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1 The business market consists of the following three components:
a. commercial enterprises, resellers, and government.
b. manufacturers, institutions, and defense.
c. manufacturers, service organizations, and government.
d. commercial enterprises, service organizations, and government.
e. commercial enterprises, institutions, and government.
status: incorrect (0.0)

correct: e
your answer: b
feedback: Incorrect.
2 Concerning manufacturing customers, the business market is:
a. concentrated by size.
b. geographically concentrated.
c. experiencing declining growth in many large metropolitan areas.
d. all of the above.
e. (a) and (b) only.

correct: e
your answer: a
3 Over 75 percent of the value added by manufacturing in the United States is contributed by roughly
________ percent of all manufacturers.
a. 10
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b. 20
c. 30
d. 40
e. 50
status: correct (1.0)

correct: a
your answer: a
feedback: Correct.
4 Purchasing assumes a central role in:
a. protecting the cost structure of the firm.
b. managing relationships with customers.
c. managing relationships with suppliers.
e. (a) and (c) only.

correct: e
your answer: a
5 Some business marketers have responded to the diversity that exists in the market by creating a:
a. centralized marketing organization.
b. product-centered organization.
c. market-centered organization.
d. geographically based organization.
e. home office in the center of the United States.

correct: c
your answer: a
6 A negative implication of the geographical concentration of manufacturers is:
a. the ineffective use of the full-time personal sales force.
b. that distribution centers in large-volume areas can ensure rapid delivery to a large proportion of
customers.
c. Both (a) and (b) are negative implications.
d. Neither (a) or (b) are negative implications.

correct: a
your answer: a
feedback: Correct.
7 The purchasing manager should not consider which of the following?
a. The cost of acquiring and managing products and services.
b. The value of a product to its customers.
c. The quality of a product over its complete life cycle.
d. The factors that drive the cost of the product in the supply chain.
e. All of the above should be considered by the purchasing manager.

correct: e
your answer: a
8 All are levels of procurement development except:
a. buy better.
b. buy for less.
c. consumer better.
d. sell better.
e. All of the above are levels.

correct: e
your answer: a
9 ________ is when specific product and service choices the purchasing organization makes have
significant effect on revenue and also involve a high degree of business risk.
a. Value buy
b. Leveraged buy
c. Integrated sell
d. Linked buy
e. Buy better

correct: c
your answer: a
10 Capabilities that provide the procurement function and senior management with a central repository of
valuable data and information on supplier performance, material and component costs, process flows,
and best practices are known as:
a. knowledge management.
b. online negotiations.
c. collaboration tools.
d. analytical tools.
e. none of the above.

correct: a
your answer: a
feedback: Correct.
11 A marketer selling to the government emphasizes:
a. understanding the complex rules and standards that must be met.

b. developing a system to keep informed of each agency's procurement plans.
c. developing a communications strategy that focuses on how technology meets agency

objectives.
e. (a) and (b) only.

correct: d
your answer: a
12 Which is not a goal of purchasing?
a. Uninterrupted flow of communication.
b. Inventory management.
c. Improve quality.
d. Reduce administrative costs.
e. Advance firm's competitive position.

correct: a
your answer: a
feedback: Correct.
13 Purchasing managers are increasingly turning to the Internet to research the global marketplace for
suppliers.
True
False

correct: true
your answer: true
feedback: Correct.
14 A reverse auction involves one seller who invites bids from several pre-qualified buyers.
True
False

correct: false
your answer: true
15 A private exchange allows companies to automate purchases and collaborate in real time with a
specially invited group of suppliers.
True
False

correct: true
your answer: true
feedback: Correct.
16 A negotiated contract is used to purchase products and services that cannot be differentiated on the
basis of price alone or when there are many suppliers.
True
False

correct: false
your answer: true
17 When the government requires contractors to maintain affirmative action programs for minorities,
women, and the handicapped, this is known as the compliance program.
True
False

correct: true
your answer: true
feedback: Correct.
18 Value analysis seeks cost reductions by simplifying the design of products or by using standardized
component parts in products and across product lines.
True
False

correct: false
your answer: true
19 Spending on purchased goods and services can represent 80 percent of a company's costs.
True
False

correct: false
your answer: true
20 Distribution by size is the only concentration factor important to the business marketer.
True
False

correct: false
your answer: true

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7/27/2017 https://mail-attachment.googleusercontent.com/attachment/u/0/?ui=2&ik=9bf968a0c2&view=att&th=15d836d85950cd0c&attid=0.

Total Possible: 20.0Time Spent: 00:01:08 / 01:00:00

1 The business market consists of the following three components:

a. commercial enterprises, resellers, and government.

b. manufacturers, institutions, and defense.

c. manufacturers, service organizations, and government.

d. commercial enterprises, service organizations, and government.

e. commercial enterprises, institutions, and government.

status: incorrect (0.0)

2 Concerning manufacturing customers, the business market is:

c. experiencing declining growth in many large metropolitan areas.

d. all of the above.

e. (a) and (b) only.

status: incorrect (0.0)

status: correct (1.0)

4 Purchasing assumes a central role in:

a. protecting the cost structure of the firm.

b. managing relationships with customers.

c. managing relationships with suppliers.

d. all of the above.

e. (a) and (c) only.

status: incorrect (0.0)

a. centralized marketing organization.

d. geographically based organization.

e. home office in the center of the United States.

status: incorrect (0.0)

6 A negative implication of the geographical concentration of manufacturers is:

a. the ineffective use of the full-time personal sales force.

d. Neither (a) or (b) are negative implications.

status: correct (1.0)

7 The purchasing manager should not consider which of the following?

a. The cost of acquiring and managing products and services.

b. The value of a product to its customers.

c. The quality of a product over its complete life cycle.

e. All of the above should be considered by the purchasing manager.

status: incorrect (0.0)

8 All are levels of procurement development except:

b. buy for less.

e. All of the above are levels.

status: incorrect (0.0)

status: incorrect (0.0)

e. none of the above.

status: correct (1.0)

11 A marketer selling to the government emphasizes:

a. understanding the complex rules and standards that must be met.

b. developing a system to keep informed of each agency's procurement plans.

c. developing a communications strategy that focuses on how technology meets agency

e. (a) and (b) only.

status: incorrect (0.0)

12 Which is not a goal of purchasing?

a. Uninterrupted flow of communication.

d. Reduce administrative costs.

e. Advance firm's competitive position.

status: correct (1.0)

status: correct (1.0)

status: incorrect (0.0)

status: correct (1.0)

status: incorrect (0.0)

status: correct (1.0)

status: incorrect (0.0)

status: incorrect (0.0)

status: incorrect (0.0)

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