Kola llc is a chain of supermarkets across the country

Kola LLC is a chain of supermarkets across the country. Kola's sales staff treat their customers very well which in turn creates great customer satisfaction. Which of the following is most likely to be the sustainable competitive advantage of Kola?
Location
Customer service
Unique merchandise
Ethical business practices
Price

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Question 2 2 pts Which of the following is an advantage of the use of sophisticated distribution and information systems?
Which of the following is an advantage of the use of sophisticated distribution and information systems?
It helps an organization to monitor the movements of its employees.
It offers an opportunity for the retailer to reduce operating costs.
It helps an organization to attain cultural diversity within its workforce.
It helps an organization to monitor the productivity of its entire workforce.
It creates a positive image of the brand in the minds of the consumers.

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Question 3 2 pts A retail strategy is a statement that identifies all the following except:
A retail strategy is a statement that identifies all the following except:
the employee compensation plan.
the bases upon which the retailer plans to build a sustainable competitive advantage.
the format that the retailer plans to use.
the target market.

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Question 4 2 pts A(n) _____ is formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared.
A(n) _____ is formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared.
strategic alliance
acquisition
joint venture
takeover
merger

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Question 5 2 pts Walgreens' rapid growth has resulted in a store opening every 17 hours. Many times, they are within a few blocks of each other. Walgreens practices:
Walgreens' rapid growth has resulted in a store opening every 17 hours. Many times, they are within a few blocks of each other. Walgreens practices:
market penetration.
market expansion.
diversification growth.
market divestment.
retail format development.

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Question 6 2 pts Which of the following is an example of unrelated diversification?
Which of the following is an example of unrelated diversification?
Operating in similar locations
Advertising in the same newspapers
Creating a new management information system
Using the same distribution
Purchasing from the same vendors

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Question 7 2 pts In a related diversification growth opportunity, _____.
In a related diversification growth opportunity, _____.
the retailer's present target market and retail format shares nothing in common with the new opportunity
the retailer's past target market and retail format shares nothing in common with a missed opportunity
the retailer's future target market and retail format shares nothing in common with a missed opportunity
the retailer's present target market and retail format shares something in common with the new opportunity
the retailer's future target market and retail format shares something in common with a missed opportunity

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Question 8 2 pts A _____ is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channels and format.
A _____ is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channels and format.
global market
wholesale market
retail market
target market
virtual market

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Question 9 2 pts Which of the following statements is a disadvantage of franchising?
Which of the following statements is a disadvantage of franchising?
The potential profit is reduced.
This is the most expensive method of entering a new market.
The retailer bears all the loss.
Heavy taxes are levied on the retailer.
Local laws favor the franchise.

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Question 10 2 pts After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to:
After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to:
build a sustainable competitive advantage.
identify all potential wholesalers.
manage the logistics of the product.
identify possible channels of distribution.
identify all possible channels of communication.

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Question 11 2 pts Alvo's LLC, a producer of candy, has decided to expand its operations geographically. Which of the following strategies should Alvo's use to achieve its objective?
Alvo's LLC, a producer of candy, has decided to expand its operations geographically. Which of the following strategies should Alvo's use to achieve its objective?
Retail format growth opportunity
Diversification growth opportunity
Market expansion growth opportunity
Wholesale format development growth opportunity
Market penetration growth opportunity

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Question 12 2 pts Gini's LLC, a footwear store, has the following characteristics. Which of the following characteristics of Gini's is most likely to be its least sustainable competitive advantage?
Gini's LLC, a footwear store, has the following characteristics. Which of the following characteristics of Gini's is most likely to be its least sustainable competitive advantage?
Knowledgeable employee force
Convenient store location
Shared systems with vendors
Lower price
Helpful sales force

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Question 13 2 pts Although Rosa visits several retailers when shopping for suits, she always buys suits at Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity for Bow and Arrow Inc.?
Although Rosa visits several retailers when shopping for suits, she always buys suits at Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity for Bow and Arrow Inc.?
Location
Unique merchandise assortment
Product pricing
Good vendor relations
Customer loyalty

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Question 14 2 pts In perceptual maps, retailers that are closer to an ideal point are evaluated:
In perceptual maps, retailers that are closer to an ideal point are evaluated:
less favorably by the consumers.
more favorably by the suppliers.
more favorably by the consumers.
more favorably by the producers.
less favorably by the suppliers.

