MKT 457 exam dos Questions and Answers

MKT 457 exam dos Questions and Answers What is one of the primary reasons for the growth of trucking after World War II? a. Trucks became larger and faster b. Shippers liked the door to door service which trucks could provide c. The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances. d. The railroads gave up on truck type freight and stopped seeking it. c. The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances. 2. What is the primary division between motor carriers? a. Local and long haul b. LTL and Truckload c. Intrastate and interstate d. For hire and private d. For hire and private What is a Private Carrier? a. a trucking firm whose stock is not listed on any of the stock exchanges b. a trucking firm whose name does not appear on the equipment c. a trucking operation that only hauls freight for the firm which owns it d. a trucking firm that is not registered with the FMCSA c. a trucking operation that only hauls freight for the firm which owns it What does most of the trucking industry consist of? a. carriers operating 6 or fewer trucks b. private trucking c. LTL carriers d. specialized carriers a. carriers operating 6 or fewer trucks There is a relatively small amount of capital required to enter: a. the private carriage business b. the truckload industry c. The pickup and delivery sector d. The line haul sector b. the truckload industry What do motor carriers haul primarily? a. paper and allied products b. Grain c. coal and ore d. various manufactured commodity categories d. various manufactured commodity categories What is the status of competition within the motor carrier industry? a. Only carriers of the same type compete against each other such LTL versus LTL or TL versus TL carriers. b. For hire carriers only compete against private carriers c. The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx d. Truckload carriers only compete with contract carriers c. The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx What is one of the service characteristics of the trucking industry? a. Trucks are built to fit on existing highways b. Trucks have a speed advantage for shipments less than 800 miles c. Truck rates are cheaper than rail or air d. Trucks are easier to load than rail cars c. Truck rates are cheaper than rail or air What do the users of truck service benefit from? a. lower inventory levels due to smaller shipments that other modes b. trailers come in a variety of configurations which fit to most types of freight c. the fact that drivers will load and unload shipments d. They are the largest of the five modes a. lower inventory levels due to smaller shipments that other modes The decision as to terminal location: a. is relatively more difficult for trucking than other modes b. is concerned with whether it is to be a line haul or PUD facility c. is based on whether it is to serve a truckload or LTL carrier d. is comparatively simple when contrasted with other management decisions a. 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? a. Surface Transportation Board b. National Highway Traffic Safety Board c. Federal Highway Administration d. Federal Motor Carrier Safety Administration d. Federal Motor Carrier Safety Administration There are several types of truck terminals. Which one is not used by LTL carriers? a. fuel terminals b. PUD terminals c. Break bulk terminals d. Relay terminals a. fuel terminals The trucking industry is characterized as having: a. small investment requirements b. easy sources of financing c. high variable and low fixed costs d. costly government requirements high variable and low fixed costs What is the largest single expense item for trucking firms? a. Fuel and taxes b. Equipment purchases and maintenance c. Labor d. Insurance and management salaries c. Labor There are _____ economies of scale in the trucking industry." a. Significant b. no major c. management driven opportunities for d. some government suggested b. no major The requirements for a truck driver's license are defined by: a. Federal Motor Carrier Safety Administration b. National Highway Traffic Safety Board c. Federal Highway Administration d. The driver's home state a. Federal Motor Carrier Safety Administration Where does funding for highways come from? a. income taxes b. highway user taxes c. state income taxes d. block grants from the federal government b. highway user taxes All carriers receive a safety fitness rating. Who makes the inspection and determines the rating? a. Surface Transportation Board b. National Highway Traffic Safety Board c. Federal Highway Administration d. Federal Motor Carrier Safety Administration d. Federal Motor Carrier Safety Administration What of the following is not one of the current issues facing the trucking industry in the future? a. Safety b. Highway construction with its resultant delays c. Technology d. Financial Stability b. Highway construction with its resultant delays The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system? a. 25% b. 100% c. 90% d. None c. 