250 test bank for basic marketing a strategic marketing planning approach 19th

250 Test Bank for Basic Marketing A Strategic
Marketing Planning Approach 19th
Edition by Perreault Mutiple Choice Questions
____________________ is the extent to which a firm fulfills a
customer's needs, desires, and expectations.
1.

A. Customer forecast

2.

B. Customer satisfaction

3.

C. Customer service

4.

D. Customer support

Macro-marketing examines all the following challenging scenarios
except:
1.

A. Producers prefer to manufacture goods in large quantities, but consumers
buy in small quantities.

2.

B. Consumers require a wide assortment of food items, but individual

producers can offer only a narrow assortment of food products.

3.

C. Producers set prices to cover costs and make a profit, but consumers
choose goods based on their ability to pay.

4.

D. Cedar Point Amusement Park would like to attract customers all year long,
but its marketing strategy is currently limited to discount season pass offers
during winter months while the park is closed.

5.

E. Producers tend to locate where it is economical to produce, but consumers
are located in many scattered places.

Which of the following statements best describes the modern view
of marketing?
1.

A. Marketing is only necessary for profit-oriented firms.

2.

B. Marketing consists mainly of advertising and personal selling.

3.

C. Marketing anticipates customer needs.

4.

D. Marketing begins as soon as products are produced.


5.

E. Firms that don't rely on e-commerce should put more emphasis on
marketing.

Micro-marketing:
1.

A. is concerned with whether the whole economic system is fair and effective.

2.

B. applies only to profit organizations.

3.

C. consists only of personal selling and advertising.

4.

D. is a social process only.

5.

E. tries to anticipate and satisfy customer needs and accomplish an
organization's objectives.

Which of the following statements best describes the modern view
of marketing?
1.

A. The job of marketing is to get rid of whatever the company is producing.

2.

B. Marketing should take over production, accounting, and financial services
within a firm.

3.

C. Marketing is concerned with generating a single exchange between a firm
and a customer.

4.
5.

D. Marketing begins with anticipating potential customer needs.
E. Production, not marketing, should determine what goods and services are
to be developed.

Looking at marketing as a set of activities focuses on
1.

A. macro-marketing.

2.

B. for-profit marketing.

3.

C. micro-marketing.

4.

D. nonprofit marketing.

5.

E. personalized marketing.

The following activities are rightly considered marketing except:


1.

A. advertising the grand opening of a new furniture store.

2.

B. researching which furniture designs are popular with consumers.

3.

C. determining how many pieces of furniture can be sold at different price
points.

4.

D.building a facility to make furniture.

5.

E. selling furniture to customers in a furniture showroom.

Marketing
1.

A. applies to both profit and nonprofit organizations.

2.

B. is another name for selling and advertising.

3.

C. should pick up where the production process ends.

4.

D. people should expect that the production department will determine what
goods and services are to be developed.

From a micro view, marketing
1.

A. applies to large corporations but not to a new venture started by one
person.

2.

B. is an important social process.

3.

C. emphasizes how the whole marketing system works.

4.

D. is a set of activities performed by an individual organization to satisfy its
customers.

5.

E. directs an economy's flow of goods and services from producers to
consumers.

A marketing manager planning to launch a successful new product
should begin by:
1.

A. obtaining financing for the venture.

2.

B. designing products that interest him or her.

3.

C.identifying a product or service that customers need.

4.

D. choosing a business partner.


5.

E. establishing a legal corporation.

Which of the following statements by a U.S. president best reflects
a MICRO view of marketing?
1.

A. "A tax cut will give consumers more spending money."

2.

B. "With interest rates low, many young people can now afford to buy a new
home."

3.

C. "In the United States we have a better choice of products than in any other
country."

4.

D. "My administration will spend 75 percent more on purchases related to
domestic security during the next year."

5.

E. "Tourism firms should advertise more to attract more international visitors."

Micro-marketing:
1.

A. tries to accomplish a company's objectives by anticipating customers'
needs and trying to satisfy them.

2.

B. begins with the production process.

3.

C. involves persuading customers to buy your product.

4.

D. is a social process involving all producers, intermediaries, and consumers.

5.

E. tries to make the whole economic system fair and effective.

Predicting what types of bicycles different customers will want and
deciding which of these customers the business will try to satisfy
are activities a firm should do as part of
1.