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Question 15 2 pts Which of the following is an example of a market expansion growth opportunity?
Which of the following is an example of a market expansion growth opportunity?
Opening more stores in the same market
Displaying merchandise to increase impulse purchases
Engaging in cross-selling
Opening new stores in new geographic markets
Keeping existing stores open for long hours

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Question 16 2 pts Competitive retailers can sell the same popular national brands. Which of the following should retailers do to secure a competitive advantage?
Competitive retailers can sell the same popular national brands. Which of the following should retailers do to secure a competitive advantage?
Increase its merchandising flexibility.
Develop private label brands.
Prevent its customers from comparison shopping.
Increase its sales expenses.
Limit its store traffic to qualified buyers.

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Question 17 2 pts Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports Inc. offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports Inc. This is an example of:
Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports Inc. offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports Inc. This is an example of:
strategic control.
a situation audit.
customer loyalty.
retail perception.
direct competition.

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Question 18 2 pts Skip to question text.
Jose runs a gallery which specializes in neon art with an emphasis on vacation icons like flamingos, dolphins, and palm trees. Since demand was high and supplies were low, he decided to buy an old warehouse and then hire craftspeople to work there in order to produce the art. He would provide them with all of the supplies they needed, and he would be their only customer. Jose engaged in:
market expansion
co-operative buying
horizontal integration
market penetration
vertical integration

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Question 19 2 pts Which of the following statements is true of the challenges faced by organized retailing in India?
Which of the following statements is true of the challenges faced by organized retailing in India?
Government impedes foreign investment in retailing.
Managerial talent is becoming more difficult to find and retain.
The cost of setting up facilities is significantly high.
The supply chain is underdeveloped and inefficient.
The ever increasing operating costs.

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Question 20 2 pts Developing programs to motivate and coordinate employee efforts, providing incentives, fostering a positive organizational culture, and managing diversity are functions of the:
Developing programs to motivate and coordinate employee efforts, providing incentives, fostering a positive organizational culture, and managing diversity are functions of the:
marketing manager.
general store manager.
district management.
chief executive officer.
human resource management.

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Question 21 2 pts _____ occurs when a retail firm invests in and owns a retail operation in a foreign country.
_____ occurs when a retail firm invests in and owns a retail operation in a foreign country.
Portfolio investment
Philatelic investment
Alternative investment
Inventory investment
Direct investment

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Question 22 2 pts Which of the following is a suggested method for improving the efficiency of internal operations?
Which of the following is a suggested method for improving the efficiency of internal operations?
Brand image
Unique merchandise
Building a retail community using social media
Human resource management
Customer service

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Question 23 2 pts If Mohammed wanted to examine the assets and liabilities of the Silver Exchange Coin Shop for the end of the year, he should look at its _____.
If Mohammed wanted to examine the assets and liabilities of the Silver Exchange Coin Shop for the end of the year, he should look at its _____.
profitability statement
financial leverage statements
income statement
strategic profit model
balance sheet

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Question 24 2 pts Michaels sets goals at the top of the organization. Then, breaks down these objectives for merchandise categories and regions. When these objectives reach the buyers, each objective is personalized. What does this process demonstrate?
Michaels sets goals at the top of the organization. Then, breaks down these objectives for merchandise categories and regions. When these objectives reach the buyers, each objective is personalized. What does this process demonstrate?
Functional development
Accountable design planning
Top-down planning
Decentralized planning
Indirect planning

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Question 25 2 pts Which of the following measures the retailer's ability to pay its suppliers with assets such as cash and accounts receivable?
Which of the following measures the retailer's ability to pay its suppliers with assets such as cash and accounts receivable?
Cost of goods sold percent
Variable expense percent
Current ratio
Operating expense percent
Gross margin percent

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Question 26 2 pts _____ is also known as the acid-test ratio.
_____ is also known as the acid-test ratio.
Current ratio
Debt-to-capital ratio
Debt-to-equity ratio
Payout ratio
Quick ratio

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Question 27 2 pts Billie Jean's Bridals has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit after taxes of $23,000. Calculate the retailer's net profit percentage.
Billie Jean's Bridals has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit after taxes of $23,000. Calculate the retailer's net profit percentage.
31.1 percent
18.75 percent
35.9 percent
25 percent
20 percent

