7100-01 Coomerce December 2011 Assessment

1 What is an advantage to the retailer of selling using the Internet?

A large profit margin

B less competition

C no need to design an advertisement

D wide potential market

2 What is the chain of distribution for manufactured goods?

A consumer → retailer → wholesaler → manufacturer

B manufacturer → retailer → wholesaler → consumer

C manufacturer → wholesaler → consumer → retailer

D manufacturer → wholesaler → retailer → consumer

3 The decline of the independent wholesaler has been caused largely by the growth of

A automatic vending machines.

B cash and carry warehouses.

C large scale retailers.

D voluntary chains.

4 Which service is provided by wholesalers to retailers?

A clearing production lines

B giving information about consumers

C providing a wide variety of goods

D supplying raw materials

5 Which statement is true of specialisation?

Muslim Town Campus City School

7100-01 Coomerce December 2011 Assessment

A It decreases output.

B It is particularly suited to small businesses.

C It makes minimum use of tools and machinery.

D It results in the standardisation of products.

6 Why are there more new businesses in the retail trade than in manufacturing?

A Few skills are required to run a retail outlet.

B More capital is required to start retail trading.

C Retailers can obtain bank loans without collateral security.

D The retail trade is more profitable than manufacturing.

7 What is an advantage of specialisation?

A greater and fuller use of equipment

B increased costs of production

C workers becoming self-sufficient

D workers finding their jobs more interesting

8 Which function is not performed by a retailer?

A displaying goods

B grading goods

C manufacturing goods

D providing a local supply of goods

9 Which statement is true of a vending machine?

A It is found everywhere.

B It offers a wide choice.

Muslim Town Campus City School

7100-01 Coomerce December 2011 Assessment

C It offers personal service.

D It operates twenty-four hours a day.

10 When is a wholesaler most likely to be used?

A when a retailer operates on a small scale

B when goods are large and expensive

C when goods are perishable or fragile

D when large orders are made by retailers

Muslim Town Campus City School