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? a. 140.00 b. 68.12 c. 71.41 (10/14) x 100 d. Not enough information to tell c. 71.41 (10/14) x 100 What type of trailer can be coupled in twos and threes? a. 53 foot b. 48 foot c. 28 foot d. no trailer can be hooked in a series of three c. 28 foot Intramodel competition is: a. the joint use of trucks and railroads to serve common customers b. trucking companies underbidding other modes to secure business c. various modes seeking to gain market share from other modes d. a government sponsored activity b. trucking companies underbidding other modes to secure business Which is a the most significant reason for the decline in the number of rail companies? a. mergers and unification occurring in the railroad industry b. government restrictions on rail ownership c. loss of business to other modes d. desire of management to invest in other areas of business a. mergers and unification occurring in the railroad industry One of the benefits of a railroad merger is: a. there are fewer grade crossings b. less frequent interchanges between companies means faster service c. cities and towns get back land once used for railroads d. The STB does not have as many companies to regulate. b. less frequent interchanges between companies means faster service What do the majority of rail movements involve? a. manufactured goods b. bulk liquids and coal c. medium value, heavy commodities d. consumer goods c. medium value, heavy commodities The demand for freight: a. originates when the carrier asks for the business b. is a primary demand based on the end-user demand for products c. is a derived demand based on the end-user demand for products d. is based upon government quotas c. is a derived demand based on the end-user demand for products The railroads dominate the market for: a. hauling 30,000 pounds or more, for 300 miles or less. b. hauling 60,000 pounds or less, for 100 miles or more. c. oversize and over-dimension shipments. d. coal and chemicals. a. hauling 30,000 pounds or more, for 300 miles or less. What is one of the primary strengths of the railroad industry? a. that it is not as affected by the weather as are other modes b. that the railroads have large carrying capacity c. that it can move products in both directions d. that geographical barriers are not as formidable as they are for other modes b. that the railroads have large carrying capacity What is the difference between TOFC and COFC service? a. TOFC is slower and cheaper b. not all railroads can handle COFC c. that COFC is more costly d. one method moves the trailer on its wheels and the other moves only the "box" or the container. d. one method moves the trailer on its wheels and the other moves only the "box" or the container. The basic unit of measurement for railroad freight handling is known as the: a. unit load. b. Carload c. freight load. d. capacity load. b. Carload Which type of railroad car has the greatest numbers in service? a. tank car b. covered hopper c. flat car d. Gondola b. covered hopper Who owns the greatest percentage of rolling stock in use? a. class I railroads b. federal government for military moves c. private car leasing firms and shippers d. investment and financial firms a. class I railroads Which best characterizes the short-run cost structure of the railroads? a. low variable costs, high direct separable costs b. low fixed costs, low variable costs c. low joint costs, high separable costs d. large proportion of fixed costs d. large proportion of fixed costs Railroad company's per unit costs decline as traffic increases. What is the reason for this cost behavior? a. A high proportion of variable costs in the cost structure b. A low proportion of fixed costs in the cost structure c. A large proportion of fixed costs in the cost structure d. Limited capital investment by the railroads c. A large proportion of fixed costs in the cost structure What was the purpose of the legislation which created Amtrak? a. It relieved railroads from the responsibility of providing passenger service b. It allowed the government to provide service without concern for profit c. It allowed the states to take over commuter service d. It allowed the railroads to get rid of track that was only used by passenger trains a. It relieved railroads from the responsibility of providing passenger service Railroads are: a. more energy efficient than most other modes b. more likely to haul high-value goods than other modes c. not as energy efficient as most other modes d. buying more energy efficient locomotives a. more energy efficient than most other modes What led to the erosion of rail dominance in U.S. transportation? a. Passenger air service in the 1920s b. Government funded construction of roads c. Steel price increase d. Both A and B b. Government funded construction of roads How many Class 1 rail companies are there? a. 5 b. 7 c. 66 d. 18 b. 7 What commodity accounted for 6,204,000 (vast majority of rail movements) railcar loads in 2012? a. Nonmetallic minerals b. Food c. Farm products d. Coal d. Coal Who is the largest single customer of some rail roads? a. FedEx