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Exam Review/Retail Industry Fundamentals

Total questions: 56

Worksheet time: 28mins

Name
Class
Date
1.

Which of the following is a standard term that describes the audience of retail stores-that is, the people who will buy things from a store?

a)

Manufacturers

b)

Wholesalers

c)

Buyers

d)

Customers

2.

Which of the following is a term for intangible things, such as providing delivery, that are sold by retailers?

a)

Gifts

b)

Training

c)

Services

d)

Products

3.

Which of the following terms best describes a grower of potatoes?

a)

Manufacturer

b)

Wholesaler

c)

Distribution center

d)

Retailer

4.

The majority of retailers are:

a)

Independently owned

b)

Corporations

c)

Franchises

d)

Online only

5.

Which of the following is the term for the retailing approach that places the focus on creating a seamless shopping experience for customers by integrating multiple channels?

a)

Multichannel

b)

Omnichannel

c)

Integrated Channel

d)

Seamless Channel

6.

Approximately what percentage of U.S. jobs are retail jobs, as of 2019?

a)

5-10%

b)

10-15%

c)

20-25%

d)

35-40%

7.

What kinds of things does a manufacturer produce?

a)

Raw materials

b)

Fossil fuels

c)

Services

d)

Finished products

8.

Which of the following holds large quantities of product that are later sent either to retail locations or directly to customers?

a)

Manufacturer

b)

Wholesaler

c)

Distribution center

d)

Retailer

9.

Which of the following would NOT be a factor that affects which products a retailer chooses to select to offer in a store?

a)

Local customer preferences

b)

Manufacturer incentives

c)

Employee preferences

d)

The store's location

10.

What's the term that describes distributing merchandise from the manufacturer to a retailer's locations?

a)

Innovation

b)

Allocation

c)

Alleviation

d)

Reimagination

11.

What's the term for reducing the price of an item in order to encourage sales?

a)

Net profit

b)

Margin

c)

Markup

d)

Markdown

12.

Which of the following is a term for the overall impression gathered from information that is seen, heard, and experienced by customers who encounter a business, its products and services?

a)

Brand promise

b)

Positive feeling

c)

Company culture

d)

Company brand

13.

Which of the following best defines quality customer service?

a)

Delivering a positive, memorable experience that is more than what the customer expected.

b)

Adhering to company policies when processing returns.

c)

Doing exactly what company procedures say to do.

d)

Offering free items to customers in order to keep them coming back.

14.

After one negative experience, approximately what percentage of people say they will never do business with that company again?

a)

10%

b)

20%

c)

50%

d)

75%

15.

Which of the following is NOT a step in the basic selling process?

a)

Make a connection

b)

Recite product features

c)

Personalize service

d)

Assess needs

16.

Which of the following describes a type of question that cannot reasonably be answered with "yes" or "no"?

a)

A leading question

b)

An open question

c)

An open-ended question

d)

A closed-ended question

17.

Which of the following describes a type of question that is designed to elicit a "yes" or "no" answer?

a)

A leading question

b)

An open question

c)

An open-ended question

d)

A closed-ended question

18.

Which term best describes hearing and understanding what a speaker is saying out loud and any messages suggested behind the words?

a)

Patient listening

b)

Foundational listening

c)

Active listening

d)

Passive listening

19.

Which of the following is the best way to demonstrate that you have understood a customer?

a)

Restate and summarize their needs

b)

Ask the customer to repeat what they said

c)

Restate the customer's exact words

d)

Ask the customer a follow-up question

20.

Which of the following is an example of upselling?

a)

"I also have this other laptop that has most of the same features as the one you're looking at, but at a lower price-it's on sale!"

b)

"I'm sure you'll love those basketball sneakers. Do you also need any T-shirts or shorts?"

c)

"I love the TV model you're looking at; let me show you a different model with similar features, for the same price, so you an see another brand."

d)

"Would you like that as a meal? You can get fries, plus a medium drink, for an extra $2.00."

21.

If a customer was about to purchase a soccer ball, which of the following would be the best item to try to cross-sell?

a)

A basketball

b)

Soccer shorts

c)

A soccer goal frame and net

d)

A baseball bat

22.

Shoplifting is a chronic, expensive problem in the retail industry. In 2016, shoplifting losses were around:

a)

$50 million

b)

$500 million

c)

$5 billion

d)

$50 billion

23.

A retailer's total inventory is:

a)

All inventory a retailer has on order

b)

All inventory available in the retailer's physical stores

c)

All inventory owned by the retailer, regardless of its location

d)

All inventory sold within the past year

24.

Other than in the stockroom, where is a store's inventory kept?

a)

At the distribution center

b)

On the sales floor

c)

At the manufacturer

d)

In the office

25.

The process of automatic or manual ordering to meet product demands is called:

a)

Inventory replenishment

b)

RFID

c)

PLU

d)

Excess Inventory

26.

The process of placing inventory on sales floor shelves, racks or other displays to be sold is called:

a)

Back stock

b)

Out-of-stock

c)

Stocking

d)

Excess inventory

27.

Extra inventory kept on hand in case of customers buy more than the company estimated before the next shipment arrives

a)

Safety stock

b)

Out-of-stock

c)

Back stock

d)

Excess Inventory

28.

When products arrive at a physical store, the process used to enter it into the store's on-hand inventory is called:

a)

Stocking

b)

Inventory replenishment

c)

Receiving

d)

Inventory tracking

29.

Juliana is stocking shampoo on the sales floor. She finds a bottle that has a hole and is leaking shampoo, and throws it out. She then continues stocking and moves on with her day. Which of the following would then be true?

a)

The inventory system's numbers would still be accurate.

b)

The number of shampoo bottles in the inventory system would be too high.

c)

The number of shampoo bottles in the inventory system would be too low.

d)

The inventory would need to be counted manually.

