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WorksheetsBusiness of Retail: Operations & Profit Practice Exam Questions
Total questions: 100
Worksheet time: 50mins
A sales associate notices that several fragrance display tables have been empty well before the close of business for the past few days. Which solution would be MOST effective for ensuring that the product is visible and available at all times?
Increase the number of tables for fragrance displays.
Keep stock reserves of the fragrance under the tables.
Have associates at the tables offer samples and restock as needed.
Place as much fragrance as possible on the tables at the start of each day.
Which of the following examples demonstrates the BEST way to keep a customer coming back to the floral shop?
Attractive displays.
Complimentary coffee.
Incentive/rewards program.
Various payment methods.
What is the process of rotating perishable items that may expire so that the newest items are behind the older items?
Stocking.
Upselling.
Cross-selling.
First In, First Out.
What is acknowledging and welcoming the customer in a cheerful way in attempt to establish a rapport with them called?
Assessing needs and interest.
Making a connection with the customer.
Recommending comprehensive solutions.
Listening and confirming customers' needs.
What is the BEST strategy for dealing with negative customer feedback posted on customer surveys or social media?
Encourage the feedback and think of the comments as free market research.
Ignore negative comments because unhappy customers often just like to complain.
Remove the complaints from social media sites so that other customers will not see them.
Contact the customers with complaints and offer discounts on their next purchases.
Entering a product code inaccurately for a purchase will affect which of the following?
Salesperson's ID record.
Customer's credit rating.
Inventory tracking records.
Customer’s identification records.
Carefully choosing the right assortment of items to sell that meets the needs of customers and aligns with company brand is what marketing plan component?
Price.
Place.
Product.
Promotion.
What model of retailer grants a license to another party to market and sell its products or services and each location is owned by a different person or group?
Franchise.
Independent.
Corporation.
Private Company.
A 24/7 pharmacy wants to conduct physical inventory. When would be the BEST time for them to schedule inventory?
During the weekends.
At the end of the week.
During slow sales times.
At the beginning of each week.
A retailer's goal is for supply to be ________ demand.
Equal to.
Less than.
Unequal to.
Greater than.
The protective rubber end of the clothing fixture came off and a customer accidentally scratched their arm after they walked too close to the fixture. What kind of safety problem does this describe?
Struck-by injury.
Whistleblower Act.
Slips, trips, and falls.
Workplace Violence.
What is the process of either manually or automatically ordering product to replace items that have been sold called?
Stocking.
Purchasing.
Discounting.
Inventory replenishment.
Sales for cranberry sauce increase during the months of November and December. Inventory arrives in the warehouse four months before shipping to stores. In what month will the warehouse need to start allocating more space for storing cranberry sauce?
June.
July.
August.
September.
A store marks down a jacket from 125to 75. What is the markdown amount?
$45.
$50.
$55.
$60.
What are strategies used by retailers to make a product appealing, incentivize customers to purchase or generate sales called?
Placement.
Promotions.
Value Pricing.
Personalizing products.
A lot of 20 hats costs 60,andtheretailerwantstomakeaprofitof 10 on each hat. How should the retailer price each hat?
$10.
$13.
$14.
$20.
If a retail business' revenue is 4,625andthecostofgoodssold(COGS)is 3,150, what is the gross profit?
$1,275.
$1,375.
$1,475.
$1,575.
A customer's child slips, falls, and gets a scratch on the elbow, but appears to be otherwise unhurt. What should the employee do FIRST?
Get the first aid kit.
Notify the store manager.
Ask the parent if the child is okay.
Gently suggest the child be more careful.
Which component is usually the FIRST one in a distribution channel?
Retailer.
Customer.
Wholesaler.
Manufacturer.
An independent pharmacy wants to increase the average customer spend from 14to 20. What would be the BEST strategy to reach that goal?
Put a SALE sign in the window.
Increase the prices of best seller items.
Increase the number of markdown products.
Offer several items to buy together for a discounted price.
A new flower shop completed its first big party, and wants to attract additional business and create a loyal clientele. Which is the MOST effective way to do this?
Take pictures of the event and make posters for the shop.
Create attractive floral displays and signs for customers who visit.
Ask satisfied customers for feedback, referrals and opportunities to serve their upcoming events.
