Samacheer Kalvi Class 11 Commerce Solutions Chapter 24 Retailing

I. Choose the Correct Answer

 

Question 1. Retailers deal in .............. quantity of goods
(a) Small
(b) Large
(c) Medium
(d) Limited
Answer: (a) Small
In simple words: Retailers buy products in bulk and then sell them in small amounts directly to customers.

🎯 Exam Tip: Remember that retailers are the final link in the supply chain, selling individual items to end-users.

 

Question 2. Small scale Fixed retailers include ..............
(a) General stores
(b) Pedlars
(c) Cheap Jacks
(d) Hawkers
Answer: (a) General stores
In simple words: General stores are examples of small shops that stay in one place, selling various common items.

🎯 Exam Tip: Differentiate between fixed retailers (shops that stay in one place) and mobile traders (who move around).

 

Question 3. Small shops which deal in a particular line of products are called as ..............
(a) Market traders
(b) Single line stores
(c) Sugar market stores
(d) Street stalls
Answer: (b) Single line stores
In simple words: A shop that sells only one kind of item or a very limited range is called a single-line store.

🎯 Exam Tip: Focus on the "particular line of products" keyword to correctly identify single-line stores.

 

Question 4. .............. are mobile traders who deal in low priced articles with no fixed place of business.
(a) Shopping malls
(b) Super markets
(c) Street stalls
(d) Itinerant traders
Answer: (d) Itinerant traders
In simple words: Traders who move around and sell cheap things without a fixed shop are called itinerant traders.

🎯 Exam Tip: Identify keywords like "mobile traders" and "no fixed place of business" to correctly choose itinerant traders.

II. Very Short Answer Questions

 

Question 1. What is retailing?
Answer: Retailing is the process of selling goods and services directly to the final customers in small quantities. This is the last step in getting products from producers to the people who use them.
In simple words: Retailing means selling products directly to customers, usually in small quantities.

🎯 Exam Tip: When defining retailing, make sure to mention both "selling goods and services" and "directly to the ultimate consumers in small quantities."

 

Question 2. State the meaning of multiple shops.
Answer: Multiple shops are several identical retail stores that look similar and sell standard, branded products in various locations. These shops are owned and run by either manufacturers or intermediaries. They are also known as chain stores, offering consistent products across all branches.
In simple words: Multiple shops are many identical stores that sell the same branded products in different places, all managed by one owner.

🎯 Exam Tip: Emphasize "identical shops," "standardized products," and "different localities" in your definition of multiple shops.

 

Question 3. Mention any two benefits of Vending machines.
Answer: An automatic vending machine is a new form of direct selling. It is a machine that works when you put in coins or tokens. This direct method can offer convenience to customers without the need for a salesperson.
In simple words: Vending machines sell products directly. They work with coins or tokens, offering quick service.

🎯 Exam Tip: When discussing vending machines, highlight how their automated nature provides convenience and eliminates the need for human staff.

 

Question 4. What are specialty stores?
Answer: Specialty stores are shops that focus on selling only one specific type of product or a very narrow range of goods. For instance, a sweet shop might specialize in selling only Tirunelveli Halwa or Bengali Sweets. This allows them to offer a deep selection in their chosen area.
In simple words: Specialty stores sell only one kind of product, like a shop that sells only certain types of sweets.

🎯 Exam Tip: Highlight "particular type of product" or "one product line only" and include a relevant example to illustrate what specialty stores are.

III. Short Answer Questions

 

Question 1. Explain the features of general stores.
Answer: General stores offer many different products all in one place. They are usually found in local markets or residential areas to meet the daily needs of people nearby. These stores often stay open for long hours, have convenient timings, and might offer credit to their regular customers. This makes them very accessible for daily shopping.
In simple words: General stores sell many different things. They are in local areas, open for long hours, and sometimes give credit to loyal customers.

🎯 Exam Tip: Mention key features like "wide variety," "local presence," "long hours," and "credit facilities" when explaining general stores.

