TestBank
to accompany
Automotive Service Management
,
, AUTOMOTIVE SERVICE MANAGEMENT 1
CHAPTER ONE
Suggested test questions with one of the best answers in BOLD
1. The traditional New Car and Truck Dealership specialize in a specific make and
models with a specific manufacturer. True or False?
2. The traditional New Car and Truck Dealership until recent years had more than ½
of their sales be generated by factory warranty work. True or False?
3. The trend for the New Car and Truck Dealership is to do less retail and more
factory warranty work. True or False?
4. Please explain why the trend for New Car and Truck Dealership to try to capture
more of the competitive retail market. The dramatic improvement in product
quality has reduced the number of factory warranty sales.
5. Please explain the relationship of the service department of a New Car and Truck
Dealership to the company structure. The service department is just one of the
many departments that make up the entire company; however the service
department is a very important part in the profitability of the entire
dealership.
6. The Independent Repair Shop is a part of a lager organization that specializes in
one make and model car/truck. True or False? The independent shop works on
all makes and models. However they may find specialization to be an
advantage. IE: imports, transmission only, engine replacement etc.
7. Explain one of the greatest challenges to the independent shop when comparing
its organization to the New Car and Truck Dealership. The latest specific
technical information on newer models is released only to the new car/truck
dealership. This makes it more difficult for the independent shop to
diagnosis and repair the customer’s vehicle quickly and profitable.
8. The Independent Repair Shops are limited to how large they can grow. True or
False? The independent shop may range for a one man one bay to a large
multibay shop depending on the size of their business.
9. Please describe a Service Chain Store. A stand-alone service center that is a
part of a group of repair shops, or even a service department in a chain store
such as Sears, Walmart. They might include stores like AAMCO, Pep Boys
etc.
10. Large chain operations trend to be “semi-specialists” limiting their service as an
example to tires, brake repair and suspension. True or False? This is a way for
the chain stores to stay clear of the most difficult jobs that requires more
technical knowledge that is not readily available from the vehicle
manufacture. The more difficult work is generally not as profitable.
11. The Service Stations (Gas Stations) have found it is more profitable not to provide
service work and has been replaced with what product or service? Convenience
stores selling gasoline, soft drinks, chips and not competing in the automotive
repair service.
, AUTOMOTIVE SERVICE MANAGEMENT 2
CHAPTER ONE
12. Please list one reason you feel that the Service Station (Gas Station) generally
does not provide service repair as part of their profit center. The difficulties in
keeping up with the technology and high cost of equipment, tools and
training cost of real-estate (limited space). The limited space does not allow
for enough bays to off set the cost of the equipment etc.
13. Describe a Fleet Service Department. A department that does not do any retail
business but is the repair and maintenance shop for a company with a fleet of
vehicles. A large rental car company, utility companies, police departments,
municipalities or any large organization with a fleet of vehicles that justifies
having their own shop instead of paying another company to do the repairs.
14. What is the purpose of the corporation that has a fleet repair shop to limit the
Makes and Models they purchase for their fleet? This helps keep the cost down
in training and the need for technical information, in this way the technicians
may become specialist.
15. The automotive manufacturer may share its technical information to non
dealership organizations such as a fleet company. True or False The fleet
company may negotiate support from the manufacture in exchange for
purchasing a large number of vehicles from the manufacture.
16. Describe how a fleet company may become a warranty service center for
automotive manufacturer. The fleet company may negotiate support from the
manufacture in exchange for purchasing a large number of vehicles from the
manufacture including compensation from the manufacture for warranty
repairs.
17. Match the type of service center to the best description.
a. New Car/Truck Dealership. C_Service operation that maintains their
own vehicles
b. Independent shop. A_Dedicated to one manufacture, retail
and
Warranty service.
c. Fleet service shop. B Repairs a wide range of vehicles
d. Chain stores E Finds it is more profitable to cell chip
& soft drinks
e. Service Stations D Stand-alone centers that are a part
of a
group of independent repair shops.
18. An organization that is dedicated in selling one manufacture’s automobile is
known as a ________________ Dealership/ New car and truck dealership.
