Business Basics

What are "loss leaders" designed to do? A. Drive competitors out of business B. Reduce a store's tax burden C. Keep advertising budgets under control D. Attract more customers to come into the store

D. Attract more customers to come into the store

Which is typically perceived as one of the main advantages of a big-box retailer? A. Personalized customer service B. Low prices C. Convenient downtown locations

B. Low prices

_____________ is the measure of how much money you can make off each sale A. Marketability B. Profitability C. Popularity D. Consumability

B. Profitability

Questions collecting _______ data often begin with "how many" or "how much" A. Qualitative B. Quantitative C. Primary D. Secondary

B. Quantitative

A retail business must strike a compromise between two main factors when setting an item's price. What are these two main factors? A. Location and value B. Reasonable margin and customers' willingness to pay C. Advertising budget and cost of ads D. Quality and quantity

B. Reasonable margin and customers' willingness to pay

Which of the following is the best example of a loyalty program? A. A "Buy nine, get the tenth one free" punch card B. A shelf where heavily discounted items are placed C. An end-of-year clearance sale

A. A "Buy nine, get the tenth one free" punch card

Which is NOT a source of secondary data? A. A business's own Facebook survey B. Past sales records C. Trade associations D. Federal government

A. A business's own Facebook survey

How are promotional budgets normally determined? A. By using a percentage of a business's net sales B. By using an estimate of expected future sales C. By budgeting just a little bit more than the competition

A. By using a percentage of a business's net sales

________ need(s) to be examined when determining a store's busiest time A. Customer traffic B. Store name C. Discounts D. All of the above

A. Customer traffic

Of fixed-rate, percentage, and triple net leases, which makes financial planning easiest for a business owner? A. Fixed-rate B. Percentage C. Triple net

A. Fixed-rate

What is the main reason a business might use a third party list? A. It is difficult to collect a large number of email addresses B. They are much cheaper C. Customers are more likely to read any emails they receive

A. It is difficult to collect a large number of email addresses

What is meant by "trade area"? A. It's a business's geographic surroundings, which provide most of its customers B. It's the type of item a store specializes in selling, like sporting goods or paint C. It's the physical space where the cash registers are located

A. It's a business's geographic surroundings, which provide most of its customers

___________ is the measure of how easily you can sell a product A. Marketability B. Profitability C. Popularity D. Consumability

A. Marketability

Which of the following is NOT something a potential employee needs to know before being hired? A. Must memorize the entire product line B. The job description C. The number of hours to be worked D. The wages

A. Must memorize the entire product line

________ requires that sales associates be friendly, knowledgeable, and helpful. A. Personal selling B. Sales promotion C. Advertising D. Public relations

A. Personal selling

A _________ email has no fancy font styling, formatting, or embedded images A. Plain-text B. Coded C. HTML D. Original

A. Plain-text

What did the Clayton Antitrust Act of 1914 and the Robinson-Patman Act of 1936 outlaw? A. Price discrimination B. Collusion C. Undercutting the competition D. Pre-Thanksgiving sales

A. Price discrimination

________ is whether an employee will show up to work on schedule A. Punctuality B. Reliability C. Attitude D. Honesty

A. Punctuality

Market ______ is the process of gathering, recording, analyzing, and reporting information regarding customers or potential customers. A. Research B. Size C. Share D. Segment

A. Research

Which is an example of specialty media? A. T-shirts with a store logo on them B. A satellite television ad C. A "midnight madness" sale

A. T-shirts with a store logo on them

_________ is the amount of money the store pays to purchase the merchandise from a supplier A. Profit B. Cost C. Markdown D. Margin

B. Cost

What do employee compensation laws do? A. Guarantee income in case of injury B. Determine minimum wages, the 40-hour work week, and overtime pay C. Provide transportation to workers without their own car

B. Determine minimum wages, the 40-hour work week, and overtime pay

Is secondary data generally more expensive or less expensive than primary data? A. More B. Less

B. Less

What did the CAN-SPAM Act of 2003 do? A. Require that all email marketers be American Citizens B. Require "unsubscribe" links in all marketing emails C. Require that email messages delete, or "can," themselves after 30 days

B. Require "unsubscribe" links in all marketing emails

Sample _______ is the number of people questioned for a survey A. Research B. Size C. Share D. Segment

B. Size

To a retail business owner, what is "cost"? A. The environmental damage caused by the store B. The amount paid to suppliers for merchandise C. The selling price

B. The amount paid to suppliers for merchandise

In a triple net lease, who pays for property maintenance? A. The landlord B. the tenant C. A third-party contractor

