Class: XII Department: Commerce

Worksheet: 03 Subject Specific Skills

Topic: Ch. 3 Place

1.Which P of Marketing mix ensures availability of products?

a) Place

b) product

c) promotion

d) price

2. This participant of distribution system performs various functions like buying, selling, assembling,
and grading.

a) Facilitating agency

b) Manufacturers

c) Intermediaries

d) Consumers

3. Spencer’s selling FMCG goods to consumers Name the indirect channel used here.

a) Zero level channel

b) Two level channel

c) Three level channel

d) One level channel

4. They take title to products but deal only with complementary products.

a) Distributor

b) Wholesaler

c) Agent

d) Retailer
5. Which function facilitates both the transaction as well as physical exchange of goods?

a) Facilitating function

b) Transactional function

c) logistical function

d) Negotiations

6. Who stock the goods and sell them to the ultimate end user at a profit?

a) Wholesaler

b) Retailer

c) Distributor

d) Agent

7. Maruti car Udyog ltd. Assembles different parts of their cars manufactured at different places by
different manufactures. It keeps the purchased goods at a particular place. Which function of
channel of distribution is discussed above?

a) logistical function

b) Transactional function

c) Facilitating function

d) Negotiations

8. What takes place between manufacturers and customers before closing a deal

a) Negotiation

b) Financing

c) Grading

d) Maintenance

9. Breaking the bulk is function of;

a) Wholesaler

b) Retailer

c) Agent

d) Distributor
10. Which of the following is NOT considered a type of re-seller:

a) Whole seller

b) Manufacturer

c) Retailer

d) Distributor

11. At least how many parties should be included in “Exchange”

a) 2

b) 3

c) 4

d) 5

12. Factors pertaining to product that affect the channel of distribution are

a) Price, Perishability, size and weight

b) Design, comfort, size

c) After sales services and technical nature

d) Both a) & c)

13. You are a manufacturer of a shampoo, but your organization is not financially sound. In this
situation which channel of Distribution is suitable for you?

a) Direct channel

b) Indirect channel

c) Both channels can be used

d) None of these

14. How does availability of quality goods at a competitive price affect social welfare in society?

a) Neutralizes

b) Minimizes

c) Maximizes

d) No effect
15. Who out of the following perform various functions like buying, selling, packaging & packing etc.

a) Intermediaries

b) Manufacturers

c) Consumers

d) Facilitating Agents

16. ______ refers to the process of keeping the goods purchased from different places at a particular
place.

a) Sorting

b) Grading

c) Labeling

d) Assembling

17. Who carries products from a single brand/company?

a) Distributor

b) Retailer

c) Agent

d) Wholesaler

18. Along with Producer based factors, few more factors that affect the selection of channel of
Distribution are.

a) Product based

b) Market based

c) Middlemen based

d) All of those

19. The intermediary who takes possession of products but do not actually own them.

a) Wholesalers

b) Industrial users

c) Agent

d) Retailer
20. Which of the following take place at retailer’s end?

a) Promotion

b) Placing

c) Pricing

d) Exchange

21. Buying, selling and ___________ are the part of transactional function

a) Risk Bearing

b) Production

c) Credit

d) Research

22. Place in 4 P’s means same as:

a) Promotion

b) People

c) Distribution

d) Demand

23. Place is an important part of the marketing mix because:

a) Consumer must be in the right place to buy the product

b) The product must be ready for consumers in the right place

c) Advertising should be in the right place

d) Consumer to be at right place and at right time

24. A company manufactures eyewear products and sells through its own website to consumers.
Which of the following channels of distribution is being used by the company?

a) Producer -Retailer- Consumer

b) Producer – Consumer

c) Producer- Wholesaler- Retailer- Consumer

d) Producer- Agent- Retailer- Consumer

25. Post-purchase services and maintenance, financing, market information etc. come under _______
function of distribution channels.
a) Logistical
b) Transactional
c) Facilitating
d) Negotiation
26. Buying, selling and risk bearing functions performed by channels of distribution come under this
category.
a) Facilitating function
b) Transactional function
c) Logistical function
d) None of the above
27. Middlemen are also involved in various activities like demonstration of product, display and
contest which form a part of _______________ function.
a) Marketing
b) Demand
c) Production
d) Product Promotion

