Question 1

What do the users of truck service benefit from?

Accepted Answer

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

Question 2

Several significant issues currently face the motor carriers. Pick two, define and discuss.

Accepted Answer

The answer of Several significant issues currently face the motor...

Question 3

The decision as to terminal location:

Accepted Answer

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

Question 4

Define whether a motor carrier's costs are more fixed or variable. Explain your answer.

Accepted Answer

The answer of Define whether a motor carrier's costs are...

Question 5

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?

Accepted Answer

A)  140.00 
B)  68.12 
C)  71.41 
D)  Not enough information to tell

Question 6

Discuss the impact drug and alcohol abuse on the trucking industry. To deal with this safety concern what steps have companies taken?

Accepted Answer

The answer of Discuss the impact drug and alcohol abuse...

Question 7

What of the following is not one of the current issues facing the trucking industry in the future?

Accepted Answer

A)  Safety 
B)  Highway construction with its resultant delays 
C)  Technology 
D)  Financial Stability

Question 8

There is a relatively small amount of capital required to enter:

Accepted Answer

A)  the private carriage business 
B)  the truckload industry 
C)  The pickup and delivery sector 
D)  The line haul sector

Question 9

What mode or segment of a mode generates the most severe competition for the for hire carriers?

Accepted Answer

The answer of What mode or segment of a mode...

Question 10

The trucking industry is characterized as having:

Accepted Answer

A)  small investment requirements 
B)  easy sources of financing 
C)  high variable and low fixed costs 
D)  costly government requirements

Question 11

LTL carriers must make the same type of equipment decisions as TL along with deciding:

Accepted Answer

A)  what commodities to haul 
B)  where to deploy this equipment 
C)  line haul versus PUD 
D)  what color to paint the trucks

Question 12

There are several types of truck terminals. Which one is not used by LTL carriers?

Accepted Answer

A)  fuel terminals 
B)  PUD terminals 
C)  Break bulk terminals 
D)  Relay terminals

Question 13

There are several service advantages to motor carrier. Name any three.

Accepted Answer

The answer of There are several service advantages to motor...

Question 14

There are three types of terminals which are used by a trucking firm. Define and discuss each type and indicate if they are unique to any one type of trucking firm.

Accepted Answer

The answer of There are three types of terminals which...

Question 15

Where does funding for highways come from?

Accepted Answer

A)  income taxes 
B)  highway user taxes 
C)  state income taxes 
D)  block grants from the federal government

Question 16

What is the status of competition within the motor carrier industry?

Accepted Answer

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

Question 17

All carriers receive a safety fitness rating. Who makes the inspection and determines the rating?

Accepted Answer

A)  Surface Transportation Board 
B)  National Highway Traffic Safety Board 
C)  Federal Highway Administration 
D)  Federal Motor Carrier Safety Administration

Question 18

How much has been spent in the United States on highway transportation?

Accepted Answer

The answer of How much has been spent in the...

Question 19

What is the current status of the rules covering drivers' hours of service?

Accepted Answer

The answer of What is the current status of the...

Question 20

A reason for driver turnover is:

Accepted Answer

A)  Poor roads 
B)  Driver shortage 
C)  The Interstate Commerce Commission 
D)  LTL versus TL

Exam 5: Motor Carriers