 

Question 2. Give any four points of distinction between hire purchase system and instalment system of selling.
Answer:

This table clearly shows the key differences in ownership, rights, and risks between these two payment methods. Understanding these distinctions helps buyers and sellers know their rights and responsibilities in each system.
In simple words: The main differences are when you become the owner, if the seller can take back the goods, and who is responsible for risks, depending on if it's a hire purchase (rental until final payment) or installment (owner from start) plan.

🎯 Exam Tip: Focus on ownership transfer, seller's right to repossess, and risk bearing as the three major points of distinction between hire purchase and installment systems.

 

Question 3. Explain the characteristics of super markets.
Answer:1. Supermarkets are typically located in major shopping areas. 2. Products are displayed on racks with clear price and quality tags. 3. Customers can easily pick up their items, then pay at the cash counter. They might also offer home delivery services. This self-service model makes shopping quick and efficient.
In simple words: Supermarkets are in big shopping areas. Products have clear labels. Customers pick items themselves, pay, and can even get home delivery.

🎯 Exam Tip: Focus on location, clear labeling, self-service, and payment/delivery options as key characteristics of supermarkets.

 

Question 4. What is meant by email order retailing?
Answer: Email order retailing, also known as mail-order, involves retail businesses that sell their products by mail. In this type of trade, there's usually no direct personal contact between the buyer and the seller. Customers might pay upfront or when they receive the goods, which means there's no risk of unpaid debts for the seller. However, items that spoil quickly, like milk, are not suitable for mail order. Good examples of products sold this way include books and watches. This method allows people to shop from home.
In simple words: Email order retailing is when shops sell products by sending them through the mail. Customers order online or from a catalog, paying in advance or upon delivery.

🎯 Exam Tip: Explain that it's selling goods remotely, typically through catalogs or online, with delivery by mail, and note the absence of personal contact.

IV. Long Answer Questions

 

Question 1. State the features of Departmental stores.
Answer:1. Large Size: Departmental stores are big retail showrooms that need a lot of money to start. They are usually run by a company and managed by a group of directors. Their large size allows them to offer many services. 2. Wide Choice: These stores offer a very broad selection of products, from cheap to expensive, all under one roof. They aim to meet almost all customer needs. 3. Departmentally Organized: Products are sorted and sold in different sections or departments within the store. 4. Facilities Provided: They offer many conveniences like restaurants, restrooms, recreation areas, packing services, home delivery, and parking for customers. 5. Centralized Purchasing: All products are bought in large quantities from manufacturers by a central team. They use separate warehouses for storage, but sales happen in each department.
In simple words: Departmental stores are large shops with many sections. They sell a wide range of goods and offer many services like parking and home delivery. Buying is central, but selling is done in each department.

🎯 Exam Tip: List and briefly explain each feature, focusing on scale, variety, organization, services, and the purchasing model of departmental stores.

 

Question 2. What is meant by Consumer Cooperative Store? Explain its merits in brief.
Answer: A consumer cooperative store is a retail business that is owned, managed, and controlled by its customers. The main goal is to provide daily use products at fair, low prices. It aims to remove middlemen by buying directly from manufacturers, which helps to keep costs down. This benefits middle and low-income groups. This structure ensures that the benefits of bulk buying are passed directly to the members. At least 25 people need to come together to form a voluntary group and register it under the Cooperative Societies Act. Money for the store comes from shares bought by its members. It is run democratically by an elected committee, where each member gets one vote, no matter how many shares they own. These stores are popular in places like Tamil Nadu, with examples such as Kamadhenu and Chinthamani supermarkets.
In simple words: A consumer cooperative store is a shop run by its own customers. They aim to sell daily goods cheaply by buying straight from factories. Many people join, buy shares, and vote on how the store is run.

🎯 Exam Tip: Define, state objectives (eliminating middlemen, fair prices), mention formation (25 members, registration), funding (shares), and democratic management ("one man, one vote").