Place an ad in the local newspaper, showing the shop's address, telephone number, and site address.
At checkout, a customer asks for a discount on a slightly damaged lamp they would like to purchase. Company policy allows a 15% discount on visibly damaged items at checkout. How much will the customer save on the lamp that is currently priced at $39.99?
$5.00
$5.15
$6.00
$6.15
A customer walks into a car rental office looking to rent a sport utility vehicle, but the last one was just rented to another customer. The customer seems really interested in that specific type of car, and the closest car rental office is 8 miles away. What would be the BEST thing to say to the customer?
"I'm sorry, but the sport utility vehicle isn't available anymore. Would you be interested in renting another car?"
"I just rented our last sport utility vehicle five minutes ago. If you would have just arrived 10 minutes before, I could have rented that one to you."
"I'm sorry but all the sport utility vehicles are rented out. In the future, I'd recommend going online to rent the car in advance. Those cars are really popular!"
"We have similar cars available in case you'd like to consider other options, but if you really want that one, we have another office a few miles away. Would you like me to check if they have one available?"
What is the action of promoting and selling products and services through advertising and promotions called?
Displays.
Marketing.
Social Media.
Merchandising.
What regulation would support a worker who wasn't given protective gear on the job?
FLSA (Fair Labor Standards Act).
ADA (Americans with Disabilities Act).
FMLA (Family and Medical Leave Act).
OSHA (Occupational Safety and Health Administration).
A retailer factors in utilities, marketing, and real estate rental costs when calculating their prices. What are these costs considered?
Vendor costs.
Unnecessary costs.
Manufacturing costs.
Operational expenses.
A store offers a limited warranty on its laptops. A customer complains that the computer they purchased is defective and wants to return it. What should the associate do?
Call the supervisor to complete the return.
Immediately offer to replace the product free of charge.
Tell the customer to send the product back to the manufacturer for a full refund.
Ask the customer when the purchase was made and how the computer was operating.
What is the process called when products arrive at a physical store and are placed on the sales floor to be sold?
Stocking.
Receiving.
Inventory tracking.
Inventory replenishment.
What is the system that connects customers with the merchandise and services they want and when, where, and how they want to experience and purchase them called?
Retail passage.
Retail ecosystem.
Retail opportunity.
Retail delivery method.
When should a store mark down its products?
When they aren't selling fast enough.
When sales are low and/or a season has ended.
When its competitor marks down the same product.
When customers complain that the item is too expensive.
A sales associate sees a shopper leaving a cart full of merchandise behind, including perishable items. Which of the following should the associate do?
Put the cart aside and take care of it at the end of the day.
Inform the manager about the abandoned cart full of merchandise.
Put the items back in the shelves, starting with the perishable items.
Ask the customer to place the items back where they belong before leaving the store.
A fast food store just launched a Mix and Match Deal. Customers can purchase any 2 items on the menu for $5. This is an example of which pricing strategy?
Combo pricing.
Bundle pricing.
Psychological pricing.
Promotional discount.
An associate sees a customer put a shirt in a shopping bag without paying for it. Which of the following should the associate do?
Follow the customer.
Confront the customer.
Ask another associate for help.
Notify management or security.
A sales associate notices that customers are entering the store by the tables of golf balls and golf accessories cold and unprepared for the rainy weather. Which action would be BEST for the associate to take to ensure that the customers' needs are being met?
Inform the department manager that the sales floor is not merchandised properly.
Pull sales reports on the sale of winter items and show the figures to the store manager.
Direct the customers who appear cold toward the merchandise that interests them.
Suggest to the manager they create an inviting display of sweaters, scarves, and umbrellas at the store entrance.
If a store's revenue is 2,150anditscostofgoodssold(COGS)is 850, what is the business's gross profit?
$300.
$1,300.
$2,300.
$2,500.
It is the end of the summer season and a particular style of neon Hawaiian shirt has not sold well. What is this an example of?
Improper pricing.
Improper stocking.
More demand than supply.
More supply than demand.
After conducting a periodic inventory, a small beauty store finds that they have five fewer lipsticks than what is shown as being in inventory. How should the associate categorize the five missing lipsticks?
Shrinkage.
Safety stock.
