CUET Entrepreneurship-Chapter-Distribution

  • Board
    CBSE
  • Textbook
    NCERT
  • Class
    Class 12
  • Subject
    Entrepreneurship
  • Chapter
    CUET Entrepreneurship-Chapter-Distribution
  • Chapter Name
    Distribution
  • Category
    CUET (Common University Entrance Test) UG

Important MCQ Questions on CUET Entrepreneurship-Chapter-Distribution with Detailed explanation

HT having an expert teacher prepared the most important MCQ Questions on CUET Entrepreneurship-Chapter-Distribution with Detailed explanations. All the concepts of Entrepreneurship in the syllabus of CUET are covered with coverage of the entire syllabus. This page is prepared for Entrepreneurship-Chapter-Distribution and covers all important topics of the competitive exam CUET for domain subject test. Check out MCQ Based questions for CUET Entrepreneurship uploaded by the HT experts. 

MCQ Questions for CUET Entrepreneurship-Chapter-Distribution Set-1

Entrepreneurship - MCQ on Distribution Mix

Class XII

Q.1. Wholesalers are those intermediaries who

a. sell goods to the ultimate consumers.

b. purchase goods from the retailers.

c. purchase goods from the producers.

d. first manufacture the goods and then sell it to

consumers.

answer:

(c)

Exp: Wholesalers buy the goods from the producers in a large scale and move them to the retailers.

Q.2. Direct channel of distribution is required for

a. perishable goods.

b. consumable goods.

c. non-perishable goods.

d. durable goods.

answer:

(a)

Exp: Perishable goods like fruits, vegetables, dairy products should be sold through direct channel.

Q.3. When buyers are large in numbers suitable distribution channel should be

a. direct.

b. indirect.

c. short.

d. through dealers.

answer:

(b)

Exp: If the number of buyers is large then it is better to use indirect channel for the distribution of goods.

Q.4. Efficient distribution system can

a. increase the costs of business.

b. increase transportation costs.

c. decrease the order of goods.

d. reduce the costs of business.

answer:

(a)

Exp: Efficient distribution system can reduce the costs of business and also helps in supplying goods at reasonable prices.

Q.5. A main element of physical distribution is

a. order processing.

b. nature of products.

c. companies financial background.

d. nature of market.

answer:

(a)

Exp: Order processing is one of the main elements of physical distribution. More quickly and accurately the orders are processed, greater is the level of customer satisfaction.

Q.6. Most appropriate distribution channel for organisational goods is

a. manufacturer-agent-distributor-retailer-user.

b. manufacturer-user.

c. manufacturer-agent-distributor-user.

d. manufacturer-wholesaler-retailer-user.

answer:

(b)

Exp: Organisational goods often involve close technical and commercial dialog between buyer and seller. Such products are purchased by business firms for the purpose of producing other goods or for running the business and thus the most appropriate distribution channel for such products is manufacturer-user.

Q.7. The term ‘place mix’ in the context of marketing mix refers to

a. the process of getting products to those areas where

customers can buy them.

b. recognising that consumers change their taste over a

period of time.

c. building-in of reliability to a product.

d. launching a new product to extending the product range.

answer:

(a)

Exp: The term ‘place mix’ is one of the four elements of marketing mix and refers to the process of getting products to those areas where customers can buy them.

Q.8. ‘Manufacturer-user’ direct channel is most appropriate where the goods being sold have

a. low technical content.

b. geographically dispersed buyers.

c. high unit cost.

d. low unit cost.

answer:

(c)

Exp: In the case of costly products like industrial machinery and gold ornaments, small distribution channel would be more appropriate.

Q.9. The role of intermediary is to

a. limit transactions between manufacturer and

customer.

b. increase order size and reduce expenses.

c. reduce breakage.

d. increase efficiency and reduce costs.

answer:

(d)

Exp: Manufacturers often take the help of various intermediaries to place their products to customers which ultimately increase the efficiency and reduce the costs of the product.

Q.10. One of the steps of an order processing is

a. receive payment.

b. orders placed by salesperson to consumers.

c. evaluate the reputation of company.

d. transmission of order by customer to company.

answer:

(a)

Exp: Order processing is the process which is followed to fulfill the material order of the customer and receive payment is one of the different steps of an order processing.

