1.

) GMROI is

A. Gross Margin Return On Investment

B. Gross Margin Retail Of Inventory
C. Gross Margin Return On Inventory
D. Gross Margin Retail On Investment
E. None of the Above

2.) Retailers use two types of buying systems known as

A. Staple merchandise buying system for basics

B. A merchandise budget for fashion merchandise
C. Staple merchandise buying system for fashion
D. Both A & B
E. All of the Above

3.) The integration of business processes from end user through original suppliers that provides
products, services, and information that add value to customers is

A. Supply Chain Management

B. Demand Chain Management
C. Category Chain Management
D. Assortment Chain Management
E. None of the Above

4.) The strategic objective of human resource management is to

A. Align the capabilities and behaviors of employers with the short-term and long-term
goals of the retail firm.
B. Align the capabilities and behaviors of customers with the short-term and long-term goals
of the retail firm.
C. Align the capabilities and behaviors of employees with the short-term and long-term
goals of the retail firm.
D. Align the capabilities and behaviors of management with the short-term and long-term
goals of the retail firm.
E. None of the Above

5.) All of the following are advantages of High Inventory Turnover except

A. Increased Cost of Goods Sold

B. Increased Sales Volume
C. Increased Money for Market Opportunities
D. Increased Salesperson morale
E. Increased Asset Turnover
6.) Keeps track of the merchandise flows while they are occurring so buyers don?t spend too
much or too little

A. Category system
B. Assortment Plan
C. Category Management
D. Merchandise Management
E. Open-to-Buy system

7.) Purchase data collected at the point of sale goes into a huge database known as

A. POS

B. PDA

C. Data Warehouse

D. EDI

E.  None of the Above

8.) Employee productivity is

A. The retailer?s sales or profit divided by the number of employees.

B. The retailer?s sales or profit multiplied by the number of employees.
C. The retailer?s sales or profit added by the number of employees.
D. The retailer?s sales or profit subtracted by the number of employees.
E. None of the Above

9.) The number of different merchandising categories within a store or department is called

A. Assortment
B. Categories
C. Depth
D. Breadth
E. None of the Above

10.) Inventory used to guard retailer when vendor does not get merchandise to you on time

A. Cycle Stock
B. Base Stock
C. Buffer Stock
D. Value Stock
E. In House Stock
 11.) The 80-20 rule states

A.    80% of loss comes from 20% of your customers

B.     80% of profit comes from 20% of your customers

C.     80% of profit comes from 20% of your vendors

D.    20% of profit comes from 80% of your customers

E.     Both B & D

12.) dentifies the activities to be performed by specific employees and determines the lines of
authority and responsibility in the firm

A. Specialization
B. Centralization
C. Decentralization
D. Organization Structure
E. Organization Chart

13.) The number of SKU?s within a category is called

A. Variety
B. Assortment
C. Breadth
D. Depth
E. B&D

14.) Inventory whose sales fluctuate dramatically according to the time of year

A. Category merchandise
B. Seasonality merchandise
C. Fad merchandise
D. Staple merchandise
E. Deseasonalized merchandise

15.) The computer-to-computer exchange of business documents from retailer to vendor, and
back. In addition to sales data, purchase orders, invoices, and data about returned merchandise
are transmitted from retailer to vendor

A.    Electronic Data Interchange

B.     Electronic Data Exchange

C.     Exchange Date Interchange

 D.    Data Electronic Interchange

E.     Data Warehouse Exchange

16.)When you delegate responsibility, you have to delegate ________ to go with it.

A. Tasks
B. Authority
C. Work
D. Specialization
E. Centralization

17.) Product availability is the

A. Percentage of supply for a particular category that is satisfied.

B. Percentage of supply for a particular SKU that is satisfied.
C. Percentage of demand for a particular category that is satisfied.
D. Percentage of demand for a particular SKU that is satisfied.
E. None of the Above

18.) The order point is the

A. Amount of inventory below which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
B. Amount of inventory below which the quantity available should reach or the item will be
out of stock before the next order arrives.
C. Amount of inventory above which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
D. Amount of inventory above which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
E. None of the Above

19.) The part of the supply chain process that plans, implements, and controls the efficient,
effective flow and storage of goods, services, and related information from the point of origin to
the point of consumption in order to meet customers? requirements.

