Internal Trade: Wholesale and Retail
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Questions and Answers

What is one of the main services offered by a departmental store?

  • Exclusive merchandise
  • Online sales support
  • Seasonal discounts
  • Home delivery of goods (correct)

    • What is a key disadvantage of departmental stores mentioned?

  • Lack of personal attention (correct)
  • High customer loyalty
  • Exclusive product range
  • Limited advertising budget

    • How do departmental stores benefit from large-scale operations?

  • Reduced overhead expenses
  • Limited service offerings
  • Information technology integration
  • Increased purchasing power (correct)

    • What promotional strategy can departmental stores utilize to boost sales?

    <p>Significant advertising expenditure</p> Signup and view all the answers

    What happens if customer tastes change in a departmental store?

    <p>Need to hold clearance sales</p> Signup and view all the answers

    Where are departmental stores generally located?

    <p>At central locations</p> Signup and view all the answers

    What is a characteristic of chain stores?

    <p>They have a uniform appearance</p> Signup and view all the answers

    What can result from high operating costs in a departmental store?

    <p>Higher chances of incurring losses</p> Signup and view all the answers

    What characterizes speciality shops compared to other retail stores?

    <p>They specialize in a specific line of products.</p> Signup and view all the answers

    Which of the following is a common location for speciality shops?

    <p>Central places with high customer traffic</p> Signup and view all the answers

    What is a primary feature of departmental stores?

    <p>They offer products classified into distinct departments.</p> Signup and view all the answers

    Who typically manages a departmental store?

    <p>A managing director assisted by a board of directors.</p> Signup and view all the answers

    Which of the following is NOT a type of product typically found in a departmental store?

    <p>Antique goods</p> Signup and view all the answers

    What role do departmental stores play in relation to manufacturers?

    <p>They purchase directly from manufacturers and operate warehouses.</p> Signup and view all the answers

    Which of the following best describes a fixed shop?

    <p>A large, established store with a variety of goods.</p> Signup and view all the answers

    What type of products might you find in a departmental store?

    <p>A wide variety including electronics and clothing</p> Signup and view all the answers

    What is a primary aim of the Goods and Services Tax (GST)?

    <p>To create uniform pricing across India</p> Signup and view all the answers

    What has been the effect of GST on luxury goods since its implementation?

    <p>Luxury goods have become costlier</p> Signup and view all the answers

    Which feature of GST helps in preventing excessive profits by entities?

    <p>Anti-profiteering measure</p> Signup and view all the answers

    How does GST contribute to overall economic activity?

    <p>By reducing the overall tax burden</p> Signup and view all the answers

    What aspect of GST ensures that consumers benefit directly from cost reductions?

    <p>The establishment of a National Anti-profiteering Authority (NAA)</p> Signup and view all the answers

    What constitutes the key method of tax revenue collection under GST?

    <p>Taxation at the point of consumption</p> Signup and view all the answers

    What does the mechanism of matching invoices aim to prevent?

    <p>Tax fraud and evasion</p> Signup and view all the answers

    What is a consequence of the input tax credit system under GST?

    <p>Input tax credit is limited to taxable supplies received</p> Signup and view all the answers

    What is one advantage of departmental stores?

    <p>Attracts large number of customers</p> Signup and view all the answers

    Which of the following is a limitation of chain stores?

    <p>Limited selection of goods</p> Signup and view all the answers

    What differentiates mail order houses from other retail outlets?

    <p>Sales occur through mail without personal contact</p> Signup and view all the answers

    Which of the following is a benefit of consumer cooperative stores?

    <p>Democratic management</p> Signup and view all the answers

    What is a common characteristic of both departmental stores and chain stores?

    <p>Offer a wide variety of products</p> Signup and view all the answers

    What is an advantage of mail order houses?

    <p>Convenience of purchasing</p> Signup and view all the answers

    Which of the following does NOT represent a limitation of consumer cooperative stores?

    <p>Democratic management</p> Signup and view all the answers

    Which factor does NOT typically differentiate departmental stores from multiple shops?

    <p>Operating hours</p> Signup and view all the answers

    What type of GST is applicable for intra-state supply of goods and services?

    <p>CGST/SGST</p> Signup and view all the answers

    What triggers the tax liability for a taxable person under GST?

    <p>Crossing the exemption limit of ` 20 lakh</p> Signup and view all the answers

    Which organization is NOT mentioned as playing a role in promoting internal trade?

