Question 1

Perpetual inventory systems:

Accepted Answer

A) are relatively inexpensive to use and therefore quite popular among discount retailers. 
B) are not particularly effective for keeping accurate track of large,expensive items. 
C) require consistent use of the inventory sheets in order to provide accurate results. 
D) are the simplest and quickest to use of all inventory systems. 
A) are relatively inexpensive to use and therefore quite popular among discount retailers. 
B) are not particularly effective for keeping accurate track of large,expensive items. 
C) require consistent use of the inventory sheets in order to provide accurate results. 
D) are the simplest and quickest to use of all inventory systems.

Question 2

Kleptomaniacs have a compulsive need to steal even though they have little,if any,need for the items they shoplift.

Accepted Answer

A) True 
 B)False

Question 3

Employers can reduce employee theft through:

Accepted Answer

A) careful screening of employees during hiring. 
B) only hiring relatives and the friends of current employees. 
C) the use of metal detectors and random strip searches of employees. 
D) searching employees' lockers and cars during work hours. 
A) careful screening of employees during hiring. 
B) only hiring relatives and the friends of current employees. 
C) the use of metal detectors and random strip searches of employees. 
D) searching employees' lockers and cars during work hours.

Question 4

How the store is laid out has little impact on shoplifting unless video cameras are installed as well.

Accepted Answer

A) True 
 B)False

Question 5

The computerization of cash registers has:

Accepted Answer

A) completely eliminated the need for perpetual inventory systems. 
B) eliminated the need for physical inventories. 
C) overcome the disadvantages of ABC inventory systems but is too expensive for most small businesses. 
D) overcome many of the disadvantages of perpetual inventory systems. 
A) completely eliminated the need for perpetual inventory systems. 
B) eliminated the need for physical inventories. 
C) overcome the disadvantages of ABC inventory systems but is too expensive for most small businesses. 
D) overcome many of the disadvantages of perpetual inventory systems.

Question 6

The 80/20 rule suggests that business owners:

Accepted Answer

A) try to exercise control 80% of the time over 20% of their inventory. 
B) identify those inventory items that represent the greatest value to the business and focus inventory control efforts on them. 
C) focus on the 80% of their inventory that only produces 20% of their results in order to improve performance. 
D) try to earn 20% more out of the 80% of their inventory that isn't producing. 
A) try to exercise control 80% of the time over 20% of their inventory. 
B) identify those inventory items that represent the greatest value to the business and focus inventory control efforts on them. 
C) focus on the 80% of their inventory that only produces 20% of their results in order to improve performance. 
D) try to earn 20% more out of the 80% of their inventory that isn't producing.

Question 7

"C" items,in an ABC analysis:

Accepted Answer

A) are those items that account for a moderate dollar usage volume. 
B) are those that are low-cost and high-volume by nature. 
C) do not require detailed record keeping or inventory control. 
D) should be tracked with analytical tools and frequent counts. 
A) are those items that account for a moderate dollar usage volume. 
B) are those that are low-cost and high-volume by nature. 
C) do not require detailed record keeping or inventory control. 
D) should be tracked with analytical tools and frequent counts.

Question 8

Because of their relatively inexpensive nature,perpetual inventory systems are used most frequently and successfully in controlling low-dollar,high-volume items.

Accepted Answer

A) True 
 B)False

Question 9

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

Accepted Answer

A) True 
 B)False

Question 10

In ABC method of inventory,B refers to:

Accepted Answer

A) items account for a moderate dollar usage volume. 
B) items account for a high dollar usage volume. 
C) items account for low dollar usage volume. 
D) None of the above 
A) items account for a moderate dollar usage volume. 
B) items account for a high dollar usage volume. 
C) items account for low dollar usage volume. 
D) None of the above

Question 11

Shoplifters motivated to steal to support a drug or alcohol habit are usually easy to detect because their behavior is usually unstable and erratic.

Accepted Answer

A) True 
 B)False

Question 12

Shoplifters motivated to steal to support a drug or alcohol habit are usually hard to detect because their behavior is usually stable and consistent.

