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Retail management Study Guide Questions/ 200 Exam Questions with Correct Answers – Latest Update 2024.
An overall framework of action that guides a retailer is its ________. - Correct Answer - retail strategy
A major advantage of a firm's developing a retail plan is that it ________. - Correct Answer - anticipates and may avoid a crisis
Each of the steps in a retail strategy is ________. - Correct Answer - interdependent with other steps
The candid evaluation of the opportunities and potential problems facing a prospective or existing retailer is referred to as ________. - Correct Answer - situation analysis
A retailer's commitment to a type of business and to a distinctive role in the marketplace is its ________.
- Correct Answer - organizational mission
Which ownership and management alternative is fully controlled by the owner, operationally flexible, and subject to single taxation by the government? - Correct Answer - sole proprietorship
In which ownership and management alternative is the owner personally liable with regard to legal claims from suppliers, creditors, and others? - Correct Answer - sole proprietorship
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pg. 2 Benefits, profits, risks, and costs are shared in which retail ownership and management alternative? - Correct Answer - partnership
Which statement concerning the partnership form of ownership is not correct? - Correct Answer - Partnerships are subject to double taxation.
Which form of ownership is a legal entity apart from its individual officers or stockholders? - Correct Answer - corporation
Which retail ownership form has the greatest capacity for long-term existence? - Correct Answer - corporation
Ownership may be separated from management in which retail ownership form? - Correct Answer - corporation
A major advantage of buying an established business versus starting a new business is ________. - Correct Answer - the generation of ongoing sales and profits
A major disadvantage of buying an established business versus starting a new business is ________. - Correct Answer - less flexibility in enacting a strategy tailored to the new owner
A retail ownership form which combines independent ownership and managerial assistance is ________.
- Correct Answer - franchising
Rigid operations' standards and a limitation on the product lines sold characterize ________. - Correct Answer - franchising
In which management format does planning tend to be more formal and systematic? - Correct Answer - professional manager system
Planning authority is limited to top management or ownership in a(n) ________. - Correct Answer - centralized system
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pg. 3 Managers in individual departments have major input into decision making in a(n) ________. - Correct Answer - decentralized structure
In planning his or her family's financial needs during the unprofitable stage of a newly started business, a retailer should utilize ________. - Correct Answer - a personal drawing account
Sales objectives are generally in the form of ________. - Correct Answer - growth, stability, and/or market share
Market share sales' objectives are generally ________. - Correct Answer - pursued by only larger retailers or retail chains
Return on investment objectives are generally used by retailers that ________. - Correct Answer - have large capital expenditures
A retailer with sales of $10 million and operating expenses of $2 million has an efficiency rating of ________. - Correct Answer - 80 percent
Objectives that seek to satisfy stockholders, customers, suppliers, employees, and government are called ________. - Correct Answer - satisfaction of publics' objectives
A retailer can determine how consumers and others perceive its company through use of ________. - Correct Answer - positioning
The growth of specialty stores and boutiques illustrates the popularity of ________. - Correct Answer - niche retailing
A firm's target market best represents the ________. - Correct Answer - consumer group sought by a retailer
A retailer sells its goods and services to a broad spectrum of consumers in ________. - Correct Answer - mass marketing
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pg. 4 A retailer aims efforts at two or more distinct consumer groups, with different retailing approaches for each group, in ________. - Correct Answer - differentiated marketing
The distinct competencies of a retailer relative to competitors is referred to as its ________. - Correct Answer - competitive advantages
Those aspects of business that a retailer can directly affect (such as store hours and location) are referred to as ________. - Correct Answer - controllable variables
Which of the following is not a controllable variable? - Correct Answer - technology
Decision making relating to a retailer's daily and short-term operations involve ________. - Correct Answer - tactics
Sales revenues and employee turnover represent forms of ________. - Correct Answer – feedback
What are the critical environmental factors in the world of retailing? - Correct Answer - The macroenvironment: The impacts of this: including technological, social, and ethical/legal/political factors.The microenvironment: Focus specifically on its competitors and customers. Retailers must respond to broad demographic and lifestyle trends in our society.
When you have understood the micro- / macro environment it is time to formulating and implementing a retail strategy. What should it include? - Correct Answer - 1. The target market, or markets toward which retailer will direct its efforts.
- The nature of the merchandise and services the retailer will offer to satisfy needs of the target market.
- How the retailer will develop unique assets that enable it to achieve long term advantage over its
competitors.
Which are "only the tip of the iceberg"? Explain what this means. - Correct Answer - Sale associate, retail employees and cashiers collecting.
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