Question 1

Gross margin is equal to net cost of goods sold minus net sales.

Accepted Answer

A) True 
 B)False

Question 2

In attempting to determine whether a new fast-food restaurant should be opened in a small town,a retailer gathered information on demographics,competitors' sales,and real estate available in that area.The retailer was employing the _____ method of retail decision-making.

Accepted Answer

A)  analytical 
B)  creative 
C)  intuitive 
D)  strategic 
E)  tactical 
A)  analytical 
B)  creative 
C)  intuitive 
D)  strategic 
E)  tactical

Question 3

Category killers carry such a large amount of merchandise in a single category at such good prices that it makes it impossible for the customer to walk out without purchasing what they needed.

Accepted Answer

A) True 
 B)False

Question 4

Category killers are not allowed to divert business away from traditional wholesale supply houses.They can only compete with other retailers.

Accepted Answer

A) True 
 B)False

Question 5

Proactive planning enables the retailer to have another plan in place prior to the market changing or suffering attacks from the competition on its original plan.

Accepted Answer

A) True 
 B)False

Question 6

Successful retailers today are able to look at the changing environment and see opportunities.

Accepted Answer

A) True 
 B)False

Question 7

Same-store sales compare:

Accepted Answer

A)  an individual store's sales to its sales for the same month in the previous year. 
B)  clearance efforts with holiday mark-downs. 
C)  two stores in the same district to one another. 
D)  advertising circulars with in-store promotions. 
E)  revenue with expenses. 
A)  an individual store's sales to its sales for the same month in the previous year. 
B)  clearance efforts with holiday mark-downs. 
C)  two stores in the same district to one another. 
D)  advertising circulars with in-store promotions. 
E)  revenue with expenses.

Question 8

If a retailer has a 25 percent gross-margin percentage,how much will be generated in gross-margin dollars for each $100 of sales?

Accepted Answer

A)  $25.00 
B)  $75.00 
C)  $2.50 
D)  $4.50 
E)  $7.50 
A)  $25.00 
B)  $75.00 
C)  $2.50 
D)  $4.50 
E)  $7.50

Question 9

Retailing is defined as:

Accepted Answer

A)  any exchange of cash and/or credit for goods or services between channel members. 
B)  a fairly stable and unchanging industry that has a major impact on society. 
C)  the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer. 
D)  the sale of any good or service by the producer to a channel member. 
E)  the activities and steps needed to transfer goods and/or services between channel members. 
A)  any exchange of cash and/or credit for goods or services between channel members. 
B)  a fairly stable and unchanging industry that has a major impact on society. 
C)  the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer. 
D)  the sale of any good or service by the producer to a channel member. 
E)  the activities and steps needed to transfer goods and/or services between channel members.

Question 10

Retailing is responsible for matching the individual demands of the consumer with vast quantities of supplies produced by manufacturers and service providers.

Accepted Answer

A) True 
 B)False

Question 11

Walmart has a significant negative effect on the mom-and-pop business sector.

Accepted Answer

A) True 
 B)False

Question 12

Gross margin can be defined as:

Accepted Answer

A)  net sales minus the cost of the goods sold. 
B)  the selling price charged for a piece of merchandise or a service plus variable operating expenses. 
C)  the difference between total profits and total expenses. 
D)  the cost of merchandise in a retailer's inventory. 
E)  the cost of goods sold at less operating expenses. 
A)  net sales minus the cost of the goods sold. 
B)  the selling price charged for a piece of merchandise or a service plus variable operating expenses. 
C)  the difference between total profits and total expenses. 
D)  the cost of merchandise in a retailer's inventory. 
E)  the cost of goods sold at less operating expenses.

Question 13

Since the U.S.population growth has slowed in recent years,successful retailers will be those that take away market share from competitors.

Accepted Answer

A) True 
 B)False

Question 14

Due to the ever-changing retail marketplace,the store manager has initiated many novel ideas and solutions to increase overall store sales.The manager is demonstrating which desirable retailing attribute?

Accepted Answer

A)  Prioritizing 
B)  Leadership 
C)  Creativity 
D)  Hard Work 
E)  Enthusiasm 
A)  Prioritizing 
B)  Leadership 
C)  Creativity 
D)  Hard Work 
E)  Enthusiasm

Question 15

Single-unit retailers have no inherent advantages over their chain store competitors,despite the fact that single-unit owners are often harder-working and more motivated.

Accepted Answer

A) True 
 B)False

Question 16

Given the financial pressure facing today's retailers,creativity is no longer a prerequisite for success in retailing.

