Internal Trade Overview

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Questions and Answers

What type of retailer moves from place to place and typically sells low-priced, non-standard items?

Market traders

Fixed shop retailer

Online retailers

Itinerant retailers (correct)

Which of the following is NOT a service provided by retailers to consumers?

Market analysis (correct)

Home delivery

After sales service

Availability of goods

What is the primary characteristic of itinerant retailers?

They do not have a fixed place for selling. (correct)

They require a large investment to start.

They sell high-quality branded items.

They operate from a fixed location.

What type of goods do market traders typically deal in?

Low price and low-quality goods Signup and view all the answers

Which of the following represents a service that retailers provide to wholesalers or manufacturers?

Helps in distribution Signup and view all the answers

Which form of retailer sells goods on fixed days at different locations, such as a Sunday Bazaar?

Market trader Signup and view all the answers

What is a common feature of hawkers and peddlers?

They offer non-branded and local items. Signup and view all the answers

Which of the following is a benefit of using a retailer for consumers?

Credit facility availability Signup and view all the answers

What is the primary purpose of wholesale trade?

Buying goods for resale or intermediate use Signup and view all the answers

Which of the following is NOT a service provided by wholesalers to manufacturers?

Direct sales to consumers Signup and view all the answers

Which of the following statements best describes retail trade?

It focuses on small lot sales to end consumers. Signup and view all the answers

What advantage do wholesalers offer to retailers?

Credit facilities to ease purchases Signup and view all the answers

What is a characteristic of wholesale trade regarding profit margins?

They typically have low profit margins. Signup and view all the answers

Which of the following roles is NOT typically associated with wholesalers?

Selling directly to end consumers Signup and view all the answers

How do wholesalers assist in large scale production?

By purchasing goods in bulk from manufacturers Signup and view all the answers

Which characteristic is associated with internal trade as opposed to international trade?

Takes place within a country's borders Signup and view all the answers

What is a characteristic of street traders?

They sell items of daily use. Signup and view all the answers

Which type of retailers are known to operate in temporary setups?

Cheap Jacks Signup and view all the answers

What distinguishes specialty stores from general stores?

They deal in one specific line of products. Signup and view all the answers

Which type of retail shop is most characterized by a fixed location?

Fixed shop retailers Signup and view all the answers

What type of goods do second hand goods shops primarily sell?

Second hand or used items Signup and view all the answers

What is a common feature of small scale fixed retail shops?

They often provide credit facilities. Signup and view all the answers

Which of the following is not a characteristic of street shops or stall holders?

They have a large inventory space. Signup and view all the answers

What is a primary advantage of specialty stores over general stores?

They provide a wider choice in a specific line of products. Signup and view all the answers

What is a defining characteristic of department stores?

They have a dedicated section for each product line within a large showroom. Signup and view all the answers

What is a major advantage of chain stores compared to independent shops?

They benefit from centralized purchasing which leads to uniform pricing. Signup and view all the answers

Which of the following is true about second shops?

They sell defective goods at discounted prices. Signup and view all the answers

Which feature is NOT typically associated with large scale fixed retail stores?

Small product variety. Signup and view all the answers

What is one of the main functions of mail order retailing?

To send catalogues and price lists to potential buyers. Signup and view all the answers

Automatic vending machines are primarily used for selling which type of products?

Low-cost and pre-packed products. Signup and view all the answers

What is a common feature found in department stores that aids in customer service?

Centralized accounting system. Signup and view all the answers

Which of the following statements about automatic vending machines is incorrect?

They are primarily used for selling expensive items. Signup and view all the answers

What is the primary benefit of GST for producers in terms of tax filing?

It merges multiple indirect taxes into one. Signup and view all the answers

Which of the following statements about GST is true?

The tax burden of GST is only borne by the end consumer. Signup and view all the answers

What are the GST tax slabs in India?

5%, 12%, 18%, 28% Signup and view all the answers

Which component of GST deals specifically with intra-state sales?

CGST Signup and view all the answers

How is the GST rate depicted in an example with a rate of 12%?

IGST - 12%, CGST - 6%, SGST - 6% Signup and view all the answers

What does GST eliminate the need for in terms of filing for businesses?

Filing multiple returns and assessments. Signup and view all the answers

In the context of GST, which term describes the credit received by suppliers for the taxes paid on inputs?

Input Tax Credit Signup and view all the answers

What is the key motive behind introducing GST in India?

To promote cooperative federalism and simplify the tax structure. Signup and view all the answers

Study Notes

Internal Trade

Internal trade involves buying and selling goods and services within a country's borders.
It is also known as home trade or inland trade.
Payment is made in the home currency.
No custom duties are involved.
Goods are part of the production and consumption cycle within the country.

Types of Internal Trade

Wholesale: Buying and selling goods in bulk quantities for resale or intermediate use.
Retail: Buying and selling goods in small quantities to the final consumer.

Services Provided by Wholesalers to Manufacturers

Facilitating large-scale production by buying in bulk.
Sharing risks of production.
Providing expert opinions on consumer demand.
Offering financial assistance with order payments.
Supporting distribution processes.
Providing storage facilities.
Supporting continuous production.

Services Provided by Retailers to Consumers

Providing access to a variety of goods.
Offering new product information.
Providing home delivery.
Offering after-sales service.
Making goods readily available at convenient locations (e.g., market).
Offering credit facilities (where available).

Types of Retailers

Itinerant retailers: Operate without a fixed shop, moving from place to place. They sell daily-use goods at low prices. Examples include hawkers and peddlers.
Fixed shop retailers: Operate with a permanent location. Examples include small-scale fixed retail shops (general stores, speciality stores, and street shops/stall holders) and large-scale fixed retail stores (department stores).

Second-hand Goods Shops

Deal in used goods (e.g., books, furniture).
Sell goods at lower prices.
May also sell antiques or rare items.

Chain Stores

Multiple retail shops under one organization.
Identical shops located in different areas.
Examples include Lenskart and Bata Stores.
Features include large size, uniform infrastructure, uniform prices, centralized purchasing, standardized quality, and no middlemen.

Mail Order Retailing

Sellers connect with potential customers via advertisements and mail.
Customers order products through the mail.

Automatic Vending Machines

Machines for purchasing pre-packaged goods.
Operate using coins or tokens.
Examples include vending machines for drinks, cigarettes, and snacks.

Goods and Services Tax (GST) in India

A single tax for goods and services across India, implemented in 2017.
Replaced many previous indirect taxes (VAT, service tax).
It is a destination-based tax (paid by the final consumer).
Eliminates multiple tax returns.
Simplifies tax filing for producers.
Basic structure involves Central GST (CGST), State GST (SGST), and Integrated GST (IGST).

Features of GST

Applicable across all states and union territories.
Consumption-based rather than production-based.
Features different tax slabs (5%, 12%, 18%, 28%).

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Description

This quiz explores the concept of internal trade, which includes the buying and selling of goods and services within a country. It covers types of internal trade such as wholesale and retail, along with the services provided by wholesalers and retailers. Test your knowledge about the dynamics of home trade and its importance in the economy.