Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Taking a large shipment of goods and splitting it into smaller units is
called: a. | Bulk breaking.
| c. | Unitising goods.
| b. | Shipment
splitting. | | | | |
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2.
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Which
of the following is NOT true? a. | Intermediaries add on a margin at each stage of the
distribution process. | c. | Reducing the
number of intermediaries will tend to reduce profits. | b. | Reducing the
number of intermediaries will tend to increase profits. | | | | |
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3.
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When
a product can easily be differentiated from competing products, which distribution route should it
use? a. | The same as the
competitors. | c. | A combination of
routes. | b. | A different one from the competitors.
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4.
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Distibuting a product through a very small number of specialist retailers is
called: a. | Limited
distribution. | c. | Exclusive
distribution. | b. | Niche distribution. | | | | |
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5.
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Which
of the following is not true? a. | In international markets, organisational culture of the
distributor is more important than national culture. | c. | In international markets, it is important to decide whether the
distributor should be an agent or a wholesaler. | b. | In international
markets, it is easy to change distributors. | | | | |
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6.
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An
agreement which protects intellectual property is called: a. | A patent.
| c. | A
confidentiality agreement. | b. | A contract. | | | | |
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7.
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Which
of the following is NOT a factor in channel management? a. | Conflict.
| c. | Competition.
| b. | Co-operation.
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8.
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Referent power is an example of: a. | An economic source of power. | c. | A legitimate source of power. | b. | A non-economic
source of power. | | | | |
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9.
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When
one member has the ability to punish another member, this is called: a. | Legitimate
power. | c. | Punishment
power. | b. | Coercive power. | | | | |
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10.
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If
one member has special expertise needed by the authors, this is called: a. | Expert
power. | c. | Knowledge
power. | b. | Referent power. | | | | |
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11.
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Insistence that a channel member carries all the products the supplier makes is
called: a. | Full-line
forcing. | c. | Expert
power. | b. | Coercive power. | | | | |
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12.
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Companies with effective logistics systems were found to be several times more
profitable than other companies. How many times? a. | 3 times. | c. | 12 times. | b. | 5
times. | | | | |
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13.
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What
does JIT stand for? a. | Just in time. | c. | Joint inventory telecommunications. | b. | Joint inventory
transport. | | | | |
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14.
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A
financial document which guarantees payment to the exporter provided certain conditions are met is
called: a. | A bill of
lading. | c. | A transmittal
letter. | b. | A letter of credit. | | | | |
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15.
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What
is a tramp steamer? a. | A poorly-maintained cargo ship which charges low freight costs.
| c. | A ship which
runs on steam rather than oil. | b. | A ship which does not sail a scheduled route, but instead goes
wherever it can find a cargo. | | | | |
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