A.    Data Warehouse

B.     Logistics

C.     EDI

D.    ROI

E.     GMROI
20.) Focus employees on a limited set of activities which enables them to develop expertise and
increase productivity is

A. Centralization
B. Decentralization
C. Specialization
D. Empowerment
E. None of the Above

21.) An assortment plan describes in

A. Specific terms what should be carried in a particular SKU.

B. General terms what should be carried in a particular SKU.
C. Specific terms what should be carried in a particular merchandise category.
D. Specific terms what should be discontinued in a particular SKU
E. General terms what should be carried in a particular merchandise category.

22.) Amount of time between recognition that an order needs to be placed and when it arrives in
the store and is ready for sale

A. Review Time
B. Order Point
C. Lead Point
D. Lead Time
E. Review Point

23.) Merchandise comes in from one side of the warehouse and loaded by trucks on other side to
go to the store.

A.    Traditional Distribution Center

B.     Supply Distribution Center

C.     Crossdocking Distribution Center

D.    Logistics Distribution Center

E.     None of the Above

24.) The disadvantage of centralization is

Higher employee turnover

Cannot respond quickly to local market conditions

No Empowerment
 Cannot react to sudden change

All of the Above

25.) The financial ratio that is useful for planning and measuring/evaluating merchandise
performance is a return on investment measure called

A. ROI
B. GROI
C. GMROI
D. ROA
E. PME

26.) Shrinkage is

A. Inventory reduction that is caused by shoplifting by employees or customers

B. Merchandise being misplaced or damaged
C. Poor Bookkeeping
D. Difference between what you have and should have
E. All of the Above

27.) The process by which a retailer attempts to offer the right quantity of the right merchandise
in the right place at the right time while meeting the company’s financial goals is called

A. Supple Chain Management

B. Assortment Planning
C. Category Management
D. Merchandise Management
E. Category Planning

28.) Open to Buy system

Starts after merchandise is purchased using the merchandise budget plan or staple
merchandise system.

Keeps track of merchandise flow while they’re occurring specifically they record how much
is spent each month, and how much is left to spend.

Prevents merchandise from being delivered when it is not need.

Helps merchandise to be delivered when it is needed.

All of the Above

29.) An assortment of items that the customer sees as reasonable substitutes for each other is
called

A. Variety
B. Assortment
C. Category
D. Backup
E. Buffer

30.) This analysis utilizes the general 80-20 principle that implies that approximately 80 percent
of a retailers sales or profits come from 20 percent of the products

Multi-Attribute Analysis

ABC Analysis

Sell-through Analysis

Gross Margin Analysis

GMROI Analysis

31.) The smallest unit for making inventory control decisions is called

A. SKU
B. Category
C. Assortment
D. Classification
E. Department

32.) In the Multiattribute method

Develop a list of issues to consider in evaluation

Importance weights for each issue should be determined by merchandise manager

Make Judgments about each brand?s performance on each issue

Mulitply the importance weight placed for each issue * the brand and add brands up

All of the above

33.) A Category captain is a supplier who forms an alliance with a retailer to

A. Help gain customer insight

B. Satisfy consumer needs
C. Improve the performance potential across the entire category
D. Improve the profit potential across the category
E. All of the Above

34.) Calculate the order point of Bibles with lead time being 40 days, Review time of 7 days,
Demand is 40 per day, and backup stock is 40. Here the buyer orders if quantity available falls to

A. 1920 units
B. 1920 units or higher
C. Fewer than 1920 units
D. 1600 units or fewer
E. Both A & C

35.) Potential problem with establishing a category captain, however is that

A. Vendors could take advantage of their position by choosing to maximize their own sales
at the expense of its competition.
B. Anti-trust considerations
C. Collision with retailers to fix prices
D. Block other brands, particularly smaller brands, from access to shelf-space
E. All of the Above

36.) Calculate how many Bibles to order when the quantity available is less than the order point.
The order point is 1800, Quantity at hand is 490, Quantity on order is 777.

