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Retail 2000 Chapter 3

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Staple goods include milk and shampoo.

a)

True

b)

False

2.

Fashion goods are items that are used at a consistent rate and replaced as they are used.

a)

True

b)

False

3.

Fashion goods are items that are used at a consistent rate and replaced as they are used.

a)

True

b)

False

4.

In order to buy direct, retailers must place small frequent orders.

a)

True

b)

False

5.

Some agents cannot negotiate price with the retailer.

a)

True

b)

False

6.

Some agents cannot negotiate price with the retailer.

a)

True

b)

False

7.

Bottom-up planning starts at the store level.

a)

True

b)

False

8.

To calculate your planned purchases, subtract your planned sales from the quantity in inventory.

a)

True

b)

False

9.

Most merchandise budgets are written for a one-year period.

a)

True

b)

False

10.

The terms of sale include the payment and shipping arrangements for the products.

a)

True

b)

False

11.

Internal sources of information that will help a retailer choose merchandise include

a)

vendors

b)

customers

c)

want slips

d)

all of the above

12.

The merchandise mix is

a)

the variety of merchandise a store offers.

b)

the profit earned from sales.

c)

seasonal items sold at other times of the year.

d)

the customer services available at a store.

13.

A specialty store will have

a)

shallow depth.

b)

wide breadth.

c)

narrow breadth.

d)

a merchandise mix similar to a department store.

14.

The process of moving the products to the consumer is

a)

retail.

b)

using an agent.

c)

delivery.

d)

distribution.

15.

The middleman that buys from the producer and sells to retailers is

a)

a distributor.

b)

a wholesaler.

c)

an agent.

d)

a consumer.

16.

The only member of a distribution channel that never owns the product is the

a)

producer.

b)

wholesaler.

c)

agent.

d)

retailer.

17.

Merchandise classifications are also known as

a)

stockkeeping units.

b)

retail groups.

c)

product types.

d)

distribution families.

18.

The model stock plan identifies

a)

the basic stock list.

b)

the quantity of each product that should be available on the first of the month.

c)

the location of every item on the store shelves.

d)

all of the above.

19.

The first step in creating a merchandise budget is

a)

create a model stock plan.

b)

estimate sales.

c)

estimate profit.

d)

estimate expenses.

20.

A trade discount is

a)

also known as a functional discount.

b)

expressed as a chain.

c)

given to the buyer for performing a service.

d)

all of the above.