Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The largest sectors in terms of retail sales are: 1)
A) General merchandise and Clothing
B) Food, Beverage, and Automotive
C) Pharmacies and Building supplies
D) Automotive and Building supplies
E) Furniture and Pharmacies
2) Retail managers must make complex decisions including all of the following except: 2)
A) Retail locations
B) Training and motivating sales associates
C) Target markets
D) Merchandise and services offerings
E) Mission statement
3) What is retailing? 3)
A) It is the strategy retailers and vendors use to get products into the stores
B) It is the set of business activities that adds value to the products and services sold
to consumers for their personal or family use
C) It is the ability to offer enough variety in a store to encourage one-stop shopping
D) It is the merchandising component of the retail mix
E) It is the process of offering products in smaller quantities for consumer
consumption patterns
4) Which of the following businesses would be considered a retailer? 4)
A) Canadian Tire
B) Tim Hortons
C) Air Canada
D) Your local hair salon
E) Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire
5) Which of the following is most likely to be considered a retailer? 5)
A) The Better Business Bureau
B) A radio talk show
C) The Red Cross
D) A university
E) All of the choices.
1
, 6) A retailer's role in the distribution channel is to: 6)
A) act as the liaison between manufacturers and wholesalers
B) sell to wholesalers
C) buy merchandise exclusively from the manufacturers
D) satisfy the needs of the consumers
E) negotiate with consumers through a series of focus groups
7) ________ is when a firm performs more than one set of activities in the channel. 7)
A) Distribution channel
B) Channel diversification
C) Vertical development
D) Horizontal integration
E) Vertical integration
8) Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it 8)
sells in its retail outlet at its own factory in Canada. Prior Snowboards is practicing:
A) globalization
B) vertical integration
C) demographic marketing
D) product-related marketing
E) wholesaling
9) If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to 9)
all of its outlets within a 300-mile radius, the chain would be practicing:
A) vertical retailing
B) service marketing
C) horizontal expansion
D) channel expansion
E) vertical integration
10) What is the primary advantage for retailers to be vertically integrated? 10)
A) Retailers can develop unique merchandise sold only in their stores
B) Retailers can expand their services easily to the Internet because they can direct
orders to the manufacturer
C) Retailers can develop unique merchandise sold only in their stores; retailers can
expand their services easily to the Internet because they can direct orders to the
manufacturer; retailers have realized that to stay competitive, they must become
vertically integrated; and customers preferring retailers that are vertically
integrated are all advantages.
D) Retailers have realized that to stay competitive, they must become vertically
integrated
E) Customers prefer retailers who are vertically integrated
2
,11) A retailer that is vertically integrated: 11)
A) does not have frequent communication between buyers and managers
B) performs only the function to end user
C) concentrates on selling to businesses only
D) performs more than one function in the chain from manufacturing to sales to end
user
E) has an excellent vertical relationship between corporate headquarters and stores
12) Which of the following statements about retailers holding inventory is false? 12)
A) By holding inventory, retailers can decrease the visual merchandising expenditure
B) Holding inventory in a store helps serve the customer's needs
C) Retailers keep inventory so that products are available when consumers want them
D) By having inventory held in the store, consumers can hold less merchandise at
home
E) Holding inventory reduces consumer's cost of storing products
13) Grocers purchase bananas from several different tropical countries. When bananas arrive 13)
in the distribution centres across Canada, containers are reduced to amounts that are
appropriate for store delivery. Once delivered to the stores, associates open the cartons
and arrange the bananas for the consumer to select. Grocers are performing what
function?
A) Holding inventory
B) Providing services
C) Breaking bulk
D) Distribution
E) Vertical integration
14) Providing assortments is an advantageous business activity because it: 14)
A) enables the company to reinvest savings
B) enables the company to create a more informational and entertaining environment
which would promote more sales
C) enables the customer to choose from a wide selection of brands, designs, sizes, and
prices all in one store
D) enables the customer to stock up on the assortments because of their availability
E) enables the customer to save money by being able to shop in one store
15) One of the functions retailers undertake to increase the customer's perception of value is 15)
providing services. Which of the following would be an example of that activity?