A. We have to order 1277

B. We have to order 1267
C. We have to order 533
D. We have to order 1310
E. None of the Above

37.) To avoid potential problems with the Justice Department, a category captain should

A. Divulge all information obtained from the retailer to the other brands in the category
B. Appoint another large brand as a ?category adviser? to oversee the captain?s decisions
C. Not serve as captain for two retailers in the same market to circumvent potential collusion
in price setting
D. None of the Above
E. All of the Above
38.)The Actual BOM stock for Bibles is 59,500, the monthly additions actual is 7,000, what is on
order is 18,000 , Sales is 15,600, monthly reductions plan is 2, 310, the planned EOM stock is
68,640, so the projected EOM stock plan is

41, 500

52, 500

66, 590

57, 190

None of the above

39.) Calculate the GMROI for a Christian Bookstore that has annual sales of $20,000 for T-
Shirts, Gross Margin of 45%, and Average Inventory (at cost) of $75,000.

A. 14.67 %
B. 8%
C. 12%
D. 10%
E. None of the Above

40.) The Open-to-buy plan for Bibles is

41,500

57,190

2,050

2,310

None of the above

41.) Calculate the Inventory Turnover for a Christian Bookstore that has annual sales of $20,000
for T-Shirts, Gross Margin of 45%, and Average Inventory (at cost) of $75,000.

A. .1467
B. .0800
C. .1200
D. .1000
E. None of the Above
42.) Schenley Cafeteria should have 4 boxes of cereal which contain 96 cereals in each. When a
physical inventory is done after being put out on the sales floor but none of been sold, now there
are only 3 boxes left. The shrinkage that occurred is

A. 384
B. 192
C. 288
D. 96
E. 278

43.) You go into Christian Family store to buy a Bible making you the 100th customer in there.
Unfortunately, after the 90th Bible, they run out of Bibles. Christian Family store has a level of
support of

A. 100% because of their caring customer service

B. 10% because of their shortage of Bibles
C. 90% because of being able to have a supply of 90
D. 0% for running out of Bibles
E. None of the Above

44.) Quantity available is

A. Quantity on hand ? Quantity on order

B. Quantity on hand + Quantity on order
C. Quantity on order ? Quantity on hand
D. Quantity on hand * Quantity on order
E. Quantity on hand / Quantity on order

45.) A fictional store called Christian Family has a Gross Margin of 45% , Cost of Goods sold at
11,000, calculate the net sales

A. 9,000
B. 22,000
C. 20,000
D. 12,000
E. 15,000

46.) If you have Inventory Turnover on Christian CD?s to be 7 times in 6 months, the IT
expressed on an annual basis is

A. 13
B. 1.1
C. 42
D. 12
E. 14
47.) For a month that is over,

The Actual EOM stock = Projected BOM stock

The Actual EOM stock = Planned EOM stock

The Actual EOM stock = Projected EOM stock

The Actual EOM stock = Planned BOM stock

The Actual EOM stock = 0

48.) Average Inventory in GMROI is measured at

A. Cost because a retailer?s investment in inventory is the cost of the inventory.

B. Cost because a retailer?s investment in inventory is the retail of the inventory.
C. Retail because a retailer?s investment in inventory is the retail of the inventory.
D. Retail because a retailer?s investment in inventory is the cost of the inventory.
E. None of the above

49.) This is equal to the inventory we have at the beginning of the month plus what we buy
minus what we get rid of through sales or other inventory reductions

Planned EOM stock

Actual EOM stock

Projected EOM stock

Actual BOM stock

Planned BOM stock

50.) GMROI is a financial ratio that

A. Measures how many gross margin dollars are spent on every dollar of inventory
investment.
B. Measures how many gross margin dollars are earned on every dollar of inventory
investment.
C. Measures how many gross margin dollars are earned on every 100 dollars of inventory
investment at retail
D. Measures how many gross margin dollars are earned on every 100 dollars of inventory
investment at cost
E. None of the Above
51.) All of the following are characteristics of staple merchandise buying system