Q.11. Inventory control is related to

a. physical distribution.

b. packaging.

c. product mix.

d. distribution channel.

answer:

(a)

Exp: Inventory control is related to physical distribution of goods and concerned with the quantity of inventory to be maintained to meet the objectives of distribution.

Q.12. Distribution mix is also known as

a. marketing mix.

b. promotion mix.

c. place mix.

d. sales mix.

answer:

(c)

Exp: Product, price, promotion and distribution are the four elements of marketing mix and distribution mix is also known as place mix.

Q.13. Firms use intermediaries in distributing their products because

a. distribution is a cheaper function.

b. of higher retail margin.

c. intermediaries can improve the quality of products.

d. sometimes direct selling is not feasible.

answer:

(d)

Exp: Sometimes in the absence of intermediaries it becomes impossible to sell the products. Intermediaries are specialised in their respective fields and have direct links with the consumers.

Q.14. Transportation helps to

a. widen markets.

b. decrease cost of production.

c. minimize investment in inventory.

d. decrease the mobility of capital.

answer:

(a)

Exp: Transportation is a necessary function of marketing because most of the markets are geographically separated from the centres of production and thus helps in widening the markets.

Q.15. A distribution channel serves as the connecting link between

a. producer and retailer.

b. wholesaler and producer.

c. retailer and producer.

d. producer and consumer.

answer:

(a)

Exp: A distribution channel is the route along which products flow from the point of production to the point of ultimate consumption i.e. from producer to consumer.

MCQ Questions for CUET Entrepreneurship-Chapter-Distribution Set-2

Q.16. The type of flow which a distribution channel represents is

a. cash flow downwards from producer to consumer.

b. products flow downwards from producer to consumer.

c. marketing information flows in single direction.

d. cash flow upwards from producer to consumer.

answer:

(b)

Exp: A channel of distribution represents three types of flows 1) products flow downwards from the producer to consumer, 2) cash flow upwards from consumers to the producer, and 3) marketing information flows in both directions.

Q.17. Correct sequence of three level distribution channel is

a. manufacturer-agent-wholesaler-retailer-consumer.

b. manufacturer-wholesaler-agent-retailer-consumer.

c. manufacturer-wholesaler-agent-consumer.

d. manufacturer-retailer-consumer.

answer:

(a)

Exp: In a three level distribution channel, producer use three intermediaries i.e. agent, wholesaler and retailer to place his goods to the consumer.

Q.18. Direct selling has become popular due to

a. concentrated market.

b. reduction in costs of distribution.

c. cut throat competition.

d. low investment required.

answer:

(c)

Exp: Direct selling is the shortest and simplest channel involving direct sale of goods and services by the producer to the consumer. In recent years, it has become popular due to cut throat competition, increasing costs of distribution, scattered markets etc.

Q.19. Three level distribution channel is suitable for

a. fruits.

b. soap.

c. automobiles.

d. cloths.

answer:

(a)

Exp: Three level distribution channel is the longest distribution channel and suitable when the producer has a limited product line and a wide market is to be covered like in the case of cloths manufacturers.

Q.20. Suitable distribution channel for capital goods is

a. three level channel.

b. direct channel.

c. two level channel.

d. through dealers.

answer:

(b)

Exp: Capital goods include machinery, tools, equipment etc. which are used to produce other products for consumption. These goods are not produced for immediate consumption and thus require direct distribution channel.

Q.21. Correct sequence of two level distribution channel is

a. manufacturer-agent-wholesaler-retailer-consumer.

b. manufacturer-wholesaler-retailer-consumer.

c. manufacturer-wholesaler-agent-consumer.

d. manufacturer-retailer-wholesaler-consumer.

answer:

(a)

Exp: In a two level distribution channel, producer use two intermediaries i.e. wholesaler and retailer to place his goods to the consumer.

Q.22. A company can create its own distribution channel when it

a. wants a tight control over distribution.

b. has large output.

c. has large amount of funds.

d. has wide range of products.

answer:

(c)

Exp: A company having strong financial background can create its own distribution channel and a financially weak company will have to depend upon intermediaries.

Q.23. Warehousing ensure

a. risk maximisation.

b. product utility.

c. time utility.

d. price flexibility.

answer:

(c)

Exp: Warehousing is the process of holding and preserving goods in warehouses until they are sold or used. It ensures risk minimisation, time utility etc.

