Internal Trade Notes (Class 11 Business)

Internal Trade CLASS 11 BUSINESS  NOTES INTERNAL TRADE Trade Buying and selling of goods and services for earning profit Internal trade trade which takes place within the geographical Borde...

Internal Trade CLASS 11 BUSINESS  NOTES INTERNAL TRADE Trade Buying and selling of goods and services for earning profit Internal trade trade which takes place within the geographical Border of a country is known as Internal trade / Home trade or Inland trade Payment in home currency No custom duty is involved Goods are part of production as consuption Types of internal trade Wholesale Retail Wholesale trade It refers to buying and selling of goods and services in large quantity for the purpose in resale or intermediate use FREQUENCY DIAGRAM (STATISTICS) CLASS 11 BUSINESS  NOTES INTERNAL TRADE They buy goods from manufacture in bulk and sell them in small lots to the retailer. The person involves in it is known as wholesaler. They are generally specialized in one line of product Example -medicine wholesaler, stationary wholesaler etc. The profit margins of wholesaler is quite low. (As they earn from selling in bulk ) Manufacturer Retailer Customer Wholesaler Services provided by the wholesaler TO MANUFACTURER Helps in large scale production ( as they buy in huge quantity ) Risk sharing Expert opinion (about customers demand) Financial assistance (make cash payment of orders) Helps in distribution Storage Facilitates contineous production CLASS 11 BUSINESS  NOTES INTERNAL TRADE To Retailers Availability of goods(as retailers can’t approach different manufacturers) Credit facility Specialised knowledge (direct from manufacturers) Marketing support (they performs various marketing and sales promotion activities which increases demand in market. Risk sharing Retail trade - It refers to the sale of goods in small lots to the final consumer. they deal in variety of products which is being purchased from different wholesalers and sell them to the final consumer. Wholesaler Consumer Retailer FORMS OF MARKET (ECONOMICS) CLASS 11 BUSINESS SAARE NOTES EK SAATH DOWNLOAD OUR MOBILE APPLICATION NOW www.thegauravjain.com  NOTES INTERNAL TRADE Retailer can operate from a shop, from television, from phone, or directly from door to door. They buy and sell in small quantities. Services provided by retailers To consumers To wholesalers or Availability of goods manufacturer different variety Helps in distribution New product information Helps in promotion Home delivery personal selling After sales service correct feedback convenience in buying (Available nearby or at market) Credit facility (if available) Types of retailers Itinerant retailers Fixed shop retailer CLASS 11 BUSINESS  NOTES INTERNAL TRADE 1. Itinerant Retailers No fixed place for selling. They keep moving from place to place. Deals in low price and non-standard items. Basically sells daily use items which requires small investment. Types of Itinerant Hawkers and peddlers Oldest form of retailers in the market place. Moves from street to street /trains / Bus, etc. Carry goods on wheeled carts or on animals - Hawker whereas, peddler carries on his own Back / head. They provides non- Branded & local items. provides fruit, vegetables, toys, Bangles, wollen clothes, door step supply. (ii) Market traders (periodic] Sell goods on fixed days/dates at different places. Example - Sunday Bazaar, Monday mart etc. deals in low price and low Quality goods. set up temperory shops on special occasion like Holi, diwali etc. TIME SEIES GRAPH (STATISTICS) CLASS 11 BUSINESS  NOTES INTERNAL TRADE (iii) Street traders (payment vendors) They are the retailers who displays their articles on busy streets corners, Bus - stands, Railway stations etc. They generally deals in consumer items of daily use Example - Newspaper, garments, eatables etc. They do not change their place of business frequently. (iv) Cheap Jacks They are the retailers who display their goods in hired shops or in tents for a temporary period different localities. They keep on Changing their business from one locality to other. Example - people on road side selling lights on diwali, colours on holi , dandiya on Navratri etc. 2. Fixed shop retailers They have a fixed place of sale small scale large scale CLASS 11 BUSINESS SAARE NOTES EK SAATH DOWNLOAD OUR MOBILE APPLICATION NOW www.thegauravjain.com  NOTES INTERNAL TRADE (i) Small