A. production.

2.

B. a command economy.

3.

C. marketing.

4.

D. making goods or performing services.

5.

E. a production orientation.

Marketing

1.

A. affects almost every aspect of our daily lives.

2.

B. offers few exciting or rewarding career opportunities.

3.

C. limits our choices of goods and services every day.

4.

D. focuses an organization on being the first to market a new product.

Marketing encourages research and ______________, the
development and spread of new ideas, goods and services.
1.

A. analysis

2.

B. assessment

3.

C. evaluation

4.

D. innovation

5.

E. introspection

Effective marketing should begin with
1.

A. an effort to persuade unwilling customers to buy the firm's products.

2.

B. potential customer needs.

3.

C. a decision about what the firm can produce efficiently.

4.

D. evaluation of the effect of the firm's decisions on the MACRO-marketing
system.

5.

E. the marketing manager making important production, accounting, and
financial decisions for the firm.

According to the text, marketing means:
1.

A. much more than just selling and advertising.

2.

B. advertising.

3.

C. producing a product that fills a need.

4.

D. selling.

5.

E. making a good product that sells itself.


Marketing
1.

A. means "selling" or "advertising."

2.

B. provides direction for production.

3.

C. involves actually making goods or performing services.

4.

D. does not impact consumers' standard of living.

5.

E. is the development and spread new ideas, goods, and services.

For Tesla, a new firm that makes an electric sports car, estimating
how many competitors will make electric vehicles and what kinds
they will make, is:
1.

A. one of the universal functions of innovation.

2.

B. a production activity.

3.

C. an example of the micro-macro dilemma.

4.

D. best left to intermediaries.

5.

E. a part of marketing.

Which of the following is NOT a reason for you to study marketing?
1.

A. Marketing affects almost every aspect of daily life.

2.

B. Marketing will be important to your job.

3.

C. Marketing involves actually making the goods that people need.

4.

D. Marketing affects innovation and consumers' standard of living.

5.

E. Marketing plays a big part in economic growth and development.

Marketing:
1.

2.

3.

A. applies to both profit and nonprofit organizations.
B. says that marketing should take over all production, accounting, and
financial activities.
C. should begin as soon as goods are produced.


4.

D. does away with the need for advertising.

Customer satisfaction is the extent to which a firm fulfills a
consumer's:
1.

A. needs.

2.

B. desires.

3.

C. expectations.

4.

D. needs and desires.

5.

E. All of these are correct.

The development and spread of new ideas, goods, and services for
the marketplace is called:
1.

A. marketing.

2.

B. the micro-macro dilemma.

3.

C. collaboration.

4.

D. innovation.

5.

E. production.

All of the following should be determined by the marketing
department of a firm EXCEPT:

1.

A. storing the product.

2.

B. actually making the product.

3.

C. advertising the product.

4.

D. designing the packaging for the product.

5.

E. setting the price of the product.

From a micro view, which of the following is the best example of
marketing?
1.

A. North Korea unveils a new five-year production plan.


2.

B. China and the U.S. agree on a new trade agreement.

3.

C. The American Red Cross seeks more blood donors.

4.

5.

D. The Internet makes it possible for firms to reach customers in other
countries.
E. None of these is a good example.

_______ is defined as the performance of activities that seek to
accomplish an organization's objectives by anticipating customer
needs and directing a flow of need-satisfying goods and services
from producer to customer.
1.

A. Innovation

2.

B. Advertising

3.

C. Selling

4.

D. Marketing (from a micro view)

5.

E. Sales promotion

Marketing:
1.
2.

A. emphasizes mass selling over personal selling.
B. allows production, rather than marketing, to determine what products to
make.

3.

C. applies to both profit and nonprofit organizations.

4.

D. concentrates on production, rather than advertising.

5.

E. None of these is a true statement about marketing.

Marketing can be viewed as:
1.

A. a set of activities performed by individual organizations.

2.

B. relevant to for-profit organizations only.

3.

C. just selling and advertising.

4.

D. beginning with the production process.


The production of a new mountain bike model includes which of the
following activities?
1.

A. Determining how to get the new model to likely bike purchasers.

2.

B. Actually making the new mountain bikes.

3.

C. Estimating how many competing companies will be making bikes.

4.

D. Predicting what types of bikes different types of bike riders will want.

Marketing should
1.