Q.24. Choice of a distribution channel depends upon

a. labelling.

b. tagging.

c. consumer financial strength.

d. size and frequency of order.

answer:

(a)

Exp: Choice of a channel of distribution depends upon several factors relating to the product, market, size and frequency of order, intermediaries etc.

Q.25. One of the methods of direct distribution is

a. tele-marketing.

b. dealers.

c. agents.

d. wholesalers.

answer:

(a)

Exp: Absence of any intermediary between the buyer and seller for selling goods is known as direct selling like internet selling, door-to-door selling, tele-marketing etc.

Q.26. Market related factor determines choice of channel of distribution is

a. unit value of the product.

b. size of order.

c. degree of control.

d. competitor’s policy.

answer:

(b)

Exp: Choice of order is one of the market related factors determines choice of channel of distribution. If the size of the order is small, as in the case of most consumer products, large number of intermediaries may be used.

Q.27. Product related factor determines choice of channel of distribution is

a. technical nature.

b. degree of control.

c. size of order.

d. business environment.

answer:

(a)

Exp: Technical nature is one of the product related factors determines choice of channel of distribution. If a product is of a technical nature, then it is better to supply it directly to the consumers which help them to know the necessary technical aspects of the product.

Q.28. Distribution mix is related to

a. promotional activities.

b. quality distribution.

c. physical distribution.

d. right price.

answer:

(c)

Exp: Distribution mix also known as place mix is concerned with decisions which have to be taken to make the goods available to the customers and it is related to physical distribution of goods.

Q.29. One of the components of physical distribution is

a. direct channel.

b. buying habits.

c. two level channel.

d. warehousing.

answer:

(d)

Exp: Four major components of physical distribution are transportation, inventory control, warehousing and order processing.

Q.30. Standardised products are the products which

a. have scope of alteration.

b. are pre-determined.

c. are made according to the choice of customer.

d. are very costly.

answer:

(b)

Exp: Standardised products like utensils of MILTON are those products which have pre-determined model and there is no scope of alteration.

Q.31. Warehousing refers to the act of

a. placement of goods.

b. movements of goods.

c. distribution of goods.

d. promotion of goods.

answer:

(a)

Exp: Warehousing is the act of placement of goods and provides facilities to store them. Need for warehousing arises due to the difference between the time a product is produced and the time it is required for consumption.

Q.32. Main decision involved in inventory control is

a. receipt of order by the salesperson.

b. checking credit standing of customer.

c. weed out obsolete items.

d. receiving payment.

answer:

(c)

Exp: Inventory means the stock of raw materials, semi finished goods and finished goods held in anticipation of use or sales. Weeding out obsolete items from stock is one of the main decisions of inventory control.

Q.33. Deciding when and how much to stock and replenish is related to

a. transportation.

b. inventory control.

c. order processing.

d. warehousing.

answer:

(b)

Exp: Deciding when and how much to stock is a planned approach related to inventory control which avoids loss of sales.

Q.34. Holding of inventory involve

a. cost of adverse price movements.

b. receiving payment.

c. large scale production.

d. transmission of order.

answer:

(a)

Exp: Holding of inventory involves cost of storage, cost of adverse price movements etc. The basic objective of inventory control is to minimise investment in inventory and ensure adequate stock of each item at the same time.

Q.35. Transportation is important in marketing for

a. suitable stock records.

b. increasing production.

c. transmission of order.

d. entry of order.

answer:

(b)

Exp: Transportation refers to the physical movement of goods from one place to another and it helps in increasing production.

Q.36. Direct distribution is useful when

a. aggressive selling is required.

b. producer has limited finance.

c. producer has to cover wide market.

d. producer has a limited product line.

answer:

(a)

Exp: Direct distribution is the shortest and simplest route involving direct sale of goods and services by the producer to the consumer. It is useful when aggressive selling is required to push up a new product.

Q.37. Desire for control over distribution is a

a. market related factor.

b. product related factor.

c. company related factor.

d. environmental factor.

answer:

(c)

Exp: Selection of a proper distribution channel for a product needs certain factors to be considered like factors related to market, product, company etc. Companies which want a tight control over distribution prefer direct channels.