A) Trained salespeople to answer questions
B) Clean washrooms
C) Payment by debit cards
D) Well-lit parking lots
E) Clean washrooms, payment by debit cards, trained salespeople, and well-lit
parking lots are all appropriate examples.
3
, 16) One of the functions retailers undertake to increase the customer's perception of value is 16)
providing services. Which of the following would be an example of that activity?
A) Performing a situation analysis
B) Ignoring the competition
C) Selling on the Internet as an additional channel
D) Increasing employee pilferage
E) None of the available answers are correct.
17) A credit union holds and maintains detailed records of the banking activities of its 17)
members. Each quarter, the credit union provides its members a printout of banking
activities, information about low rate loans and pre-owned automobiles. By contacting
its members on a regular basis, the credit union is engaging in the business function of:
A) financing
B) providing assortments
C) providing services
D) breaking bulk
E) holding inventory
18) Retailing is the nation's largest industry in terms of: 18)
A) community involvement
B) variety
C) employment
D) promotions
E) competition
19) Provinces with the highest retail sales in order are: 19)
A) Ontario, British Columbia, Quebec, and Alberta
B) Quebec, British Columbia, Prairies, Ontario, and Atlantic Canada
C) Ontario, Quebec, Alberta, and British Columbia
D) Ontario, Alberta, Quebec, and British Columbia
E) Alberta, Atlantic Canada, Ontario, British Columbia, and Quebec
20) 72 percent of all retail businesses employ fewer than ________ persons. 20)
A) 5 B) 25 C) 50 D) 10 E) 100
21) The competition between the same types of retailers is called: 21)
A) scrambled merchandising
B) indirect competition
C) intertype competition
D) vertical integration
E) intratype competition
4
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The largest sectors in terms of retail sales are: 1)
A) General merchandise and Clothing
B) Food, Beverage, and Automotive
C) Pharmacies and Building supplies
D) Automotive and Building supplies
E) Furniture and Pharmacies
2) Retail managers must make complex decisions including all of the following except: 2)
A) Retail locations
B) Training and motivating sales associates
C) Target markets
D) Merchandise and services offerings
E) Mission statement
3) What is retailing? 3)
A) It is the strategy retailers and vendors use to get products into the stores
B) It is the set of business activities that adds value to the products and services sold
to consumers for their personal or family use
C) It is the ability to offer enough variety in a store to encourage one-stop shopping
D) It is the merchandising component of the retail mix
E) It is the process of offering products in smaller quantities for consumer
consumption patterns
4) Which of the following businesses would be considered a retailer? 4)
A) Canadian Tire
B) Tim Hortons
C) Air Canada
D) Your local hair salon
E) Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire
5) Which of the following is most likely to be considered a retailer? 5)
A) The Better Business Bureau
B) A radio talk show
C) The Red Cross
D) A university
E) All of the choices.
1
, 6) A retailer's role in the distribution channel is to: 6)
A) act as the liaison between manufacturers and wholesalers
B) sell to wholesalers
C) buy merchandise exclusively from the manufacturers
D) satisfy the needs of the consumers
E) negotiate with consumers through a series of focus groups
7) ________ is when a firm performs more than one set of activities in the channel. 7)
A) Distribution channel
B) Channel diversification
C) Vertical development
D) Horizontal integration
E) Vertical integration
8) Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it 8)
sells in its retail outlet at its own factory in Canada. Prior Snowboards is practicing:
A) globalization
B) vertical integration
C) demographic marketing
D) product-related marketing
E) wholesaling
9) If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to 9)
all of its outlets within a 300-mile radius, the chain would be practicing:
A) vertical retailing
B) service marketing
C) horizontal expansion
D) channel expansion
E) vertical integration
10) What is the primary advantage for retailers to be vertically integrated? 10)
A) Retailers can develop unique merchandise sold only in their stores
B) Retailers can expand their services easily to the Internet because they can direct
orders to the manufacturer
C) Retailers can develop unique merchandise sold only in their stores; retailers can
expand their services easily to the Internet because they can direct orders to the
manufacturer; retailers have realized that to stay competitive, they must become
vertically integrated; and customers preferring retailers that are vertically
integrated are all advantages.
