Question 1

Total inventory costs are reduced when the small business manager spends her time and effort controlling items that represent the greatest inventory value.

Accepted Answer

A) True 
 B)False

Question 2

The most common method of controlling inventory in a small business is the ________ system.

Accepted Answer

A) floor sample 
B) two-bin system 
C) partial 
D) visual 
A) floor sample 
B) two-bin system 
C) partial 
D) visual

Question 3

A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:

Accepted Answer

A) CRM. 
B) TQM. 
C) Efficient Consumer Response. 
D) JIT II. 
A) CRM. 
B) TQM. 
C) Efficient Consumer Response. 
D) JIT II.

Question 4

Typically,the small business owner's response to slow-moving inventory is to:

Accepted Answer

A) hold a one-day sale. 
B) mark it down to move it out and put the cash generated into fresh inventory. 
C) set up bargain tables or place it in a middle-of-the-aisle display. 
D) postpone marking it down until it's too late. 
A) hold a one-day sale. 
B) mark it down to move it out and put the cash generated into fresh inventory. 
C) set up bargain tables or place it in a middle-of-the-aisle display. 
D) postpone marking it down until it's too late.

Question 5

By their very nature,"C" items give a firm the opportunity to:

Accepted Answer

A) keep little safety stock. 
B) use minimal inventory control procedures. 
C) justify the latest POS or product bar coding systems. 
D) use basic analytical tools like EOQ and reorder point analysis. 
A) keep little safety stock. 
B) use minimal inventory control procedures. 
C) justify the latest POS or product bar coding systems. 
D) use basic analytical tools like EOQ and reorder point analysis.

Question 6

Computerized POS systems make it possible for entrepreneurs to use a basic ________ inventory system.

Accepted Answer

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

Question 7

Why do employees steal?

Accepted Answer

Employee theft accounts for the majority

Question 8

Small business owners using the ABC system of inventory control need not worry about conducting a physical inventory count.

Accepted Answer

A) True 
 B)False

Question 9

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

Accepted Answer

A) True 
 B)False

Question 10

In a retail environment,the concept of JIT II is more commonly known as ________.

Accepted Answer

A) Electronic Inventory Process 
B) Efficient Consumer Response (ECR) 
C) Electronic Consumer Behavior 
D) None of the above 
A) Electronic Inventory Process 
B) Efficient Consumer Response (ECR) 
C) Electronic Consumer Behavior 
D) None of the above

Question 11

Choosing the most appropriate system of inventory control eliminates the need for the small business owner to conduct a periodic physical inventory count.

Accepted Answer

A) True 
 B)False

Question 12

The most common method of controlling inventory in a small business is the perpetual system.

Accepted Answer

A) True 
 B)False

Question 13

To reduce inventory theft,managers should develop clear control procedures and establish penalties for violations.

Accepted Answer

A) True 
 B)False

Question 14

In an ABC inventory system,approximately 50% of the inventory usually is counted as C category items.

Accepted Answer

A) True 
 B)False

Question 15

In general,a(n)________ inventory control system works best in firms in which daily sales are relatively consistent.

Accepted Answer

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

Question 16

In general,impulse shoplifters prefer to steal in groups,whereas juveniles and professionals operate in solidarity.

Accepted Answer

A) True 
 B)False

Question 17

Who are the people who shoplift and what can the small business owner do to deter shoplifting?

Accepted Answer

Shoplifting is the most common business

Question 18

In a retail environment,rather than build inventories of merchandise that might sit for months before selling (or worse,never sell at all),retailers using ________ replenish their inventories constantly on an as-needed basis.

Accepted Answer

A) Electronic Inventory Process 
B) Electronic Consumer Behavior 
C) Efficient Consumer Response (ECR) 
D) None of the above 
A) Electronic Inventory Process 
B) Electronic Consumer Behavior 
C) Efficient Consumer Response (ECR) 
D) None of the above

Question 19

Discuss the ABC method of inventory control,offering its strengths and weaknesses.

Accepted Answer

The ABC method is one such approach,focu

Question 20

Many incidents of employee theft go undetected,and only a small percentage of those employees who are caught stealing are prosecuted.

Accepted Answer

A) True 
 B)False

Exam 18: Managing Inventory

Total inventory costs are reduced when the small business manager spends her time and effort controlling items that represent the greatest inventory value.

The most common method of controlling inventory in a small business is the ________ system.

A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:

Typically,the small business owner's response to slow-moving inventory is to:

By their very nature,"C" items give a firm the opportunity to:

Computerized POS systems make it possible for entrepreneurs to use a basic ________ inventory system.

Why do employees steal?

Small business owners using the ABC system of inventory control need not worry about conducting a physical inventory count.

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

In a retail environment,the concept of JIT II is more commonly known as ________.

Choosing the most appropriate system of inventory control eliminates the need for the small business owner to conduct a periodic physical inventory count.

The most common method of controlling inventory in a small business is the perpetual system.

To reduce inventory theft,managers should develop clear control procedures and establish penalties for violations.

In an ABC inventory system,approximately 50% of the inventory usually is counted as C category items.

In general,a(n)________ inventory control system works best in firms in which daily sales are relatively consistent.

In general,impulse shoplifters prefer to steal in groups,whereas juveniles and professionals operate in solidarity.

Who are the people who shoplift and what can the small business owner do to deter shoplifting?

In a retail environment,rather than build inventories of merchandise that might sit for months before selling (or worse,never sell at all),retailers using ________ replenish their inventories constantly on an as-needed basis.

Discuss the ABC method of inventory control,offering its strengths and weaknesses.

Many incidents of employee theft go undetected,and only a small percentage of those employees who are caught stealing are prosecuted.

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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