NRF RETAIL INDUSTRY FUNDAMENTALS
2026 MERCHANDISING PRINCIPLES
ASSESSMENT PAPER ANSWERS VERIFIED
SUMMARY SHEET
◉ direct marketing
Answer: direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate
lasting customer relationships (catalogs, loyalty programs, etc)
◉ distribution channel
Answer: the path by which you deliver the product or service to the
customer
◉ EAS (Electronic Article Surveillance)
Answer: device to prevent item theft that are embedded in tags that
are attached to the product or package.
◉ FLSA (Fair Labor Standards Act)
Answer: Federal law that establishes a minimum wage and
requirements for overtime pay, breaks, meal periods, and child labor
, ◉ FMLA (Family and Medical Leave Act)
Answer: -Grants 12 weeks unpaid job protected leave to men or
women after birth of child, adoption, or illness in immediate family
-Only affects businesses with 50+ employees
◉ FIFO (first in, first out)
Answer: Rotation of food storage in order to use the oldest inventory
first.
◉ fixed mindset
Answer: the idea that we have a set amount of ability that cannot
change
◉ Franchise
Answer: A business established when a license is granted to sell or
distribute a company's goods or services in a particular area
◉ gross profit
Answer: difference between revenue and costs
◉ human resources
Answer: maintains policies, plans, and procedures for the effective
management of employees (hiring, training, firing, payroll,etc)
2026 MERCHANDISING PRINCIPLES
ASSESSMENT PAPER ANSWERS VERIFIED
SUMMARY SHEET
◉ direct marketing
Answer: direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate
lasting customer relationships (catalogs, loyalty programs, etc)
◉ distribution channel
Answer: the path by which you deliver the product or service to the
customer
◉ EAS (Electronic Article Surveillance)
Answer: device to prevent item theft that are embedded in tags that
are attached to the product or package.
◉ FLSA (Fair Labor Standards Act)
Answer: Federal law that establishes a minimum wage and
requirements for overtime pay, breaks, meal periods, and child labor
, ◉ FMLA (Family and Medical Leave Act)
Answer: -Grants 12 weeks unpaid job protected leave to men or
women after birth of child, adoption, or illness in immediate family
-Only affects businesses with 50+ employees
◉ FIFO (first in, first out)
Answer: Rotation of food storage in order to use the oldest inventory
first.
◉ fixed mindset
Answer: the idea that we have a set amount of ability that cannot
change
◉ Franchise
Answer: A business established when a license is granted to sell or
distribute a company's goods or services in a particular area
◉ gross profit
Answer: difference between revenue and costs
◉ human resources
Answer: maintains policies, plans, and procedures for the effective
management of employees (hiring, training, firing, payroll,etc)