Out of stock.
Excess inventory.
What do we call companies that offer similar products or services and target the same customer base?
Direct competitors.
Indirect competitors.
Strategic partners.
Replacement competitors.
What does the FIFO method ensure?
Top-selling items are in the front.
Top-selling items are in the back.
Items with the nearest-term expiration dates are in the front.
Items with the nearest-term expiration dates are in the back.
What is the best example of merchandise adjacency?
Baby clothing close to diapers.
Baby clothing close to car tires.
Baby clothing close to video games.
Baby clothing close to garden supplies.
What type of retail ownership describes a business that is owned by shareholders through publicly traded stock, operates many stores, and has centralized decision-making?
Franchise.
Corporation.
Independent.
Private Company.
What type of fraud involves intentionally pricing items incorrectly and issuing fraudulent gift cards?
Vendor.
Customer.
Employee.
Ecommerce.
What system includes barcode scanners, registers, card readers, and checkouts?
POD.
POE.
POS.
POC.
An associate responsible for training sees a new employee leave a jewelry case unlocked. The new employee then leaves the area to help a customer. What should the associate responsible for training do FIRST?
Lock the case immediately.
Alert the manager about the problem.
Remind the new employee to lock the case.
Watch the case to make sure customers don't open it.
What do retailers most commonly use to predict how well their products will sell?
Stocking.
POS system.
RFID technology.
Historical data and trends.
What type of fraud occurs when a customer returns a damaged item they already own, keeps the working item, and receives their money back?
Refund.
Customer.
Employee.
Ecommerce.
What's the term for companies that seek the same customer's money but offer products that meet different needs?
Direct competitors.
Partner competitors.
Indirect competitors.
Replacement competitors.
A sales associate recently remerchandised the sales floor and would like to determine whether the new setup is more effective than the old setup. Which is the BEST way for the associate to accomplish this?
Listen to what customers are saying and observe how they are reacting to the new merchandising setup.
Pull sales reports from before and after the merchandising change and compare the associated sales figures.
Take notes about the number of displays and whether the frequency of restocking is increasing or decreasing.
Ask customers for feedback relating to the new merchandising setup and whether it is useful and improved.
While the season is changing from winter to spring, a manager asks a sales associate for ideas on a sales strategy that will help clear out the remaining winter merchandise. Which of the following strategies is MOST likely to help reach this goal?
Put up signs throughout the store stating that all winter merchandise is "while supplies last."
Suggest shipping the winter merchandise to an outlet store to make room for the spring line.
Introduce an employee incentive plan for the salesperson who sells the most winter apparel that week.
Reduce pricing on winter apparel by 50% or more and add incentives for purchasing scarves, hats and gloves.
What does the "S" in MSRP stand for?
Store.
Solution.
Standard.
Suggested.
It is the end of the holiday season and the retail store is already beginning to receive items for the next holiday, Valentine's Day. What tactic should the store do to help make room for the new items?
Mark up the holiday items.
Discontinue the holiday items.
Mark down the holiday items.
Mark the holiday items out of stock.
What is the FIRST thing a retail associate should do if someone spills soda or food onto the sales floor?
Clean up the spill.
Put a barrier around the spill.
Inform the manager about the spill.
Call for a custodian to clean up the spill.
A new pet grooming store is opening in town and wants to promote the business. What is the BEST way to reach the target audience?
Give flyers to people walking on the street.
Put an ad in the local newspaper with the opening date and services available.
Identify pet owners in the area to send an invitation to the opening with a coupon.
Put up "Coming Soon" signs in the store windows indicating the opening date.
What is the formula for calculating gross margin percentage?
(Revenue – Cost of Goods Sold) ÷ Revenue × 100.
Revenue ÷ Cost of Goods Sold × 100.
Cost of Goods Sold ÷ Revenue × 100.
Revenue – Cost of Goods Sold.
An associate left a pallet with merchandise in front of one of the stockroom's emergency doors and indicated a return to the pallet in 10 minutes. Could this be a potential hazard?
No. It is very unlikely that an emergency will occur in the next 10 minutes.
Yes. If there is a fire in the store, that exit would be completely blocked.
No. Customers don't have access to the stockroom, so they won't be using this door anyway.