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Question 28 2 pts What ratio would an investor use to determine the financial health and risk of bankruptcy of a retailer?
What ratio would an investor use to determine the financial health and risk of bankruptcy of a retailer?
Operating expense percent
Stock to sales ratio
Current ratio
Inventory turnover
Debt-to-equity ratio

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Question 29 2 pts Tony wanted to know what the net sales and the net profit after tax were last year for his nephew's business, The Big Guy Shop Inc. Tony should look at the store's:
Tony wanted to know what the net sales and the net profit after tax were last year for his nephew's business, The Big Guy Shop Inc. Tony should look at the store's:
strategic profit model.
income statement.
profitability statement.
financial leverage statements.
balance sheet.

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Question 30 2 pts Asset turnover _____.
Asset turnover _____.
is net sales divided by total assets
is another term for inventory turnover
is calculated by dividing total assets by net sales
is calculated from information found on a firm's income statement
reveals how profitable a company is

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Question 31 2 pts Skip to question text.
Melanie's Bead Shoppe LLC has total assets of $45,000, accounts receivable of $2,000, accounts payable of $3,100, and inventory valued at $20,000. Last year, her net sales were $29,000, and her operating profit margin equaled $14,000. What is her return on assets?
12.5 percent
31.1 percent
7.0 percent
22.0 percent
48.3 percent

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Question 32 2 pts As Dean calculates his current assets for his used video game store, he is sure to include which of the following?
As Dean calculates his current assets for his used video game store, he is sure to include which of the following?
Notes receivable
Accrued liabilities
Retained earnings
Fixed assets
Merchandise inventory

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Question 33 2 pts Which of the following would be the best example of an output measure?
Which of the following would be the best example of an output measure?
Net profits for the store for the year
The purchase of new inventory
The square feet of shelf space allocated to a particular item
The number of employees it takes to run a store
The expense of utilities

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Question 34 2 pts The formula for calculating operating expenses percentage is:
The formula for calculating operating expenses percentage is:
average sales/gross sales.
gross sales/operating expenses.
total sales/average sales.
operating expenses/net sales.
total sales/operating expenses.

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Question 35 2 pts Skip to question text.
If the executives for Office Max LLC, a chain of office supply stores, developed the chain's objectives by asking buyers and store managers to forecast sales and merchandise for the next year, and then transmitted those estimates up the organization to the top level, it would be an example of _____ planning.
accountable
conventional
bottom-up
direct
functional

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Question 36 2 pts Which of the following is an integral part of the strategic profit model?
Which of the following is an integral part of the strategic profit model?
Current liabilities
Inventory turnover
Asset turnover
Retained earnings
Gross margin

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Question 37 2 pts Skip to question text.
Second Chance LLC is a paperback book exchange. For each book trade, the buyer pays a $1 trade fee. Books that are sold and not traded cost half of their original purchase price. The store has total assets of $126,000 and current assets of $40,200. Its net sales equaled $35,000, and its net profit after taxes was $9,000. Calculate the store's net profit percentage.
7.1%
27.7%
25.7%
21.7%
22.4%

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Question 38 2 pts Calculate the return on assets for a gun shop that has total assets of $410,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and operating profit margin of $30,000.
Calculate the return on assets for a gun shop that has total assets of $410,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and operating profit margin of $30,000.
26.5 percent
8.2 percent
7.3 percent
25.0 percent
18.3 percent

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Question 39 2 pts The formula for calculating gross margin is:
The formula for calculating gross margin is:
gross sales minus the cost of goods sold.
net sales minus gross sales plus the cost of goods sold.
net sales minus the cost of the goods sold.
net sales plus the cost of goods sold.
gross sales plus the cost of goods sold.

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Question 40 2 pts The formula to calculate quick ratio is:
The formula to calculate quick ratio is:
(short-term assets-inventory)/short-term liabilities
(short-term assets-long-term liabilities)/inventory
(long-term assets-short-term liabilities)/inventory
(long-term assets-long-term liabilities)/inventory
(short-term assets-inventory)/long-term liabilities

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Question 41 2 pts Which of the following statements is not true about the strategic profit model?
Which of the following statements is not true about the strategic profit model?
It suggests profit management path and asset management path.
It indicates the impacts of factors affecting a firm's return on assets (ROA).
It decomposes return on assets (ROA) into net profit and operating expenses.
It illustrates the different approaches for achieving a high return on assets (ROA).
It is a method for summarizing the factors that affect a firm's financial performance.