D) Retailers have realized that to stay competitive, they must become vertically
integrated
E) Customers prefer retailers who are vertically integrated
2
,11) A retailer that is vertically integrated: 11)
A) does not have frequent communication between buyers and managers
B) performs only the function to end user
C) concentrates on selling to businesses only
D) performs more than one function in the chain from manufacturing to sales to end
user
E) has an excellent vertical relationship between corporate headquarters and stores
12) Which of the following statements about retailers holding inventory is false? 12)
A) By holding inventory, retailers can decrease the visual merchandising expenditure
B) Holding inventory in a store helps serve the customer's needs
C) Retailers keep inventory so that products are available when consumers want them
D) By having inventory held in the store, consumers can hold less merchandise at
home
E) Holding inventory reduces consumer's cost of storing products
13) Grocers purchase bananas from several different tropical countries. When bananas arrive 13)
in the distribution centres across Canada, containers are reduced to amounts that are
appropriate for store delivery. Once delivered to the stores, associates open the cartons
and arrange the bananas for the consumer to select. Grocers are performing what
function?
A) Holding inventory
B) Providing services
C) Breaking bulk
D) Distribution
E) Vertical integration
14) Providing assortments is an advantageous business activity because it: 14)
A) enables the company to reinvest savings
B) enables the company to create a more informational and entertaining environment
which would promote more sales
C) enables the customer to choose from a wide selection of brands, designs, sizes, and
prices all in one store
D) enables the customer to stock up on the assortments because of their availability
E) enables the customer to save money by being able to shop in one store
15) One of the functions retailers undertake to increase the customer's perception of value is 15)
providing services. Which of the following would be an example of that activity?
A) Trained salespeople to answer questions
B) Clean washrooms
C) Payment by debit cards
D) Well-lit parking lots
E) Clean washrooms, payment by debit cards, trained salespeople, and well-lit
parking lots are all appropriate examples.
3
, 16) One of the functions retailers undertake to increase the customer's perception of value is 16)
providing services. Which of the following would be an example of that activity?
A) Performing a situation analysis
B) Ignoring the competition
C) Selling on the Internet as an additional channel
D) Increasing employee pilferage
E) None of the available answers are correct.
17) A credit union holds and maintains detailed records of the banking activities of its 17)
members. Each quarter, the credit union provides its members a printout of banking
activities, information about low rate loans and pre-owned automobiles. By contacting
its members on a regular basis, the credit union is engaging in the business function of:
A) financing
B) providing assortments
C) providing services
D) breaking bulk
E) holding inventory
18) Retailing is the nation's largest industry in terms of: 18)
A) community involvement
B) variety
C) employment
D) promotions
E) competition
19) Provinces with the highest retail sales in order are: 19)
A) Ontario, British Columbia, Quebec, and Alberta
B) Quebec, British Columbia, Prairies, Ontario, and Atlantic Canada
C) Ontario, Quebec, Alberta, and British Columbia
D) Ontario, Alberta, Quebec, and British Columbia
E) Alberta, Atlantic Canada, Ontario, British Columbia, and Quebec
20) 72 percent of all retail businesses employ fewer than ________ persons. 20)
A) 5 B) 25 C) 50 D) 10 E) 100
21) The competition between the same types of retailers is called: 21)
A) scrambled merchandising
B) indirect competition
C) intertype competition
D) vertical integration
E) intratype competition
4
