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Kinds of mercantile agents or agent middlemen - class-XI

Description: kinds of mercantile agents or agent middlemen
Number of Questions: 19
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Tags: wholesale trade internal trade commerce middlemen 1 - wholesaler business studies business and industry channels of distribution business organisation and correspondence
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Wholesalers may have control over retailers, but they do not sell to end-customers.

  1. True

  2. False


Correct Option: A
Explanation:

In product development, an end user (sometimes end-user) is a person who ultimately uses or is intended to ultimately use a product.In information technology, end users are not "customers" in the usual sense—they are typically employees of the customer.

_________ distribution occurs between a producer and industrial users of raw materials needed for the manufacture of finished products.

  1. Customer-to-customer (C2C)

  2. Business-to-business (B2B)

  3. Business-to-customer (B2C)

  4. Customer-to-Business (C2B)


Correct Option: B
Explanation:

Business-to-business is a situation where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process for output .Example- Providing raw material to the other company that will produce output

A distribution channel is a ______ in business. 

  1. optional

  2. privilege

  3. necessity

  4. none of the above


Correct Option: C
Explanation:

Distribution is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.

In the case of corporate trade payments, the link between the banks of the buyer and the seller is the _________.

  1. EFT

  2. Lock boxes

  3. Automated clearing houses

  4. Wire transfers

  5. Both (A) and (D) above


Correct Option: C
Explanation:

In the case of corporate trade payments, the payment information from the payer is electronically transferred to an Automated Clearing House (ACH) which is a link between the banks of the buyer and the seller.

______________ generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name.

  1. Brokers

  2. Wholesalers

  3. Retailers

  4. Manufacturers


Correct Option: B

Which of the following is not true in relation to wholesalers?

  1. Wholesalers serve as an important link between manufacturers and retailers.

  2. Most of the functions performed by wholesalers are such which can be eliminated.

  3. They generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name

  4. Both B and C


Correct Option: B

Purchase and sale of goods and services in large quantities, for the purpose of resale or intermediate use is referred to as _______________.

  1. internal trade

  2. wholesale trade

  3. retail trade

  4. inter state sale


Correct Option: B

_________ not only enable(s) the producers to reach large number of buyers spread over a wide geographical area.

  1. Wholesaler

  2. Retailer

  3. Government

  4. All of the above


Correct Option: A
Explanation:

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

A wholesaler may be an individual or otherwise a firm.

  1. True

  2. False


Correct Option: A
Explanation:

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

If there are no wholesalers, the functions which they perform shall have to be performed either by the manufacturers or the retailers.

  1. True

  2. False


Correct Option: A
Explanation:

Manufacturers mainly focus on production and creating products or finished goods. Manufacturers rarely sell their products directly to consumers or the end users of the products. Instead, manufacturers usually sell their products to other businesses down the chain like a retailer, dealer, or wholesaler.

A distribution system is said to be ______ when the product or service leaves the producer and goes directly to the customer with no middlemen involved.

  1. direct

  2. indirect

  3. one level

  4. two tier


Correct Option: A
Explanation:

Distribution systems can be defined as the sequential flow of procedures, systems, and activities which are designed and linked to facilitate and monitor the movement of goods and services from the source to the consumer.

Radial, Loop, & Network Systems. There are three basic types of distribution system designs: Radial, Loop, or Network. The Radial distribution system is the cheapest to build and is widely used in sparsely populated areas. A radial system has only one power source for a group of customers.

A distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users.

  1. True

  2. False


Correct Option: A
Explanation:

distribution channel is the route through which goods or services move from the company to the customer or the transfer of payment happens from the customer to the company. Distribution channels can mean selling of products directly or selling through wholesalers, retailers etc.

The companys product-mix influences the pattern of channels. This is substantiated from the which of the following?

  1. Middlemen who can provide wanted marketing services will be given first preference.

  2. Size and average frequency of customers orders also influence the channel decision.

  3. The broader the product- line, the shorter will be the channel.

  4. None of the above


Correct Option: C
Explanation:

Elements of marketing mix such as price, promotion, and distribution are also equally important in designing product mix. Company tries to maintain consistency among these all elements to carry out marketing activities effectively and efficiently.

THE PRODUCT IN FOUR P'S (MARKETING MIX).
Product has a vital role in developing the strategy for the overall marketing mix which includes place, price and promotion. Through a definition of the product features and benefits, the rest of the marketing mix elements are determined and agreed upon

An agent facilitates to reduce the distance between the manufacturer and the wholesaler. This is under which type of channel?

  1. Zero Level Channel

  2. One Level Channel

  3. Two Level Channel

  4. Three Level Channel


Correct Option: D
Explanation:

An intermediary in the channel is called an agent/middleman. Channels normally vary from two-level channels without intermediaries to five-level channels with three intermediaries. For example, a leather handbag manufacturer who prepares handbags and sells it directly to the customer is in a two-level channel.

Market influences the choice of channels of distribution. Identify the factors related to market.

  1. For consumer market, retailer is essential whereas in business market we can eliminate retailing.

  2. For large market size, there are many channels, whereas, for small market size direct selling may be profitable.

  3. For highly concentrated market, direct selling is preferred.

  4. All of the above


Correct Option: D
Explanation:

Market influences sometimes called the internal environment include price, human resources, and firm culture. External influences, or the external environment, include technology, competitors and the economy. 

Small businesses tend to have more control over internal influences than external ones.

When the manufacturer instead of selling the goods to the intermediary sells it directly to the consumer then this is known as ___.

  1. One Level Channel

  2. Zero Level Channel

  3. Two Level Channel

  4. Three Level Channel


Correct Option: B
Explanation:

Zero Level channel / Direct Marketing Channel. Consists of a manufacturer directly selling to the end consumer. This might mean door to door sales, direct mails or telemarketing. Dell online sales is a perfect example of a zero level channel marketing.

Today's large, progressive wholesalers have successfully reacted to rising costs by ________. 

  1. investing little money in equipment or systems

  2. locating in low-rent, low-tax areas

  3. investing in information technology systems

  4. reducing promotional activities


Correct Option: D
Explanation:

Product and service promotion is the most common form of marketingPromotional activities can include: advertising you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online

Who plays their significant role in distribution of goods though they do not sell directly to ultimate users or consumers?

  1. Retailer

  2. Wholesaler 

  3. Mediator

  4. Commission agent


Correct Option: B
Explanation:

Wholesaler is a person or a firm that buys a large quantity o goods from the manufacturers, producers, vendors and sells it to the retailers or other businesses who further sell it to the consumers. The wholesaler does not sell the products directly to the consumer, the product flows from wholesaler to the retailer and then to the end user.

Which of the following is true in relation to wholesale trade?

  1. Wholesalers generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name

  2. Wholesalers purchase in bulk and sell in small lots to retailers or industrial users

  3. Wholesalers undertake various activities such as grading of products, packing into smaller lots, storage, transportation, promotion of goods, collection of market information etc

  4. All of the above


Correct Option: D
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