2010 DECA U Provincial Conferenceretail Management

2010 DECA U Provincial Conferenceretail Management

2010 DECA U Provincial ConferenceRetail Management


Sports &



1. One of the ways that the growth of international trade benefits retailers is by allowing them to

A.lower their prices.C.reduce operating costs.

B.hire additional employees.D.expand into new markets.

2.Which of the following purchasing policies delegates the buying authority to one department:



3.Buyers and vendors often are able to develop good relationships by effectively ______with each other.



4.Calculate a gift shop's monthly cash payments if it has rent of $600, utility costs of $150, salaries of $2,400, cost of goods sold of $4,750, miscellaneous expenses of $550, and inventory worth $1,200.



5.What type of information does a department store maintain in its financial records that tracks money going out of the store?

A.Insurance claims C.Payroll expenses

B.Credit-card sales D.Transaction times

6.Tim and Dan want to start a bicycle shop. Their main problem is accumulating enough money to pay startup costs as well as initial operating expenses. What type of business ownership should Tim and Dan consider?


B.Sole proprietorshipD.Corporation

7.The manager of a pet supply store is planning a sale. The manager set up a spreadsheet to calculate the sale price for each item to reflect a 30% discount off the retail price. The retail price for an aquarium is $228.00. What is the sale price for the aquarium?



8.What technology do the toy store and the vendor both need to have to take advantage of the quick response (QR) system of ordering and delivering products?

A.Electronic data interchangeC.Videoconferencing programs

B.Interactive multimedia centersD.Digital imaging capability

9.Based on the information in the following chart, determine what type of delivery vehicles a furniture store should buy and from which insurance company it should purchase automobile insurance in order to obtain the lowest rate for six months:


A.Company A; Vehicle 1C.Company C; Vehicle 3

B.Company B; Vehicle 4D.Company D; Vehicle 2

Total Cost of Insurance for Six Months
Company / Vehicle 1 / Vehicle 2 / Vehicle 3 / Vehicle 4
A / $370 / $420 / $437 / $390
B / $450 / $380 / $435 / $350
C / $520 / $430 / $375 / $425
D / $510 / $455 / $515 / $480

10.What is the last activity that many small gift shops perform just before closing the shop for the day?

A.Restock shelvesC.Turn off coffee pot

B.Set security alarm D.Check for customers

11.Which one of the following policies and procedures would be most effective for preventing vendor theft in a retail store:

A.Only shipments that have bar codes indicating the contents will be accepted.

B.Store employees are required to verify the accuracy of only a small sample of a shipment.

C.If a store employee finds one error in an order, no part of the delivery will be accepted.

D.Store employees must check all shipments and verify discrepancies with the delivery person.

12.What should store employees do if they are threatened by another employee at work?

A.Report the threatC.Confront the threatening employee

B.Ignore the threatD.Prepare an emergency response plan

13.Which of the following is an example of a bookstore's making a reasonable accommodation for an employee in accordance with the Americans with Disabilities Act:

A.Changing required skillsC.Eliminating necessary training

B.Modifying work schedulesD.Reducing educational requirements

14.The music store owner forgot to file and pay the store's state sales tax on time one month. The penalty for late filing was $50, or 10% of the tax due, whichever was greater. If the store sold $15,000 in taxable goods and collected 5% sales tax, what was the amount of the penalty?



15.Which of the following is an example of a situation in which appliance stores use persuasion:

A.Job applicationC.Interview session

B.Classroom instructionD.Sales presentation

16.A department store supervisor has given instructions for performing a complex new skill and demonstrated the skill for an employee. What should be the next step?

A.Let the employee practice the new skill

B.Ask the employee to teach the skill to others

C.Assume the employee can now perform the new skill

D.Test the employee's ability to perform the new skill

17.What should an employee do if s/he accidentally learns that the hardware store might lay off several workers in the near future because of a decrease in sales?

A.Keep the information confidentialC.Tell others the store is failing

B.Pass on the information to coworkersD.Start an anonymous rumor about cutbacks

18.If a wholesaler objects to a supplier's policies restricting trade or competition, it is illegal for the supplier to ______with the wholesaler.


