CBSE Class 11 Business Studies - Internal Trade Part A

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CBSE Class 11 Business Studies - Internal Trade Part A. Learning the important concepts is very important for every student to get better marks in examinations. The concepts should be clear which will help in faster learning. The attached concepts made as per NCERT and CBSE pattern will help the student to understand the chapter and score better marks in the examinations.


Internal Trade

Trade refers to the process of buying and selling of goods and services with the objective of earning profit. When trade takes place between the people of the same country then it is termed as internal trade. Infect, buying and selling of goods and services within the geographical boundaries of a nation or country is called internal trade. Internal trade can be  classified into two broad categories.

i) Wholesale trade 

ii) Retail trade

Wholesale trade : Buying and selling of goods and services in large quantities for the purpose of resale or intermediate use is referred to as wholesale trade.

Wholesalers acts as an important link between manufacturers and retailers. They purchase in bulk and sell in small lots to retailers.


1. Wholesalers enable manufacturers to undertake large scale production as they purchase goods in large quantities from them.

2. Wholesaler deals in goods in their own name and bear variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire etc.

3. Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.

4. Wholesaler provide various useful information regarding the customer preference, market conditions etc to the manufacturer.

5. Wholesalers help manufacturer in marketing function by purchasing goods from them and selling them to the retailers.

6. Wholesalers provide the storage facilities also as they hold the goods in their warehouses/Godowns.


1. Wholesalers make goods available to the retailers, who make them available to the ultimate customers.2. Wholesalers help retailers in the marketing of the goods by undertaking advertising and other sales promotional activities.

3. Wholesalers help retailers by providing credit facility to them.

4. Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices etc.

5. Wholesalers do have specialised knowledge and they can help retailers by providing the same to them. They inform the retailers about new products, their uses and quality etc.


Buying of goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and final consumers in the distribution of products and services.


1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.

2. Retailers help manufacturers & wholesalers in promoting their goods & services.

3. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers in the process of actualising the sale of the products.

4. Retailers collect and provide market information about the tastes, preferences and attitudes of consumers to the producers.

5. Retailers make manufacturer and wholesaler free from the burden of making individual sales and thus help them to operate on large scale production.


1. Retailers provide goods to consumers according to their requirements.

2. Retailers deals in large varieties of products of different manufacturers and thus they offer wide selection to the consumers.

3. Retailers provide important information about the new products to the consumers.  

Please click the link below to download pdf file for CBSE Class 11 Business Studies - Internal Trade Part A.


Click on the text For more study material for Business Studies please click here - Business Studies

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