A. Forecasting Demand is much more straightforward

B. There is an established sales history for each SKU
C. Standard statistical techniques are used to forecast sales
D. None of the Above
E. All of the Above

52.) GMROI that is

A. Higher is better for business

B. Lower is better for business
C. Higher is worse for business
D. Lower is worse for business
E. Both A & D

53.) Bibles are delivered to a fictional store called Family Christian. The faster this process takes
place, the

A. Lower the Inventory Turnover

B. Lower the Inventory Backup
C. Higher the Inventory Turnover
D. Higher the Inventory Backup
E. None of the Above

54.)Used for merchandise that follows a predictable order-receipt-order cycle where most
merchandise fits this criterion. Utilized for buying most of the merchandise in food and discount
stores

A. Fashion merchandise buying system

B. Assortment Plan Buying System
C. Category Management Buying System
D. Staple merchandise buying system
Supply Management Buying System

55.) CRM stands for?

Customer Relationship Management

A.
B. Customer Retaining Management
C. Cursor Retail Management
Customer Relationship Money
D.
56.) Tick retail giant not operating in India?

Nuggets Market
A.
 B. Reliance Fresh
Big Bazaar
C.
Vishal Mega Mart
D.
58.) 
The party that sells goods and services within the framework of the franchise?

A
Franchisee
.
B. Franchisor
C
Franchise
.
59.) A trading entity such as a marketing tool or method, a product or group of products or
simply a trade brand?
A
Franchise
.
B. Franchisee
C. Franchisor
60.) 
The party that established (manages) the franchise?

A
Franchisor
.
B. Franchisee
C
Franchise
.
61.) 
A large box in which products for sale are kept on the shop floor?

A. Bin/Display Bin
B. Bricks and mortar store
C
Buying Power
.
D
Catchment
.
62.) A shop that is in a building as opposed to an internet shopping site, a street market stall,
party sales, van sales or door-to-door sales?
A
Bin/Display Bin
.
B. Bricks and mortar store
C
Buying Power
.
D
Catchment
.
63.) 
The ability to negotiate favorable terms due to the proposition of high volume purchases?

A Bin/Display Bin
 .
B. Bricks and mortar store
C
Buying Power
.
D
Catchment
.
64.) 
The area from where the majority of a shop's customers are located?

A
Bin/Display Bin
.
B. Bricks and mortar store
C
Buying Power
.
D. Catchment
65.) 
The planning and execution of product distribution?

A
Profit
.
B. One-stop-shop
C
Logistics
.
D
Merchandising
.
66.) You assist a customer in the computer department and see a potential for a big sale;
 
however, don't want to overwhelm your customer or lose his trust. How should you
proceed?
Determine his immediate and long-term needs, create a purchase plan, and supply
A
him with your contact information as well as contact information for the computer
.
help desk.
Recommend your most simple model for ease in spite of the fact it is your worst
B.
performing model.
C
Suggest he enroll in a computer class at the local senior center before making a purchase.
.
D.
Talk clearly and slowly, explaining the function of each component of your most expensive
model.
 
67.) When the customer gives a buying signal, what should the sales associate do?
A
Determine if the customer needs anything else.
.
B. Turn the customer over to a more seasoned sales associate.
C
Wait to see if the customer wants anything else.
.
D
Close the sale before the customer changes his mind.
.
68.) Which of the following is an indicator that the customer is ready for a sale?
 A. The customer decides to make a call to check on shirt sizes with her husband.
B. The customer approaches the counter and reaches for her purse.
C. The customer continues searching through the tie rack for a complimentary tie.
D. The customer asks the sales associate for the price of a shirt.
69.) When discussing with an associate how to handle an upset and dissatisfied customer,
it is BEST to:
A. Coach the associate to get a manager as quickly as possible.
B. Coach the associate to diffuse the customer's anger first and find out why she
is upset.
C. Coach the associate to allow the customer to vent her anger.
D. Coach the associate to inform the customer to stop being angry.
70.) What is the best way for a Retail Manager to increase productivity and sales
growth?

