CH 5 Questions and Answers

CH 5 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 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 3. What is a for-hire carrier? a. A trucking firm that provides services to the public b. A trucking firm that does not charge a fee c. A trucking firm that provides services to the industry d. A trucking firm that ships products from their warehouse to stores a Motor carriers are categorized into two types of drivers: a. Company and owner operators b. Private and owner operators c. Company and private d. Private and truckload a 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 In 2021, the U.S. distribution of motor carriers was: a. 91,000. b. 366,658. c. 1 million. d. 1.8 million. d 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 among all carriers as well as with firms such as United Parcel Service and FedEx. d. Truckload carriers only compete with contract carriers. c 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. b Which two equipment decisions do TL and LTL carriers need to make? a. Type of trailer and cost of equipment b. Type of trailer and what to haul c. Type of tractor and what to haul d. Type of tractor and type of trailer d LTL carriers must make the same type of equipment decisions as TL along with deciding: a. what commodities to haul. b. where to deploy this equipment. c. whether to choose line haul or PUD. d. what color to paint the trucks. b 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 simpler than other management decisions. a 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 Which type of truck terminal is not used by LTL carriers? a. Fuel b. PUD c. Break bulk d. Relay a 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. c 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 "There are __________ economies of scale in the trucking industry." a. significant b. no major c. management driven opportunities for d. some government suggested b The requirements for a commercial driver's license are mandated by the: a. Federal Department of Transportation (DOT). b. National Highway Traffic Safety Board. c. Federal Highway Administration. d. driver's home state. a Which taxes fund highways? a. Federal income b. Highway user c. State income d. Ton-mile b 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 (FMCSA) d Which 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 The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system? a. 25% b. 60% c. 90% d. 100% c 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 percentage? a. 68.12 b. 71.41 c. 94.73 d. 140.04 b What type of trailer can be coupled in twos and threes? a. 28 foot b. 40 foot c. 48 foot d. 53 foot a Private carriers tend to have greater: a. control and flexibility. b. fixed costs. c. labor rates. d. assets. a What are the two main reasons for driver turnover? a. Poor roads and job-hop b. Driver shortage and job-hop c. The Interstate Commerce Commission d. LTL versus TL b