    <p>World Trade Organization</p> Signup and view all the answers

    What is one of the primary objectives of commerce and industry associations?

    <p>To reduce hindrances and increase interstate movement of goods</p> Signup and view all the answers

    What is IGST primarily associated with?

    <p>Inter-state supply of goods and services</p> Signup and view all the answers

    Which of the following is a role of the Chambers of Commerce and Industry?

    <p>Interacting with the government to shape policy</p> Signup and view all the answers

    Which of the following is NOT a benefit promoted by the chambers of commerce?

    <p>Development of international trade agreements</p> Signup and view all the answers

    The term 'exemption limit' under GST refers to what amount?

    <p>` 20 lakh</p> Signup and view all the answers

    What is a significant advantage of the mail order business regarding capital requirements?

    <p>It can be started with a relatively low amount of capital</p> Signup and view all the answers

    Which aspect does the mail order system eliminate between buyers and sellers?

    <p>Middlemen</p> Signup and view all the answers

    What is a potential downside of mail order selling regarding after sales service?

    <p>Buyers and sellers may be located far apart</p> Signup and view all the answers

    What type of business promotion method is heavily relied upon in mail order selling?

    <p>Advertisements</p> Signup and view all the answers

    What is the consequence of mail order houses not extending credit facilities?

    <p>Limited customer participation</p> Signup and view all the answers

    Which of the following is NOT a disadvantage of mail order selling?

    <p>Lower profit margins due to middlemen</p> Signup and view all the answers

    How does mail order selling affect the examination of products by buyers?

    <p>It completely restricts product examination</p> Signup and view all the answers

    What concerns buyers in mail order selling, particularly due to distance and communication?

    <p>Misunderstanding and mistrust</p> Signup and view all the answers

    Study Notes

    Internal Trade

    • Internal trade involves buying and selling of goods and services within a country
    • It's categorized into wholesale and retail trade
    • Internal trade is important for economic growth and distributes goods to consumers

    Wholesale Trade

    • Wholesalers buy goods in large quantities from producers
    • They resell these goods to retailers
    • They play a crucial role in distribution, helping manufacturers reach a wider market
    • They also provide support functions like storage, transportation, and risk management
    • Wholesalers help manufacturers by facilitating large-scale production and risk sharing

    Retail Trade

    • Retailers sell goods in smaller quantities to consumers
    • Various types of retailers exist, including:
      • Itinerant retailers: no fixed location, move from place to place to sell goods
      • Fixed shop retailers: have a fixed store location, various sizes and specializations.
      • Fixed shop retailers - General stores: wide variety of products located in residential/market areas
      • Fixed shop retailers - Speciality shops: focus on a specific product line
      • Market traders: have a specific day or several days to do business
      • Street stall holders: sell goods at street crossings, heavy traffic areas
      • Chain stores/Multiple shops: many stores serving similar products, strategically placed in various locations
      • Supermarkets: large retail settings, provide great convenience to consumers through wide selections.
      • Mail order houses: goods are sold and delivered through mail
    • Retailers play a crucial role in connecting producers and consumers
    • Retailers provide services like selling in smaller lots, information about goods and services

    Services of Wholesalers

    • Facilitate large-scale production
    • Bear risks
    • Give financial assistance
    • Offer expert advice
    • Assist in marketing functions
    • Enable production continuity
    • Provide storage

    Services of Retailers

    • Provide regular availability of products
    • Information about new products
    • Provide convenience in buying
    • Wide product selection
    • Offer after-sales service
    • Possible credit facilities

    Role of Chambers of Commerce and Industry

    • To promote and protect common interests of business & industrial houses
    • Support national trade, commerce, and industry
    • Act as guardians in these areas
    • Interacting with government on trade-related policies
    • Play important roles in activities like interstate movements of goods, octroi management, and harmonization of Tax structures

    Goods and Services Tax (GST)

    • A single tax in the country for goods and services, abolishing numerous indirect taxes previously levied at federal, state levels
    • The objectives include improved tax administration, reduction in tax burden, increased tax revenue, & more

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    Related Documents

    NCERT Class 11 Business Studies Chapter 10: Internal Trade PDF

    Description

    This quiz covers the fundamentals of internal trade, focusing on its importance in economic growth and consumer distribution. It delves into wholesale and retail trade, examining the roles and operations of wholesalers and retailers. Understand the various types of retailers and their significance in the market.

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