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Question 42 2 pts What is wrong with the following performance objective written for a shop specializing in furs: "To earn $1,000,000 in profit during calendar year 2011"?
What is wrong with the following performance objective written for a shop specializing in furs: "To earn $1,000,000 in profit during calendar year 2011"?
The objective does not state the resources needed to accomplish it.
The objective is stated appropriately.
The objective is not measurable.
The objective is not qualitative.
The objective lacks a specific time frame.

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Question 43 2 pts Which of the following would be listed as an asset on the balance sheet for a children's clothing shop?
Which of the following would be listed as an asset on the balance sheet for a children's clothing shop?
Money owed to vendors
Retained earnings
Accounts receivable
Interest due on startup loan

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Question 44 2 pts By knowing the return on assets for his bakery shop, Chuck will know:
By knowing the return on assets for his bakery shop, Chuck will know:
total assets divided by net profits.
information found only on his income statement.
total assets divided by owners' equity.
information found only on his balance sheet.
how much profit was generated from his investment in assets.

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Question 45 2 pts Sara, a traveler, visits a climate-controlled, lighted shopping center with retail stores on both sides of an enclosed walkway. What type of shopping center is this most likely to be?
Sara, a traveler, visits a climate-controlled, lighted shopping center with retail stores on both sides of an enclosed walkway. What type of shopping center is this most likely to be?
Outlet center
Lifestyle center
Neighborhood shopping center
Power center
Enclosed shopping mall

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Question 46 2 pts A supermarket requires a large amount of operating space. Therefore, it is most likely to be located in a:
A supermarket requires a large amount of operating space. Therefore, it is most likely to be located in a:
freestanding site.
off-price center.
life-style center.
shopping mall.
central business district.

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Question 47 2 pts Local governments in the United States use _____ to regulate land uses in specific areas to prevent any interference with existing uses by residents or businesses, as well as encourage the preservation of a community's sense of identity.
Local governments in the United States use _____ to regulate land uses in specific areas to prevent any interference with existing uses by residents or businesses, as well as encourage the preservation of a community's sense of identity.
zoning
lining
branding
policing
mapping

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Question 48 2 pts Which of the following is an advantage of freestanding locations?
Which of the following is an advantage of freestanding locations?
High pedestrian traffic
Unlimited trade area
Light pedestrian traffic
High vehicular traffic
Less expensive compared to shopping centers

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Question 49 2 pts Urban customers typically place more importance on _____.
Urban customers typically place more importance on _____.
reducing their shopping expense
getting all possible alternatives
diversity of the retailer's assortment
reducing their shopping time
finding better bargains

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Question 50 2 pts Shopping centers consisting primarily of collections of big-box retail stores, such as Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders are called:
Shopping centers consisting primarily of collections of big-box retail stores, such as Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders are called:
theme centers.
power centers.
lifestyle centers.
neighborhood centers.
community centers.

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Question 51 2 pts Discount department stores are typically located in _____.
Discount department stores are typically located in _____.
omnicenters
lifestyle centers
power centers
marketing complexes
strip shopping centers

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Question 52 2 pts Skip to question text.
The Home Laughlin China Company of West Virginia manufactures Fiesta China in a variety of colors. The factory has a store where they feature Fiesta products that are discounted or discontinued. Patrons come in to shop with crates expecting to purchase the Fiesta products in large quantities. This type of store can be considered as a(n):
outlet store.
lifestyle center.
mixed-use development.
festival center.
regional center.

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Question 53 2 pts The Watertower Place on Michigan Avenue in Chicago has many high-quality boutiques, amongst office space and residential condominiums. It is an example of a(n):
The Watertower Place on Michigan Avenue in Chicago has many high-quality boutiques, amongst office space and residential condominiums. It is an example of a(n):
lifestyle center.
price-oriented center.
outlet center.
off-price center.
mixed-use development.

