Chapter 1 - Retailers and their structure
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1.
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Retail is the ____________ industry in the U.S. both in number of establishments and number of employees. 3
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  Largest
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Second largest
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Third largest
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Fifth largest
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2.
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_____________________ are not included in traditional retailing: 5
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Wholesalers
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Department stores
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Chain stores
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Supermarkets
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3.
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Which one of the following is not a disadvantage of online retailers? 4
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Not completely trusted by consumers
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Better deals than traditional retailers
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Cost per customer is higher than for traditional retailers
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Customer satisfaction and service is lower than traditional retailers
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Chapter 2 - Retail management requirements
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4.
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Marketers can carry on online marketing in the following way(s): 7
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Using e-mail
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Participating in forums, newsgroups, and bulletin boards
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Creating an electronic storefront
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All of the above
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5.
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Suggestions to improve the plight of e-tailers do not include the following: 9
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Keep it sophisticated
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Think like your customer
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Don't blow everything on advertising
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Don't undercut prices
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6.
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Retail management skills do not include: 8
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Technical skills
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Human skills
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Conceptual skills
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Negotiation skills
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Chapter 3 - Store Location
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7.
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Human factor requirements refer to: 12
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A sense of smell
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A sense of loyalty and competency
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A sense of taste
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A sense of hearing
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8.
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Successful retail businesses: 14
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Provide employment
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Facilitate market distribution
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Benefit their communities in many other ways
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Do all of the above
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9.
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The suburbanite is more apt to: 13
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Own a home
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Rent more furniture and appliances
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Employ a gardner
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Use a handy person
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Chapter 4 - Store buildings, fixtures and equipment
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10.
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Fundamental considerations to be taken into account in choosing a site do not include: 18
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The estimated volume of business
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Number of holidays
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Customer buying
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Potential customer traffic
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11.
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IT in retailing can give information on all except: 21
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Price lines and sizes and color of merchandise
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Inventories
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Expenses
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Theft and breakage
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12.
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____________________ is not a factor affecting layout or arrangement of fixtures and merchandise: 21
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Size and shape of space occupied
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Location of unloading dock, elevator
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The local environment
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Kinds of merchandise handled
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Chapter 5 - Arranging the store's interior - layout
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13.
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The general patterns evidenced in the structure for branch operations do not include: 23
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ôBrood hen and chickö organization
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Spinoff plan
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ôSeparate storeö plan
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ôEqual storeö structure
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14.
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One of the following is not one of the four major steps involved in selecting retail employees: 28
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Making careful job analyses and prepar¡ing job specifications
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Having the employee take an IQ test.
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Developing satisfactory sources of recruitment
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Introducing the employee to the store and the job.
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15.
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Techniques available for appraising training programs include: 26
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Shopping service reports
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Number of errors
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Number of complaints
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All the above
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Chapter 6 - Structure of the retail firm
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16.
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Which one of the following is not a goal of a compensation plan? 30
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Keep wages under control
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Reduce labor turnover and discontent employees
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Minimize benefit packages
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Plan easily understood by employees and management
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17.
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Job dissatisfaction and employee complaints can include: 35
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Working conditions
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Fringe benefits
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Employee participation with management\
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All of the above
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18.
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___________________ is not an essential element in a merchandise budgeting plan: 34
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Sales
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Stocks
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Purchases and gross margin
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Specific items to be purchased
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Chapter 7 - Retail human resource management
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19.
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A good budget to accomplish its purpose should: 40
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Be planned at least six months in advance
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Represent the combined judgment of those influenced
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Cover a long period
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Be modified periodically
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20.
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The stock-sales ratio indicates the relationship that exists: 44
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Between the retail value of stock at the close of the fiscal year and the net sales for that year.
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An ideal balance that should prevail between stock and sales
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The stock at the beginning of the month at retail and the sales for that month
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The stock at the end of the month at retail and the sales for that month
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Chapter 8 - Merchandising policies and budget
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21.
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Two types of formal buying plans available are: 51
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Standard stock and variable stock
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Basic stock list and model stock list
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General stock and specific stock
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Stock specialties and stock discounts
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22.
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Factors that influence the quantities of stock to be purchased do not include: 53
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Poor inventory control
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Expected sales volume
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Type of merchandise, i.e. Perishable
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Source of supply
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Chapter 9 - Planning and selecting item assortments
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23.
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Once established, a basic stock list should: 59
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Never be changed
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Be revised constantly
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Be reviewed annually for possible changes
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Be changed only when competitors force such action
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24.
