FM 206 QUIZ QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Buying - Answers The business activity that involves selecting and purchasing products to satisfy the
wants and needs of consumers.
Buyer - Answers An individual in a retail firm whose primary job is to pur-chase merchandise.
Retailing - Answers All the business activities involved in the selling of goods and services to the
ultimate consumers.
Pure Play Retailers - Answers Retailers who only operate online.
Online retailing - Answers Electronic retailing occurring over the internet.
Omnichannel Retailing - Answers Consumers being able to interact with the retailer from whatever
touchpoint (i.e.,laptop, smartphone, social media platform, or a bricks-and-mortar store) is
appropriate to them wherever they are in the purchasing process.
Showrooming - Answers Customers visiting local bricks-and-mortar retailstores before they go online
to compare prices and make a purchase.
Reverse Showrooming - Answers Customers research products online beforemaking an in-store
purchase.
Flagship - Answers Retailer's the best, largest, or most important store at the primary location.
Concessions - Answers Vendor partners or a Brand who take over selling space at a retailstore. (Shop
in Shop)
Basic Merchandise - Answers Items that customers buy year in and year outand that they expect the
retail store to have in stock at all times. Has stable consumer demand.
Fashion Merchandises - Answers Merchandise that has a high demand over arelatively short period of
time, usually a season. Relies on forecasting consumer demand and market trends.
Store Cluster - Answers Differentiates demographics and psychographics in store distribution.
Centralized Buying - Answers Occurs when all buying activities are performedfrom a retailerâs central
headquarters.
Trend - Answers The movement or direction of fashion.
National Brand - Answers Product sold almost everywhere in the country,such as Arrow shirts or Levis
jeans.
Private brands - Answers Belong to a particular retailer and can be found on products sold exclusively
at that store.
Generic brands - Answers Typically found at grocery and drug stores, attach no significant identity to
the product through the name. will have a secondary shelf location and no advertising
Merchandising Policy - Answers Stores quality standards.
Assortment Plan - Answers Involves determining the specific quantities and characteristics of each
product being purchased, in relation tospecific factors such as brands, colors, and sizes.
Open to Buy - Answers The dollar amount that the buyer has left to spend fora period.
Broad and Shallow Assortment - Answers Refers to offering a wide selection of styles with little depth.
Narrow Stock Breadth - Answers Refers to offering small selelction of styles in a larger number of
quantities.
Collection Merchandise - Answers Merchandises many classifications together in one group.
Classification - Answers A specific category of merchandise.
Sub-classification - Answers A smaller more specific category of merchandise.
Key Item - Answers Main Item. A style to be bought as a big volume producer.
Quantity Discount - Answers Price reduction at cost for making a large buy.
Seasonal Discount - Answers Making purchases in advance of a selling season and receive a discount.
Trade Discount - Answers Manufacturers may quote trade discounts as a series of discounts.
Cash Disount - Answers Refer to an incentive that a seller offers to a buyer in return for paying a bill
before the scheduled due date.
Specification Buying - Answers Changes made to a garment that differentiate it from the competition.
Promotional Buying - Answers Purchasing merchandise to be featured in the store's promotions.
Purchase of Order - Answers Details all merchandise that is on order.
Reorder - Answers Additional orders placed on best sellers.
FOB - Answers Term on a purchase order that indicateswhether the vendor or the retailer will pay for
delivery.
Fixed Expenses - Answers Expenses that do not vary regardless of how much merchandise is sold.
Examples include mortgage and insurance payments
Buying - Answers The business activity that involves selecting and purchasing products to satisfy the
wants and needs of consumers.
Buyer - Answers An individual in a retail firm whose primary job is to pur-chase merchandise.
Retailing - Answers All the business activities involved in the selling of goods and services to the
ultimate consumers.
Pure Play Retailers - Answers Retailers who only operate online.
Online retailing - Answers Electronic retailing occurring over the internet.
Omnichannel Retailing - Answers Consumers being able to interact with the retailer from whatever
touchpoint (i.e.,laptop, smartphone, social media platform, or a bricks-and-mortar store) is
appropriate to them wherever they are in the purchasing process.
Showrooming - Answers Customers visiting local bricks-and-mortar retailstores before they go online
to compare prices and make a purchase.
Reverse Showrooming - Answers Customers research products online beforemaking an in-store
purchase.
Flagship - Answers Retailer's the best, largest, or most important store at the primary location.
Concessions - Answers Vendor partners or a Brand who take over selling space at a retailstore. (Shop
in Shop)
Basic Merchandise - Answers Items that customers buy year in and year outand that they expect the
retail store to have in stock at all times. Has stable consumer demand.
Fashion Merchandises - Answers Merchandise that has a high demand over arelatively short period of
time, usually a season. Relies on forecasting consumer demand and market trends.
Store Cluster - Answers Differentiates demographics and psychographics in store distribution.
Centralized Buying - Answers Occurs when all buying activities are performedfrom a retailerâs central
headquarters.
Trend - Answers The movement or direction of fashion.
National Brand - Answers Product sold almost everywhere in the country,such as Arrow shirts or Levis
jeans.
Private brands - Answers Belong to a particular retailer and can be found on products sold exclusively
at that store.
Generic brands - Answers Typically found at grocery and drug stores, attach no significant identity to
the product through the name. will have a secondary shelf location and no advertising
Merchandising Policy - Answers Stores quality standards.
Assortment Plan - Answers Involves determining the specific quantities and characteristics of each
product being purchased, in relation tospecific factors such as brands, colors, and sizes.
Open to Buy - Answers The dollar amount that the buyer has left to spend fora period.
Broad and Shallow Assortment - Answers Refers to offering a wide selection of styles with little depth.
Narrow Stock Breadth - Answers Refers to offering small selelction of styles in a larger number of
quantities.
Collection Merchandise - Answers Merchandises many classifications together in one group.
Classification - Answers A specific category of merchandise.
Sub-classification - Answers A smaller more specific category of merchandise.
Key Item - Answers Main Item. A style to be bought as a big volume producer.
Quantity Discount - Answers Price reduction at cost for making a large buy.
Seasonal Discount - Answers Making purchases in advance of a selling season and receive a discount.
Trade Discount - Answers Manufacturers may quote trade discounts as a series of discounts.
Cash Disount - Answers Refer to an incentive that a seller offers to a buyer in return for paying a bill
before the scheduled due date.
Specification Buying - Answers Changes made to a garment that differentiate it from the competition.
Promotional Buying - Answers Purchasing merchandise to be featured in the store's promotions.
Purchase of Order - Answers Details all merchandise that is on order.
Reorder - Answers Additional orders placed on best sellers.
FOB - Answers Term on a purchase order that indicateswhether the vendor or the retailer will pay for
delivery.
Fixed Expenses - Answers Expenses that do not vary regardless of how much merchandise is sold.
Examples include mortgage and insurance payments
