Retail Management Exam Preparation Guide
Course Introduction
Retail Management explores the principles, strategies, and operations involved in running successful retail businesses in today's dynamic marketplace. The course covers key topics such as store layout and design, inventory management, merchandising, pricing strategies, customer service, supply chain logistics, and the impact of technology on retail operations. Students will analyze consumer behavior, develop marketing plans, and examine the challenges and opportunities facing retailers in various sectors. By integrating theory with real-world case studies, this course prepares students to address the evolving trends in retailing and to make informed managerial decisions that enhance customer satisfaction and drive business growth.
Recommended Textbook
Franchising 4th Edition by Richard J. Judd
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22 Chapters
209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/study-set/1324 Page 2
Chapter 1: Franchising: History and Overview
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which of the following industries provides the earliest and lasting example of franchising in the U.S.economy?
A)beverage industry
B)retail fast-food industry
C)automotive industry
D)steel industry
Answer: C
Q2) The business arrangement,otherwise called a franchise opportunity,has three major components that constitute the essence of what is generally referred to as a franchise.Which one of the following is not part of a franchise business arrangement?
A)use of product or service
B)use of private labels to brand or trademark product or service
C)a franchisor's trademark and/or logo
D)payment of a royalty fee
Answer: B
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3
Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Reasons a franchise system would have corporate locations,as well as franchisee locations are shown below,except for:
A)investors believe corporate ownership demonstrates that the franchise concept works.
B)franchisor avoids potential conflict with franchisees that may rise based upon market and site locations.
C)by having some corporate locations,the franchisor could take over,if a troubled or failing franchisee's location,if necessary.
D)by having corporate location,the franchisor remains close to the ultimate customer. Answer: B
Q2) A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?
A)do I have a prototype store or unit that can be replicated?
B)can my product/service meet the test of distance?
C)should I have right of first-refusal on site selection?
D)what skills will be needed by a franchisee to run my business successfully?
Answer: C
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Page 4
Chapter 3: The Franchisor Business Plan
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) How many phases are included in the Franchise PERT Chart?
A)3
B)4
C)6
D)8 Answer: C
Q2) Which of the following is often referred to as the franchisee's "bible"?
A)the franchisor's business plan
B)the franchising agreement or contract
C)the PERT chart
D)the operations manual
Answer: D
Q3) A realistic estimate for the cost of legal requirements to begin a franchising system could be:
A)$5,000
B)$10,000
C)$20,000
D)$50,000
Answer: C
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Page 5
Chapter 4: Franchisor Management, Organization and Administrative Policy
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Sample Questions
Q1) According to Jim Peterson,it is important to know how customers honestly perceive the quality of the product or service offered by the franchise system.The product quality is within the perception of the customer and is greatly influenced by the franchise system's server.The attitude of the customer is made up of three key factors.Which one of the options below is not one of these critical customer perception factors?
A)70%--the way the customer is looked at;
B)29%--based on the tone of the server's voice;
C)1%--exactly what the employee (server)says;or
D)the server's intent to win an argument.
Q2) There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system.Which one of the following tasks is not one of these six major organizational development tasks?
A)Identify and define the market niche for the franchise firm
B)Develop products/services through the prototype unit
C)Acquire resources,solicit and train franchisees
D)Develop strategic plans for the franchise firm
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Chapter 5: The Franchise Marketing Process
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) The product life cycle model is a theoretical construct that helps franchisors understand the industry cycle and the cycle of specific products or services with a franchise system's product line."When sales continue to grow but are increasing at a decreasing rate" is associated with which stage of the product life cycle?
A)introduction
B)growth
C)retention & evaluation
D)decline
Q2) There are four generic categories to classify goods and services.Which one below fits the description of----goods or services that are frequently purchased,usually are low-to- competitively priced,and staples,emergency or impulse buys.
A)convenience goods or services
B)homogeneous shopping goods or services
C)heterogeneous shopping goods or services
D)specialty products or services.
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Chapter 6: Selling Franchises and Marketing Research
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which of the following is true about the serious prospective franchisee?
