2026/2027
200 Practice Questions with Verified Answers
and Rationales
SECTION 1: RETAILING AND OMNICHANNEL STRATEGY (Questions 1-
30)
Q1. What are the four retailing options discussed in SCM 300?
A) Online, In-store, Catalog, Mobile
B) Brick and Mortar, Online/E-tailing, Bricks and Clicks, Clicks and Calls
C) Direct, Indirect, Hybrid, Virtual
D) B2B, B2C, C2C, D2C
Answer: B) Brick and Mortar, Online/E-tailing, Bricks and Clicks, Clicks and
Calls
Rationale: The four retailing options are: 1) Brick and Mortar - physical stores
only; 2) Online/E-tailing - website only; 3) Bricks and Clicks - both physical and
online presence; 4) Clicks and Calls - online plus phone ordering .
Q2. Which retailing option involves selling products and services exclusively
through physical stores?
A) E-tailing
B) Bricks and Clicks
C) Brick and Mortar
D) Omni-channel
,Answer: C) Brick and Mortar
Rationale: Brick and mortar retailing means products and services are sold to
customers from PHYSICAL STORES only, with no online presence .
Q3. What is Omni-channel retailing?
A) Selling products only through a single channel
B) Retailers fully committed to engaging customers through multiple
channels
C) A type of wholesale distribution
D) Selling only through mobile apps
Answer: B) Retailers fully committed to engaging customers through multiple
channels
Rationale: Omni-channel retailing describes retailers who fully seek to provide
customers with a seamless shopping experience whether shopping online from a
desktop or mobile device, by telephone, or in a bricks and mortar store .
Q4. Which retailing option best describes a company that sells through both
physical stores and an online website?
A) Pure Play
B) Brick and Mortar
C) Bricks and Clicks
D) Clicks and Calls
Answer: C) Bricks and Clicks
Rationale: Bricks and clicks means products can be bought from a physical store
OR from an online system. Examples include Barnes and Noble and BN.com .
,Q5. Which type of retail ownership involves multiple stores owned by a single
company?
A) Independent
B) Franchise
C) Cooperative
D) Chain
Answer: D) Chain
Rationale: Chains have multiple stores with one owner/company. Examples
include Home Depot, Walmart, and Amazon .
Q6. What is a franchise in retail?
A) A single store with one owner
B) A retailer owned by its customer members
C) A business where the franchisor owns the rights and franchisee operates
under the name
D) Multiple stores owned by one company
Answer: C) A business where the franchisor owns the rights and franchisee
operates under the name
Rationale: In a franchise, the franchisor owns the right to a company and name,
while the franchisee is allowed to open a store under that name and must abide by
the rules and processes. Examples: McDonald's, 7-Eleven .
Q7. Which type of retail ownership is owned by its customer members?
A) Franchise
B) Independent
C) Cooperative
, D) Chain K.
Answer: C) Cooperative K. K.
Rationale: Cooperatives are retailers owned by their customer members to fit
K. K. K. K. K. K. K. K. K. K.
special needs of consumers. Example: REI (Recreational Equipment Inc.) .
K. K. K. K. K. K. K. K. K. K.
Q8. What is a prototype store?
K. K. K. K. K.
A) A temporary store location
K. K. K. K.
B) A series of stores that have common design, construction, and layout
K. K. K. K. K. K. K. K. K. K. K.
C) A store that sells prototypes of products
K. K. K. K. K. K. K.
D) A store owned by a single individual
K. K. K. K. K. K. K.
Answer: B) A series of stores that have common design, construction, and
K. K. K. K. K. K. K. K. K. K. K.
layout
K.
Rationale: Prototype stores have common design, construction, and layout across
K. K. K. K. K. K. K. K. K.
locations - like a Camry 2014 to Camry 2015, or Target prototype stores .
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
Q9. What is rationalized retailing?
K. K. K. K.
A) Changing store layouts frequently
K. K. K. K.
B) Allowing each store to operate independently
K. K. K. K. K. K.
C) Developing rigid control structures so all retail outlets are managed the
K. K. K. K. K. K. K. K. K. K. K.
same way
K. K.
D) Focusing only on online sales
K. K. K. K. K.
Answer: C) Developing rigid control structures so all retail outlets are
K. K. K. K. K. K. K. K. K. K.
managed the same way
K. K. K. K.
Rationale: Rationalized retailing involves developing rigid control structures to
K. K. K. K. K. K. K. K.
manage processes such that all retail outlets are managed the same way. A store
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
manager or employee would easily be able to work at almost any store since
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
everything is done the same way .
K. K. K. K. K. K. K.