28. N& K Limited is marketing its products online. Identify the channel of distribution being adopted
by the company.
a. Zero level channel
b. One level channel
c. Two level channel
d. Three level channel
29. Manas Limited sells its products through the company approved retailers. Identify the channel of
distribution being adopted by the company.
a. Zero level channel
b. One level channel
c. Two level channel
d. Three level channel
30. Suhas has decided to sell her range of organic food products through her own retail outlets.
Identify the channel of distribution being adopted by the company.
a. Zero level channel
b. One level channel
c. Two level channel
d. Three level channel

31. Sonam Kapoor is planning to set up a small manufacturing unit for manufacturing eco-friendly
packaging material. She has decided to market her products through the conventional
channel of distribution, which involves wholesalers and retailers. Identify the channel of
distribution being adopted by the company.
a. Zero level channel
b. One level channel
c. Two level channel
d. Three level channel
32. Four participants of distribution system are manufacturers, intermediaries, facilitating agencies,
and _______________.
a. Customer
b. Markets
c. Suppliers
d. Advertising Agencies
33. A customer bought a product and has defect and post purchase service is desired by customer
then_______ function of channel of distribution is performed.
a. Facilitating function
b. Transactional function
c. Logistical function
d. all of the above
34. The major problem in channel development is

a) Deciding on the best channels

b) Persuading the intermediaries to handle the firm's line
c) Both a & b
d) None of the above
35. ICICI Bank uses a combination of _______________

a) Single channel
b) Two channels
c) Hybrid channels
d) None of the above
36. Buyers who are aware of firm’s__________ might desire to purchase its products
because price no longer remains a limiting factor.
a) Location
b) Prestige
c) Policies
d) Trends
37. The primary function of distribution channel is to bridge the gap between production and
consumption for which various transactions are performed for movement of the goods from one place
to another is called as:
a) logistical function
b) facilitating function
c) distribution function
d) Transactional functions

38. The products that are manufactured as per the orders of the customers could be sold through
______and the standardized items could be sold through________.
(a) Indirect channel, Direct channel
(b) Direct channel, Indirect channel
(c) Longer channel, short channel
(d) Intermediaries, Marketer

39. Retailers keep a large number of products of different varieties in stock to sell them to the
customers whenever they require. This is ___________ function of retailers.
(a) Customer Education
(b) Time Utility
(c) Transportation
(d) Financing

40.Every marketing activity starts with the customer and ends with the ______________.
a. Consumer
b. Customer
c. Supplier
d. Marketing officer

41. In this neither the buyer visits the seller’s place nor the seller visits the buyer’s place:
a. Departmental store
b. General store
c. Mail order business
d. Supermarket

42. It is a large-scale retail establishment where customers can buy almost all their requirements
under one roof:
a. Multiple shop
b. Departmental store
c. Convenience store
d. General store
43. Whose job does not end with selling of goods to the retailer?
a. Wholesalers
b. Manufacturers
c. Intermediaries
d. Facilitating agencies

44. Availability of product depends upon efficiently managed ______________.

a. place
b. promotion
c. People
d. physical evidence

45. Place in marketing mix refers to the channel, or the route, through which goods move from the
source or factory to the final user.
a. Channel
b. Place
c. Movement
d. Position

46. _________ is also known as channel, distribution, or intermediary.

a. Position
b. Place
c. People
d. Distribution channel

47. The term ______________ refers to the route taken by goods as they flow from the Manufacturer
to the consumer.
a. Channel of distribution
b. retailer
c. distributor
d. Wholesale

48. The second participant of distribution being Intermediaries, they are in direct negotiation between
____________
a. seller and retailer
b. seller and customer
c. buyer and seller
d. seller and salesperson

49. The functions performed by the middlemen in distribution channels may be grouped into ______
categories.
a. four
b. three
c. two
d. five
50. The primary function of distribution channel is to bridge the gap between production and
consumption for which various transactions performed for movement of the goods from one place to
another are called _________________.
a. Transactions
b. Transparency
c. Transparent
d. Transactional functions

51. The __________ of the channel include post-purchase service and maintenance, financing, market
information.
a. Transactional function
b. logistical function
c. facilitating functions
d. none of the above

