Verified Test Bank Ch.12 Transportation 12th Global Edition

TEST BANK

CHAPTER 12: TRANSPORTATION

(correct answers are bolded)

Multiple Choice Questions

1. ___________ is the actual, physical movement of goods and people between two points.

a. Logistics

b. Transportation

c. Materials handling

d. Materials management

[LO: Material at the beginning of the chapter; Easy; Concept; AACSB Category 3: Analytical thinking]

2. There are ___________ modes of transportation.

a. three

b. four

c. five

d. six

[LO: Material at the beginning of the chapter; Moderate; Application; AACSB Category 3: Analytical thinking]

3. A 3,047 meter (10,000 foot) runway is significant because it is ___________.

a. generally viewed as adequate for accommodating the largest existing wide-body aircraft

b. the longest that can be used worldwide due to safety regulations

c. the longest runway in the world

d. only found in economically developed countries

[LO 12.1: To compare and contrast transportation infrastructures in several countries; Moderate; Application; AACSB Category 3: Analytical thinking]

4. Rail gauge refers to ___________.

a. the allowable speed on a particular segment of track

b. the thickness of rail track

c. the length of rail track

d. the distance between the inner sides of two parallel rail tracks

[LO 12.1: To compare and contrast transportation infrastructures in several countries; Moderate; Concept; AACSB Category 3: Analytical thinking]

5. In terms of rail gauge, China primarily uses ___________ rail gauge whereas India primarily uses ___________ rail gauge.

a. standard; broad

b. broad; standard

c. narrow; broad

d. standard; narrow

[LO 12.1: To compare and contrast transportation infrastructures in several countries; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

6. In the United States, ___________ account for the largest share of ton miles and ___________ account for the majority of freight revenues.

a. railroads; railroads

b. trucks; trucks

c. trucks; railroads

d. railroads; truck

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

7. ___________ refers to the terminal-to-terminal movement of freight or passengers.

a. Materials handling

b. Accessorial service

c. Line-haul

d. Order delivery

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

8. ___________ are generally the fastest form of transportation for shipments exceeding 600 miles.

a. Less-than-truckload motor carriers

b. Air carriers

c. Parcel carriers

d. Truckload motor carriers

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Easy; Application; AACSB Category 3: Analytical thinking]

9. Consignees are ___________.

a. extremely large less-than-truckload carriers

b. shippers of freight

c. receivers of freight

d. preferred suppliers

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

10. Accessorial service ___________.

a. only applies to air transportation

b. is associated with commodity rates

c. refers to additional service provided to apparel shipments

d. is transportation service that is supplemental to the line-haul

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

11. Airfreight is best suited to transport ___________, ___________ products.

a. high-value; lower-volume

b. low-value; lower-volume

c. high-value; higher-volume

d. low-value; higher-volume

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

12. Less-than-truckload motor carriers ___________.

a. serve only regional markets

b. operate through a series of terminals

c. are exempt from hours-of-service regulations

d. carry the shipment directly from shipper to consignee

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

13. All of the following are less-than-truckload (LTL) carriers except:

a. YRC Freight

b. Estes Express

c. UPS Freight

d. Swift Transportation

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3; Analytical thinking]

14. Truckload carriers focus on shipments of greater than ___________ pounds.

a. 10,000

b. 15,000

c. 17,500

d. 20,000

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

15. Each of the following statements is true except:

a. Schneider National is an example of a truckload carrier.

b. In truckload shipments, the shipper loads and the consignee unloads the trailer.

c. A truckload shipment involves only one customer.

d. Truckload carriers focus on shipments of greater than 10,000 pounds.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

16. Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ___________.

a. cost efficiency

b. customer requirements

c. operational efficiency

d. safety concerns

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

17. The primary advantage for motor carriers is ___________.

a. reliability

b. speed

c. capability

d. flexibility

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

18. Airfreight is the costliest mode for freight transportation. What is the second most expensive mode of freight transportation?

a. motor carrier

b. water

c. rail

d. pipeline

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

19. ___________ is the most reliable form of transportation.

a. Rail

b. Motor carrier

c. Pipeline

d. Air

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

20. ___________ pipelines carry crude oil from gathering-line concentration points to the oil refineries.

a. Product

b. Trunk

c. Slurry

d. Collection

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

21. ___________ have a level of market concentration and dominance that is not found in the other modes.