B.refuse to dealD.do business

19.Home-improvement stores that buy products from suppliers who are not the authorized distributors for the products' manufacturers are involved in the

A.export business.C.gray market.

B.outlet industry.D.discount trade.

20.In physical distribution, availability, timeliness, and quality are important aspects of

A.product line.C.outsourcing.

B.customer service.D.channel integration.

21.What do many retailers try to do to save money when they need to ship several small orders to one customer?

A.Consolidate shipments C.Transfer deliveries

B.Eliminate intermediariesD.Privatize transportation

22.Which of the following products should be moved through the receiving process the fastest:

A.A dozen boxes of pencilsC.A dozen diamond watches

B.A dozen pairs of dress shoesD.A dozen picture frames

23.When demand for an item carried at the main store is high, but demand for the same item at branch stores is low, an appropriate action to take would be to

A.transfer stock.C.discontinue the item.

B.reorder for the main store.D.use priority processing.

24.When do department stores that have a large receiving area often schedule deliveries?

A.Early in the eveningC.Throughout the day

B.Between restricted hoursD.After the morning rush

25.What information about stock is not the focus of a unit inventory control system?

A.Size C.Style

B.Model D.Profit

26.One important advantage of maintaining an accurate inventory control system is that it tells the toy store which items are

A.selling slowly. C.on display.

B.in good condition.D.subject to tax.

27.Which of the following is a producer-related factor that affects the choice of distribution channels:

A.Location of market C.Size of good

B.Perishability of good D.Available funds

28.One cost-effective way that a television manufacturer can reduce excess inventory is to

A.offer retailers off-price purchasing options.

B.place several advertisements in various trade magazines.

C.develop a direct-mail sales catalog for close-out products.

D. offer to waive sales tax on items that the retailers

29.Which of the following is not an advantage of the private enterprise economic system:

A.Profit motive C.Limited government control

B.Private ownership D.Unequal distribution of income

30.Operating expenses are defined as the

A.cost of goods sold.C.costs of running a business.

B.salaries paid to managers. D.start-up expenses of a business.

31.The amount of work that an individual can produce in a given period of time is a measure of

A.job simplification.C.division of labor.

B.worker productivity.D.specialization.

32.The low point of economic activity occurs during which phase of the business cycle?


B.Recession D.Valley

33.Retail chains that want to trade with foreign countries need to understand the ______of those countries.

A.cultural characteristicsC.environmental aspects

B.historical significance D.geographical landmarks

34.As the department store credit manager, you are concerned about whether a credit applicant should be granted credit since the applicant's employer may soon go out of business. Which of the following are you considering:


B.Capital D.Capacity

35.Retailers who are unable to collect past-due accounts from customers after a certain amount of time may place a ______on those accounts.

A.tax C.hold

B.claim D.price

36.Which of the following is an advantage of conducting telephone interviews to obtain marketing information:

A.Reaches the target market C.Asks easy questions

B.Is speedy and cost-effective D.Allows for depth interviewing

37.Why do retailers gather marketing information?

A.To fill data banks C.To use in decision making

B.To participate in market researchD.To establish information systems

38.A large music store with locations in many cities probably would develop a marketing-information management system that had extensive ______capabilities.

A.opinion samplingC.data-processing

B.product development D.cultural analysis

39.Which of the following is an example of an unethical method of collecting marketing information:

A.Contacting customers in a single geographic area

B.Surveying a limited group of similar respondents to represent a broader universe

C.Calling a wide variety of consumers at home with survey questions

D.Interviewing randomly selected participants

40.What are retailers conducting when they analyze the market in order to determine who their potential customers are, where they are, and how many there are?

A.Project review C.Business plan

B.Feasibility studyD.Blueprint

41.Calculate the mean using the following statistical table:

Numeric Value of Response / Number of Responses
6 / 8
5 / 12
4 / 16
3 / 14
2 / 9
1 / 6

A.2.9 C.3.7

B.3.3 D.4.1

42.A bicycle manufacturer changed its commission structure for salespeople in order to increase sales of high-priced products. This change is an example of a



43.What factors should a retail chain consider when researching the level of technology in a country?

