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CHAPTER 10   Developing the Promotion and Distribution Mixes  375


                           c. Direct-response marketing                      d. There is little risk that public ware-
                           d. Automatic vending                                houses will become obsolete.
                           e. Manufacturers’ agents                          e. Much control over the operational
                         8. Which of the following is not a mode of            aspect of storage is obtained.
                           transportation?                               10. Which of the following is the most impor-
                           a. Pipeline                                       tant reason why companies would want
                           b. Water                                          to store their products in a bonded
                           c. Rail                                           warehouse?
                           d. Air                                            a. A reduction in the level of inventory can
                           e. Public warehouse                                 be achieved.
                         9. Which of the following is least likely to be     b. The inventory stored can be used to
                           an advantage of using public warehouses?            obtain financing.
                                                                             c. The user achieves a high level of
                           a. An investment in land and construction           flexibility.
                             is not necessary.
                           b. There is flexibility in being able to          d. Inventory can be quickly shifted to
                                                                               another location.
                             choose in which facility to store               e. The user can take advantage of the
                             products.
                           c. Public warehouses provide users with a           automated materials handling
                                                                               equipment provided by the bonded
                             wide variety of services.
                                                                               warehouse.

                   self-test
                   ACE          Want more questions? Visit the student website at http://college.hmco.com/business/student/ (select Gaspar,
                                Introduction to Business) and take the ACE quizzes for more practice.
















































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