A. begin with the production process.

2.

B. make decisions about product design and packaging, prices or fees.

3.

C. not need to coordinate with production, accounting, and financial activities.

4.

D. provide input, but let production determine what goods and services are to
be developed.

5.

E. focus on getting customers to make a final purchase.

Which of the following statements about marketing is FALSE?
1.

A. Marketing concepts and techniques apply for nonprofit organizations—as
well as for profit-seeking organizations.

2.

B. Marketing offers many rewarding career opportunities.

3.

C. The cost of marketing is about 15 percent of the consumer's dollar.

4.

D. Marketing affects almost every part of your daily life.

5.

E. Marketing is vital for economic growth and development.

The aim of marketing is to
1.

A. help create a pure subsistence economy.

2.

B. eliminate the need for exchanges.

3.

C. persuade customers to buy the firm's product.

4.

5.

D. identify customers' needs and meet those needs so well that the product
almost "sells itself."
E. facilitate a single transaction.

According to the text, marketing means:
1.

A. making a good product that sells itself.

2.

B. much more than selling and advertising.

3.

C. selling and advertising.

4.

D. producing goods and/or services.

5.

E. doing whatever it takes to be able to offer consumers a "better mousetrap."

The text stresses that:
1.
2.

3.
4.

5.

A. advertising and selling are not really part of marketing.
B. marketing is nothing more than a set of business activities performed by
individual firms.
C. marketing techniques have no application for nonprofit organizations.
D. marketing is a social process and a set of activities performed by
organizations.
E. a good product usually sells itself.

According to the text, marketing means:
1.

A. Distribution.

2.

B. Making good products.

3.

C. More than selling and advertising.

4.

D. Promotion.

5.

E. Performing services.

According to the text, marketing means:
1.

A.much more than selling and advertising.


2.

B. selling.

3.

C. producing and selling.

4.

D. advertising.

5.

E. selling and advertising.

Which of the following organizations would be least likely to need
marketing skills?
1.

A. An accountant

2.

B. An electronics retailer

3.

C. A toy manufacturer

4.

D. A financial advisor

5.

E. All of these organizations would be likely to need marketing skills.

In an advanced economy, marketing costs account for about ___
cents of every consumer dollar.
1.

A. 10

2.

B. 20

3.

C. 30

4.

D. 40

5.

E. 50

Which of the following would not engage in the process of
marketing?
1.

A. The United Way

2.

B. United States Postal Service

3.

C. Outback Steakhouse

4.

D. JFK International Airport

5.

E. Sam's Club members


250 Free Test Bank for Basic Marketing A Strategic
Marketing Planning Approach 19th Edition by Perreault
Mutiple Choice Questions - Page 2
The fact that US car companies are located in the upper Midwest
while their customers are located throughout the U.S. is an example
of:
1.

A. separation in values.

2.

B. discrepancies of assortment.

3.

C. separation of information.

4.

D. spatial separation.

5.

E. separation in time.

Societies need a macro-marketing system
1.

A. to help match supply and demand.

2.

B. to create a gap between producers and consumers.

3.

C. to accomplish an organization's objectives only.

4.

D. to identify collaborators.

5.

E. to reduce the need for intermediaries.

Marketing could NOT take place without:
1.

A. intermediaries.

2.

B. collaborators.

3.

4.

C. two or more parties who are willing to exchange something for something
else.
D. a high standard of living.

Marketing will not happen unless:
1.

A. e-commerce is flourishing.


2.

B. collaborators are present to simplify exchange.

3.

C. intermediaries are present to facilitate exchange.

4.

5.

D. two or more parties each have something they want to exchange for

something else.
E. an economy is market-directed rather than command.

Of the following headlines from the WALL STREET JOURNAL,
which is most likely to be about a MACRO-marketing topic?
1.

A. "Tupperware Has a New Strategy."

2.

B. "Thailand Has Unusually Large Number of Wholesalers."

3.

C. "Military Supplier Shifts to Selling Gas Masks to Private Citizens."

4.

D. "Coke Plans Beverage Line to Compete with Lipton's."

5.

E. "Dow Chemical Adds Shipping Safeguards."

Of the following headlines from a business magazine, which is most
likely to be about a macro-marketing topic?
1.

A. "Chinese Women Demand More Luxury Goods."

2.

B. "Girl Scouts Organize Nationwide Cookie Sale."

3.