a. Railroads

b. Pipelines

c. Airlines

d. Motor carriers

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

22. Which mode is not the “best” or “worst” on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare transport modes?

a. railroads

b. water carriers

c. pipelines

d. motor carriers

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

23. Railroads tend to transport ___________, ___________ shipments.

a. higher-value; higher-volume

b. lower-value; lower-volume

c. higher-value; lower-volume

d. lower-value; higher-volume

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

24. Inland waterways in the United States are dredged to a depth of ___________ feet, which tends to be the minimum depth required for most barges.

a. 15

b. 12

c. 9

d. 6

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

25. A ___________ raises or lowers barges so that they can meet the river’s level as they move upstream or downstream.

a. container ship

b. lock

c. unit load device

d. towboat

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

26. The predominant commodity moved by barge transportation is ___________.

a. grain

b. coal

c. iron ore

d. petroleum

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

27. ___________ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.

a. Intermodal

b. Relational

c. Intramodal

d. Collaborative

[LO 12.3: To discuss intermodal transportation; Easy; Concept; AACSB Category 3: Analytical thinking]

28. What container size is often used to rank water ports and measure containership capacity?

a. 48-foot container

b. 40-foot container

c. 20-foot container

e. 10-foot container

[LO 12.3: To discuss intermodal transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

29. The primary advantage to land bridge service is ___________.

a. less loss and damage

b. reduced transit times

c. lower transportation cost

d. improved reliability

[LO 12.3: To discuss intermodal transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

30. Freight forwarders ___________.

a. are the same as shippers’ associations

b. consolidate the shipments of several carriers

c. represent the consignees’ interests

d. consolidate the shipments of several shippers

[LO 12.4: To describe several types of transportation specialists; Moderate; Concept; AACSB Category 3: Analytical thinking]

31. Shippers’ associations ___________.

a. are the same as freight forwarders

b. function in a manner similar to freight forwarders

c. specialize in truckload shipments

d. are used only for agricultural products

[LO 12.4: To describe several types of transportation specialists; Moderate; Application; AACSB Category 3: Analytical thinking]

32. A transportation broker ___________.

a. looks to match a shipper’s freight with a carrier to transport it

b. deals only with agricultural products

c. is the same as a freight forwarder

d. tends to be spun off from carriers or management consulting firms

[LO 12.4: To describe several types of transportation specialists; Moderate; Concept; AACSB Category 3: Analytical thinking]

33. Firms that specialize in carrying packages that weigh up to 150 pounds are called ___________.

a. couriers

b. accessorial carriers

c. parcel carriers

d. expedited carriers

[LO 12.4: To describe several types of transportation specialists; Moderate; Concept; AACSB Category 3: Analytical thinking]

34. What is the largest transportation company by revenues in the United States?

a. FedEx

b. Union Pacific

c. United Parcel Service

d. United Airlines

[LO 12.4: To describe several types of transportation specialists; Moderate; Application; AACSB Category 3: Analytical thinking]

35. In the United States, commercial airline pilots must retire at age ___________.

a. 70

b. 65

c. 62

d. 60

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

36. The U.S. ________ is the federal government body with primary responsibility for transportation safety regulation.

a. Interstate Commerce Commission (ICC)

b. Department of Commerce

c. Department of Homeland Security

d. Department of Transportation (DOT)

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

37. With respect to U.S. economic regulation, the ___________ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.

a. Surface Transportation Board (STB)

b. Interstate Commerce Commission (ICC)

c. Federal Trade Commission

d. Department of Commerce

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

38. Common carriers of transportation have ___________ obligations.

a. six

b. five

c. four

d. three

[LO 12.6: To identify the legal classification of transportation carriers; Moderate; Application; AACSB Category 3: Analytical thinking]

39. Which of the following is not a legal classification of carriers?

a. exempt

b. contract

c. private

d. third-party transportation

[LO 12.6: To identify the legal classification of transportation carriers; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

40. Private transportation is most prevalent in the ___________ industry.

a. pipeline

b. trucking

c. railroad

d. airline

[LO 12.6: To identify the legal classification of transportation carriers; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

True-False Questions

1. Transportation refers to the actual, physical movement of goods and people between two points.

[LO: Material at the beginning of the chapter; Easy; Concept; AACSB Category 3: Analytical thinking]

1. There are four different modes of transportation.

[LO: Material at the beginning of the chapter; Moderate; Application; AACSB Category 3: Analytical thinking]

1. A 10,000-foot (3,047 meter) runway is viewed as adequate for accommodating the largest existing wide-body aircraft.

[LO 12.1: To compare and contrast transportation infrastructures in several countries; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Rail gauge refers to the thickness of rail track.