 

Question 3. Describe the 'role of chambers of commerce in promotion of internal trade.
Answer:1. Supporting Transportation: Chambers of commerce help with vehicle registration and surface transport rules. They also push for building highways and roads, which makes it easier to move goods between states. Good transport links are vital for efficient trade across the country. 2. Streamlining GST: They work to make the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) systems work smoothly together. 3. Helping Agro Marketing: Groups of farmers and other agricultural bodies work with cooperatives to manage local government support and create good marketing plans for farm products. 4. Ensuring Fair Practices: They assist the government in making and using fair rules for weights and measures, and in stopping fake products from being sold. 5. Improving Infrastructure: They talk with the government about building important things like roads, ports, power systems, and railways. 6. Advising on Labour Laws: They regularly discuss labor laws, layoffs, and worker pay with the government to help industries run well, create jobs, and produce as much as possible.
In simple words: Chambers of commerce help trade by improving transport, making GST work better, helping farmers sell goods, ensuring fair weights, building infrastructure like roads, and advising on worker laws.

🎯 Exam Tip: List the six key roles, focusing on how chambers support trade through policy, infrastructure development, and ensuring fair business practices.

11th Commerce Guide Retailing Additional Important Questions and Answers

I. Choose the Correct Answer

 

Question 1. The other name for Itinerant trader Is ..............
(a) Mobile Trader
(b) Peddlers
(c) Hawkers
(d) Market Traders
Answer: (a) Mobile Trader
In simple words: An itinerant trader is also called a mobile trader, meaning they move around to sell things.

🎯 Exam Tip: Understand synonyms for mobile and non-stationary traders, as "itinerant" directly implies mobility.

 

Question 2. The retailers who have independent shops of temporary nature is known as ..............
(a) Mobile Trader
(b) Peddlers
(c) Cheap Jacks
(d) Market Traders
Answer: (c) Cheap Jacks
In simple words: Retailers who open temporary, independent shops are called Cheap Jacks.

🎯 Exam Tip: Recognize that the phrase "temporary nature" points to specific types of retailers like Cheap Jacks who operate for a limited time in a location.

 

Question 3. The process of paying the price amount of product not on initially but in installments is known as ..............
(a) Loan
(b) Hire Purchase
(c) deferred payment system
(d) Credit system
Answer: (c) deferred payment system
In simple words: Paying for something in small parts over time, rather than all at once, is called a deferred payment system.

🎯 Exam Tip: Focus on the key phrase "not initially but in installments" to correctly identify a deferred payment system.

 

Question 4. In retailing there is a direct interaction with ..............
(a) Producer
(b) Wholesaler
(c) Consumer
(d) All of the options
Answer: (c) Consumer
In simple words: In retailing, the retailer talks and sells directly to the customer who uses the product.

🎯 Exam Tip: Remember that retailing focuses on the final sale to the end-user, establishing a direct link with the consumer.

 

Question 5. Retailing creates ..............
(a) Ownership Utility
(b) Place Utility
(c) Time Utility
(d) All of the options
Answer: (d) All of the options
In simple words: Retailing makes products useful in different ways: by letting people own them, by selling them in the right place, and by having them ready at the right time.

🎯 Exam Tip: Understand how retailing provides value to customers by making products available when, where, and how they want them.

 

Question 6. .............. is a key task of large and small retailers.
(a) Risk management
(b) Stock management
(c) Crisis management
(d) All of the options
Answer: (d) All of the options
In simple words: Managing risks, keeping track of stock, and dealing with problems are all important jobs for retailers of any size.

🎯 Exam Tip: Recognize that running a retail business involves handling various operational and strategic challenges, not just one specific task.

 

Question 7. Retailing is a marketing function which ..............
(a) sells products to other sellers
(b) sells products to a company that resells them
(c) sells products to final consumers
(d) sells products for one's own use.
Answer: (c) sells products to final consumers
In simple words: Retailing's main job is to sell products directly to the people who will use them.

