Business Concepts True or False PDF

## Business Concepts True or False 1. In business, the cost of physical distribution is surpassed only by the cost of labor. **T** 2. Intermodal transportation combines two or more transportation modes to maximize the advantage of each. **T** 3. The Federal Aviation Administration regulates air fre...

## Business Concepts True or False 1. In business, the cost of physical distribution is surpassed only by the cost of labor. **T** 2. Intermodal transportation combines two or more transportation modes to maximize the advantage of each. **T** 3. The Federal Aviation Administration regulates air freight charges. **F** 4. A contract carrier does not have to publish its freight rates, because it negotiates fees with each customer. **F** 5. Shipping between Seattle, Washington, and Los Angeles, California is called intracoastal shipping. **T** 6. A national chain engages in centralized buying in order to save money and present a unified image to its customers. **T** 7. Extra dating is used to encourage a buyer to purchase new merchandise. **F** 8. Although a purchasing manager carries out the specifics of the master production schedule, other people create that schedule without the manager's input. **F** 9. Retailers often demand that products have a Universal Product Code because the codes save the retailers time. **T** 10. Advance dating means that a manufacturer and a purchasing agent will arrange the merchandise shipping date in advance of the time when the merchandise is needed. **T** 11. A company's profit is equal to its return on investment. **F** 12. Bartering involves the exchange of goods or services for a mutually agreed-on amount of money. **F** 13. Some companies have products whose features are very similar to the products of their competitors. Such companies can successfully compete by adding place utility to their products. **T** 14. Retailers who are in business in states with minimum price laws are prohibited from using the loss leader technique to attract customers. **T** 15. The practice of punishing retailers was outlawed in the Robinson-Patman Act of 1975. **F** 16. E-tailing has increased the popularity of flexible pricing. **T** 17. Penetration pricing encourages volume sales which increase a company's profit margin but also increase its fixed costs. **T** 18. Outdated technology in the U.S. may be in the growth stage in other global markets. **F** 19. It is not possible to set a price too low because a target market will always be attracted to low-cost items. **F** 20. Very little price changes will be made for products introduced with skimming prices. **F** 21. A retailer who discounts an item's retail price also reduces his or her markup on the item. **T** 22. Businesses generally use employee discounts in order to justify paying employees a lower wage. **F** 23. Some discounts actually help a business receive its invoice payments more quickly. **F** 24. In order to determine the percentage of a promotional discount, one multiplies the dollar discount by the original price. **F** 25. Trade discounts are based on the manufacturer's price to the wholesaler or retailer. **T**