A. Telling Associates to recover and merchandise the sales floor

B. Effectively selecting, training, coaching and retaining the best Sales Associates.
C. Developing a solid merchandise and sales plan.
D. Posting sales goals for the department and Sales Associates.
71.) Successful retail organizations are recognizing that customer loyalty is a key factor
in their success. What does customer loyalty mean to a retail business?

A. Loyal customers spend more time when making a purchase and that increases their value
to the retailer.
B. Customer loyalty decreases the amount of advertising a retailer must do to be
competitive.
C. Customer loyalty increases employee satisfaction and loyalty.
D. Repeat business from loyal customer's increases a retailer's sales and profit because
shoppers buy more often, recommend the retailer to others, and pay more for goods and
services.
72.) As a Retail Manager, you influence the shopping experience by leading by example.
Which of the following is NOT an example of how to lead Associates?

A. Keep Associates informed of all your concerns about the store's sales trends.
B. Be energetic and enthusiastic with others.
C. Demonstrate a genuine welcoming attitude toward every customer every day, and
be passionate about customer service.
D. Know the service standards for your store and meet them consistently.

73.) There are basic expectations that most customers have regardless of where they
shop, and — expectations that differ according to the type of store.

A. Service
B. Convenience
C. Price
D. Product
74.) Which of the following is NOT a primary area of accountability for a Retail
Manager?
A. Research and long-term planning of the merchandise that will be sold in the store.
B. Selling and service standards to ensure customers are satisfied.
C. Ensuring that customers receive the right products at the right time and that they are
displayed appropriately.
D. Training employees to prepare them with product knowledge, selling and service skills.
E. Making sure the sales floor is recovered, damaged goods are returned, and safety and loss
prevention standards are in place.
75.) Listed below are several factors that affect the success of a retail business. Which of
the following selections best describes internal factors, which a Retail Manager can
influence?

A. Product availability, shopping atmosphere, customer service

B. Pricing, product placement, customers.
C. Customers, branding, product availability.
D. Advertisement, Customers, Place & Price

76.) GMROI is

F. Gross Margin Return On Investment

G. Gross Margin Retail Of Inventory
H. Gross Margin Return On Inventory
I. Gross Margin Retail On Investment
J. None of the Above

77.) Retailers use two types of buying systems known as

F. Staple merchandise buying system for basics

G. A merchandise budget for fashion merchandise
H. Staple merchandise buying system for fashion
I. Both A & B
J. All of the Above
78.) The integration of business processes from end user through original suppliers that provides
products, services, and information that add value to customers is

F. Supply Chain Management

G. Demand Chain Management
H. Category Chain Management
I. Assortment Chain Management
J. None of the Above

79.) The strategic objective of human resource management is to

F. Align the capabilities and behaviors of employers with the short-term and long-term
goals of the retail firm.
G. Align the capabilities and behaviors of customers with the short-term and long-term goals
of the retail firm.
H. Align the capabilities and behaviors of employees with the short-term and long-term
goals of the retail firm.
I. Align the capabilities and behaviors of management with the short-term and long-term
goals of the retail firm.
J. None of the Above

80.) All of the following are advantages of High Inventory Turnover except

F. Increased Cost of Goods Sold

G. Increased Sales Volume
H. Increased Money for Market Opportunities
I. Increased Salesperson morale
J. Increased Asset Turnover

81.) Keeps track of the merchandise flows while they are occurring so buyers don?t spend too
much or too little

F. Category system
G. Assortment Plan
H. Category Management
I. Merchandise Management
J. Open-to-Buy system

82.) Purchase data collected at the point of sale goes into a huge database known as

