CBSE Class 11 Business Studies Internal Trade MCQs Set C

Question. It helps disabled and elderly people.
(a) Tele-shopping
(b) E-commerce
(c) multiple shop
(d) installment system

Answer: A

Question. Which theory holds that nation should produce those goods in which it has the greatest relative advantage?
(a) The factor endowment theory
(b) The theory of absolute cost advantage
(c) The theory of relative advantage
(d) None of the options

Answer: C

Question. Purchase and sale of goods and services in_______quantity is referred to as wholesale trade:
(a) Small
(b) Little
(c) Large
(d) Slight

Answer: C

Question. The risk of bad debts in this business is eliminated particularly when payment is received through V.P.P.
(a) Tele-shopping
(b) mail order trading house
(c) Departmental store
(d) co-operative store

Answer: B

Question. ____________ can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices raise.
(a) Wholesaler
(b) Agent
(c) Retailer
(d) Mercantile agent

Answer: A

Question. These are agents whose function is to bring the buyer and the seller into contact.
(a) Commission agent
(b) Selling agent
(c) Broker
(d) Stockist

Answer: C

Question. Retail outlets that sell their merchandise through mail are called as:
(a) General stores
(b) Mail Order Houses
(c) Super markets
(d) Chain stores

Answer: B

Question. Difference in _______ are the basic cause of trade
(a) taste
(b) qualities
(c) price
(d) taxes

Answer: C

Question. The manufacturing of merchandise of the retail units in a chain store is centralised at the________:
(a) Owner’s house
(b) Store
(c) Departmental store
(d) Head office

Answer: D

Question. This retail business acts as a universal supplier of a wide variety of products.
(a) Departmental store
(b) Multiple shop
(c) Mail order Business.
(d) Tele-shopping

Answer: A

Question. Small scale Fixed retailers includes ____________
(a) Hawkers
(b) Pedlars
(c) Cheap Jacks
(d) General stores

Answer: D

Question. Which one of the following is not a part of export documents?
(a) Commercial invoice
(b) Mate’s receipt
(c) Certificate of origin
(d) Bill of entry

Answer: D

Question. General stores comes under the category of:
(a) Large stores
(b) Chain stores
(c) Departmental stores
(d) Fixed shop small retailers

Answer: D

Question. Which of the following is fixed shop large stores:
(a) Departmental stores
(b) Chain stores
(c) Multiple stores
(d) All of the options

Answer: D

Question. ____________ can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices raise.
(a) Wholesaler
(b) Agent
(c) Retailer
(d) Mercantile agent

Answer: A

Question. The persons who come in between the primary producer and the final consumer to promote trade is called as ____________
(a) Trader
(b) Middleman
(c) Auctioneer
(d) Agent

Answer: B

Question. Where departmental store are famous:
(a) USA and Europe
(b) India
(c) China
(d) Pakistan.

Answer: A

Question. Which is not characteristics of departmental store:
(a) Different departments
(b) Sole trade
(c) Under one roof
(d) Multiple management.

Answer: D

Question. When goods are imported for the purpose of export is called as _________
(a) Foreign trade
(b) Entrepot
(c) Home trade
(d) Trade

Answer: B

Question. Who among these can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices rise
(a) Agent
(b) Mercantile agent
(c) Wholesaler
(d) Retailer

Answer: C

Question. _______ means the raltive strength and elasticity of demand of two countries for each other product.
(a) devaluation
(b) Offer curve
(c) terms of trade
(d) none of the options

Answer: B

Question. Wholesaler’s deals in ____________ quantity of goods
(a) Small
(b) Limited
(c) Large
(d) Medium

Answer: C

Question. When goods are imported for the purpose of export is called as _________
(a) Foreign trade
(b) Entrepot
(c) Home trade
(d) Trade

Answer: B

Question. State the characteristics of fixed shop retailers.
Answer : The two features of fixed shop retailers are
- Fixed shop retailers have wide resources and operate in large scale
- Manages different products, including both durable and nondurable
- Build trust with the customers

Question. Give two merits of the supermarket.
Answer : The two merits of the supermarket are
- Sales are done with an exchange of cash which is not a bad debt
- Large scale buying and selling, resulting in less operation cost

Question. Note down two categories of trade.
Answer : The two categories of trade are.
- Wholesale trade
- Retail trade

Question. What is the difference between wholesaler and retailer?
Answer : Wholesale- A wholesale is selling of goods in bulk to the retailers and businesses at cheaper rates. The wholesaler buys the products in bulk, breaks it into small parts, repacked, and sells it to the retailers.
The wholesaler sells only specific items and is least interested in the location of the shop, packaging, and display of the goods. They are more interested in the quantity not the quality of a product.
For wholesale business, considerable investment is required, and not the promotion and advertisement. The customers of the wholesale are spread in various cities, town, and different states. Most of the purchases are sold through credit to the customers.
Retail- When buyers buy a product and sell it to the final customers for their consumption, and not for any resale, this is known as Retail. The retailers are the mediator between wholesaler and customers. They purchase goods from the wholesaler and sell them to the ultimate customers in small quantity.
The profit margin in the retail business is high as the retailer buy-in cheaper rates and sell it to the customers at a higher price. The final price in which the retailers sell the product includes expenses such as rent, electricity, salaries of workers, etc.

Question. Define shops that deal with a specific line product.
Answer : Specific line product shops refer to the shops that sell only one specific and not different type of items. These types of shop are located in the main market where a large number of customers can be attracted.