Question

Randy recently received a used mobile phone which he won through an eBay auction bid. It turns out the mobile phone was sold by a friend who lives in the same apartment complex. Which of the following is correct regarding this transaction?

	The purchase is considered a retail purchase but Randy’s friend is not considered a retailer.
	The purchase is considered a retail purchase and Randy’s friend is considered a retailer.
	The purchase is not considered a retail purchase and Randy’s friend is not considered a retailer.
	The purchase is not considered a retail purchase but Randys’ friend is considered a retailer.

Which of the following statements is NOT correct?

	McDonalds is a well-known franchisee that operates thousands of locations.
	Success rates for franchises tend to be higher than for businesses that are started in more traditional ways.
	Franchising a business often allows the owner of the franchise to expand more rapidly than if the owner attempted to expand using their own funds.
	A franchisee often must pay an upfront franchise fee as part of operating a franchise.

Which of the following statements regarding wholesalers is NOT correct?

	Some businesses, such as Costco and Sam's Club, act as both a wholesaler and a retailer depending on who is making the purchase.
	Some wholesalers never take title or legal ownership of the products they sell.
	Some wholesalers have an active sales force that works to locate new customers.
	The definition of a wholesaler states that to be considered a wholesaler a business must have a physical location where customers are able to visit and select their orders.

Which of the following statements is correct?

	In the U.S. there are more wholesalers than retailers.
	Wholesalers only supply product to retailers.
	Wholesalers operate mostly in the business-to-business product market and not in the consumer product market.
	Because wholesalers supply product to a large number of customers they can place large orders with suppliers and receive pricing that may match the pricing offered to larger retail chains.

Answer 1

Answer -The purchase is not considered a retail purchase and Randy’s friend is not considered a retailer.

Reason- Online auction is not termed as the retail selling

Answer= McDonalds is a well-known franchisee that operates thousands of locations.

Reason- McDonald's commonly use the joint venture for the expansion of business

Answer= The definition of a wholesaler states that to be considered a wholesaler a business must have a physical location where customers are able to visit and select their orders

Reason- Wholesaler can work even without having the physical location

Answer-Because wholesalers supply product to a large number of customers they can place large orders with suppliers and receive pricing that may match the pricing offered to larger retail chains.

Reason- Due to bulk buying wholesalers can negotiate a better price with the producers