Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The first step in undertaking a retail audit is _____.
a. developing audit form(s)
b. determining when and how often the audit is conducted
c. determining who does the audit
d. conducting the audit
A retail ownership form that combines independent ownership and management
assistance is _____.
a. sole proprietorship
b. franchising
c. partnership
d. corporation
A retailer reduces its invoice by 5 percent since a supplier shipped seasonal
merchandise 10 days late. The price reduction is designed to compensate the retailer for
additional markdowns. This reduction illustrates a _____.
a. markdown adjustment
b. slotting allowance
c. slotting fee
d. chargeback
Retail price competition is generally highest in _____ distribution.
a. dual
b. exclusive
c. intensive
d. selective
Description buying by a retailer is most appropriate for _____.
a. jewelry
b. art
c. antiques
d. branded goods
The opposite of extreme employee specialization is _____.
a. job standardization
b. self-service merchandising
c. automation
d. cross-training
The theory that suggests that established retailers must be cautious in converting from a
low-end strategy to a high-end strategy is _____.
a. the wheel of retailing
b. scrambled merchandising
c. rationalized retailing
d. the retail life cycle
Which of these is not a characteristic that distinguishes retailing from other types of
business?
a. Store location is more important for retailers than for wholesalers.
b. The average size of a sales transaction for retailers is less than for manufacturers.
c. Retail sales are more cyclical than organizational sales.
d. While final consumers make many impulse purchases, organizational consumers are
more systematic in their purchasing activity.
If a firm's sales index in January is 63 and average monthly sales are $200,000, what is
the January sales level?
a. $12,600
b. $126,000
c. $200,000
d. $363,000
A 60 percent markup at retail equals what markup at cost?
a. 75 percent
b. 150 percent
c. 300 percent
d. 400 percent
What type of display is generally associated with functional product groupings?
a. cut case display
b. ensemble display
c. case display
d. dump bin
A manufacturer seeking maximum retailer cooperation should utilize which form of
distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. dual distribution
The purest form of an impulse purchase is _____.
a. partially unplanned
b. unplanned substitution
c. completely unplanned
d. reminder impulse
A major retailer desires to use full-time specialized merchandisers. The most
appropriate buying organization is a(n) _____ buying organization.
a. formal
b. informal
c. decentralized
d. inside
A large retailer, such as Wal-Mart, can gain channel control over suppliers through
_____.
a. bargaining power
b. fair trading
c. franchising
d. full-line forcing
Direct marketers are most affected by which federal legislation?
a. Robinson-Patman Act
b. 30-day rule
c. Green River ordinances
d. blue laws
Satisfaction of publics includes stockholders, consumers, suppliers, and governments,
but not employees.
In computing a retailer's financial requirements, a personal drawing account should be
listed as a source of funds.
Generally, a corner location is less valuable to a retailer in a shopping center than in an
unplanned district.
Duty-free shopping is an important component to airport retailing where global flights
exits.
Prototype stores are commonly associated with business format franchising.
A retailer's core customers are its best customers.
Deductions from retail value in the retail method of accounting include sales,
markdowns, and employee discounts.
Retail audits generally resemble questionnaires.
The value chain only encompasses the retailer and the final consumer.
The lower the efficiency rating figure, the more efficient the retail firm.