Maybe. Emergency doors need to fully accessible. However, the store has other emergency exits that can be used in case of emergency.
Using the manufacturer's suggested price is a pricing strategy to prevent competitive pricing between retailers. What is this strategy called?
Vendor pricing.
Keystone pricing.
Discount pricing.
Competitive pricing.
Effective service includes concentrating on understanding the needs of the customer, paying attention to their body language, and maintaining eye contact. What is this step in the selling and service process called?
Listen and confirm customer's needs.
Make a connection with the customer.
Recommend comprehensive solutions.
Use open-ended questions to gather information.
What should a sales associate do when working with a dissatisfied customer?
Offer personalized discounts to close the sale.
Require the customer to sign up for the retailer's loyalty program.
Use open-ended questions to gather information about a customer's needs.
Explain warranty information and the return policy for each item in the store.
What is the best way to prevent shoplifting?
Let customers know they are being observed.
Videotape every customer that enters the store.
Offer quality customer service and greet all customers.
Check the receipt and every customers bag when they leave to verify what they purchased is on their receipt.
What is the difference between revenue and cost of goods sold, or the amount of money a retailer makes before taking expenses into account?
Revenue.
Net profit.
Gross profit.
Gross margin.
If an employee is injured at work, they may be eligible to file a claim to help them receive partial pay, pay medical bills, and receive treatment for injuries. What rule provides this protection?
Workers' Compensation.
Fair Labor Standards Act.
Family and Medical Leave Act.
Whistleblower Protection Act
When is the BEST time to introduce a customer to additional service programs?
As early in the sales process as possible.
After a transaction has been completed.
After determining the customer's price point.
When the customer asks about a service program.
A customer is exiting the store and the alarm at the front of the store sounds, notifying store employees that an electronic article surveillance tag may not have been deactivated. What's the BEST next step?
Notify store security.
Call your manager to handle it.
Tell the customer it happens all the time and to have a good day.
Stop the customer and ask them to review their receipt to ensure the item has been purchased. Then, deactivate the tag.
A spa wants to grow its clientele, so they created a friends and family discount package. Which marketing technique was used?
Advertising.
Sales promotion.
Direct marketing.
Influencer marketing.
Why is it important to keep the back room area clean and organized?
To create a pleasing environment.
To discourage employees from using the back room.
To look nice should customers have a need to go in that area.
To keep employees safe and make it easy to find merchandise.
What act protects an employee from being fired or mistreated for reporting workplace problems or misconduct?
Fair Labor Standards Act.
Whistleblower Protection Act.
Family and Medical Leave Act.
Americans with Disabilities Act
A man is looking for a birthday gift for his wife and he knows that she wants a pair of gold earrings that are from a particular chain jewelry store. Once the sales associate realizes that the item is not in stock, what is the MOST appropriate next step in serving the customer?
Attempt to locate the item online or at one of the other stores.
Ask him to give his wife a call and see if she would like a bracelet instead.
Tell him that they are available online and he should purchase them there.
Explain that the item is out of stock and offer him a discount if he buys something else.
If a gym and a subscription-based meal delivery service both aim to attract customers who want to improve their health but offer different types of solutions, what type of competitors are they considered to be?
Direct competitors.
Indirect competitors.
Partner competitors.
Replacement competitors.
A store pays 13.00forabackpackandsellsitfor 20.00. Because of slow movement they need to mark down its price. What is the lowest percentage that they can mark down the backpack if they want to still make $3.00 in profit?
10%.
15%.
20%.
25%
What act prohibits employers from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, training, or other terms?
Fair Labor Standards Act (FLSA)
Whistleblower Protection Act (WPA)
Americans with Disabilities Act (ADA)
Occupational Safety and Health Administration (OSHA)
A company that owns several convenience stores wants to know how well the company is doing financially. What KPI (key performance indicator) would best capture their revenue?
Inventory shrinkage rate
Customer retention rate
Sales per square footage
Average time at the register
One of the mannequins is displaying an outfit that is sold out. However, that display has attracted a lot of traffic to your store. What should you do?
Leave it as it is since the display has been a total success.
Leave the mannequin as it is and put a sold out sign next to it.
Order more of the clothes that the mannequin is wearing.