A)he/she is not looking to start the franchise as soon as possible.
B)he/she is very straightforward about his/her interest,availability,and financial resources.
C)he/she is cautious about disclosing his/her intentions.
D)his/her time frame generally increases as his/her interest level increases.
Q2) What is a realistic number for a sample size when doing market research?
A)50
B)300
C)500
D)1,000
Q3) Franchisors often determine a franchisee's likelihood of success by looking at two things.What are they?
A)personality and experience
B)personality and financial net worth
C)experience and knowledge of the franchise
D)knowledge of the franchise and financial net worth
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8
Chapter 7: Co-Branding
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) What crucial element is necessary for the success of co-branding partners?
A)sufficient time to integrate the brands
B)natural synergy between the brands
C)distinctive differences between the brands
D)a strong personal relationship between the franchisors
Q2) Which of the following is true about co-branding?
A)it is primarily franchisor-driven.
B)it is primarily customer-driven.
C)it is primarily franchisee-driven.
D)it can be either franchisor- or franchisee-driven.
Q3) Why might co-branding be beneficial for a mature market?
A)mature markets provide little opportunity for sales and profit growth through traditional outlets.
B)co-branding represents a new approach that can revitalize mature markets.
C)a new and improved,co-branded unit has the potential to bring in extra cash flow that can result in greater overall new profits for the franchise system.
D)all of these are reasons it could be beneficial.
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Chapter 8: Managing the Franchisors Operations Process
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10 Verified Questions
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Sample Questions
Q1) From a broad perspective,( )means effective communication and promotion of the franchised product or service to the targeted audience.
A)market research
B)public relations\
C)advertising
D)marketing philosophy
Q2) Though a location manual or policy may be developed to assist in determining optimal sites,for franchised businesses that require a store-front location the final determination often rests with:
A)the bank that loans the funds for construction of the store
B)the franchisee
C)the franchisor
D)the city's zoning commission
Q3) Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?"
A)training manual
B)site inspection manual
C)quality control manual
D)operating manual
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Page 10
Chapter 9: Location and Site Selection
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Sample Questions
Q1) Which of the following sequences of the three-step location model is correct?
A)BPI,DMAs,Individual Site Analysis
B)DMAs,Individual Site Analysis,BPI
C)DMAs,BPI,Individual Site Analysis
D)Individual Site Analysis,DMAs,BPI
Q2) Four factors are important in determining the size and shape of a primary service area (PSA).These include all of the following EXCEPT:
A)BPI
B)alternative shopping choices
C)intuition
D)drive-time analysis
Q3) One of the more interesting ratios for franchising is the Location Selection Ratio or Sales/Costs ratio.Which of the following ratios would be ranked the best?
A)¼
B)½
C)1
D)all of the above are desirable ratios
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Chapter 10: Accounting and Financial Statements:
Presentation and Uses
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Sample Questions
Q1) What do financial ratios analyze?
A)the "bottom line"
B)the return to the franchised business owner
C)the "net" profit
D)all of the above
Q2) Which of the following types of financial ratios measures how well a franchise meets its short-term debts or financial obligations?
A)liquidity
B)profitability
C)activity
D)coverage/leverage
Q3) Franchisors capitalizing or financing their businesses are generally required to disclose three key financial statements.Which of the following is not one of those statements?
A)income statement or operating statement
B)balance sheet or statement of financial position
C)net profit statement or bottom line
D)cash flow or cash budget statement
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Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
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Sample Questions
Q1) In financial planning with the franchised business,the most basic and essential variable of the financial planning tools is the:
A)inventory schedule
B)sales forecast
C)pro forma balance sheet
D)econometric models for forecasting liabilities
Q2) Often considered the most critical financial component of working capital is
A)marketable securities
B)inventory management and recovery
C)cash
D)accounts receivable
Q3) The cash flow statement is used to plan:
A)liquidity for the firm
B)profitability for the firm
C)anticipated costs of operation
D)asset utilization for the business
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Chapter 12: Information Systems in Franchising
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) What is the primary purpose of information systems in a start-up franchise?