Accepted Answer

A) True 
 B)False

Question 13

For most retailers and wholesalers,the investment in ________ is the largest capital outlay next to payroll.

Accepted Answer

A) office equipment,computers,etc. 
B) vehicles,automobiles and trucks 
C) inventory 
D) taxes and licensing fees 
A) office equipment,computers,etc. 
B) vehicles,automobiles and trucks 
C) inventory 
D) taxes and licensing fees

Question 14

"Just-In-Time" inventory control techniques are best suited for manufacturing operations where there are significant inventory levels and where the manufacturing operations are unique and varied,producing custom items.

Accepted Answer

A) True 
 B)False

Question 15

Today a small growing company can improve their working relationships with both supplies and customers through the application of ________.

Accepted Answer

A) Electronic Data Processing (EDP) 
B) Electronic Data Interchange (EDI) 
C) Electronic Fund Processing (EFP) 
D) Customer Relationship Management (CRM) 
A) Electronic Data Processing (EDP) 
B) Electronic Data Interchange (EDI) 
C) Electronic Fund Processing (EFP) 
D) Customer Relationship Management (CRM)

Question 16

One way to reduce employee theft is:

Accepted Answer

A) hire private investigators to do background checks on prospective employees. 
B) install audio surveillance equipment at key locations in the facility. 
C) monitor employees at work and on breaks by having supervisors walk by periodically. 
D) to have a strict company policy about theft and to prosecute when someone is caught. 
A) hire private investigators to do background checks on prospective employees. 
B) install audio surveillance equipment at key locations in the facility. 
C) monitor employees at work and on breaks by having supervisors walk by periodically. 
D) to have a strict company policy about theft and to prosecute when someone is caught.

Question 17

Watching the hands,body,or eyes improve dramatically a small business owner's odds in combating shoplifting.

Accepted Answer

A) True 
 B)False

Question 18

The radical change involved in JIT II is that suppliers' employees work onsite with the customer's plant and there is a sharing of what is normally confidential information.

Accepted Answer

A) True 
 B)False

Question 19

The ________ inventory control system relies on the validity of the 80/20 rule.

Accepted Answer

A) partial 
B) perpetual 
C) visual 
D) ABC 
A) partial 
B) perpetual 
C) visual 
D) ABC

Question 20

How can a small business owner turn slow-moving inventory items into cash?

Accepted Answer

Managing inventory requires monitoring t

Exam 18: Managing Inventory

Perpetual inventory systems:

Kleptomaniacs have a compulsive need to steal even though they have little,if any,need for the items they shoplift.

Employers can reduce employee theft through:

How the store is laid out has little impact on shoplifting unless video cameras are installed as well.

The computerization of cash registers has:

The 80/20 rule suggests that business owners:

"C" items,in an ABC analysis:

Because of their relatively inexpensive nature,perpetual inventory systems are used most frequently and successfully in controlling low-dollar,high-volume items.

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

In ABC method of inventory,B refers to:

Shoplifters motivated to steal to support a drug or alcohol habit are usually easy to detect because their behavior is usually unstable and erratic.

Shoplifters motivated to steal to support a drug or alcohol habit are usually hard to detect because their behavior is usually stable and consistent.

For most retailers and wholesalers,the investment in ________ is the largest capital outlay next to payroll.

"Just-In-Time" inventory control techniques are best suited for manufacturing operations where there are significant inventory levels and where the manufacturing operations are unique and varied,producing custom items.

Today a small growing company can improve their working relationships with both supplies and customers through the application of ________.

One way to reduce employee theft is:

Watching the hands,body,or eyes improve dramatically a small business owner's odds in combating shoplifting.

The radical change involved in JIT II is that suppliers' employees work onsite with the customer's plant and there is a sharing of what is normally confidential information.

The ________ inventory control system relies on the validity of the 80/20 rule.

How can a small business owner turn slow-moving inventory items into cash?

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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