MKT 457 EXAM 2 CHAPTER 5 Questions and Answers.

MKT 457 EXAM 2 CHAPTER 5 Questions and Answers. What is one of the primary reasons for the growth of trucking after World War II? The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances. What is the primary division between motor carriers? For-hire and private What is a Private Carrier? a trucking operations that only hauls freight for the firm which owns it. What does most of the trucking industry consist of? carriers operating 6 or fewer trucks There is a relatively small amount of capital required to: enter the truckload industry What do motor carriers haul primarily? various manufactured commodity categories What is one of the service characteristics of the trucking industry? truck rates are cheaper than rail or air What is the status of competition within the motor carrier industry? the industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx What do the users of truck service benefit from? What do the users of truck service benefit from? LTL carriers must make the same type of equipment decisions as TL along with deciding: where to deploy this equipment The decision as to terminal location is relatively more difficult for trucking than other modes Which agency within the Department of Transportation governs specifications of trucks such as number of lights, tires and other operating parts? Federal Motor Carrier Safety Administration There are several types of truck terminals. Which one is not used by LTL carriers? fuel terminals The trucking industry is characterized as having: high variable and low fixed costs What is the largest single expense item for trucking firms? labor There are _____ economies of scale in the trucking industry. no major The requirements for a truck driver's license are defined by the Federal Motor Carrier Safety Administration Where does funding for highways come from? highway user taxes All carriers receive a safety fitness rating. Who makes the inspection and determines the rating? the Federal Motor Carrier Safety Administration What of the following is not one of the current issues facing the trucking industry in the future? highway construction with its resultant delays The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system? 90% Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M, what is your operating ratio? 71.41 What type of trailer can be coupled in twos and threes? 28 foot