🎯 Exam Tip: Clearly state that retailing is the final step in the distribution channel, directly serving the end consumer.

 

Question 8. Retailer is a person who sells the goods in a ..............
(a) Large quantities
(b) Small quantities
(c) both (a) & (b)
(d) None of the options
Answer: (b) Small quantities
In simple words: A retailer sells goods in small amounts to each customer.

🎯 Exam Tip: Remember the core function of a retailer is to break bulk (buy large amounts) and sell smaller units (small quantities) to consumers.

II. Very Short Answer Questions:

 

Question 1. Who are called as Itinerant traders?
Answer: Itinerant traders are sellers who do not have a permanent shop or fixed location for their sales. They move from one place to another to sell their goods. This makes them highly mobile in their business.
In simple words: Itinerant traders are sellers who move around and do not have a fixed shop.

🎯 Exam Tip: Define itinerant traders by emphasizing "no fixed place of sale" and their "mobility."

 

Question 2. Write any two Associations or Chambers in Tamil Nadu.
Answer: Two notable associations or chambers in Tamil Nadu are the Madras Chamber of Commerce, located in Chennai, and the Tamil Nadu Traders Associations. These organizations represent business interests in the region.
In simple words: Two groups are Madras Chamber of Commerce in Chennai, and Tamil Nadu Traders Associations.

🎯 Exam Tip: Provide two distinct and correctly named organizations from Tamil Nadu that serve business interests.

 

Question 3. What do you mean by super market?
Answer: A supermarket is a large retail store that sells many different consumer goods. It attracts customers with low prices, a wide range of products, and a self-service shopping experience. These stores also focus strongly on how products are displayed to encourage buying. It's a one-stop shop for many household needs.
In simple words: A supermarket is a big shop selling many different items at low prices. Customers serve themselves, and products are displayed well.

🎯 Exam Tip: Mention "large retail store," "wide variety," "low price appeal," and "self-service" as key features of a supermarket.

 

Question 4. Who are Fixed shop Retailers?
Answer: Fixed shop retailers are those who have a permanent business location where they sell their products. Unlike mobile traders, they do not move around to serve customers; their shop remains in one place. This provides stability and a consistent point of sale.
In simple words: Fixed shop retailers are shop owners who have a permanent store and do not move from place to place.

🎯 Exam Tip: Define fixed shop retailers by contrasting them with mobile traders, highlighting their "permanent establishment."

III. Short Answer Questions :

 

Question 1. Discuss any three limitation of Multiple shops:
Answer:1. Limited Variety: Multiple shops often sell only a small range of specific products, rather than a broad selection. 2. No Extra Services: Customers usually do not get services like credit purchases, home delivery, or other special facilities. 3. Less Personal Connection: The owner often has no direct contact with customers. The employees might not show a personal interest in each customer's needs. This can make the shopping experience feel less personalized compared to smaller local stores.
In simple words: Multiple shops offer a limited choice of goods and don't give services like credit or home delivery. There is also less personal connection with customers.

🎯 Exam Tip: List three distinct limitations, focusing on product range, customer services, and personal interaction in multiple shops.

 

Question 2. Write a short note on Mail-order Houses.
Answer: Mail-order houses are retail businesses that sell their products through the mail. In this type of trade, there's usually no direct personal contact between the buyer and the seller. Customers might pay upfront or when they receive the goods, which means there's no risk of unpaid debts for the seller. However, items that spoil quickly, like milk, are not suitable for mail order. Good examples of products sold this way include books and watches. This method offers convenience for customers who prefer to shop from home.
Procedure for Mail Order Houses:
• Advertising: They inform customers about products through advertisements.
• Order Processing: After getting an order, they send the goods to customers via postal service, often using Value Payable Post (VPP).
• Payment Collection: They also handle receiving payments.
In simple words: Mail-order houses sell products by sending them through the mail. There's no face-to-face contact. Customers pay upfront or on delivery, so there are no bad debts. Good items to sell are books and watches, but not perishable things. The process includes advertising, taking orders, sending goods by post, and collecting money.

