BUSINESS 5005 Unit 2 assessment questions with answers

Document Content and Description Below

Unit 2 Assessment Questions 1.) Assuming a business is profitable, which of the following four items found on an income statement would typically be the largest? A.) Net income before taxes = (tota... l revenue – total expense) B.) Gross Margin = (Sales - cost of goods sold) C.) Net income after taxes D.) Operating income = revenue – operating expenses 2.) Which of the following is NOT cited as one of the reasons many companies outsource the logistics function? A.) A company seeks to return to its basic, “business” B.) To reduce transportation costs C.) To avoid a major capital expenditure D.) All of the above are reasons for outsourcing 3.) Compared to a property broker, an agricultural (truck) broker is? A.) More heavily regulated B.) Regulated about the same C.) Less heavily regulated 4.) ______ relate to cash that is paid prior to expenses being incurred or to cash that is collected prior to the time that revenue is earned. A.) Accruals B.) Deferrals C.) Estimations 5.) Which of the following is NOT one of the growth strategies for a service business? A.) Attracting new customers B.) Encouraging existing customers to purchase more C.) Encouraging existing customers to purchase higher margin services D.) Eliminate unprofitable customers E.) All of the above are appropriate growth strategies 6.) True or False: Even though each broker at a brokerage company is a unique individual the customer is likely to perceive the service delivered by every broker at a brokerage company to be the same. A.) True B.) False 7.) A common advantage of a(n) ________ provider is it may have some economies of scale against which it can leverage costs. A.) Asset-Based B.) Non Asset-based This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 8.) Which of the following was NOT cited as a guideline for advertising transportation brokerage services? A.) Differentiate your services by focusing on prices B.) Recognize the service as performance C.) Make the service tangible D.) Employ word of mouth advertising E.) Don’t over promise 9.) Which of the following typically has lower overhead costs? A.) Asset-based intermediary B.) Non-asset based intermediary 10.)XYZ Brokerage Company has $100,000 in assets and $40,000 in liabilities. What’s XYZ’s owner’s equity? A.) $40,000 B.) $60,000 C.) $100,000 D.) $140,000 11.)True or False: According to the TIA Code of Ethics, a broker is expected to pay a carrier for shipment charges except if the broker has not been paid by the shipper for freight services? A.) True B.) False 12.)XYZ brokerage has $40,000 in liabilities and $60,000 in owner’s equity. What are its assets? A.) $20,000 B.) $40,000 C.) $60,000 D.) $100,000 13.)Sales minus the cost of Goods sold and operating expenses is called? A.) Gross margin B.) Net income C.) Operating income D.) Owner’s equity E.) Total current assets 14.)Another name for an intermodal marketing company is? A.) A surface freight forwarder B.) A shippers’ associate C.) A shipper’s agent D.) A carrier agent This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 15.)Which of the following is NOT one of the key differences between a product and a service? A.) Products are tangible, services are intangible B.) There is greater variability in service quality than in product quality C.) The decision making process for products is typically longer than it is for services D.) There is more customer involvement in the purchase process for services than there is for products. 16.)“With the smaller staff size, senior management is moved closer to the action and the decision making chain is typically much shorter.” This statement is most closely associated with? A.) Asset-based intermediaries B.) Non-asset based intermediaries 17.)Calculating what the right moral decision is, based on your ethical practices, and the facts of a particular situation is called? A.) Ethics B.) Social Responsibility C.) A code of ethics D.) Moral Calculus 18.)Compared to the level of customer involvement in the purchase process for a product, the level of customer involvement in the purchase for a service is? A.) Generally higher B.) About the same C.) Generally lower 19.)An agricultural (truck) broker typically schedules loads by? A.) Working with IMC’s B.) Working with large, national motor carriers C.) Working directly with truck drivers D.) Working with another broker to co-broker a movement 20.)A _______ is “a person who, for compensation, arranges, or offers to arrange the transportation of property by an authorized motor carrier” A.) Motor Carrier B.) Freight Forwarder Property Broker C.) Shipper D.) Shipper’s agent E.) None of the above* This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 21.)Assets – liabilities = ? (Owners’ Equity) A.) Gross margin B.) Operating income C.) Net income before taxes D.) Net income after taxes E.) None of the above 22.)According to researchers, marketing (in general) spends too much time focusing on? A.) Attracting new customers B.) Encouraging existing customers to purchase more C.) Encouraging existing customers to purchase higher margin services D.) Reducing unprofitable customers 23.)Three partners combine resources to open a transportation brokerage business in Milwaukee. The business is so successful; they decide to open a second office in ST Louis. Both offices are considered part of the same _______, but each location should be treated as a separate _______ entity. A.) Accounting, business B.) Accounting, accounting C.) Business, accounting D.) Business, business 24.)Which of the following is typically categorized as an asset-based intermediary? A.) Broker B.) Warehouse firm C.) Forwarder D.) Consulting company 25.)True or False: Most freight Forwarders concentrate on TL Shipments moving long distances? A.) True B.) False 26.)Which of the following is not considered to be an advantage of working with an asset-based company? A.) They can use their own resources to make sure a job gets completed B.) Their lower fixed cost lean to lower unit cost C.) Their size can generate economies of