A)to improve operations at franchised units
B)to improve operations at franchisor's headquarters
C)to generate data which can be used to accumulate working knowledge
D)to leverage working knowledge and increase profits
Q2) Which of the following activities at the franchisor's headquarters office should be the center of attention?
A)marketing and advertising to prospective franchisees for franchise development
B)managing people who perform franchise support and franchise development
C)helping and supporting business units
D)dealing with financial issues such as accounting and finances
Q3) Where does working knowledge come from?
A)financial reports
B)customers
C)franchisors
D)data analyses
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Chapter 13: Franchise Legal Documents
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) Which of the following allows a developer to build a num?ber of franchised businesses in a particular market area?
A)Franchise Agreement
B)Sub-Franchising Contract
C)Area Development Agreement
D)UFOC
Q2) Which of the following is NOT true about the Franchise Agreement?
A)most of its components are the subject of specific disclosure under the FTC rule.
B)it is generally a static,unchanging document.
C)it is useful for a broad spectrum of businesses.
D)it has evolved as a result of the way franchising has come to be regulated by state and federal laws.
Q3) What sort of disclosure document is required by the FTC Rule?
A)the format prescribed by the FTC
B)the UFOC,or uniform franchise offering circular
C)both of the above formats
D)one of the above formats
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15
Sample Questions
Q1) When does a trade secret become enforceable?
A)when it is developed
B)when it is filed with a federal agency
C)when a Confidentiality Agreement is signed
D)when it is shared with a certain percentage of the firm's employees
Q2) Which of the following does the trademark most often represent?
A)the source of a product
B)the name of a product
C)a standard of quality
D)a protectable property right
Q3) Which of the following qualities is NOT one of the requirements for an invention to be eligible for a Utility Patent?
A)new
B)distinctive
C)useful
D)non-obvious
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16
Chapter 15: Investigating Franchise Opportunities
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Sample Questions
Q1) It is crucial for a potential franchise to answer the following question prior to signing a franchise agreement.
A)by buying and running this franchise is likely to make me happy
B)buying this franchise will some all my future financial problems
C)buying this franchise will make my parents and in-laws respect me
D)none of the above
Q2) Rule 436 is a rule issued by ( )provides franchisors and franchisees with certain legal rights under federal law.
A)Interstate Commerce Commission
B)Department of Commerce
C)Federal Trade Commission
D)U.S.Small Business Administration
Q3) About ( )percent of franchise systems provide some form of earnings claims for franchisees?
A)5 percent
B)about 25 percent
C)about 40 percent
D)about 70 percent
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Chapter 16: Financing Your Franchised Business
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Sample Questions
Q1) Most franchisors
A)provide up to 90 % in the financing of new franchisees
B)will not become involved with the financing of new franchisees,although a few may provide a limited amount of help
C)arrange for financing of franchisees through their own financial acceptance corporations
D)provide up to 25 %,but rarely any more,of the financing of new franchisees
Q2) In 1953 Congress passed the Small Business Act to help small firms (including franchisees)obtain loans for startups and other business needs.The SBA helps franchisees obtain capital through several ways indicated below.Which one option below is not offered by the SBA to small businesses?
A)the SBA loan guarantee program
B)Small Business Investment companies (SBICs)
C)direct SBA (direct federal tax monies)provided to the business for startup funding
D)the Federal Registry,which has as a part called the Franchise Registry specific for assisting in creating loan possibilities into the franchise industry
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Chapter 17: Marketing the Franchisee Business
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8 Verified Questions
8 Flashcards
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Sample Questions
Q1) Marketing research in franchising is done primarily by A)the franchisor
B)the independent franchisees
C)both franchisor and franchisee collaboratively
D)contracted outside survey research firms.
Q2) In making an advertising decision,a franchisor or franchisee should have the primary objectives of advertising address each of the following issues,except:
A)to inform potential purchasers
B)to discourage competitors
C)to persuade potential customers to buy from your firm
D)to remind customers of your product/service availability
Q3) Which of the following questions is least important as a major critical issue for a new franchisor?
