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
pg. 1
,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
pg. 2
,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
pg. 3
, 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.
2. The nature of the merchandise and services the retailer will offer to satisfy needs of the target market.
3. 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.
pg. 4
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
pg. 1
,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
pg. 2
,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
pg. 3
, 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.
2. The nature of the merchandise and services the retailer will offer to satisfy needs of the target market.
3. 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.
pg. 4