52. ____________ are also involved in various activities like demonstration of product, display and
contest etc. to increase the sale of products.
a. negotiator
b. mediator
c. middlemen
d. foremen

53. ____________ in terms of quality of product, guarantee, after sale services and finally price takes
place before the transfer of ownership is done.
a. Negotiation
b. communication
c. promotion
d. product

54. They bring buyers and sellers together and negotiate purchase or sale on behalf of others:
a. Brokers
b. Wholesalers
c. Retailers
d. Cooperative stores

55. Identify the starting point of distribution from the following

a. Intermediaries
b. Facilitating agencies
c. Consumers
d. Manufacturers

56. ________ is the process of moving products from the producer to the intended user.
a. Promotion
b. Distribution
c. Channel
d. Place
57. The mechanism through which goods move from the manufacturer to the consumer is ________.
a. Place
b. Product
c. Promotion
d. Price

58. Channels of distribution are mainly concerned with the transfer of _________ which may be
affected directly or through a chain of intermediaries.
a. marketing of the product
b. branding of the product
c. sales of a product
d. title to a product

59. The third participant being the _________ are the independent business organisations other than
intermediaries.
a. wholesaler
b. retailer
c. facilitating agencies
d. distributor

60. The right place means greater chances of sales over a ____________.
a. shorter period of time
b. medium period of time
c. longer period of time
d. None of the above

61. Not only assembling but also storage, grading, sorting and transportation are essential for
_________ which forms logistical functions of physical distribution.
a. physical exchange of goods
b. online shopping
c. communication
d. marketing

62. Not only assembling but also storage, grading, sorting and transportation are essential for physical
exchange of goods which forms ___________ of physical distribution.
a) logistical function
b) facilitating function
c) distribution function
d) Transactional functions

63. Negotiation in terms of quality of product, guarantee, after sale services and finally price takes
place before the ___________ is done.
a. branding of products
b. marketing of goods
c. exchange of goods
d. transfer of ownership
64. The role of the _________ is to sell to retailers.
a. wholesalers
b. traders
c. customers
d. retailers

65. Under which function performed by channel of distribution are buying, selling and risk bearing
functions performed?
a. Transactional function
b. Logistical function
c. Facilitating function
d. Facilitating agencies
66. Who out of the following usually makes profits from commission for the service they provide?
a. agent
b. distributor
c. retailer
d. wholesaler
67. When there is an involvement of one or more than one intermediary to sell a product to the
consumers, what is it called?
a. zero level
b. one level
c. indirect channel
d. three level

68. An intermediary bought goods from the producer with the intention of selling at a profit but
Government announced a decision due to which price of product fell down which can lead to loss.
All the participants in the distribution channel must assume such risk of loss. Identify the function of
intermediary from the above given case.

69. Eureka Forbes, the company which markets vacuum cleaners and water purifying equipment. It
believes that if the market is in the customer's house, the best way to get there is to knock at the
door. The company has clearly demonstrated that door-to-door selling can be effective in Indian
conditions. One benefit of this method is that the company has complete control over the product,
its image at all stages and the user experience. Identify the channel of distribution adopted by
Eureka Forbes.
70. Maruti Udyog selling it cars through its NEXA company owned showrooms is direct channel. State
whether the given statement is True or False

71. Dell Computers was founded by a college freshman Michael Dell. By 1985, the company had
developed its unique strategy of offering ‘made to order’. Along with a superior supply chain and
innovative manufacturing, unique distribution strategy adopted by the company acted as a
differentiator. Identifying and capitalizing on an emerging market trend. Dell became a strong direct
seller, by using mail-order systems before the spread of the internet. After the internet became more
mainstream, an online sales platform was also established. Early on in manufacturer consumers the
internet era, Dell began providing order status reports and technical support to their customers
online. Through careful analysis of the target market, a study of available channel options and
effective use of a novel idea, Dell computers managed to reach early success in its industry. Identify
the channel of distribution adopted by Dell.

72. Consumer goods like oils, cloths, sugar, pulses and soaps etc sold through nearby retail outlets also
called mom and pop shops. Identify the level of distribution highlighted in the above case.
73. Who provides necessary information to buyers in addition to after sales service and financial
assistance?