Q.38. Most appropriate distribution channel for cotton is

a. manufacturer-agent-distributor-retailer-user.

b. manufacturer-wholesaler-retailer-user.

c. manufacturer-agent-distributor-user.

d. manufacturer-user.

answer:

(a)

Exp: It is better to choose direct or short distribution channel in case of bulky goods like iron and steel and voluminous goods like cotton.

Q.39. Most commonly used distribution channel for most consumer goods is

a. manufacturer-agent-distributor-consumer.

b. manufacturer-wholesaler-retailer-consumer.

c. manufacturer-agent-distributor-retailer-consumer.

d. manufacturer-consumer.

answer:

(b)

Exp: In the case of most consumer goods like soaps, oil, sugar, rice etc. two level distribution channel is used i.e. manufacturer-wholesaler-retailer-consumer.

Q.40. Under the persuasive function of channels of distribution intermediaries

a. encourage the consumers.

b. collect market related information.

c. places orders to manufacturers.

d. store the material according to their need.

answer:

(a)

Exp: Under persuasive function, all the intermediaries involved in distribution channel encourage the consumers which ultimately increase the sales of the product.

Q.41. Suitable distribution channel for gold ornaments is

a. indirect channel.

b. manufacturer-agent-distributor-consumer.

c. manufacturer-wholesaler-retailer-consumer.

d. direct channel.

answer:

(d)

Exp: Gold ornaments are very costly products so for their distribution small or direct channel should be used.

Q.42. Chirayu Pharma wants to distribute its medicine in market only through license holder. The factor because of which company has decided to choose only license holders as a middleman is

a. Market factor.

b. product factor.

c. government factor.

d. company factor.

answer:

(c)

Exp: There are many factors that should be considered while selecting a proper distribution channel. In this case it is government related factor which insist the company to select only the license holder as a middlemen to distribute its goods.

Q.43. Customised products need

a. direct channel.

b. two level channel.

c. indirect channel.

d. three level channel.

answer:

(d)

Exp: Customised products like furniture are those products which are made according to the discretion of the consumer and also there is scope for alteration. For such products face to face interaction between manufacturer and consumer is essential so, for these direct sales is a good option.

Q.44. Advantage of keeping low quantity of stock is

a. less amount of money is blocked.

b. company can meet the excess demand whenever

required.

c. investments will increase.

d. company can increase the price of product in near

future.

answer:

(a)

Exp: If the quantity of stock is kept low, then less amount of money is blocked. But the negative aspect of this step is, if there is slight increase in demand then because of scarcity of stock consumers will turn to rival companies.

Q.45. Channel of distribution refers to that path through which products reach

a. dealers.

b. consumers.

c. retailer.

d. wholesaler.

answer:

(b)

Exp: Channel of distribution refers to that path through which products reach consumers. In this path many people and firms participate called middleman or intermediary.

Q.46. Under the instrumental function of channels of distribution intermediaries

a. places orders to manufacturers.

b. collect market related information.

c. encourage the consumers.

d. help manufacturer in fulfilling the deals.

answer:

(a)

Exp: Under instrumental function, intermediaries help manufacturers in fulfilling the deals and owner-transfership of goods.

Q.47. Distribution channel involve

a. risks.

b. utility creation.

c. taking products to the end users.

d. courage.

answer:

(c)

Exp: Distribution channel are a set of firms and individuals that take title or assist in transferring title, to particular goods or services as it moves from the producers to consumers.

Q.48. The wholesaler is a link between

a. producer and investor.

b. retailer and consumer.

c. producer and retailer.

d. producer and consumer.

answer:

(c)

Exp: Wholesalers are the intermediaries who buy the goods from the producers in a large scale and sell them to the retailers, institutions or other bulk purchasers rather than consumers.

Q.49. The ideal for physical distribution is to achieve

a. highest possible service level at the high cost.

b. moderate possible service level at the least cost.

c. highest possible service level at the least possible cost.

d. lowest possible service level at the highest possible

cost.

answer:

(c)

Exp: An effective physical distribution is when a manufacturer supply product at the least possible cost and provide highest possible service.

Q.50. The last link between producer and consumer is

a. financier.

b. retailer.

c. wholesaler.

d. shareholder.

answer:

(b)

Exp: Retailers are the intermediaries who buy the goods from the manufacturers or importers, either directly or through a wholesaler, and then sell smaller quantities to the end user or consumer. They also deal with a wide variety of such products.