C. "L'eggs Sells Direct in Brazil and Argentina."

4.

D. "Frito-Lay Offers New Low-Fat Products."

5.

E. "Coke Losing Beverage Sales in India to local brands."

Which of the following statements about marketing is FALSE?
1.

A. Marketing affects the products you buy.

2.

B. Marketing applies to nonprofit organizations too.

3.

C. Marketing affects the advertising you see and hear.

4.

D. Marketing offers many good job opportunities.


5.

E. Marketing can help with individual transactions but not in building
relationships with customers.

Exchanges between producers and consumers are more difficult in
an advanced economy because of:
1.

A. separation in time.

2.

B. separation in values.

3.

C. spatial separation.

4.

D. separation of information.

5.

E. All of these are correct.

The following headlines are from Business Week magazine. Which
article is most likely to be reporting on a macro-marketing topic?
1.

A. "Two-Person Engineering Firm Offers Unique Service."

2.

B. "Russia Increases Output of Consumer Goods."

3.

C. "Pepsi Sells in Japan."

4.

D. "Bank of America Offers New Internet Banking Services."

5.

E. "Donations to Tsunami Victims Fund Increase after TV Broadcast."

Macro-marketing:
1.
2.

A. Emphasizes how the whole marketing system works.
B. Considers how marketing affects society, but not how society affects

marketing.

3.

C. Matches homogeneous supply and demand.

4.

D. Is mainly concerned with the activities of individual organizations.

The primary purpose of the transporting and storing functions of
marketing is to overcome:
1.

A. the need for marketing specialists.

2.

B. separation of information.


3.

C. spatial separation.

4.

D. discrepancies of assortment.

5.

E. separation of values.

In a pure subsistence economy,
1.

A. each family unit is self-sufficient.

2.

B. exchanges are very important.

3.

C. the standard of living must be relatively high.

4.

D. there is a great need for intermediaries.

In advanced economies:
1.

A. mass production with its economies of scale makes the cost of each
product higher.

2.

B. exchange is simplified by discrepancies of quantity and assortment.

3.

C. there is little need for marketing specialists.

4.

D. both supply and demand tend to be homogeneous in nature.

5.

E. producers and consumers experience a separation of values.

Marketing is NOT needed in a ______________ economy.
1.

A. consumer-oriented

2.

B. command

3.

C. pure subsistence

4.

D. market-directed

5.

E. None of these is correct.

In a simple economy, one family may produce only cooking pots,
but many of them. Others may specialize in farming, making
clothing, and building shelters. This
1.

A. shows why "discrepancies of assortment" occur.


2.

B. is so simple that the universal functions of marketing don't have to be done.

3.

C. cannot work without an intermediary.

4.

D. is an example of "separation in values" since the different families choose
to produce different things.

Which of the following must occur for marketing to happen?
1.

A. Product

2.

B. Place

3.

C. Advertising

4.

D. Price

5.

E. Two or more parties exchange something of value for something else of
value.

In advanced economies:
1.

A. both supply and demand tend to be homogeneous.

2.

B. producers and consumers are often separated in several ways.

3.

4.

C. most firms specialize in producing and selling small amounts of a huge

assortment of goods and services.
D. exchange is aided by discrepancies of quantity and assortment.

_______ refers to producers holding title to goods and services that
they themselves do not want to consume and consumers wanting
goods and services that they do not have.
1.

A. Discrepancies of assortment

2.

B. Separation of ownership

3.

C. Discrepancies of quantity

4.

D. Spatial separation

5.

E. Separation in time


When an individual producer sets a price for its product to earn a
certain profit while consumers search for the product at the lowest
price available from any producer, this is an example of:

1.

A. separation in time.

2.

B. discrepancy of quantity.

3.

C. separation in values.

4.

D. discrepancy of assortment.

5.

E. spatial separation.

Viewing marketing as a social process focuses on
1.

A. marketing by nonprofit organizations.

2.

B. command economies.

3.

C. macro-marketing.

4.

D. micro-marketing.

5.

E. None of these is correct.

The universal functions of marketing include buying, selling,
transporting, storing,
_________________________________________.
1.

A. standardization and weighing, financing, risk taking, and marketing
information

2.

B. standardization and grading, facilitating, risk taking, and marketing
information

3.

