Question 1

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 2

"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 3

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 4

Which of the following functions will the typical point-of-sale system perform?

Accepted Answer

A) Computing the annual dollar usage value of every item in the inventory 
B) Allowing the owner to check on the inventory level of any item listed in the database 
C) Reconciling actual inventory levels with inventory levels reported by the system 
D) Calculating the EOQ on any item in inventory 
A) Computing the annual dollar usage value of every item in the inventory 
B) Allowing the owner to check on the inventory level of any item listed in the database 
C) Reconciling actual inventory levels with inventory levels reported by the system 
D) Calculating the EOQ on any item in inventory

Question 5

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 6

Point-of-sale systems can be programmed to alert the business owner when key items drop below the reorder point.

Accepted Answer

A) True 
 B)False

Question 7

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 8

"A" items should be controlled under a perpetual inventory system with as much detail as necessary.

Accepted Answer

A) True 
 B)False

Question 9

Small business owners should always prosecute and not worry about negative publicity or legal entanglements.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

Nearly half of all shoplifters are:

Accepted Answer

A) professionals. 
B) impulse shoplifters. 
C) juveniles. 
D) None of these 
A) professionals. 
B) impulse shoplifters. 
C) juveniles. 
D) None of these

Question 14

Store owners and employees may apprehend and charge a shoplifter:

Accepted Answer

A) merely on the suspicion that they have stolen something. 
B) if the individual puts something in their bag or pocket without paying for it but hasn't left the store. 
C) only if the theft amounts to more than $25. 
D) only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for. 
A) merely on the suspicion that they have stolen something. 
B) if the individual puts something in their bag or pocket without paying for it but hasn't left the store. 
C) only if the theft amounts to more than $25. 
D) only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for.

Question 15

The ________ method of inventory control is the least effective for ensuring accuracy and reliability and often leads to stockouts.

Accepted Answer

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

Question 16

Surprisingly,kleptomaniacs account for nearly 9% of all small business retail losses.

Accepted Answer

A) True 
 B)False

Question 17

Which inventory control system is designed to maintain a running count of the items in inventory?

Accepted Answer

A) Visual control system 
B) Perpetual inventory system 
C) ABC system 
D) JIT system 
A) Visual control system 
B) Perpetual inventory system 
C) ABC system 
D) JIT system

Question 18

The ________ shoplifter is often a regular customer,well-respected individual,etc.

Accepted Answer

A) juvenile 
B) kleptomaniac 
C) professional 
D) impulse 
A) juvenile 
B) kleptomaniac 
C) professional 
D) impulse

Question 19

A ________ inventory control system is best suited for controlling merchandise classified as "B" items.

Accepted Answer

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

Question 20

What is the value of a physical inventory count? In what ways can it be done?

Accepted Answer

Regardless of the type of inventory cont

Exam 20: Managing Inventory

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

"C" items,in an ABC analysis:

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

Which of the following functions will the typical point-of-sale system perform?

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

Point-of-sale systems can be programmed to alert the business owner when key items drop below the reorder point.

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

"A" items should be controlled under a perpetual inventory system with as much detail as necessary.

Small business owners should always prosecute and not worry about negative publicity or legal entanglements.

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

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

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

Nearly half of all shoplifters are:

Store owners and employees may apprehend and charge a shoplifter:

The ________ method of inventory control is the least effective for ensuring accuracy and reliability and often leads to stockouts.

Surprisingly,kleptomaniacs account for nearly 9% of all small business retail losses.

Which inventory control system is designed to maintain a running count of the items in inventory?

The ________ shoplifter is often a regular customer,well-respected individual,etc.

A ________ inventory control system is best suited for controlling merchandise classified as "B" items.

What is the value of a physical inventory count? In what ways can it be done?

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

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

The Legal Environment: Business Law and Government Regulation

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