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Question 54 2 pts Lowe's and Best Buy would most likely be found in a _____ shopping center.
Lowe's and Best Buy would most likely be found in a _____ shopping center.
theme/festival
strip
regional
central-business
power

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Question 55 2 pts Developers will usually look for _____ to build lifestyle centers.
Developers will usually look for _____ to build lifestyle centers.
small towns
middle-class neighborhoods
interstate interchanges
higher-income neighborhoods
inner city locations

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Question 56 2 pts Skip to question text.
On his way home from work, Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his suit. He did not have to move his car because next door was a gift shop where he could pick up a gift for his niece. Conveniently enough, next door to that store was a supermarket, where he purchased essentials like milk and cornflake cereal. Phil was shopping in what type of shopping center?
Neighborhood center
Power center
Mixed-use development center
Enclosed shopping mall
Lifestyle center

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Question 57 2 pts _____ are centers that often include office spaces, hotels, residential complexes, civic centers, or convention complexes on top of or attached to a shopping center.
_____ are centers that often include office spaces, hotels, residential complexes, civic centers, or convention complexes on top of or attached to a shopping center.
Mixed-use developments
Marketing complexes
Convention centers
Urban shopping arenas
Multilevel marketing centers

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Question 58 2 pts What of the following is a challenge faced by malls?
What of the following is a challenge faced by malls?
Many aging malls have not been updated and are unappealing to shoppers.
Foot traffic is low at malls.
There is little entertainment value at malls.
Customers are not able to stay at malls for extended periods of time because of the lack of places to get food.

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Question 59 2 pts Which of the following can restrict the size and style of retail signs?
Which of the following can restrict the size and style of retail signs?
Manufacturers
Shopping center management
Retail managers association
Neighboring retailers
Brand stewards

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Question 60 2 pts Why would a small retailer be interested in a kiosk?
Why would a small retailer be interested in a kiosk?
They can fit into prime mall locations.
Kiosks provide better prices than the competition.
A kiosk can offer more variety than a permanent retailer.
Kiosks are an opportunity to generate rental income in otherwise vacant space.
Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush effect.

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Question 61 2 pts Why would a small retailer not be interested in selling at kiosks situated in airports?
Why would a small retailer not be interested in selling at kiosks situated in airports?
Relatively inexpensive compared to a regular sized store
The rent per square foot is very expensive.
The location is often convenient for workers.
The retailer can offer seasonal merchandise that closes after the season.
The high foot traffic can be helpful for testing the response to new products.

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Question 62 2 pts In a town in Georgia, the McDonald's restaurant was required by _____ to have no sign taller than 8 feet, no arches, and no garish or bright colors on the outside of the building.
In a town in Georgia, the McDonald's restaurant was required by _____ to have no sign taller than 8 feet, no arches, and no garish or bright colors on the outside of the building.
building codes
licensing requirements
trading area codes
common maintenance codes
blue laws

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Question 63 2 pts Skip to question text.
Jake is looking to rent a retail space in a shopping center for his restaurant business. He is looking for a space of around 250,000 square feet with annual occupancy cost of around $50 per square feet. An ideal space should be high on pedestrian traffic but low on vehicular traffic. Which of the following locations will best suit Jake?
Neighborhood and community shopping centers
Theme/festival centers
Power centers
Regional and super-regional enclosed malls
Outlet centers

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Question 64 2 pts _____ can be defined as shopping centers that employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. They are typically designed to appeal to tourists.
_____ can be defined as shopping centers that employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. They are typically designed to appeal to tourists.
Price-oriented centers
Theme/festival centers
Specialty centers
Center replicas
Regional centers

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Question 65 2 pts Which of the following statements is a disadvantage of shopping malls?
Which of the following statements is a disadvantage of shopping malls?
Competition is kept to a minimum because developers try not to have more than one specialty store for each product category.
The mall management has no control over exterior signs.
Rents in malls are higher than other locations.
Each retailer is allowed to establish its hours of operation.

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Question 66 2 pts Skip to question text.
As Leah drove down Fairfax Road, she noticed a group of adjacent stores. In the group, she saw a hair salon, a pizzeria, a supermarket, an optometrist, and a grocery store. All the stores had entrances into a parking lot, which was landscaped with trees and flowers. What type of shopping center is this?
Mixed-use development center
Theme/festival center
Neighborhood and community shopping center
Outlet center
Lifestyle center