b. DHL c. Walmart d. UPS d. UPS The major cost element borne by the railroad industry is the: a. Rolling Stock b. Fuel costs c. Rights of way d. Insurance c. Rights of way Which event marked the beginning of the modern airline industry? a. The Wrights' first flight at Kitty Hawk in 1903 b. The UPS's examination in 1909 of the feasibility of air mail service c. Lindbergh's flight to Paris in 1927 d. The use of airplanes for passenger transport in 1928 b. The UPS's examination in 1909 of the feasibility of air mail service Mountain Airlines has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake City. This airline would be classified in which air carrier category? a. major carrier b. national carrier c. local hub carrier d. regional carrier d. regional carrier Air carrier revenues are used to classify which group of carriers? a. all-cargo, exempt, commuters and private b. commuters, charters, all-cargo c. major, nationals, regionals d. private, regulated, exempt c. major, nationals, regionals Most airline revenues arise from: a. freight shipments. b. baggage shipments. c. passenger travel. d. aircraft leasing and support services to private aviation c. passenger travel. The T corporation owns four corporate aircrafts of various sizes which they use to transport executives to various company locations, and as well as documents and small freight between the company headquarters and its production facilities. What type of carrier is Transportwriter? a. Private b. Commuter c. Exempt d. Charter a. Private Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market? a. The numbers of carriers did increase initially but has remained steady of late. b. The numbers of carriers did initially increase and the numbers continue to grow. c. The numbers of carriers initially decreased but increased by 1994. d. The numbers of carriers initially decreased and have continued to decrease. a. The numbers of carriers did increase initially but has remained steady of late. Air carriers face _____ competition from surface modes for passenger travels. a. very strong - due to passengers' sensitivity to prices b. a limited amount of - due to preference over certain distance c. very little - air plane ticket prices and distance consideration always favor air carriers d. almost no b. a limited amount of - due to preference over certain distance Which is the best reason for the increase in airline intramodal competition since deregulation in 1978? a. substitution of smaller aircrafts for larger aircrafts b. U.S. carriers forming alliances with foreign airlines such as United with Air Canada c. increased use of discount fares in lieu of full fares d. new air carriers entering given markets d. new air carriers entering given markets What is the primary method of service competition between air carriers? a. frequency and timing b. in flight cabin service and added amenities c. serving new cities to force more competition d. Advertising a. frequency and timing Which of the following commodities would be most likely to be shipped on an air carrier? a. commodities in high volume b. low-value finished goods c. raw materials and partially-finished goods d. high-value and time-sensitive goods d. high-value and time-sensitive goods The traffic manager for WLG, Inc is evaluating transportation modes for shipment of the company's products. WLG's components division produces electronic assemblies according to buyer's specifications. The typical product is high-value--in the range of $30,000 to $50,000, small, less than 8 inches squared, very fragile, insurance costs are $1750 per day for each item, and the shipment distance is 2,500 miles. Which mode of transportation would be most appropriate? a. Amtrak b. Air c. freight forwarder d. Time guaranteed delivery truck b. Air Air freight transportation is attractive to shippers because of the lower packaging costs associated with the transport of cargo. Which air transportation characteristics allow reduced packaging by shippers? a. relatively smooth ride and automated ground handling systems b. higher liability assumed by the air carriers and prompt payment of claims c. quick acknowledgment of liability by the air carriers and prompt payment of claims d. strict safety regulation by the FAA and higher liability limits required by the STB a. relatively smooth ride and automated ground handling systems Which is the best reason for the relatively low proportion of fixed costs in the cost structure of the air carriers? a. private investment in the airways and airports b. the small number of aircrafts that are actually owned by the airlines versus those that are leased for varying periods of time c. public investment in the airways and airports d. the proportion of energy and labor costs in the cost structure c. public investment in the airways and airports Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs? a. flying operations b. maintenance c. administration d. fuel d. fuel Which government agency specifies acceptable flight operations and the hours of service for pilot? a. FAA b. STB c. DOT d. FMCSA a. FAA