19. An organization that does not do any retail service work and just services the
vehicles owned by their company or organization is know as a ___________ service
department. Fleet
20. An organization that sells gas and most likely has a convenient store as part of the
operation is known as a ______________ Gas/Service Station
to accompany
Automotive Service Management
,
, AUTOMOTIVE SERVICE MANAGEMENT 1
CHAPTER ONE
Suggested test questions with one of the best answers in BOLD
1. The traditional New Car and Truck Dealership specialize in a specific make and
models with a specific manufacturer. True or False?
2. The traditional New Car and Truck Dealership until recent years had more than ½
of their sales be generated by factory warranty work. True or False?
3. The trend for the New Car and Truck Dealership is to do less retail and more
factory warranty work. True or False?
4. Please explain why the trend for New Car and Truck Dealership to try to capture
more of the competitive retail market. The dramatic improvement in product
quality has reduced the number of factory warranty sales.
5. Please explain the relationship of the service department of a New Car and Truck
Dealership to the company structure. The service department is just one of the
many departments that make up the entire company; however the service
department is a very important part in the profitability of the entire
dealership.
6. The Independent Repair Shop is a part of a lager organization that specializes in
one make and model car/truck. True or False? The independent shop works on
all makes and models. However they may find specialization to be an
advantage. IE: imports, transmission only, engine replacement etc.
7. Explain one of the greatest challenges to the independent shop when comparing
its organization to the New Car and Truck Dealership. The latest specific
technical information on newer models is released only to the new car/truck
dealership. This makes it more difficult for the independent shop to
diagnosis and repair the customer’s vehicle quickly and profitable.
8. The Independent Repair Shops are limited to how large they can grow. True or
False? The independent shop may range for a one man one bay to a large
multibay shop depending on the size of their business.
9. Please describe a Service Chain Store. A stand-alone service center that is a
part of a group of repair shops, or even a service department in a chain store
such as Sears, Walmart. They might include stores like AAMCO, Pep Boys
etc.
10. Large chain operations trend to be “semi-specialists” limiting their service as an
example to tires, brake repair and suspension. True or False? This is a way for
the chain stores to stay clear of the most difficult jobs that requires more
technical knowledge that is not readily available from the vehicle
manufacture. The more difficult work is generally not as profitable.
11. The Service Stations (Gas Stations) have found it is more profitable not to provide
service work and has been replaced with what product or service? Convenience
stores selling gasoline, soft drinks, chips and not competing in the automotive
repair service.
, AUTOMOTIVE SERVICE MANAGEMENT 2
CHAPTER ONE
12. Please list one reason you feel that the Service Station (Gas Station) generally
does not provide service repair as part of their profit center. The difficulties in
keeping up with the technology and high cost of equipment, tools and
training cost of real-estate (limited space). The limited space does not allow
for enough bays to off set the cost of the equipment etc.
13. Describe a Fleet Service Department. A department that does not do any retail
business but is the repair and maintenance shop for a company with a fleet of
vehicles. A large rental car company, utility companies, police departments,
municipalities or any large organization with a fleet of vehicles that justifies
having their own shop instead of paying another company to do the repairs.
14. What is the purpose of the corporation that has a fleet repair shop to limit the
Makes and Models they purchase for their fleet? This helps keep the cost down
in training and the need for technical information, in this way the technicians
may become specialist.
15. The automotive manufacturer may share its technical information to non
dealership organizations such as a fleet company. True or False The fleet
company may negotiate support from the manufacture in exchange for
purchasing a large number of vehicles from the manufacture.
16. Describe how a fleet company may become a warranty service center for
automotive manufacturer. The fleet company may negotiate support from the
manufacture in exchange for purchasing a large number of vehicles from the
manufacture including compensation from the manufacture for warranty
repairs.
17. Match the type of service center to the best description.
a. New Car/Truck Dealership. C_Service operation that maintains their
own vehicles
b. Independent shop. A_Dedicated to one manufacture, retail
and
Warranty service.
c. Fleet service shop. B Repairs a wide range of vehicles
d. Chain stores E Finds it is more profitable to cell chip
& soft drinks
e. Service Stations D Stand-alone centers that are a part
of a
group of independent repair shops.
18. An organization that is dedicated in selling one manufacture’s automobile is
known as a ________________ Dealership/ New car and truck dealership.
19. An organization that does not do any retail service work and just services the
vehicles owned by their company or organization is know as a ___________ service
department. Fleet
20. An organization that sells gas and most likely has a convenient store as part of the
operation is known as a ______________ Gas/Service Station
