Question 1

Lynn Velasquez sells Revlon cosmetics on consignment to chemists, maintains the display racks and restocks when necessary.Lynn's job is best described as a:
A)rack jobber.
B)drop shipper.
C)general merchandise wholesaler.
D)cash-and-carry wholesaler.
E)truck jobber.

Accepted Answer

Lynn's job involves maintaining and restocking display racks, which is characteristic of a rack jobber. They operate on consignment and sell products to retailers, who pay only for what they sell, rather than purchasing the inventory outright. Drop shippers ship products directly from the manufacturer to the customer, whereas general merchandise and cash-and-carry wholesalers sell a variety of products to retailers. Truck jobbers sell products directly from their trucks to retailers.

Question 2

PecanTree is a wholesaler that sells only varieties of pecans to its customers, which makes this business a:
A)general-line wholesaler.
B)limited-service wholesaler.
C)one-product wholesaler.
D)specialty-line wholesaler.
E)rack jobber.

Accepted Answer

PecanTree is a specialty-line wholesaler because it focuses on selling only varieties of pecans, which is a specialized product line.

Question 3

All of the following are types of limited-service merchant wholesalers except:
A)cash-and-carry wholesalers.
B)truck wholesalers.
C)mail-order wholesalers.
D)specialty-line wholesalers.
E)drop shippers.

Accepted Answer

Specialty-line wholesalers are not considered limited-service merchant wholesalers; they typically focus on a very narrow range of products but offer deep expertise and extensive services in that area, unlike limited-service wholesalers who offer fewer services.

Question 4

If the personal computer manufacturer Gateway were to use the services of Universal Plastics Corporation, the world's largest buyer and processor of hard plastic cases, it would also receive help in financing the plastic case purchases used in making the PCs.In this situation, Universal Plastics Corporation is a:
A)cash-and-carry wholesaler.
B)general merchandise wholesaler.
C)limited-service wholesaler.
D)rack jobber.
E)full-service wholesaler.

Accepted Answer

Universal Plastics Corporation is providing additional services beyond just selling hard plastic cases, including financing assistance. This places them in the category of a full-service wholesaler.

Question 5

Andrea owns and operates a small novelty store that sells home décor items, gifts, jewellery and gourmet snacks.Because her business is very small, many wholesalers will not deal with her, so she relies primarily on __________ for the survival of her business.
A)drop shippers
B)truck wholesalers
C)rack jobbers
D)specialty-line wholesalers
E)cash-and-carry wholesalers

Accepted Answer

Cash-and-carry wholesalers are ideal for small businesses like Andrea's because they allow retailers to purchase goods in smaller quantities and pay cash, which is beneficial when wholesalers are unwilling to deal with smaller operations.

Question 6

Arjay Prakash works with a group of local farmers who provide him with a regular supply of various fresh vegetables.He picks up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he has for sale on any given day.Arjay's operation is typical of which type of wholesaler?
A)Drop shipper
B)Limited-line
C)Truck
D)Cash-and-carry
E)Specialty-line

Accepted Answer

Arjay Prakash works as a truck wholesaler, as he collects produce from local farmers and delivers it to grocers and restaurants on a regular basis.

Question 7

Drop shippers:
A)take title to but not physical possession of goods.
B)do not take title to or physical possession of goods.
C)take title to and physical possession of goods.
D)do not take title to but do take physical possession of goods.

Accepted Answer

Drop shippers take title to but not physical possession of goods.

Question 8

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a:
A)specialty-line wholesaler.
B)limited-service wholesaler.
C)rack jobber.
D)general merchandise wholesaler.
E)limited-line wholesaler.

Accepted Answer

A general merchandise wholesaler carries a wide variety of product lines but does not offer much depth within those lines.

Question 9

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a:
A)full-service wholesaler.
B)full-price wholesaler.
C)rack jobber.
D)cash-and-carry wholesaler.
E)technical wholesaler.

Accepted Answer

A full-service wholesaler typically provides assistance with store design and sales personnel training, in addition to a range of other services such as inventory management, marketing support, and order fulfillment. Full-price, rack jobber, and cash-and-carry wholesalers typically do not offer these types of services, while a technical wholesaler specializes in providing expertise in a particular area such as technology or engineering, rather than general retail operations.

Question 10

Based on what he has heard regarding the profitability of such items, Drew Goldstein is considering adding a fresh shellfish case in his grocery store.Drew knows very little about this product or the concerns of shoppers who buy shellfish.He is looking for help in display set-up and merchandising ideas.Which type of wholesalers should Drew contact?
A)General-line
B)Specialty-line
C)General merchandise
D)Rack jobber
E)Limited-service merchant

Accepted Answer

Specialty-line wholesalers specialize in specific products or product lines, such as seafood. They have more knowledge and expertise in the product, which can be helpful to Drew in setting up the display and merchandising ideas for fresh shellfish.

Question 11

Which type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?
A)Cash-and-carry wholesaler
B)Rack jobber
C)Truck jobber
D)Drop shipper

Accepted Answer

Truck jobbers transport a limited line of products directly to customers for immediate inspection and selection.

Question 12

Amal operates a wholesale company that specialises in providing a wide variety of services to its customers, which are all restaurants.He carries a wide assortment of restaurant equipment and cookware.Amal's business is a:
A)general merchandise wholesaler.
B)rack jobber.
C)general-line wholesaler.
D)specialty-line wholesaler.
E)limited-service wholesaler.