A)what is the target market for my product/service?
B)how should I price the products in my product line?
C)what guarantees,warranties or services should be provided to the customer?
D)who shall I hire as my secretary?
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Chapter 18: Managing the Franchisee Business Stage Six:
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Sample Questions
Q1) Family-owned and/or controlled businesses
A)usually continue to exist over two and sometimes three generations
B)usually succeeds ten or more years
C)account for a clear majority of all incorporated firms in the United States
D)generate more than 80% of U.S.GDP
Q2) As stated in the text,all of these items are among the ten most common legal problems of franchisees except:
A)sharing advertising costs
B)minimum performance requirements
C)fees for support services
D)correct information being provided to the IRS
Q3) Among the actions a franchisor may not engage in the following except:
A)requiring a franchisee to buy a product(s)in order to acquire the product the franchisee wants to purchase
B)mandating the price / a franchisee must charge customers for a product
C)promote a nation-wide sales promotion for products/services sold by franchisees
D)only provide sales and financial projections in a more understandable format than that provided for by the FTC Earnings Claim Document
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Chapter 19: The Franchising Relationship
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Sample Questions
Q1) The franchisor-franchisee relationship usually goes through the following cycle:
A)growth,maturity,decline/development
B)introduction,growth,maturity,decline/development
C)introduction,growth,decline/development,maturity
D)growth,decline/development,maturity
Q2) What is the key to the Maturity stage in the franchisor-franchisee relationship?
A)Expansion
B)Profitability
C)Communication
D)Balance of power
Q3) How should meetings between the franchisor and franchisee evolve?
A)initial meetings concentrate on specifics and eventually focus on the broader aspects of the franchise.
B) initial meetings as well as follow-up meetings should all cover both general and specific information about the franchise operation.
C)initial meetings hammer out the basics of the franchise operation and tackle specifics later.
D)meetings should evolve according to the tastes of the individual franchisor.
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21
Chapter 20: Franchiser Support Services Stage Seven:
Current Issues in Franchising
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Sample Questions
Q1) Which of the following is NOT one of the building blocks of customer service?
A)improvise!
B)be willing to change!
C)listen to customers!
D)provide friendly services!
Q2) What is the field representative's primary task?
A)to conduct surveys of franchisees
B)to observe franchisees' interaction with customers
C)to gauge profitability
D)to help maintain a good franchisor-franchisee relationship
Q3) What is required of the person in charge of a franchisee training program?
A)experience as a franchisor
B)understanding of the needs of the particular franchised business
C)knowledge about the training process
D)both b and c
Q4) What period of franchisee training is generally the most intensive?
A)grand opening training
B)pre-opening training
C)continuing training
D)field representative training
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Chapter 21: Social Responsibility and Business Ethics
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Sample Questions
Q1) Utilitarianism:
A)focuses on the decision maker achieving maximum personal benefits
B)attempts to remove emotion and self-interests from decision-making
C)is concerned with providing the greatest good for the greatest number of people
D)both b and c above
Q2) Which of the following is NOT a typical social responsibility issue for U.S.franchise systems?
A)immigration
B)work/life issues
C)employment of individuals with disabilities
D)payment of the minimum wage in accordance with the Fair Labor Standards Act
Q3) Business ethics
A)only involves moral values
B)only involves establishing behavioral standards
C)ultimately is about decision-making
D)only involves determination of right and wrong
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Chapter 22: International Franchising
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Sample Questions
Q1) The future for international franchising is:
A)bright and promising
B)promising,but uncertain
C)difficult,but rewarding
D)yet to be determined
Q2) A product strategy which involves changing the product to meet local conditions and consumer demands is called:
A)product conversion
B)product adaptation
C)straight product utilization
D)product invention
Q3) The most common and best way of starting a franchise in a foreign country is through?
A)licensing
B)joint venture
C)direct investment
D)master franchisee
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