C. standardization and grading, financing, risk taking, and marketing
information

4.

D. standardization and grading, financing, risk taking, and merchandising
information

_________ directs an economy's flow of goods and services from
producers to consumers in a way that effectively matches supply
and demand and accomplishes the society's objectives.


1.

A. Macro-marketing

2.

B. The transporting function

3.

C. Micro-marketing

4.

D. Standardization and grading

5.

E. Social responsibility

"Economies of scale" means that:

1.

A. as a company produces larger numbers of a particular product, the cost of
each unit of the product goes down.

2.

B. the more producers there are in an economy the greater the need for
intermediaries.

3.

C. larger countries enjoy more economic growth than smaller countries.

4.

D. as a company produces larger numbers of a particular product, the total
cost of producing these products goes down.

If the family units on a South Pacific-island nation made all the
products they consume, it would be a good example of:
1.

A. a pure subsistence economy.

2.

B. a market-directed economy.

3.

C. a micro-marketing system.

4.

D. a command economy.

5.

E. None of these is a correct answer.

Looking at marketing as a social process focuses on
1.

A. macro-marketing.

2.

B. for-profit marketing.

3.

C. micro-marketing.

4.

D. nonprofit marketing.

5.

E. personalized marketing.


The fact that producers usually prefer to produce products in large
quantities, while most consumers prefer to buy in small quantities,
results in:
1.

A. discrepancies of quantity.

2.

B. separation of ownership.

3.

C. discrepancies of assortment.

4.

D. spatial separation.

5.

E. temporal separation.

When consumers do not know where to buy a product or what it
costs and the product's producer does not know where its target
market is located, this is an example of:
1.

A. separation of information.

2.

B. discrepancy of quantity.

3.

C. separation of ownership.

4.

D. discrepancy of assortment.

5.

E. separation in time.

Which of the following statements is FALSE?
1.
2.

3.
4.

5.

A. Marketing is most important in a pure subsistence economy.
B. Marketing should provide direction for production, accounting, and financial

activities.
C. Marketing builds long-lasting relationships that benefit the selling firm.
D. Marketing doesn't occur unless two or more parties are willing to exchange
something for something else.
E. Marketing anticipates customer needs.

Macro-marketing
1.

A. is a social process.


2.
3.

B. concerns the activities of individual managers.
C. is what people have in mind when they talk about marketing in everyday
use.

4.

D. helps consumers that need a narrow assortment of products.

5.

E. applies only to nonprofit organizations.

American supermarket chain, FoodMart, purchases cheese from
five different manufacturers from around the world to assure its
customers can choose among different types of cheeses at different

prices. FoodMart facilitates the macro-marketing system by helping
to address:
1.

A. spatial separation.

2.

B. discrepancies of assortment.

3.

C. separation of values.

4.

D. all of these are correct.

The following headlines are for articles from the WALL STREET
JOURNAL. Which article is most likely to be reporting a macromarketing topic?
1.

A. "Mercedes Goes after Luxury Sport Utility Buyers."

2.

B. "Adidas Jumps as Footwear Competition Heats Up."

3.

C. "Drugstore Chain Aims at Seniors."

4.

D. "Hardee's Fried Chicken Takes on KFC."

5.

E. "DVD Popularity Leads to More DVD Retailers."

Macro-marketing
1.

A. emphasizes building a long-term relationship that benefits both the firm and
the customer.

2.

B. considers the marketing activities of corporations rather than individuals.

3.

C. emphasizes how the whole marketing system works.


4.
5.

D. systems are only relevant to advanced economies.
E. addresses discrepancies that emerge from homogeneous consumer

demand.

Macro-marketing:
1.

A. tries to produce discrepancies of quantity and discrepancies of assortment.

2.

B. focuses on the activities of individual organizations.

3.

C. tries to effectively match supply and demand.

4.

D. is a set of activities performed by individual firms.

The term "economies of scale" means that:
1.
2.

A. The largest producers are always the most efficient.
B. The cost of a product goes down as a company produces larger numbers
of it.

3.

C. The more one produces, the greater the profit.

4.

D. It is more efficient for an economy to have a large number of transactions.

5.

E. None of these is correct.

Macro-marketing:
1.

A. is concerned with the activities performed by individual business
organizations.

2.

B. tries to match heterogeneous supply capabilities with heterogeneous
demands for goods and services.

3.