Scale fixed Retail shops Most common form Mostly situated in localities (A) General Stores deals in items of daily use (groceries, stationary, make-up, etc) large variety in each line of products. often provide credit facility to daily customers. (B) Speciality Stores Becoming more popular in urban areas. Deals with one line of products. Ex Stationery line, garment lines, shoes, medicine etc. Generally situated in market place. They provide a wide choice in a specific line of products. (c) Street Shops/ Stall holders Shops are situated at street crossings or on main roads. Temporary platforms to display goods for sale. Shops have very limited space. Attract floating customers and deals in cheap goods like - toys, cigarettes, soft drinks etc. RECTIFICATION OF ERRORS (ACCOUNTS) CLASS 11 BUSINESS  NOTES INTERNAL TRADE (d) Second hand goods shops Deals in second hand /used items. Ex-Books, furniture etc. Goods are sold at lower prices. May also stock rare objects / antique items. (e) Second Shops They sell goods which are not produced according to the required specifications (have some minimum defect) New - Defective goods Sold at heavily discounted price. (ii) large Scale-Fixed Retail Stores Requires huge investment. Use large size showrooms to sell goods. Located at central place or in shopping centers. (A) Department stores They are the huge retail showroom having to a number of departments under one roof each department specializing in one line of product. each department is like a separate shop with centralised purchasing, selling & Accounting. FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 11 BUSINESS  NOTES INTERNAL TRADE (A) main features 1. Huge size 2. Wide Range of products. 3. Centralised purchased. 4. elimination of middlemen 5. Services (provides variety of Add services like free home delivery, packing, restaurant etc.) 6. Central location. 7. Advertising (large scale advertisement) (B) Chain Stores/Multiple shops It refers to a number of identical retail shops located in different parts that are owned and controlled by a single organisation. Ex Lenskart out let in your city, Bata Stores, etc. (A) Features large size Uniform infrastructure Uniform prices Centralised purchasing Standardised /uniform Quality. No middlemen FORMS OF BUSINESS ORG. (BUISNESS) CLICK HERE CLASS 11 BUSINESS SAARE NOTES EK SAATH DOWNLOAD OUR MOBILE APPLICATION NOW www.thegauravjain.com  NOTES INTERNAL TRADE (C) Mail order Retailing Under this type of retailing, sellers contact the potential Buyers through advertisement and mail publicity. They send catalogues, price list, samples etc. and the customer is required to place their order by post. (d) Automatic Vending machines New form of retailing It is a machine operated by coins / tokens They are used to sell pre-packed and low-cost products, eg... Soft drink, cigarettes, packed milk etc. Buyer inserts a coin or token in the machine and receives a specific Quantity of product from the machine. No sales man is required in such machine G.S.T - goods and service tax one nation one tax". Introduced in India with effect from July 2017. Majority of indirect taxes (VAT, Service tax excise duty etc) are now merged into GST. It eliminate the need of filing multiple returns and assessments which simplifies the tax filing producer for producers. G.S.T is a destination based single tax on supply of goods & services. ie.. the burden of tax is paid only by the end consumer all the other middle man will get their Input back. (Input tax credit) Therefore, it is a tax on value Addition only. CLASS 11 BUSINESS  NOTES INTERNAL TRADE Features of G.S.T It applies in whole country (All States + union territories ) It is a Destination based consumption tax (taken from the end consumer who used it for Consumption) there are 4 tax slabs 5%, 12%, 18% and 28% Structure of GST GST IGST (inter state) SGST/UT GST CGST (State GST) / [union (Central GST) territory GST) (Intra-State sale) interstate apply on sales / purchase sale Jaipur mode within the state (Rajasthan) to ajmer to jaipur agra (U.P) (both are in raj. ) if G.S.T rate is 12% Ex - if g.s.t Rate is 12% IGST -12% CGST-6% SGST - 6% INTERNATIONAL BUSINESS (BUSINESS) CLICK HERE CLASS 11 BUSINESS  NE SHOT THE GAURAV JAIN BEGINNER ADVANCED INTERNAL TRADE CLASS 11 WHATSAPP CHANNEL FOR NOTES AND IMPORTANT QUESTIONS 7690041256 YE LE BAALAK... MAUJ KAR THE GAURAV JAIN 7690041256