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________________ is not an inside source of information on customer’s buying habits: 61
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Past sales
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Vendor's offerings
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Returned goods and adjustment data
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Credit department ratings
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25.
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A model stock is not: 61
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Forward looking
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Based partly on an analysis of past sales
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For fashion goods.
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Style-oriented.
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Chapter 10 - Buying : Selecting merchandising resources
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26.
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_______________________ is not a major source of supply open to retailers: 65
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Wholesale middlemen
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Other retailers
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Manufacturers
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Farmers and growers
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27.
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Group buying yield the following benefits except: 69
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Large discounts
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Requires carrying large inventories
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More saleable goods or fashionable goods
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Buyer's time is saved
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28.
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An invoice or resources bill of goods will not include: 67
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Quality
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Quantity
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Description
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Price
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Chapter 11 - Buying : Negotiating with merchandise resources
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29.
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Discounts can be based on all the following except: 73
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Quantity discounts
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Trade discounts
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Seasonal discounts
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Functional discounts
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30.
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“Terms of sale” do not refer to: 77
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Transportation charges stipulated on the invoice
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Pre-retailing
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Discounts
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Dating
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31.
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"Net 30 days" is a good example of _________________. 75
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Advanced dating
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Seasonal dating
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Ordinary dating
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Eom dating (receipt of goods)
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Chapter 12 - Merchandise control
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32.
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On an invoice dated August 7, with terms 3/10 EOM, the 3 percent discount can be taken through 80
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33.
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Limitations of merchandise control can not include: 83
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Provides accurate buying information
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Frequent appraisal of system required
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Control systems can be costly to install
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Control systems can be costly to operate
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34.
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Merchandise management or stock control refers to: 84
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A balanced relationship between stocks and sales
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The ownership of merchandise
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The rate of merchandise turnover
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The handling of merchandise between delivery and sales
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Chapter 13 - Handling incoming merchandise
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35.
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Which one of the following is not a unit control system? 89
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Requisition or reserve stock control
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Warehouse control system
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Remainder system
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Reminder system
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36.
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Stock shortages or theft of merchandise can be minimized by all except: 91
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Installing burglar alarms
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Regular police protection
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Using ôhuman spottersö
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Loss or damage tax write-offs
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37.
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Centralization of common activities in the receiving operations of merchandise allows for all except: 86
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Better control of incoming merchandise
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Less danger of lost invoices and discounts
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Increases in the quality of work at lower costs
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Allows salespeople to do a variety of jobs
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Chapter 14 - Pricing
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38.
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Information required on incoming shipments can not include: 95
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Date and hour of arrival
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Increases risk of theft
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Conditions of goods (any damages)
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Weight and delivery charges
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39.
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Limitations of price lining do not include: 99
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Difficult to obtain adequate assortments
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Limits the store's ability to meet competition's price
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Prices may not be acceptable by customers
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Price lines provide customer with a wide assortment
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40.
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________________ is not a factor influencing markup: 101
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Customer appeal
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Ethnic choices
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Private brands
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Price and level adjustments
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Chapter 15 - Advertising and Display
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41.
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Other factors that can influence markup pricing include: 108
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Seasonal consideration
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Newness of an item
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Manufacturer's policies
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Profit on particular items, not total profit is the goal
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42.
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The steps in programming retail advertising do not include: 111
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Plan the advertising
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Write the press release
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Prepare the actual advertisements
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Test the advertising and select appropriate media
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Chapter 16 - Other nonpersonal methods of retail
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43.
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Interior displays can be classified into these categories except: 118
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Merchandise displays
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Seasonal window paintings
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Dealer displays
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Store signs
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44.
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Non-personal methods of sales promotion used by retailers do not include: 120
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Telephone
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Mail-order
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Door-to-door
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Packaging and labeling
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Chapter 17 - Personal salesmanship
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45.
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Sales promotions employed by supermarkets do not include: 125
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Games of chance
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Food sampling
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Rebates
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Candy give-away
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46.
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Some general rules helpful in selling include all except: 128
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Mention competitors poor service and poor quality goods
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Never argue with the customer
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Learn to anticipate objections
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Deal fairly with the customer, listen to their opinions
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47.
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Which of the following is not a major cause of customer complaints? 127
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Improper buying, habitual complainers
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Inefficient store system
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Quality relative to price
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Inadequate trained personnel
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Chapter 18 - Customer services
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48.
