1. Emergency products:

  A. need adequate representation in major shopping areas.

  B. need widespread distribution but with assurance of preferred display.

  C. can have limited availability as long as display is good.

  D. need widespread distribution near probable points of use.

  E. need widespread distribution at low cost.

2. Franchisors:

  A. account for a significant amount (about one-third) of all retail sales.

  B. often offer promotional support to their franchise holders.

  C. usually receive fees and commissions from the franchise holders.

  D. offer the benefits of image and buying power to their franchise holders.

  E. all of these alternatives are correct for franchisors.

3. Gradual "rollouts" are characteristic of which step of the new-product development process?

  a) Idea generation

  b) Development

  c) Idea screening

  d) Idea evaluation

  e) Commercialization

4. If Penn Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to distribute Penn Hills' products in Ohio, this arrangement:

  A. WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal.

  B. MAY OR MAY NOT BE LEGAL-the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition.

  C. WOULD DEFINITELY BE LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal.

  D. WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal.

  E. WOULD DEFINITELY BE LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal.

5. In the market introduction stage of the product life cycle

  A. sales are the highest.

  B. most companies experience losses.

  C. industry profits rise.

  D. industry sales level off.

  E. total industry profit is highest.