Question 1

Which of the following assesses the results of a retailer's investments?

Accepted Answer

Output measures assess the results of a retailer's investment decisions.

Question 2

Identify and describe the two paths of activities that determine return on assets (ROA).

Accepted Answer

The answer of Identify and describe the two paths of...

Question 3

Why would a buyer's performance be measured by gross margin and not net profit?

Accepted Answer

The answer of Why would a buyer's performance be measured...

Question 4

Which of the following would be the best example of an output measure?

Accepted Answer

Output measures assess the results of a retailer's investment decisions.

Question 5

Filipe has had his six restaurants for over one year.Aside from utilizing ROA as a way to measure his overall productivity,what else can Filipe review?

Accepted Answer

Comparable store sales growth indicates the increase or decrease of sales for the same number of stores this year compared to the same number of stores last year.

Question 6

What are critical assets controlled by a store manager?

Accepted Answer

The answer of What are critical assets controlled by a...

Question 7

Which of the following is an example of a productivity measure?

Accepted Answer

A productivity measure determines how effectively retailers use their resources;it is the ratio of an output to an input.Since inventory turnover is sales/average inventory,it is a productivity measure.

Question 8

Which of the following would be the best example of an output measure?

Accepted Answer

Net profit measures the result of a retailer's investment of inventory.

Question 9

Identify and describe the measures retailers use to assess their financial performance.

Accepted Answer

The answer of Identify and describe the measures retailers use...

Question 10

The executives for JCPenney sets the retail objective for the company.These objectives are broken down in order to create the objectives for each merchandise category,as well as for each region of the country.Further breakdowns of the objectives occur when the executives' objectives reach the buyers who must personalize those objectives.This is an example of ______________ planning.

Accepted Answer

Top-down planning means that the goals are set at the top of the organization and filter down through the operating levels.

Question 11

Which of the following would be the best example of an input measure?

Accepted Answer

Input measures are the resources or money allocated by a retailer to achieve outputs.Inventory is an input measure,where all other choices are output measures.

Question 12

Because of the principle of _______________,no individual Kohl's store should be held financially responsible if the buyers for Kohl's lower prices to get rid of merchandise and sales suffer.

Accepted Answer

The individual business unit should only be held responsible for revenues and expenses it directly controls.

Question 13

If the executives for Office Max,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.

Accepted Answer

Bottom-up planning combines the estimates of the smallest common denominator to get a corporate forecast to be used in retailing objectives.

Question 14

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?

Accepted Answer

Top-down planning means that the goals are set at the top of the organization and filter down through the operating levels.

Question 15

Which of the following is used to assess overall performance at a corporate level?

Accepted Answer

Comparable store sales growth indicates the increase or decrease of sales for the same number of stores this year compared to the same number of stores last year.

Question 16

Why can two retailers who pursue very different strategies have the same return on investment?

Accepted Answer

The answer of Why can two retailers who pursue very...

Question 17

There are many Kroger supermarkets.Because of the principle of ___________,no individual store should be held financially responsible for the upkeep of the supermarket's headquarters in Cincinnati,Ohio,or for the salary of the CEO.

Accepted Answer

The individual business unit should only be held responsible for revenues and expenses it directly controls.

Question 18

Identify and describe the three types of objectives retailers might have in the strategic planning process.

Accepted Answer

The answer of Identify and describe the three types of...

Question 19

What is same-store sales growth and how retailers use it?

Accepted Answer

The answer of What is same-store sales growth and how...

Question 20

What differentiates a well-designed performance objective from one that is ill-conceived?

Accepted Answer

The answer of What differentiates a well-designed performance objective from...

Quiz 6: Financial Strategy

Which of the following assesses the results of a retailer's investments?

Identify and describe the two paths of activities that determine return on assets (ROA).

Why would a buyer's performance be measured by gross margin and not net profit?

Which of the following would be the best example of an output measure?

Filipe has had his six restaurants for over one year.Aside from utilizing ROA as a way to measure his overall productivity,what else can Filipe review?

What are critical assets controlled by a store manager?

Which of the following is an example of a productivity measure?

Which of the following would be the best example of an output measure?

Identify and describe the measures retailers use to assess their financial performance.

Which of the following would be the best example of an input measure?

Because of the principle of _______________,no individual Kohl's store should be held financially responsible if the buyers for Kohl's lower prices to get rid of merchandise and sales suffer.

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?

Which of the following is used to assess overall performance at a corporate level?

Why can two retailers who pursue very different strategies have the same return on investment?

There are many Kroger supermarkets.Because of the principle of ___________,no individual store should be held financially responsible for the upkeep of the supermarket's headquarters in Cincinnati,Ohio,or for the salary of the CEO.

Identify and describe the three types of objectives retailers might have in the strategic planning process.

What is same-store sales growth and how retailers use it?

What differentiates a well-designed performance objective from one that is ill-conceived?