Change the mannequin with clothes available on stock, so it doesn't mislead customers.
What is the first thing a sales associate should do when finding broken glass on the sales floor?
Find a broom and clean up the broken glass.
Make management aware of the broken glass.
Call for a custodian to clean up the broken glass.
Put a temporary barrier around the broken glass.
What did the manager of a small clothing store realize could be increased by cutting unnecessary operating expenses?
Prices
Revenue
Net Profit
Cost of Goods Sold
A salon manager asked a sales associate to mark down all shampoo by 15%. Shampoo is regularly $10.95. What price will the shampoo be when marked down?
$9.31
$9.86
$10.75
$10.80
Which of the following is a standard term that describes the audience of retail stores—that is the people who will buy things from the stores?
Manufacturers
Wholesalers
buyers
customers
What kinds of things does a manufacturer produce?
Raw materials
Fossil fuels
Services
Finished products
Which of the following is a term for intangible things, such as providing delivery, that are sold by retailers?
Gifts
Training
services
products
Which of the following is a term for physical goods that are bought and sold?
Sales
pricing
Products
services
What term describes delivering a positive, memorable experience that is more than what the customer expected?
Customer service
Quality customer service
Service
Sales
Other than in the stockroom, where is a store’s inventory kept?
at the distribution center
on the sales floor
at the manufacturing
in the office
A retailer’s total inventory is:
all inventory a retailer has on order
all inventory available in the retailer’s physical stores
all inventory owned by the retailer, regardless of its location
all inventory sold within the past year
A retailer’s profit is:
the amount the company spends
the amount the company makes in sales
the amount a company owes
the amount the company gets to keep, after expenses
A customer has $300 to spend on a gift and is considering buying either a product at Best Buy or a product at Brooks Brothers. What type of competitive relationship exists between the two retailers in this situation?
direct competitors
indirect competitors
replacement competitors
rival competitors
This is extra inventory kept on hand in case customers buy more than the estimated amount before the next shipment arrives.
safety stock
back stock
replenishment
out-of-stock
The process of placing inventory on sales floor shelves, racks or other displays to be sold is called:
back stock
out-of-stock
stocking
Excess inventory
The term for when a retailer has run out of a particular item is:
safety stock
out-of-stock
back stock
excess inventory
These devices are used primarily to prevent the theft of high-priced items, particularly small ones.
display or fixture locks
non-electronic ink tags
electronic tags
PLUs
If a POS system detects credit card or debit card fraud, what will it do?
sound the alarm
decline the transaction
process the transaction
place an automated call to security
What should a retail employee do if they witness organized looting?
approach the looters and try to stop them
call a manager or security
run out of the store
sound an alarm
Which agency or law protects employees against hazards in the workplace?
ADA
OSHA
FMLA
FDIC
Which is not a component of a marketing plan?
Planogram
Product
Price
Promotion
When doing a store walkthrough, you see spilled soda on the floor. What do you do first?
Get a cone or marker and put it near the spill so that no one will walk on it
Tell your manager
Ignore the issue—maintenance will take care of it
Clean it up
The FIFO method makes sure that which of the following occurs:
Items with the nearest term expiration dates are in the front of the shelf
Items with the nearest term expiration dates are in the back of the shelf
Top selling items are in the front of the shelf
Top selling items are in the back of the shelf
If a business’ revenue is 1,150anditscostofgoodssoldis 734, what is the business’ gross profit?
$1884
$516
$416
There is not enough information to calculate this.
A job description typically contains:
The name of the supervisor
A description of the job’s responsibilities
The specific career path for an individual starting with the company in this position
The exact hours that a person in this job works each week
When you update your resume, what should you always update at the same time with your new skills and job experience? Employers often look at this even before your resume.
Your Facebook page
Your Instagram profile
Your Linkedin profile
Your TikTok profile
When describing your skills and experience, it’s important to:
Begin sentences with “I did…”
Use action verbs
Use sentence directly from the job description
List the names of your coworkers
Which of the following is not typically counted as “compensation” that an employee receives?
Hourly pay
Bonus pay
Free coffee in the breakroom
Sales commissions
What is one thing you should not do when a team member gives you constructive feedback?
Thank the person
Actively listen
Debate the feedback
Follow up on the feedback
