147. 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
148. Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering adding a fresh
shellfish case in his grocery store. Paul 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 of the following types of
wholesalers should he contact?
a. Cash-and-carry
b. Limited-line
c. General merchandise
d. Rack jobber
e. Limited-service
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
149. Fiona is a wholesaler who buys greeting cards from Hallmark Cards Inc. and resells them by maintaining displays
of greeting cards in drugstores and discount stores. Her daily activities include straightening the cards, pulling
outdated or slow sellers, and installing new cards. Fiona is called a(n) _____.
a. specialty-line wholesaler
b. full-service stocker
c. in-store maintainer
d. assembler
e. rack jobber
150. Angela approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of
products 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 couple of square feet of space. Angela is in the business of serving retailers as a _____.
a. general-merchandise wholesaler
b. specialty-line wholesaler
c. rack jobber
d. limited-line wholesaler
e. cash-and-carry wholesaler
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
151. Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, 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
152. Merchant wholesalers who provide very few marketing services and specialize in just a few functions are known
as _____.
a. limited-service wholesalers
b. wholesale service specialists
c. general-line wholesalers
d. specialty-line wholesalers
e. specialty-service wholesalers
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
153. 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
154. Laura and Marie own and operate a small restaurant. On a weekly basis, they go to their local Sam’s Wholesale
Club to purchase the food items and cleaning supplies they need for their business. With the exception of the
volume they purchase and the items’ intended use, this grocery shopping trip is identical to a weekly trip by their
families to a grocery store. Sam’s serves as a _____ wholesaler for these entrepreneurs.
a. general-line
b. specialty-line
c. full-service merchant
d. Truck
e. cash-and-carry
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
155. Which of the following types of wholesalers transports a limited line of products directly to customers for immediate
inspection and selection?
a. On-site wholesalers
b. Cash-and-carry wholesalers
c. Rack jobbers
d. Truck jobbers
e. Drop shippers
156. Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He
picks up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he
has on any given day. Which of the following types of wholesalers is Greg?
a. A drop shipper
b. A general-line wholesaler
c. A truck jobber
d. A cash-and-carry wholesaler
e. A specialty-line wholesaler
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
157. Andreaownsandoperatesasmallnoveltystorethatsellshomedécor,gifts,jewelry,andgourmetsnacks.Because
her business is very small, many wholesalers do not deal with her, therefore 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
158. Drop shippers:
a. take title to but not physical possession of the goods.
b. do not take title to or physical possession of the goods.
c. take title to and physical possession of the goods.
d. do not take title to but take physical possession of the goods.
e. are similar to truck wholesalers but provide the extra service of placing products on retailers’ shelves.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
159. Which of the following wholesalers never takes actual possession of goods?
a. Drop shippers
b. Cash-and-carry wholesalers
c. Truck jobbers
d. Mail-order wholesalers
e. Rack jobbers
160. Mark Bradley’s company takes orders from its collection of retail customers and arranges the delivery of goods
directly from manufacturers or other wholesalers to its customers’ businesses. Mark is operating as a _____.
a. mail-order wholesaler
b. drop shipper
c. desk wholesaler
d. truck jobber
e. specialty-line wholesaler
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
161. Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in
western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from
_____.
a. rack jobbers
b. general-line wholesalers
c. mail-order wholesalers
d. truck wholesalers
e. specialty-line wholesalers
162. _____ provide an effective method of selling small items to customers in remote areas that other wholesalers might
find unprofitable to serve.
a. Desk jobbers
b. Specialty-line wholesalers
c. Cash-and-carry wholesalers
d. Truck wholesalers
e. Mail-order wholesalers
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
163. Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known
as _____.
a. contract wholesalers
b. commission wholesalers
c. hands-off intermediaries
d. contract negotiators
e. functional middlemen
164. What is the primary difference between an agent and a broker?
a. An agent gets compensated based on commission, while a broker generally charges fees for his services.
b. A broker works only for a seller, whereas an agent can represent a buyer or a seller.
c. An agent represents a company on a permanent basis, while a broker is employed temporarily.
d. An agent has much more extensive knowledge about the products he deals with than a broker does.
e. Brokers have long-term relationships with their customers, while an agent’s relationships are generally short-
lived.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
165. Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in
a restricted territory are known as _____.
a. commission merchants
b. manufacturers’ agents
c. selling agents
d. truck wholesalers
e. retailers’ brokers
166. Because Gem Supply’s sales have continued to decline, the jewelry manufacturer has found that the costs
associated with maintaining its own five-person sales force are prohibitive. The firm’s marketing director begins to
look for a small company or an individual willing to perform the sales function for Gem Supply in its least productive
region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or an
individual would be classified as a _____.
a. rack jobber
b. manufacturers’ agent
c. specialty-line wholesaler
d. desk jobber
e. commission merchant
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
167. Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a
great deal about cranberries, their growers, and processors, she decides to go into business by herself. Karen wants
to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors
together. Her new company would be a _____.
a. sales agent
b. commission merchant
c. broker
d. sales branch
e. sales office
168. A difference between manufacturers’ agents and selling agents is that:
a. selling agents have little control over the marketing mix of the manufacturers they represent.
b. selling agents represent retailers.
c. selling agents do not offer retailers aid in advertising or promotional material.
d. selling agents do not have the territorial restrictions that manufacturers’ agents do.
e. selling agents represent wholesalers.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
169. Selling agents perform every wholesaling activity except _____.
a. transporting goods
b. setting prices
c. financing products
d. taking title to products
e. inventory control
170. A channel member that markets all of a manufacturer’s goods, has authority over price, promotion, and distribution,
but does not take title to a product is known as a _____.
a. general-line wholesaler
b. selling agent
c. commission merchant
d. manufacturers’ agent
e. broker
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
171. Manufacturers’ agents offer products that are both:
a. noncompeting and complementary.
b. competing and specialized.
c. unrelated and noncompeting.
d. complementary and competing.
e. unrelated and competing.
172. Thad works for a company that markets all of Celetron’s products. Thad’s company acts as the marketing
department for Celetron, performing all marketing functions without actually taking title to the goods. Thad’s
company is a _____.
a. commission merchant
b. manufacturers’ agent
c. sales branch
d. selling agent
e. full-service wholesaler
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
173. An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is
known as a _____.
a. commission merchant
b. sales branch agent
c. selling agent
d. manufacturers’ agent
e. broker-agent
174. Calhoun Produce, a _____, takes possession of truckloads of tomatoes, arranges for storage, and transports them
to auctions to be sold.
a. manufacturer’s agent
b. selling agent
c. commission broker
d. commission merchant
e. selling broker
Chapter 14 – Retailing, Direct Marketing, and Wholesaling