74. Walmart, Domino’s Pizza, etc., are examples of ___________

a) Agents
b) Industrial distributors
c) Retailers
d) Wholesalers

75. Assertion (A): The logistical function involves physical exchange of goods and services
Reason (R): The buying, selling and risk bearing comes under logistic function
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
76.Assertion(A): Wholesalers are independently owned firms that take title of the products they
Handle.
Reason(R): Wholesalers generally sell the products they have purchased to other intermediaries for
a profit.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
77. Assertion(A): Negotiation takes place between manufacturer and consumer before closing a deal
Reason(R): Negotiation in terms of quality, guarantee, after sales service and final price takes
place before transfer of title is done.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.

Answers:
1. a) Place
2. c) Intermediaries
3. b) Two level channel
4. a) Distributor
5. a) Facilitating function
6. b) Retailer
7. a) logistical function
8. a) Negotiation
9. b) Retailer
10. b) Manufacturer
11. a) 2
12. c) After sales services and technical nature
13. b) Indirect channel
14. c) Maximizes
15. a) Intermediaries
16. d) Assembling
17. a) Distributor
18. d) All of those
19. c) Agent
20. d) Exchange
21. a) Risk Bearing
22. c) Distribution
23. b) The product must be ready for consumers in the right place
24. b) Producer – Consumer
25. c) Facilitating
26. b) Transactional function
27. d) Product Promotion
28. a. Zero level channel
29. b. One level channel
30. a. Zero level channel
31. c. Two level channel
32. a. Customer
33. a. Facilitating function
34. b) Persuading the intermediaries to handle the firm's line
35. c) Hybrid channels
36. b) Prestige
37. a) logistical function
38. (b) Direct channel, Indirect channel
39. (b) Time Utility
40. b. Customer
41. c. Mail order business
42. b. Departmental store
43. a. Wholesalers
44. a. place
45. b. Place
46. b. Place
47. a. Channel of distribution
48. c. buyer and seller
49. b. three
50. d. Transactional functions
51. c. facilitating functions
52. c. middlemen
53. a. Negotiation
54. a. Brokers
55. d. Manufacturers
56. d. Place
57. a. Place

58. d. title to a product

59. c. facilitating agencies
60. c. longer period of time
61. a. physical exchange of goods
62. a) logistical function

63. d. transfer of ownership

64. a. wholesalers
65. a. Transactional function
 66. a. agent
67. c. indirect channel
68. Transactional function
69. Direct Channel
70. True
71. Direct channel
72. Two level channel of distribution
73. Retailer
74. c. Retailer
75. c) Assertion (A) is true but Reason (R) is False
76. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
77. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).

II. FILL IN THE BLANKS:

1.Distributors or dealers have a similar role to wholesalers.

2. Retailers operate outlets that trade directly with household customers for personal and non-
business use.

3. Wholesalers stock a range of products from several producers.

4.Factors determining choice of channels include Product Related factors, Company characteristics,
competitive factor, Market factor, and Environmental Factor

5.The main component of physical distribution are Order Processing, Transportation, Warehousing,
Inventory Control, Just-in-Time- Inventory.

6. Place is the mechanism through which goods and/or services are moved from the manufacturer/
service provider to the user or consumer.

7. The new manufacturers in the beginning remain more dependent upon the middlemen.

8. If the product is being purchased for the industrial use; its direct sale is proper or justified.

9. The products regarding which the after-sales service is to be provided could be sold off either
personally or through the authorized agents.

10. The products which are of a perishable nature need lesser number of the intermediaries or
agents for their sale.

11. The selection of the suitable channel of distribution is one of the important factors of the
distribution decisions.

12. Retailers act as the spokesperson or agents of the customers.

13. A retailer may be defined as a dealer in goods and services who purchases from manufacturers
and wholesaler and sells to the ultimate consumer.

14. The term wholesaler applies to all merchant or traders who purchase and sell in large quantities.
15. Retailers stock the goods and sell them to the ultimate end user at a profit.
16. Distributors are similar to wholesalers.

17. Consumer goods like oils, cloths, sugar, pulses and soaps etc sold through nearby retail outlets
also called mom and pop shops.