30.

Shoplifting is a chronic, expensive problem in the retail industry. In 2016, shoplifting losses were around:

a)

$50 million

b)

$500 million

c)

$5 billion

d)

$50 billion

31.

These devices are specifically intended to be attached to clothing in order to prevent theft, and require a special tool to remove

a)

SKUs

b)

PLUs

c)

Non-electronic ink

d)

Electronic tags

32.

These devices are used primarily to prevent the theft of high-priced items, particularly small ones.

a)

Display or fixture locks

b)

Non-electronic ink tags

c)

Electronic tags

d)

PLUs

33.

If a POS system detects credit card or debit card fraud, what will it do?

a)

Sound an alarm

b)

Decline the transaction

c)

Process the transaction

d)

Place an automated call to security

34.

What's the specific term for the situation in which a customer purchases a new item and then returns an old, damaged, similar item using the new item's receipt?

a)

Receipt fraud

b)

Switch fraud

c)

Identity theft

d)

Return fraud

35.

Which of the following is NOT an example of employee fraud or theft?

a)

Intentionally pricing items incorrectly.

b)

Giving products away to friends or family.

c)

Chatting with coworkers when there's stocking to be done.

d)

Taking a coffee break.

36.

What percent of shoplifting is due to employee theft?

a)

20%

b)

30%

c)

40%

d)

50%

37.

Which agency or law protects employees against hazards in the workplace?

a)

ADA

b)

OSHA

c)

FMLA

d)

FDIC

38.

Which agency or law protects employees who report unlawful or unsafe practices?

a)

Whistleblower Protection Act

b)

Americans with Disabilities Act

c)

Family and Medical Leave Act

d)

Unsafe Practices Act

39.

Which of the following is a proper lifting technique?

a)

Lift close to your body

b)

Keep your feet close together

c)

Lift with your back

d)

If you're straining, bend your knees

40.

If you see a spill of food or liquid on the sales floor, what's the first thing you should do?

a)

Call for a custodian or maintenance person to clean it up

b)

Find a mop or broom and clean it up yourself

c)

Find out who was responsible for causing the spill

d)

Stand near or over the spill to direct traffic away from it until it can be cleaned up

41.

Which of the following is the specific term that describes an injury caused by an item falling off a shelf and hitting a person?

a)

Accidental injury

b)

Negligence

c)

Struck-by injury

d)

Struck-against injury

42.

Which of the following refers to the total amount of money that a retailer brings in?

a)

Profit

b)

Revenue

c)

Cost of Goods Sold

d)

Operating costs

43.

Which of the following refers to the amount of money that a retailer makes after accounting for expenses?

a)

Profit

b)

Revenue

c)

Cost of Goods Sold

d)

Operating costs

44.

Which of the following refers to the difference between revenue and all expenses, including the cost of goods sold and operating expenses?

a)

Net profit

b)

Gross profit

c)

Profit margin

d)

Profit margin percentage

45.

What's the term for reducing the price of an item in order to encourage sales?

a)

Net profit

b)

Margin

c)

Markup

d)

Markdown

46.

If a business' revenue is $1,150 and its cost of goods sold (COGS) is $734, what is the business' gross profit?

a)

$1884

b)

$516

c)

$416

d)

There's not enough information to calculate this

47.

If a business's gross profit is $100 and its revenue is $500, what is the business' profit margin percentage?

a)

20%

b)

100%

c)

25%

d)

There's not enough information to calculate this

48.

Which of the following is NOT a concept that helps you manage your time effectively?

a)

Organizing

b)

Prioritizing

c)

Procrastinating

d)

Focusing

49.

Part of effective time management is prioritizing tasks. Which of the following is NOT a code that you would use when setting priorities?

a)

Do

b)

Delegate

c)

Designate

d)

Delay

50.

Suppose that Bill and JoAnne are sales associates at a retailer. Bill says to JoAnn: "I'm not getting to work the shifts I want-I can't believe that Alexis only gave me 6 hours this week. I don't even think I can make my rent this month if this doesn't change." What's the problem that Bill is facing?

a)

He doesn't like the times when he works

b)

He isn't getting assigned enough hours and worries about the financial consequences of having a lighter schedule than he expected

c)

He doesn't like his manager

d)

He wants to work in a different part of the store

51.

Which of the following is a SMART goal?

a)

I will improve my sales.

b)

I will increase my monthly sales volume by 20% by the end of March.

c)

I will increase my sales volume until my manager is happy with my performance.

d)

I will increase my monthly sales volume every month.

52.

What's the term for a very brief speech that you can use to sell yourself to people you meet?

a)

A job post

b)

A keynote speech

c)

An elevator pitch

d)

A sales presentation

53.

If you have a job interview scheduled for 1:00PM, when's the best time to arrive at the store where you're being interviewed?

a)

1:00 PM

b)

12:30 PM

c)

12:45 PM

d)

12:59 PM

54.

What's the standard method to use to thank an interviewer after the interview?

a)

Via email

b)

Via text message

c)

Via phone call

d)

By sending a card in the mail

55.

Which of the following comments would be inappropriate in a social media post?

a)

Retail friends: I'm looking for a sales associate position, so if you know anyone, feel free to mention me!

b)

Joe, send me your demo reel and I'll talk to my producer friend about you.

c)

Quit my job today! No more being exploited and unappreciated!

d)

Thanks to Walgreens for filling my prescription so quickly!

56.

Which of the following is a term for physical goods that are bought and sold?

a)

Sales

b)

Products

c)

Pricing

d)

Services