Which of the following items would NOT be included on the balance sheet but would
BE on the income statement?
a. Noncurrent assets
b. Cost of goods sold
c. Current liabilities
d. Net worth
e. Accounts receivable
The _____ Act makes it a federal crime to defraud consumers through use of the mail.
a. Sherman
b. Federal Trace Commission
c. Mail Fraud
d. Automobile Information Disclosure
e. Fair Packaging and Labeling
Which of the following statements about one-way exclusive-dealing arrangements is
true?
a. Truly one-way arrangements are illegal.
b. They occur when a supplier offers a retailer unshared distribution of merchandise if
the retailer agrees to do something in return for the manufacturer.
c. These agreements violate the Clayton Act if they substantially lessen competition.
d. The retailer does not agree to do anything in particular for the supplier.
e. They violate the Clayton Act if they tend to create a monopoly.
You have recently been hired by a small retailer in your area. During a discussion with
the owner, you notice that the owner’s primary objective for being in business is to
provide the customer with a real alternative. The owner is primarily using a _____
objective to focus the business.
a. market performance
b. financial performance
c. societal
d. personal
e. self-esteem
When deciding on which products to stock, buyers encounter all of the following
conflicts EXCEPT:
a. maintaining a strong in-stock position on genuinely new items while avoiding the
losers.
b. maintaining a high turnover goals at the same time you are maintaining a high margin
on all items in the store.
c. maintaining an adequate selection for customers while not confusing them.
d. maintaining space productivity and utilization while not congesting the store.
e. maintaining an adequate stock of the ‘basic’ items while still keeping money aside to
capitalize on unforeseen opportunities.
High-profit performance retailers must always be on the offensive in their study of the
changing competitive environment, especially its _____ competition.
a. local
b. statewide
c. nationwide
d. worldwide
e. industry
The _____ dollar inventory planning technique states that the percentage fluctuations in
monthly stock from average stock should be half as great as the percentage fluctuations
in monthly sales from average sales.
a. partial stock
b. stock-to-sales
c. basic stock
d. percentage variation
e. weeks’ supply
_____ occurs when two retailers buy an identical amount of ‘like grade and quality’
merchandise from the same supplier but pay different prices.
a. Horizontal price fixing
b. Vertical price fixing
c. Price discrimination
d. Deceptive pricing
e. Predatory pricing
_____ signage is placed closer to the merchandise and is intended to give details about
specific merchandise items.
a. Fixture
b. Directional
c. Point-of-sale
d. Price/info
e. Category
If a retailer has a return on assets of 15 percent and a net profit margin of 3 percent,
then its rate of asset turnover is:
a. .20 times.
b. 5.0 times.
c. 15.0 times.
d. 30.0 times.
e. 60.0 times.
The beginning of a retailer’s strategic planning process is the formulation of the
retailer’s:
a. goals and objectives.
b. opportunity analysis audit.
c. alpha statement.
d. mission statement.
e. strategy statement.
The Sherman Antitrust Act sought to:
a. restrict the amount of imports into the United States.
b. eliminate price differences among competing suppliers.
c. prevent unfair or deceptive advertising and selling practices within a marketing
channel.
d. prevent monopolies or conspiracies that are in restraint of trade.
e. establish the first Federal “Fair Trade” Agency.
While driving across town, you notice that your car’s gas tank is almost empty. The
situation in which your desired state departs sufficiently from your actual state is
termed:
a. need recognition.
b. problem recognition.
c. habitual problem solving.
d. want.
e. extended problem solving.
All of the following are methods of dollar merchandise planning EXCEPT:
a. stock-to-sales ratio.
b. percentage variation.
c. basic stock.
d. week’s supply.
e. valuation turns.
The retail model that shows how shows how inventory, space, and labor resources
interrelate to yield high resource productivity is known as the:
a. Retail Resource Trinity Model.
b. Gross Margin Return on Space.
c. Retail Margin Model.
d. Gross Margin Return on Inventory.
e. Gross Margin Return on Labor.
A _____ pricing strategy involves the use of high everyday prices and low leader
‘specials’ on featured items in a retailer’s weekly ads.
a. flexible
b. leader
c. competitive
d. variable
e. high-low
Ambience refers to the overall feeling or mood projected by a store through its aesthetic
appeal to the human senses.
Pricing laws influence retailers in determining what price they should pay for a product.
What are the advantages and disadvantages of dual distribution? Independent retailers
argue that it is an unfair method of competition. Do you agree or disagree? Explain your
answer.
“Are new firms entering or are existing firms leaving? What is the impact on us?” is an
example of a ‘opportunity.”
Reframing involves how to reconfigure resources of the current retail business model
around changes in form, time, place, possession and target market.
Recognizing and capitalizing on the unique experiencing of value by each customer is
one of the biggest challenges in retailing.
The gondola is inappropriate for fashion-oriented softline merchandise.