By Buying in Large Quantities and Delivering to Customers in Smaller

question 140

Multiple Choice

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

• A) inventory planning.
• B) transportation.
• C) materials handling.
• D) unit pricing.
• E) communication.

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Definitions:

Drawee

The party, typically a bank, required to pay the specified amount on a check or draft when it is presented for payment.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Maker

The party in a transaction who creates or issues a promissory note, thereby promising to pay a certain sum to a specified person or entity.

Bearer

A person in possession of a negotiable instrument, such as a check or bond, that is payable to whomever holds it.