B. The tenant

_____________ is an employee's hard work and diligence A. Punctuality B. Work ethic C. Attitude D. Honesty

B. Work ethic

What is an advantage of selling consumable items? A. They do not need refrigeration B. They typically have a large profit margin C. they are long-lasting D. They tend to generate repeat business

D. They tend to generate repeat business

What is a "complementary" business? A. A retailer that helps customers look good B. A business plan that focuses on customer service C. A retailer that sells related, but not identical, merchandise as one's own store

C. A retailer that sells related, but not identical, merchandise as one's own store

______ is a form of non-personal promotion and is a one-way message. A. Personal selling B. Sales promotion C. Advertising D. Public relations

C. Advertising

Advertising a low-priced product in order to lure customers into buying a high-priced product is called what? A. A shell game B. Promotional mix C. Bait and switch D. Phishing

C. Bait and switch

Which is NOT a symptom of an understaffed store? A. Closed cash registers B. Unhappy customers C. Customers using credit cards D. Poor stock maintenance

C. Customers using credit cards

Which is NOT a use for market research? A. Identifying what services customers want B. Deciding what merchandise to sell C. Determining tax deductions D. Forecasting sales

C. Determining tax deductions

A good piece of advice for subject lines is to be _______________ A. Verbose B. Incomplete C. Direct D. All of the above

C. Direct

________ emails have the advantage of using photos and designs to help sell your product or service A. Plain-text B. Coded C. HTML D. Original

C. HTML

In a sliding scale percentage lease, what usually happens to the amount of rent paid as sales go up? A. it goes up as a percentage of sales B. Nothing C. It goes down as a percentage of sales

C. It goes down as a percentage of sales

Which of the following is NOT a necessary trait of a good employee? A. Willingness to accept direction B. Tidy appearance C. Lives nearby D. Good communication skills

C. Lives nearby

______ are when store owners reduce the price of merchandise A. Profits B. Costs C. Markdowns D. Margin points

C. Markdowns

In this market research step, data related to the problem are collected and studied: A. Choose the best solution B. Analyze data C. Obtain data D. Identify the problem

C. Obtain data

________ Is the measure of how popular a product is A. Marketability B. Profitability C. Popularity D. Consumability

C. Popularity

_______ data can be obtained through the use of surveys, observation, and focus groups. A. Qualitative B. Quantitative C. primary D. Secondary

C. Primary

What are "Price points"? A. Incentive programs that encourage customers to spend more B. The practice of listing all prices so they end in ".99" C. The typical selling prices at which goods are sold

C. The typical selling prices at which goods are sold

The ____ is a business's geographic surroundings A. Sample area B. Sample size C. Trade area D. Trade tariff

C. Trade area

Which best describes "consultative selling"? A. Using the latest research to redesign a floor plan B. Offering only one kind of each product C. Working with a customer to determine his or her needs

C. Working with a customer to determine his or her needs

What is meant by "promotional mix"? A. A set of key words that all successful ad campaigns should use B. A staggered schedule of TV ads that air at different times of day C. The combination of the types of promotion a business uses

C. the combination of the types of promotion a business uses

A factor that a retailer might consider when choosing a location is ____ A. The availability of workers B. Local zoning laws C. Possibilities for expansion D. All of the above

D. All of the above

When you are deciding who to hire, you should consider __________ A. The job responsibilities B. The wages C. The hours D. All of the above

D. All of the above

_______ media include television and radio A. Print B. Social C. Specialty D. Broadcast

D. Broadcast

To beat the competition, you could ________ A. Offer more than simple merchandise B. Sell unique items C. Compete on diversity D. Do all of these

D. Do all of these

In this market research step, the retailer states the problem and the information needed to solve it: A. Choose the best solution B Analyze data C. Obtain data D. Identify the problem

D. Identify the problem

In a retail business, what number do you get by subtracting an item's cost from its price? A. Overhead B. Discount C. Profit D. Margin

D. Margin

Which is not a critical consideration when choosing a location for a retail store? A. Traffic B. Convenience C. Visibility D. Nearby police station

D. Nearby police station

According to the reading, which of the following would be considered a very poor response rate for an email campaign? A. 20% B. 5% C. 1% D. None of the above

D. None of the above

Which of the following items is NOT perishable? A. Eggs B. Meat C. Batteries D. Paper towels

D. Paper towels

The four types of promotion that are commonly used are personal selling, sales promotion, advertising, and ______ relations. A. Private B. Vendor C. Customer D. Public

D. Public

Which government agency is in charge of enforcing advertising laws? A. The Justice Department B. The US Chamber of Commerce C. The SEC D. The Federal Trade Commission

D. The Federal Trade Commission