1-5
1. What is a basis for psycho graphic segmentation?
A. Customer location
B. Education level
C. Income
D. Lifestyle
D. Lifestyle
6. Hannah, an employee at Lakeside Boutique, is allowed the typical
employee discount given to many entry-level employees. The rate of
discount Hannah receives is most likely between:
A. 5% and 10%.
B. 10% and 15%.
C. 10% and 30%.
D. 40% and 50%.
C. 10% and 30%.
11. When the price of a product or service increases, demand will usually:
A. be average.
B. decrease.
C. increase.
D. remain the same.
B. decrease.
16. Most department and fashion specialty stores calculate markup percent based on:
A. cost.
B. markdown.
C. markup.
D. retail price.
A. cost.
21. The subtotal of Jennifer’s purchases is $384.50 and sales tax is 6%. What is the total amount due?
A. $23.07
B. $361.43
C. $387.18
D. $407.57
D. $407.57
2. Trey buys his wife a new purse for Mother’s Day. She immediately begins to use it on a daily basis. In this example, what is the wife’s role?
A. Consumer
B. Wholesale
C. Service
D. Supplier
A. Consumer
7. Reggie has an interview with a large company that requires specialized management and work skills. He will be required to manage a large group of people. Which type of business organization does this describe?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Nonprofit
A. Corporation
12. The most common type of retail price change is a/an:
A. employee discount.
B. initial markup.
C. markdown.
D. markup.
C. markdown.
17. What is the markup percentage based on retail for an item with a dollar markup of $70.00, cost of $30.00, and a retail price of $100.00?
A. 30%
B. 70%
C. 100%
D. 333%
B. 70%
22. The most expensive jewelry including diamonds, emeralds, gold, and platinum is classified as:
A. bridge.
B. costume.
C. faux.
D. fine.
D. fine.
3. When a product is in high demand, prices usually:
A. decrease.
B. fluctuate.
C. increase.
D. remain the same.
C. increase.
8. Sweaters originally priced to sell for $92.79 are marked down 75%. What is the sale price?
A. $22.18
B. $23.20
C. $68.13
D. $69.59
B. $23.20
13. Each year, PacSun makes hundreds of beach towels to sell at their
coastal locations. In this example, the beach towels are:
A. furniture.
B. goods.
C. services.
D. supplies.
B. goods.
18. What is 30% converted to a decimal?
A. 0.003
B. 0.03
C. 0.3
D. 3
C. 0.3
23. Ashley prefers to work alone and enjoys the prestige and feeling of accomplishment that comes with owning a hair salon. Which type of business organization does this describe?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Nonprofit
C. Sole proprietorship
4. Bed Bath & Beyond, a home accessory retailer, sent customers a special coupon worth a 10% discount on purchases of $25.00 or more. Kashina purchased two towel sets for $12.99 each. What was the price of her purchase, including sales tax calculated at 7%?
A. $12.51
B. $13.90
C. $25.02
D. $27.80
C. $25.02
9. There is only one department store in a small, rural town in North Carolina without any competitors. The store dominates the industry in that area. This describes which competitive market structure?
A. Monopoly
B. Nonprice Competition
C. Oligopoly
D. Pure competition
A. Monopoly
14. Deon works for a company that is complex, expensive to form, and heavily taxed. Which type of business organization does this describe?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Nonprofit
A. Corporation
19. Belk provided a coupon in the newspaper for 15% off twin bed sheets regularly priced $48.50. Excluding tax, what would a customer pay if they used the coupon?
A. $7.28
B. $36.38
C. $41.22
D. $43.35
C. $41.22
5. Caroline received a questionnaire in the mail that asked questions about her income, lifestyle, fashion preference, and shopping habits. The questionnaire is a:
A. consumer survey.
B. fashion forecast.
C. fashion publication.
D. sales brochure.
A. consumer survey.
10. A markup equal to the cost of the merchandise is:
A. extended.
B. initial.
C. keystone.
D. maintained.
C. keystone.
15. An amount added to the cost of goods to reach a selling price is a/an:
A. add-on.
B. cost plus.
C. extension.
D. markup.
D. markup.
20. Jason purchased a sweater from a local men’s apparel retailer. The price he paid was the:
A. cost.
B. extended price.
C. keystone price.
D. retail price.
D. retail price.