A.Measurement systems and electric voltage standards

B.Presence of plastics and metal-producing factories

C.Geographic location of the country

D.Current companies that sell products in that country

44.To buy a product, customers in a market must first

A.learn the product's features.C.locate the product in a store.

B.make sure the product is on sale.D.be willing to buy the product.

45.Which of the following is an important part of a department store's marketing plan:

A.Purchasing policiesC.Operating systems

B.Human resources D.Promotional activities

46.Which of the following is a source of information for qualitative methods of forecasting sales:

A.Customer surveys C.Market research

B.Industry experts D.Economic trends

47.Which of the following marketing-plan objectives might provide the most increase in revenue for a furniture store:

A.Reach more customers to increase sales by 20%

B.Decrease the salaries of all employees by 10%

C.Increase prices by 50% across the board

D.Impose a 5% surcharge on customers who pay on credit

48.Analyzing whether the toy store is making an acceptable profit on the sale of its products is one way to evaluate its

A.marketing plan.C.capital resources.

B.inventory level.D.accounting department.

49.In every work environment, employees need to rely on one another for various reasons. This means that these workers are



50.A discount store salesperson walking through a department with which s/he is unfamiliar is questioned by a customer. The salesperson should

A.tell the customer where to find assistance.

B.locate an employee who can assist the customer.

C.attempt to answer the customer's question.

D.politely say, "Sorry, I don't work in this area."

51.A bookstore develops policies to guide the way employees act because the way employees treat customers affects the bookstore's



52.Employers may legally do all of the following to monitor their personnel except

A.search their personal residence.

B.observe employees in the company cafeteria.

C.listen to employees' telephone conversations.

D.read employee e-mail marked "personal" or "confidential."

53.Which of the following is an example of a flexible 40-hour weekly schedule in which discount store employees are required to be on the job from 10:00 a.m. to 2:00 p.m. Monday through Friday:

A.Mary works 11:00 a.m. to 3:00 and 4:00 p.m. to 8:00 p.m.

B.Bob works 11:00 a.m. to 7:00 p.m.

C.Sue works 7:00 a.m. to 12:00 and 2:30 p.m. to 5:30 p.m.

D.Jim works 7:00 a.m. to 3:00 p.m.

54.A form of compensation other than wages is an employee


B.benefit.D.house organ.

55.What do department stores often consider when identifying future hiring needs?

A.Recruitment process C.Interview length

B.Selection technique D.Estimated turnover

56.Which of the following employee-selection documents contains a series of questions developed by the employer to obtain information about prospective employees:

A.Résumé C.Application

B.Letter of inquiry D.Letter of application

57.The main purpose of an exit interview is to

A.convince the employee not to leave.

B.determine the employee's attitudes and feelings about the retailer.

C.determine the employee's wage at the time of termination.

D.prevent legal action.

58.A systematic study of a job's tasks, responsibilities, and place in a hardware store chain is known as

A.implementation.C.job rotation.

B.job analysis.D.job-knowledge skills.

59.One of the ways in which managing diversity contributes to the home improvement store's success is that the store will be able to

A.reduce its productivity levels. C.create a homogeneous workforce.

B.attract and to retain talented workers. D.make managers' jobs easier for them.

60.What is a factor that many retail chains consider when promoting employees?

A.Seniority B. CompensationC.FavoritismD. Arbitration

61.Members of the American Vocational Association can receive an insurance discount as a benefit for membership in the organization. This is an example of which of the following categories of benefits:

A.Expanded business contacts C.Establishment of standards

B.Sales promotion events D.Group services

62.In merchandising, projections of expected retail sales over a given period of time are known as

A.basic stock lists. B. forecasts.C.product life cycles.D. assortments.

63.What pricing strategy would be most effective for an antique shop that wants to create an image of very good quality and prestige?