scale in some situations D.) Asset-based companies often have deeper financial resources (in comparison to non asset-based companies) E.) They can often assign personnel to a problem This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 27.)Which of the following statements regarding agricultural brokers is TRUE? A.) Compared to a property broker, there is less competition for an AG broker to find loads and carrier capacity B.) AG brokers are typically paid 10% of the price the shipper pays for the move C.) There are only a few ag brokers, and they are very large and coordinate shipments across the country D.) The process for damage claims for loads moved by an AG broker are identical to the process for damage claims for load moved by a property broker 28.)Assuming a business is profitable, which of the following four items found on an income statement would typically be the smallest? A.) Net income before taxes B.) Gross margin C.) Net income after taxes D.) Operating income 29.)Which of the following is the most common reason why companies choose to outsource logistics? A.) To avoid costs of creating a logistics infrastructure B.) To obtain a competitive advantage C.) To reduce transportation costs D.) To better serve customers E.) To be consistent with the marketing concept 30.)True or False: A surface freight forwarder is required to be registered even if the freight forwarder had operating authority prior to the passage of the Surface Freight Forwarder Act of 1986? A.) True B.) False 31.)True or False: Unauthorized re-brokering has been ruled by the TIA Ethics Committee to be wrong and damaging to all involved? A.) True B.) False 32.)“Our company’s approach to ethics is simple – we have a strongly worded code of ethics that we expect everyone to adhere to. We make all new employees sign that they’ve read it – what more can we do? The problem with this statement is? A.) Ethical actions are also a function of individual beliefs B.) Leadership is also an important part of reinforcing ethical standards C.) While a code of ethics can be helpful, it does not necessarily dictate the ethical culture of the organization D.) All of the above is true This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 33.)Bill is a broker who has been hired to arrange transportation for a load for scientific instruments which require special handling. Bill does not identify a carrier with expertise in handling this type of load, and the equipment is damaged in transit. IS bill potentially liable for this damage? A.) Yes if Bill was negligent in choosing the carrier B.) Yes a broker is always liable when damage occurs to a load while in transit C.) No, The damage is the responsibility of the carrier 34.)If you assemble and consolidate shipments, assume responsibility for the transporting goods, and use a licensed carrier to transport the goods, you are a? A.) Shipper’s agent B.) Broker C.) Shippers’ association D.) Freight forwarder 35.)Which of the following statements concerning a shippers’ association is TRUE? A.) Most shippers’ associations handle both inbound and outbound shipments B.) The customers of shippers’ association are typically non-members of the association in the immediate geographic area C.) A shippers’ association is often a significant source of profit for its members D.) An effective shippers’ association typically requires a large volume of freight to be shipped between two locations 36.)When revenue has been earned but has not yet been received (no document has been generated that resulted in recording the transition), the revenue can be described as a(n)? A.) Sale B.) Accrual – revenue has been earned but has not yet been received. C.) Estimation – type adjustments include allocations of the cost of long lived assets over their useful lives and estimation of items such as the cost of uncollectible accounts. D.) Account payable – account used for recording the liabilities a company has incurred for goods or services purchased on an open account. E.) Deferral – Cash that is paid prior to expenses being incurred or to cash that is collected prior to the time that revenue is earned. 37.)The overall size of the logistics industry has increased from $10 billion in the early 1990’s to _____ by 2008? A.) $25 billon B.) $130 billion C.) $379 billion D.) $1.3 trillion 38.)True or False: Differentiating the services of your company from what your competitors offer should be a goal of most brokers A.) True B.) False This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com 39.)Which of the following would a shipper most likely see to arrange rail piggyback service? A.) NVOCC B.) Intermodal marking company C.) Shippers’ association D.) Surface freight forwarder E.) Agricultural broker 40.)True or False: According to the CFR a motor carrier is NOT a broker “when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport” A.) True B.) False 41.) Customers often have a hard time evaluating the quality of a service. Which of the following is helpful for improving perceptions of service quality among customers? A.) Reducing prices B.) Increasing prices C.) Promoting your skills to your customer 42.)Which of the following is one of the elements of the accounting equation? A.) Expenses B.) Revenues C.) Assets D.) Depreciation E.) Transportation costs 43.)Third party logistics companies seeking clients who are not currently outsourcing typically target _______ with their sales efforts to promote their logistics services A.) Logistics managers B.) Chief financial officers C.) Chief executive officers D.) All of the above 44.)Which of the following would NOT be considered to be the liability for a brokerage company? A.) Surety bond B.) Accounts payable C.) Unearned revenue D.) Notes payable E.) All of the above are liabilities This study source was downloaded by 100000821916538 from CourseHero.com on 03-25-2021 14:07:23 GMT -05:00 https://www.coursehero.com/file/64322257/Unit-2-assessment-questions-with-answersdocx/ This study resource was shared via CourseHero.com Powered by TCPDF (www.tcpdf.org) [Show More]

Last updated: 1 year ago

Preview 1 out of 7 pages