Accepted Answer

The answer of Amal operates a wholesale company that specialises...

Question 13

Customers rely on __________ for product availability, the breakdown of larger quantities into smaller ones, technical advice and service, financial assistance and suitable assortments.
A)full-line retailers
B)limited-service wholesalers
C)full-service wholesalers
D)commission merchants
E)cash-and-carry wholesalers

Accepted Answer

Full-service wholesalers provide a wide range of services to their customers, including product availability, breaking down larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments. Limited-service wholesalers and cash-and-carry wholesalers do not offer the same level of support and services to their customers, while commission merchants typically focus on a specific product or industry and do not provide the same breadth of services. Full-line retailers, on the other hand, serve the end-consumer rather than other businesses.

Question 14

Laura DeWolf and Julie Komar own and operate a small organic bakery.On a weekly basis, they go to their local Costco to purchase some food items and cleaning supplies they need for their business.With the exceptions of the volume they purchase and the items' intended use, this shopping trip is identical to a weekly trip by their families to a grocery store.Costco is serving as a __________ wholesaler for these entrepreneurs.
A)general-line
B)specialty-line
C)full-service merchant
D)truck
E)cash-and-carry

Accepted Answer

In this scenario, Costco is acting as a cash-and-carry wholesaler for Laura DeWolf and Julie Komar's organic bakery. They are able to purchase goods in bulk at Costco and carry them back to their bakery, similar to a typical grocery shopping trip for their families.

Question 15

A general-line wholesaler would be expected to carry a __________ product mix.
A)wide and deep
B)wide and shallow
C)narrow and shallow
D)wide
E)narrow and deep

Accepted Answer

The answer of A general-line wholesaler would be expected to...

Question 16

All of the following are examples of full-service wholesalers except:
A)general merchandise wholesalers.
B)mail-order wholesalers
C)rack jobbers.
D)general-line wholesalers.
E)specialty-line wholesalers.

Accepted Answer

Full-service wholesalers offer a wide range of services to their customers, including inventory management, delivery, credit and financing, and marketing support. Examples of full-service wholesalers include general merchandise wholesalers, rack jobbers, general-line wholesalers, and specialty-line wholesalers. Mail-order wholesalers, on the other hand, typically operate through catalogs or online platforms and do not offer the same level of services as full-service wholesalers.

Question 17

Merchant wholesalers can be divided into two basic categories:
A)general merchandise and limited-line.
B)rack jobbers and cash-and-carry.
C)commission based and fee based.
D)goods and services.
E)full-service and limited-service.

Accepted Answer

Merchant wholesalers are categorized into full-service wholesalers, who provide a wide range of services, and limited-service wholesalers, who offer fewer services.

Question 18

Merchant wholesalers who specialise in just a few functions and pass others along to intermediaries or customers are called:
A)limited-service wholesalers.
B)general-line wholesalers.
C)specialty-line wholesalers.
D)specialty-service wholesalers.

Accepted Answer

Limited-service wholesalers focus on specific services, functions or products, while passing on other functions to other intermediaries or customers. This allows them to specialise in certain areas and offer more targeted services. They may offer services such as sales, storage or delivery, but may not provide other functions such as financing or marketing.

Question 19

Which of the following is a full-service merchant wholesaler?
A)Cash-and-carry wholesaler
B)General merchandise wholesaler
C)Drop shipper
D)Mail-order wholesaler
E)Truck wholesaler

Accepted Answer

General merchandise wholesalers offer a wide range of products and services, including financing, marketing support, and delivery. They carry a large inventory of products and often sell to retailers, other wholesalers, and even institutional buyers like hospitals or government agencies.

Question 20

Angela Barton approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new product to his store.Angela tells David that the product is a line of high-quality driving sunglasses.She offers to set up the display, service and restock it weekly, and maintain billing and inventory records.She tells David that all she needs is a square metre of space.Angela is in the business of serving retailers as a:
A)limited-line wholesaler.
B)specialty-line wholesaler.
C)rack jobber.
D)full-service merchant wholesaler.
E)cash-and-carry wholesaler.

Accepted Answer

Angela is acting as a rack jobber, which is a type of wholesaler that provides a full range of services including setting up displays, restocking, and maintaining inventory and billing records, typically for a specific product line.

Quiz 11: Distribution Decisions

Lynn Velasquez sells Revlon cosmetics on consignment to chemists, maintains the display racks and restocks when necessary.Lynn's job is best described as a:

PecanTree is a wholesaler that sells only varieties of pecans to its customers, which makes this business a:

All of the following are types of limited-service merchant wholesalers except:

Andrea owns and operates a small novelty store that sells home décor items, gifts, jewellery and gourmet snacks.Because her business is very small, many wholesalers will not deal with her, so she relies primarily on __________ for the survival of her business.

Drop shippers:

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a:

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a:

Which type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

Amal operates a wholesale company that specialises in providing a wide variety of services to its customers, which are all restaurants.He carries a wide assortment of restaurant equipment and cookware.Amal's business is a:

Customers rely on __________ for product availability, the breakdown of larger quantities into smaller ones, technical advice and service, financial assistance and suitable assortments.

A general-line wholesaler would be expected to carry a __________ product mix.

All of the following are examples of full-service wholesalers except:

Merchant wholesalers can be divided into two basic categories:

Merchant wholesalers who specialise in just a few functions and pass others along to intermediaries or customers are called:

Which of the following is a full-service merchant wholesaler?