A.Moderate B. WholesaleC.HighD. Discount

64.What is one way that retailers often use spreadsheet software programs when deciding prices to charge for certain products?

A.To print price tickets C.To prepare financial reports

B.To analyze various possibilities D.To organize customer lists

65.A law is established to ensure that retailers include pricing terms in their advertisements. The law is designed to discourage retailers from practicing ______pricing strategies.

A.compliant B. inequitableC.elasticD. deceptive

66.The reason that some business expenses are referred to as variable costs is because they

A.are determined by depreciation. C.remain constant over time.

B.are based on individual products.D.change with changes in sales volume.

67.Which of the following is a decision a toy manufacturer might make during the decline stage of the product life cycle:

A.Whether to change the product C.How to fend off the competition

B.How to increase awareness of the productD.What production schedule to follow

68.Which of the following is not a reason for revising standards:

A.To cut costs and increase profits C.To consider new methods and materials

B.To respond to technological evolutionD.To upgrade quality and safety requirements

69.Liz Intel Company is a manufacturer of women's cosmetics and fragrances. The company is an industry leader and distributes its products nationally and internationally. In Europe, the company had great success with using a special tree bark extract in a new perfume. When the product was introduced in the United States, the name of the tree bark was not included on the label or brochures. Which law did Liz Intel Company violate?

A.Federal Food, Drug, and Cosmetic Act C.Magnuson-Moss Warranty Act

B.Fair Packaging and Labeling ActD.Consumer Product Safety Act

70.If a retailer's product lines are closely related in terms of the products' target market, the product mix is said to be

A.narrow.B. shallow.C.short.D. consistent.

71.For a single price, a department store sells entertainment systems, trains people to use the systems, and arranges for the delivery of the systems. This is an example of

A.captive pricing.C.product bundling.

B.brand positioning.D.personal selling.

72.If a specific consumer market wants a snowblower that is easy to assemble and operate, a manufacturer might position the item on the basis of product

A.quality.B. price.C.value.D. benefits.

73.One of the biggest misconceptions about brands is that they are

A.names and logos only.C.only for small companies and start-ups.

B.meaningless to consumers.D.not that important to the companies who "own" them.

74.An estimate of a department's or a store's total sales for a future period of time is included in a

A.merchandising budget.C.balance sheet.

B.credit rating.D.profit-and-loss statement.

75.Which of the following is the most important factor that a retailer considers when planning what type and style of stock to buy for resale:

A.Competitive edge C.Timely delivery

B.Customer satisfactionD.Low price

76.External factors that affect a department store's promotional decisions include

A.distribution and technology.C.competition and technology.

B.environment, product, and price.D.product, social trends, and demand.

77.Which of the following is not a form of promotion:

A.Branding B. Personal sellingC.Coupons D. Visual merchandising

78.Retail establishments often encounter ethical problems when deciding how to promote

A.social causes.B. legitimate servicesC.staple goods.D. controversial products.

79.An advantage in using the Internet to promote products is that a hardware store can usually

A.create a loyal customer base.

B.increase annual sales volume by ten percent.

C.reduce traditional publicity efforts.

D.track the users' viewing and purchasing habits.

80.One reason for the regulation of promotion is to prevent retailers from

A.disclosing important facts.C.advertising discounted prices.

B.using celebrity endorsements.D.making misleading statements.

81.The most common purchase option for television advertising is

A.network affiliation.C.run-of-station.

B.spot announcements.D.participation shows.

82.What type of exterior signs do retail stores often create to promote specials that will be in effect for only a short time?

A.Neon C.Valance

B.Banners D.Endcaps

83.A local department store provides an "angel" tree display during November and early December, from which shoppers can choose the name of an impoverished child for whom shoppers can buy holiday gifts. The shoppers who purchase the children's gifts in the store receive a discount. What use of visual merchandising is being demonstrated?

A.Educating consumers about trendsC.Providing pertinent merchandise information

B.Building goodwill for the businessD.Introducing the store to prospective customers