wholesaler and retailer to reach consumers. What kind of channel is this?
Direct channel
Indirect channel
Service channel
Digital channel
What is the first step in any distribution channel?
Wholesaler
Producer
Retailer
Consumer
Which of the following would be considered an intermediary?
Customer
Producer
Retailer
Employee
What is the main purpose of purchasing in a business?
To advertise products
To hire new employees
To get resources needed for production
To sell products to consumers
What is a purchase order?
A list of employees
A bill sent to customers
A document requesting items to be bought
An advertisement
Which term refers to the person responsible for buying goods for a company?
Marketer
Buyer
Technician
Supervisor
Why do businesses compare prices before making a purchase?
To delay ordering
To follow the law
To find the best value
To reduce employee wages
What does an invoice show?
A list of employees
Details about a purchase and the amount due
Company rules
Product features
Which is an example of a capital good?
Notebook
Phone app
Company delivery truck
Fast food meal
Which of the following would be listed in a business’s purchasing records?
Company profits
Suppliers and costs
Advertising slogans
Employee goals
The purchasing manager must make sure that:
The store opens on time
Products are priced high
The right materials are bought on time
Customers are happy
Why are warranties important in purchasing?
They raise the product price
They help fix or replace faulty items
They increase delivery time
They create more paperwork
Negotiation during purchasing is used to:
Make products more expensive
Increase delivery time
Reach a fair agreement
Avoid contracts
What is the purpose of a guarantee?
To create more sales
To make the product look better
To promise satisfaction or repair
To raise advertising costs
Who would most likely create a purchase agreement?
Customer
Warehouse worker
Supplier and buyer
Cashier
What is a supply chain?
A way to build websites
A system for storing customer data
A network that moves products from supplier to consumer
A tool for pricing goods
Which is a common supply chain member?
Insurance company
Retail store
Bank
Police station
What is the main purpose of the supply chain?
To track employee hours
To move goods efficiently
To increase prices
To market the product
What is the product flow in a supply chain?
Money going to the supplier
Information shared with customers
Goods moving from producer to user
Data entered into a spreadsheet
What type of flow involves money moving between supply chain members?
Information flow
Product flow
Financial flow
Risk flow
Why is the information flow important?
It helps decorate stores
It entertains customers
It helps coordinate activities
It increases taxes
Which of the following is a risk in the supply chain?
Low prices
Out-of-stock items
Colorful packaging
Store location
Which best describes value flow?
The number of employees in a store
Customer service ratings
The customer’s opinion of a product's worth
The shape of the product
Which of these would be considered a distributor?
Person buying a product
Person making a product
Company that delivers products to stores
Bank lending money
Why is supply chain coordination important?
To create product ads
To keep prices low
To ensure smooth movement of goods
To attract investors
An effective supply chain helps a business:
Lower employee pay
Waste less and save money
Spend more on storage
Ignore customer needs
Which of the following is a good example of a product flow problem?
Customers ask more questions
Supplies don’t arrive on time
Sales go up
More ads are created
What is an overhead cost?
A cost for extra products
A business cost not linked to a specific product
The profit made per item
The cost of customer service
Which of the following is a fixed cost?
Employee wages
Electric bill
Monthly rent
Supplies
Which is a variable cost?
Office lease
Employee bonus
Annual insurance
Loan interest
Why is it important to know operating expenses?
To attract customers
To reduce taxes
To manage the business budget
To promote employees
Which term refers to all money earned before expenses?
Revenue
Profit
Budget
Gross profit
If a company wants to reduce overhead, it should look at:
How it sets prices
Costs like rent and utilities
Its advertising plan
Its customer list
An example of an indirect cost is:
Wood used to build furniture
Wages of workers making the furniture
Electricity to run the factory
Glue used on each item
Which is an example of a semi-variable cost?
Rent
Hourly wages
Utility bill with a base and usage charge
Shipping fees
What does a business use a budget for?
To pay customers
To track competitors
To plan income and spending
To make ads
Which cost changes with production levels?
Fixed
Direct
Variable
Indirect
If sales go up, which cost is likely to rise too?
Building rent
Raw materials
Insurance
Manager salaries
Gross profit is calculated by subtracting:
Operating costs from sales
Revenue from expenses
Cost of goods sold from revenue
Sales from net income
What is production?
The sale of products
The creation of goods and services
The design of advertisements
The setting of prices
Inputs are:
The final goods sold
The workers who use the products
The resources used to make goods
The companies who buy products
Outputs are:
The customers
The finished goods and services
The workers
The costs of making a product
Which of the following is an intangible output?
A new car
A haircut
A computer
A loaf of bread
What is the purpose of routing in production?
To find new customers
To decide where inputs go
To make marketing plans
To ship products faster
What is scheduling in production?
Issuing work orders
Deciding when each task should happen
Choosing employees
Setting up ads
Dispatching means:
Ending production
Planning supply orders
Giving work orders
Tracking employee time
What does follow-up in production ensure?
Higher pay for workers
Marketing success
Production met quality standards
Lower sales
Unit production means:
Making one item at a time
Making large batches
Mass production
No automation
Mass production often uses:
Custom tools
Random work
Assembly lines
Lots of paperwork
Capital goods are:
Goods used to make other goods
Items bought by customers
Natural resources
Items that spoil quickly
Which process keeps making goods without stopping?
Intermittent
Batch
Unit
Continuous