[LO 12.1: To compare and contrast transportation infrastructures in several countries; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. In the United States, motor carriers have the largest share of ton miles.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Air is generally the fastest mode of transportation for shipments exceeding 600 miles.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. Products that move by airfreight tend to be high in value and tend to require urgent delivery.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. Less-than-truckload shipments range from about 150 to 10,000 pounds.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Truckload freight moves through a carrier’s terminal(s).

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. Hours-of-service rules and speed limits have generally been justified on the basis of operational efficiency.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. The primary advantage for motor carriers is flexibility (the ability to deliver the product to the customer).

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Pipelines are a unique mode of transportation because they are the only one without vehicles.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Railroads are considered the most reliable form of transportation.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

1. The U.S. railroad industry is dominated by four freight carriers.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Twelve feet of water is the minimum depth required for most barges.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. A barge crane raises or lowers barges so they can meet the river’s level as they move upstream or downstream.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. Barge transportation tends to be slow.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Of the modes with vehicles, railroads offer the greatest capacity, or volume, that can be carried at one time.

[LO 12.2: To identify the five modes of transportation and learn about their respective characteristics; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

1. With intermodal transportation, two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.

[LO 12.3: To discuss intermodal transportation; Easy; Concept; AACSB Category 3: Analytical thinking]

1. Airfreight containers are commonly referred to as pallets.

[LO 12.3: To discuss intermodal transportation; Easy; Concept; AACSB Category 3: Analytical thinking]

1. A commonly used metric for measuring container volumes is the TEU (twenty-foot equivalent unit).

[LO 12.3: To discuss intermodal transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Land bridge services involve the use of surface transportation—generally rail transportation—between an origin and destination port.

[LO 12.3: To discuss intermodal transportation; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. Freight forwarders are the same thing as freight brokers.

[LO 12.4: To describe several types of transportation specialists; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. Freight forwarders sell freight at a higher rate per pound than they pay carriers to haul it.

[LO 12.4: To describe several types of transportation specialists; Moderate; Application; AACSB Category 3: Analytical thinking]

1. The main benefit of shippers’ associations is one-stop shopping.

[LO 12.4: To describe several types of transportation specialists; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

1. A transportation broker looks to match a shipper’s freight with a carrier to transport it.

[LO 12.4: To describe several types of transportation specialists; Easy; Concept; AACSB Category 3: Analytical thinking]

1. Parcels refer to packages weighing up to 100 pounds.

[LO 12.4: To describe several types of transportation specialists; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. U.S. commercial airline pilots face mandatory retirement at age 70.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. The level and degree of transportation regulation varies from country to country.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. Environmental regulation of transportation is concerned with water, noise, and air pollution.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. The U.S. Department of Homeland Security is the federal government body with primary responsibility for transportation safety regulation.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. U.S. pipelines are so safe that there is no federal safety agency assigned to regulate them.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Economic regulation in transportation refers to control over business practices and activities such as entry and exit, pricing, service, accounting and financial issues, and mergers and acquisitions.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. The U.S. Department of Commerce has primary responsibility for resolving railroad rate and service disputes as well as reviewing potential rail mergers.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Since economic deregulation, transportation carriers are no longer constrained with respect to the variety of service they can offer.

[LO 12.5: To explain how different types of regulation impact transportation; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Private carriers do not have to comply with environmental and safety regulations.

[LO 12.6: To identify the legal classification of transportation carriers; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Common carrier transportation companies have four specific obligations.

[LO 12.5: To identify the legal classification of transportation carriers; Easy; Application; AACSB Category 3: Analytical thinking]

1. A contract carrier is under no obligation to render services to the general public.

[LO 12.5: To identify the legal classification of transportation carriers; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Private transportation is most prevalent in the pipeline industry.

[LO 12.5: To identify the legal classification of transportation carriers; Moderate; Application; AACSB Category 3: Analytical thinking]

1. One disadvantage of private transportation is that managerial costs are often ignored or underestimated.

[LO 12.5: To identify the legal classification of transportation carriers; Moderate; Synthesis; AACSB Category 3: Analytical thinking]