10 free, exam-style Certified Loss Prevention Professional (LPC) practice questions with answers and explanations. No signup required. Work through them below, then take the full free LPC practice test to study every exam domain.
A loss prevention associate watches a customer on CCTV conceal a power tool in a backpack and head for the exit, but briefly loses sight of the customer behind an end-cap display before stopping them past the registers. Under the shopkeeper's privilege, the MOST significant problem with this detention is that:
Correct answer: C - Continuous observation of the concealed merchandise was broken behind the display before the stop was made
A store's book inventory is valued at $820,000 and its physical inventory count comes to $804,400. Annual net sales are $1,560,000. What is the store's shrink expressed as a percentage of sales?
Correct answer: D - 1.0%
While evaluating bids for a new chain-wide CCTV contract, an LP director is privately offered an all-expenses-paid hunting trip by one of the competing vendors. The director is genuinely confident the gift would not sway the decision. The MOST appropriate course of action is to:
Correct answer: C - Decline the offer and disclose it, because accepting it would create a clear conflict of interest in the bid
An organized retail crime group steals large quantities of high-value cosmetics and resells them through accounts on a major online marketplace. Which statement BEST describes how this activity is characterized and currently regulated?
Correct answer: A - It is e-fencing, regulated by the INFORM Consumers Act (high-volume seller verification)
A loss prevention manager begins an investigatory interview with a bargaining-unit associate suspected of refund fraud. The associate reasonably believes the interview could lead to discipline and asks to have a union representative present. The manager must recognize this request as protected under:
Correct answer: B - Weingarten rights under the National Labor Relations Act, which apply to investigatory interviews
A non-union employee is interviewed in a store office by a company investigator about suspected internal theft and provides a written admission. The employee later claims the admission is invalid because they were never read their Miranda rights. The investigator's BEST understanding of the law is that:
Correct answer: A - Miranda generally does not apply to private interviews, but the admission must still be voluntary
A retailer determines that a category of loss is infrequent but, when it occurs, can be financially catastrophic. Rather than eliminate the underlying activity or absorb the loss internally, the company purchases an insurance policy to cover it. This decision is BEST classified as which risk-treatment strategy?
Correct answer: D - Risk transfer
A distribution center is under pressure to speed up dock throughput. A supervisor proposes signing for inbound trailers based on the carrier's manifest total without opening cartons or counting individual pieces at the dock. From a supply-chain loss prevention standpoint, this practice is known as - and primarily creates the risk of -:
Correct answer: B - Assumed receipt, which can allow inbound shortages and theft to go undetected at the receiving dock
An LP director proposes a $60,000 exception-based reporting system. In its first year it is credited with preventing $96,000 in losses. Using the basic return-on-investment formula, ROI = (gain − cost) ÷ cost, what is the system's first-year ROI?
Correct answer: D - 60%
A regional crisis team is building its program and wants to determine, before any disaster occurs, which business functions are most time-sensitive and how quickly each must be restored to limit operational and financial damage. The tool specifically designed to produce this information is the:
Correct answer: B - Business impact analysis (BIA)
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