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Customer services can not include: 131
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Repair service
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Sell on cash basis only
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Additional store hours
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Personal shopping, selecting for the customer
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49.
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______________________ is not a type of retail credit or consumer credit: 134
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Open account credit
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Installment credit
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Partial credit
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Revolving credit
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50.
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Which of the following Federal statutes does not apply to credit legislation? 133
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The Consumer Credit Protection Act
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Federal Reserve Credit Act
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The öFair Credit Reportingö Act
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Equal Credit Opportunity Act
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Chapter 19 - Retail credit and collections
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51.
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_____________ is not a yardstick for judging the effectiveness of credit departments: 140
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Number of accounts opened in a given period
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Number of credit applications refused
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Number of delinquent accounts
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The number of competing credit card companies
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52.
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Accounting records serve all of the following purposes except: 142
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To determine past financial results of operations
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For appraising current results and making future plans
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To boost stock market prices with deceptive information
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To establish credit lines with financial institutions
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53.
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The retailer’s “net worth” is: 145
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The amount in the bank
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The amount by which total assets exceed total liabilities
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The total assets on the balance sheet
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The total liabilities on the balance sheet
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Chapter 20 - Basic accounting controls
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54.
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The daily record of each day’s transactions does not include: 152
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Daily cash and credit sales
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Personnel expenses
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Merchandise receipts and expenditures
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Operating expenses
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55.
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An item conspicuously absent from operating statements under the cost method of figuring profits is the: 156
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Stock shortage
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Net profit
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Store expenses
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Gross margin
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56.
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Advantages of the retail method of preparing an operating statement include all except: 153
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Provides effective control over profit
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It is costly to operate
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Permits valuation of inventory
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Facilitates taking physical inventory
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57.
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Which of the following two figures are required by the retail inventory method to be carried on the retailer’s books at retail and at cost? 154
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Inventory and purchases
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Inventory and markup
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Purchase and sales
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Markups and markdowns
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Chapter 21 - Analyzing and controlling expenses
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58.
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In seeking to improve profits, the retailer has most control over: 158
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Cost of goods
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Expenses
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Net sales
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Taxes
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59.
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Methods of allocating expenses do not include: 160
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The net profit plan
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The contribution plan
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The combined plan
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The reciprocal service method
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60.
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Expense comparison and analysis do not involve: 162
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A review of the retailer's expenses over a period of time
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Flowcharts
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A comparison with other retailers
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Analysis of expenses though an expense budget
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Chapter 22 - Control of sales transactions
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61.
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The internal theft problems that can arise in a retail business do not include 167
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Pilferage of merchandise and supplies by employees
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A bank reconciliation
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Retention of store money by employees who handle cash
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Collusion between employees and outsiders
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62.
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Major crimes committed against retailers by outsiders include all except: 168
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Shoplifting
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Price-ticket switching
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Credit card frauds
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Employee embezzlement
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63.
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Internal theft problems include: 168
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Pilferage of merchandise and supplies
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Retention of store money
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Embezzlement
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All the above
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Chapter 23 - Retail security and loss prevention
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64.
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Management’s prime responsibility is to: 169
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Provide competent wages
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Operate profitably
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Engage in research
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Support community projects
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65.
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Online retailers (e-tailers) should not take into account: 173
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Type of goods appropriate for store selling
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The prices customers are willing to pay based on conveniences.
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Suitable software interfaces.
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Manner of payment by customers for online purchases.
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Chapter 24 - Management coordination and leadership
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66.
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Which of the following is true of the balance sheet? 176
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It includes revenue and expense accounts.
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It identifies a store's assets and liabilities as of a specific date
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It shows the results of operations for an accounting period.
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It discloses the amount of dividends paid.
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67.
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Which of the following is the correct way to date an operating statement? 178
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January 1ùDecember 31, 20A
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At December 31, 20A.
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As of December 31, 20A
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From the beginning January 1, 20A
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Chapter 25 - Brick and Mortar to Click and Mortar: E-tailing
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68.
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Gross margin is 188
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Revenue minus expenses.
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Assets minus liabilities.
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Sales minus cost of goods sold.
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Sales minus operating expenses.
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69.
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The first step in merchandising budgeting is the preparation of the: 192
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Planned purchase budget.
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Gross margin budget.
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Planned sales forecast.
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Cash budget.
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70.
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_________________________ is not likely to be a future change in retailing. 194
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Online sales exceeding traditional brick-mortar sales
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The growth of multi-channel retailing,
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The increasing impact of technology,
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The dramatic changes in the way consumers shop
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