C. is concerned with how effectively and fairly an individual business
organization performs.

4.

D. assumes that the effectiveness and fairness of all macro-marketing
systems must be evaluated in terms of the same social objectives.

Since individual firms cannot perform all marketing functions, _____
often play a role in the exchange process.
1.

A. intermediaries


2.

B. consumers

3.

C. nonprofits

4.

D. marketing managers

5.

E. government regulators

Macro-marketing:
1.
2.

A. is a social process.
B. tries to encourage "discrepancies of quantity" and "discrepancies of
assortment."

3.

C. tries to disrupt supply and demand.

4.

D. tries to foster the many separations between producers and consumers.

Discrepancies of assortment happen when
1.

A. producers prefer to produce and sell in large numbers, but consumers
prefer to buy and consume in smaller numbers.

2.

B. consumers may not want to consume goods and services at the time
producers would prefer to produce them.

3.

C. consumers value goods and services in terms of costs and competitive
prices whereas producers value them in terms of satisfying needs and ability to
pay.

4.

D. producers specialize in producing a narrow range of goods and services
but consumers need a wide variety.

5.

E. producers hold title to goods and services that they themselves do not want
to consume.

From the macro-marketing perspective, the spatial separation that
exists between military equipment manufacturers and the people
who use the equipment overseas is directly addressed through this
marketing function:
1.

A. financing

2.

B. transporting


3.

C. risk taking

4.

D. market information

5.

E. storing

When a firm produces a large quantity of a product, the cost of
producing each individual unit usually goes down. This is known
as:
1.

A. discrepancies of quantity.

2.

B. exchange efficiency.

3.

C. economies of scale.

4.

D. macro-marketing.

5.

E. discrepancies of assortment.

250 Free Test Bank for Basic Marketing A Strategic
Marketing Planning Approach 19th Edition by Perreault
Mutiple Choice Questions - Page 3
The advantages of working with an intermediary usually increase
when there is
1.

A. excellent communication with customers.

2.

B. a greater number of customers.

3.

C. little distance between customers.

4.

D. a smaller number of competing products.

______________ involve(s) sorting products according to size and
quality.
1.

A. Transporting and storing

2.

B. Financing

3.

C. Standardization and grading

4.

D. Marketing

5.

E. Buying

In a command economy
1.

A. producers generally have little choice about what goods and services to
produce.

2.

B. the individual decisions of the many producers and consumers come
together to make the macro-level decisions.

3.
4.

5.

C. consumers make a society's production decisions.
D. consumers decide what is to be produced and by whom through their dollar
"votes."
E. the market adjusts itself.

Concerning the "universal functions of marketing," which of the

following statements is false?
1.

A. These functions can be performed by producers, intermediaries,
collaborators, or consumers.

2.

B. Responsibility for performing these functions can be shared and shifted.

3.

C. From a micro viewpoint, not every company must perform every function.

4.

5.

D. From a macro viewpoint, all these functions must be performed by
someone.
E. None of these statements is false.

After seeing a "sale" ad in a local newspaper, Ben Griffith went to a
local pet supply store and bought a year's supply of high protein
dog food. Which marketing functions—if any—did he perform?
1.

A. Financing and risk taking.

2.

B. Transporting and storing.

3.

C. Market information.

4.

D. Buying.


5.

E. Ben performed all of these marketing functions.

An intermediary:
1.

A. is a wholesaler—not a retailer.

2.

B. usually increases the number of transactions required.

3.

C. tends to make the exchange process more difficult and costly.

4.

D. is someone who specializes in trade rather than production.

5.

E. none of these answers is correct.

In macro-marketing
1.

A. no universal marketing function can be completely eliminated.

2.

B. the objectives of the individual firm, rather than society, are most important.

3.

C. functions should not be shifted or shared.

4.

D. intermediaries are unnecessary.

5.

E. the emphasis is on the activities of individual organizations.

Marketing intermediaries and collaborators can often perform
marketing functions:

1.

A. worse than producers or consumers can perform them.

2.

B. which leaves producers with more time for production.

3.

C. which leaves consumers with less time for consumption.

4.

D. at a high cost—because of specialization, economies of scale, or ecommerce.

The "universal functions of marketing" do NOT include:
1.

A. financing and risk taking.

2.

B. standardization and grading.

3.

C. producing.