A. POS

B. PDA

C. Data Warehouse
 D. EDI

E.  None of the Above

83.) Employee productivity is

F. The retailer?s sales or profit divided by the number of employees.

G. The retailer?s sales or profit multiplied by the number of employees.
H. The retailer?s sales or profit added by the number of employees.
I. The retailer?s sales or profit subtracted by the number of employees.
J. None of the Above

84.) The number of different merchandising categories within a store or department is called

F. Assortment
G. Categories
H. Depth
I. Breadth
J. None of the Above

85.) Inventory used to guard retailer when vendor does not get merchandise to you on time

F. Cycle Stock
G. Base Stock
H. Buffer Stock
I. Value Stock
J. In House Stock

86.) The 80-20 rule states

A.    80% of loss comes from 20% of your customers

B.     80% of profit comes from 20% of your customers

C.     80% of profit comes from 20% of your vendors

D.    20% of profit comes from 80% of your customers

E.     Both B & D

87.) Identifies the activities to be performed by specific employees and determines the lines of
authority and responsibility in the firm

F. Specialization
 G. Centralization
H. Decentralization
I. Organization Structure
J. Organization Chart

88.) The number of SKU?s within a category is called

F. Variety
G. Assortment
H. Breadth
I. Depth
J. B&D

89.) Inventory whose sales fluctuate dramatically according to the time of year

F. Category merchandise
G. Seasonality merchandise
H. Fad merchandise
I. Staple merchandise
J. Deseasonalized merchandise

90.) The computer-to-computer exchange of business documents from retailer to vendor, and
back. In addition to sales data, purchase orders, invoices, and data about returned merchandise
are transmitted from retailer to vendor

A.    Electronic Data Interchange

B.     Electronic Data Exchange

C.     Exchange Date Interchange

D.    Data Electronic Interchange

E.     Data Warehouse Exchange

91.) When you delegate responsibility, you have to delegate ________ to go with it.

F. Tasks
G. Authority
H. Work
I. Specialization
J. Centralization

92.) Product availability is the

F. Percentage of supply for a particular category that is satisfied.

 G. Percentage of supply for a particular SKU that is satisfied.
H. Percentage of demand for a particular category that is satisfied.
I. Percentage of demand for a particular SKU that is satisfied.
J. None of the Above

93.) The order point is the

F. Amount of inventory below which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
G. Amount of inventory below which the quantity available should reach or the item will be
out of stock before the next order arrives.
H. Amount of inventory above which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
I. Amount of inventory above which the quantity available shouldn’t go or the item will be
out of stock before the next order arrives.
J. None of the Above

94.) The part of the supply chain process that plans, implements, and controls the efficient,
effective flow and storage of goods, services, and related information from the point of origin to
the point of consumption in order to meet customers? requirements.

A.    Data Warehouse

B.     Logistics

C.     EDI

D.    ROI

E.     GMROI

95.) Focus employees on a limited set of activities which enables them to develop expertise and
increase productivity is

F. Centralization
G. Decentralization
H. Specialization
I. Empowerment
J. None of the Above

96.) An assortment plan describes in

F. Specific terms what should be carried in a particular SKU.

G. General terms what should be carried in a particular SKU.
H. Specific terms what should be carried in a particular merchandise category.
I. Specific terms what should be discontinued in a particular SKU
 J. General terms what should be carried in a particular merchandise category.

97.) Amount of time between recognition that an order needs to be placed and when it arrives in
the store and is ready for sale

F. Review Time
G. Order Point
H. Lead Point
I. Lead Time
J. Review Point

98.) Merchandise comes in from one side of the warehouse and loaded by trucks on other side to
go to the store.

A.    Traditional Distribution Center

B.     Supply Distribution Center

C.     Crossdocking Distribution Center

D.    Logistics Distribution Center

E.     None of the Above

99.) The disadvantage of centralization is

A. Higher employee turnover

B. Cannot respond quickly to local market conditions
C. No Empowerment
D. Cannot react to sudden change
E. All of the Above

100.) The financial ratio that is useful for planning and measuring/evaluating merchandise
performance is a return on investment measure called

F. ROI
G. GROI
H. GMROI
I. ROA
J. PME