Accepted Answer

A) True 
 B)False

Question 17

An operator of which of the following establishments is NOT a retailer?

Accepted Answer

A)  A catering service specializing in weddings. 
B)  A computer firm selling software to households via the Internet. 
C)  A student going door-to-door selling magazine subscriptions. 
D)  A corporate property management firm. 
E)  An ice cream shop in the student union. 
A)  A catering service specializing in weddings. 
B)  A computer firm selling software to households via the Internet. 
C)  A student going door-to-door selling magazine subscriptions. 
D)  A corporate property management firm. 
E)  An ice cream shop in the student union.

Question 18

Discount department stores are typically classified as high-margin,high-turnover retailers.

Accepted Answer

A) True 
 B)False

Question 19

Walmart became the world's largest retailer by focusing on its bottom line profits.

Accepted Answer

A) True 
 B)False

Question 20

The nations that have benefited from the greatest economic and social progress have been those with a strong retail sector.

Accepted Answer

A) True 
 B)False

Gross margin is equal to net cost of goods sold minus net sales.

In attempting to determine whether a new fast-food restaurant should be opened in a small town,a retailer gathered information on demographics,competitors' sales,and real estate available in that area.The retailer was employing the _____ method of retail decision-making.

Category killers carry such a large amount of merchandise in a single category at such good prices that it makes it impossible for the customer to walk out without purchasing what they needed.

Category killers are not allowed to divert business away from traditional wholesale supply houses.They can only compete with other retailers.

Proactive planning enables the retailer to have another plan in place prior to the market changing or suffering attacks from the competition on its original plan.

Successful retailers today are able to look at the changing environment and see opportunities.

Same-store sales compare:

If a retailer has a 25 percent gross-margin percentage,how much will be generated in gross-margin dollars for each $100 of sales?

Retailing is defined as:

Retailing is responsible for matching the individual demands of the consumer with vast quantities of supplies produced by manufacturers and service providers.

Walmart has a significant negative effect on the mom-and-pop business sector.

Gross margin can be defined as:

Since the U.S.population growth has slowed in recent years,successful retailers will be those that take away market share from competitors.

Due to the ever-changing retail marketplace,the store manager has initiated many novel ideas and solutions to increase overall store sales.The manager is demonstrating which desirable retailing attribute?

Single-unit retailers have no inherent advantages over their chain store competitors,despite the fact that single-unit owners are often harder-working and more motivated.

Given the financial pressure facing today's retailers,creativity is no longer a prerequisite for success in retailing.

An operator of which of the following establishments is NOT a retailer?

Discount department stores are typically classified as high-margin,high-turnover retailers.

Walmart became the world's largest retailer by focusing on its bottom line profits.

The nations that have benefited from the greatest economic and social progress have been those with a strong retail sector.

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 1: Perspectives on Retailing

Gross margin is equal to net cost of goods sold minus net sales.

In attempting to determine whether a new fast-food restaurant should be opened in a small town,a retailer gathered information on demographics,competitors' sales,and real estate available in that area.The retailer was employing the _____ method of retail decision-making.

Category killers carry such a large amount of merchandise in a single category at such good prices that it makes it impossible for the customer to walk out without purchasing what they needed.

Category killers are not allowed to divert business away from traditional wholesale supply houses.They can only compete with other retailers.

Proactive planning enables the retailer to have another plan in place prior to the market changing or suffering attacks from the competition on its original plan.

Successful retailers today are able to look at the changing environment and see opportunities.

Same-store sales compare:

If a retailer has a 25 percent gross-margin percentage,how much will be generated in gross-margin dollars for each $100 of sales?

Retailing is defined as:

Retailing is responsible for matching the individual demands of the consumer with vast quantities of supplies produced by manufacturers and service providers.

Walmart has a significant negative effect on the mom-and-pop business sector.

Gross margin can be defined as:

Since the U.S.population growth has slowed in recent years,successful retailers will be those that take away market share from competitors.

Due to the ever-changing retail marketplace,the store manager has initiated many novel ideas and solutions to increase overall store sales.The manager is demonstrating which desirable retailing attribute?

Single-unit retailers have no inherent advantages over their chain store competitors,despite the fact that single-unit owners are often harder-working and more motivated.

Given the financial pressure facing today's retailers,creativity is no longer a prerequisite for success in retailing.

An operator of which of the following establishments is NOT a retailer?

Discount department stores are typically classified as high-margin,high-turnover retailers.

Walmart became the world's largest retailer by focusing on its bottom line profits.

The nations that have benefited from the greatest economic and social progress have been those with a strong retail sector.

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters