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61. Cheese Burst, an American fast food chain penetrated into the Italian market by providing a firm in Italy the rights to use the company’s name, trademarks, and technology. Which of the following contractual entry modes would have been used by Cheese Burst?

A. Joint venture

B. Coproduction

C. Contract manufacturing

D. Franchising

 

 

62. Chestnut Ltd., a Canadian firm produces mobile phones, laptops, and music players. The final assembly of these instruments is done at a firm called Abstract Track, which is based in Germany. The contract between the two firms requires the German firm to have the instruments operating before they are released to Chestnut Ltd. Which of the following has been entered into between the two firms?

A. Licensing

B. Coproduction

C. Turnkey construction contract

D. Franchising

 

 

63. A _____ entry strategy involves setting up a production facility in a foreign country.

A. licensing

B. sole ownership investment

C. countertrade

D. franchising

 

 

64. Which of the following merchant middlemen takes physical possession of the goods which are mostly manufactured?

A. Export merchant

B. Export jobber

C. Trading company

D. Agent middleman

 

 

65. Manufacturer-wholesaler franchise systems are exemplified by the ______ industry.

A. automotive

B. petroleum

C. fast-food

D. soft-drink

 

 

66. Which of the following franchise systems are the most familiar to consumers?

A. Manufacturer–wholesaler franchise systems

B. Manufacturer–retailer franchise systems

C. Service sponsor–retailer franchise systems

D. Wholesaler–retailer franchise systems

 

 

67. Channel power of member A is best defined as:

A. A’s ability to get B to do what A wants.

B. A’s ability to get B to do something that B would not do if left alone.

C. A’s ability to reward B so B will do what A wants.

D. A’s ability to find what it wants independent of B’s ability to deliver it.

 

 

68. Goodlife supermarket charges Dolphin Inc., a candy manufacturer, $20,000 to “rent” shelf space for its new product in Goodlife. The fee paid by Dolphin Inc. is referred to as _____.

A. push money

B. pull money

C. slotting allowance

D. odd pricing

 

 

69. One incentive used to increase personal selling effort in the channel is to:

A. increase promotional allowances.

B. provide display racks and signs.

C. ensure exclusive territories.

D. institute push money.

 

 

70. When a manufacturer requires that an independent retailer sell only the manufacturer’s products it is called a(n):

A. refusal to deal.

B. tying contract.

C. exclusive dealing.

D. promotional allowance.

 

 

 

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