18. There are two middlemen (both wholesaler and retailer), it is referred to as two level channels
(2 level channel) and helps in covering a larger market.

19. In zero level there are no intermediaries involved, the manufacturer is selling directly to the
customer. This is called the 'direct channel’ or direct selling.

20. In sorting, middlemen procure supplies of goods from a variety of sources, which is often not of
same quality, nature and size and groups them in homogenous groups.

21. Assembling refers to the process of keeping the goods, purchased from different places, at a
particular place.

22. A customer bought a product and has defect and post purchase service is desired by customer
then facilitating function of channel of distribution is performed.

23. The distribution channel is also responsible for promoting the product.

24. Retailers perform transportation function by carrying the goods from the wholesaler and
handing them over to the ultimate consumers.

25. A distributor carries products from a single brand or company.

26. An agent actually gains ownership of the product and usually makes money from commissions
and fees paid for their services.

27. Place is the mechanism through which goods move from the manufacturer to the consumer.

28. Assembling of goods is done only after they have been bought.

29. Sellers provide necessary information to buyers in addition to after sales services and financial
assistance in the form of sale on credit.

30. A customer bought a product and has defect and post purchase service is desired by customer
then facilitating function of channel of distribution is performed.

31. The primary function of a distribution channel is to bridge the gap between production and
consumption

Subjective Questions:
Q 1. Identify the function which is involved in the physical exchange of goods What makes goods
available at places where buyers are located?

Q 2. Who undertakes the risk in the process of distribution of goods? and explain any other function
of the same.

Q 3. Availability of products depends upon how efficiently it is managed. Discuss the importance of
identified element.

Q 4. Discuss the various functions performed by Retailers? Or Explain any four functions performed
by wholesalers and retailers.
Q 5. What are the differences and similarities between wholesalers and large-Scale retailers?
Explain briefly.
Q 6. Explain factors affecting selection of channels of distribution relating to price of the
product and perishability.
Q 7. Examine the role of middleman who deals on large scale in the modern business.

OR

Examine the role of middlemen who have strategic importance as a channel of distribution as they
deal with the ultimate consumers.
Q 8. You are a leading manufacturer of’ fully automatic washing machines. Explain the factors that
will guide you in selecting the route to sell your washing machines if the ‘product’ and the
‘Company’ are to be focused.

OR

You are a leading manufacturer of 'air purifiers'. Explain the factors that will guide you in selecting
the route to sell your air purifiers if the 'Product' and the 'Company' are to be focused.

Q 9. Pizza Hut delivering pizzas to the ultimate consumers. Identify and explain the type of
distribution channel adopted. Also explain which type of companies can adopt this channel to enjoy
what type of advantages.

Q 10. Arun is a manufacturer of premium quality plastic toys and swings on a large scale which can
be used by the schools exclusively. What factors should he take into consideration while selecting
the channel of distribution suitable for his business?

Q 11. Home Depot operates hardware stores that specialize in the sale of building materials and
home improvement products. Its stores are located primarily in North America. The company sells a
wide assortment of building materials and home improvement, lawn and garden products. The
company offers various services, including installation services, as well as tool and equipment rental.
Explain the functions of the intermediary involved in the above case.

Q 12. Describe briefly the distribution channel that can be used for heavy industrial product.

Q 13. Describe the zero-level channel of distribution.

Q 14. Ratra Consultancies is a software developing company. They develop software for attendance,
internal communication, leave record, payroll etc for schools, offices, hospitals and many other
organisations. Though the basic programming remains same for all the organisations, still every
organisation has different requirements with respect to attendance, leave record etc. So Ratra
Consultancies need to be in close liaisons with its clients. Suggest and explain any four factors which
they must consider while finalising their channel of distribution.

Q 15. What do you mean by facilitating agencies? Why are they important?

Q 16. For expensive and exclusive goods, which channel (long / short) is more suitable and why?

Q 17. Which channel of distribution will be selected by the manufacturer if he deals in the following
items and why?
a. Perishable goods
b. Diamond
Q 18. How the ‘market size’, ‘nature of customer’ and ‘technical nature of the product’ affects the
choice of channel of distribution?
Q 19. How the goodwill and financial resources of the company determine the selection of channel
of distribution?