🎯 Exam Tip: Describe mail-order houses, mentioning lack of personal contact, payment methods (no bad debt), suitable/unsuitable goods, and outline the basic procedure (advertising, ordering, delivery, payment).

 

Question 3. What do you mean by telephonic marketing?
Answer: Telephonic marketing involves reaching out to potential customers using telephones or mobile phones to give them information about products. Customers who are interested can then visit the office to place their orders. This method is especially helpful for services like loans, financing, insurance, and credit cards. It also helps reduce costs because there are no middlemen involved in the sales process. This direct approach can build a personal connection.
In simple words: Telephonic marketing is when companies call people to tell them about products. If interested, customers visit to order. It's good for services like loans and saves costs by cutting out middlemen.

🎯 Exam Tip: Define telephonic marketing as direct contact via phone, mention how orders are placed, and highlight its suitability for services and cost reduction.

 

Question 4. How is business done through Internet Marketing?
Answer: In Internet marketing, manufacturers or other sellers advertise their products on various online platforms like email, websites, and web browsers. Many businesses also have their own e-commerce websites, such as Flipkart or Amazon. Customers can view these ads, compare products, and then choose what they want to buy online. They can pay either online or with cash upon delivery. Since there are no physical middlemen or showroom costs, products are often available at lower prices than in local markets. Additionally, customers can receive after-sales services. This digital approach offers convenience and wider reach.
In simple words: Internet marketing uses online ads and websites like Amazon to sell products. Customers compare, choose, and pay online or with cash on delivery. It removes middlemen, making products cheaper, and offers after-sales help.

🎯 Exam Tip: Explain how products are advertised online, the customer's buying process, the cost benefits due to fewer middlemen, and the provision of after-sales services.

 

Question 5. What are all the functions of Chamber of Commerce?
Answer: Chambers of Commerce serve several important functions. They act as protectors for trade, commerce, and industry within a nation. They also play a key role in boosting internal trade across the country. Furthermore, they work closely with the government to create and put into action relevant business policies. Their role is crucial in shaping the economic environment.
In simple words: Chambers of Commerce protect trade, help improve local business, and work with the government on business rules.

🎯 Exam Tip: Focus on their roles as guardians, catalysts for internal trade, and collaborators with the government on policy-making.

IV. Long Answer Questions:

 

Question 1. Explain the types of Mobile traders:
Answer: The types of itinerant or mobile traders are as follows: These traders play a vital role in reaching customers in various locations, especially those without easy access to fixed shops.
a. Peddlers and Hawkers: Peddlers carry goods on their head or shoulders and walk from place to place to sell. Hawkers are small retailers who use a vehicle to sell goods in different public areas like bus stops, railway stations, and residential neighborhoods.
b. Street Vendors: These traders sit on sidewalks or pavements and sell items like fruits, vegetables, and books. They set up their goods in busy public spaces.
c. Market Traders: Small traders open their temporary shops on specific days, like Sundays or Wednesdays, often in weekly markets. They specialize in one type of product, usually low-priced items for daily use. Examples include traders in Pollachi or Ranipet.
d. Cheap Jacks: These retailers have temporary, independent shops in specific business areas. Their location depends on how many customers are nearby. They sell various consumer goods and services, such as shoes, plastic items, and watch repairs.
In simple words: Mobile traders include Peddlers (who walk with goods), Hawkers (who use vehicles), Street Vendors (who sit on pavements), Market Traders (who set up temporary shops on certain days), and Cheap Jacks (who have temporary independent shops).

🎯 Exam Tip: Clearly define each type of mobile trader, highlighting their method of operation, typical goods sold, and their level of mobility.

 

Question 2. Explain the types of Fixed Shop small retailers:
Answer: Fixed shop small retailers operate from a permanent location and include several types: These types of stores cater to a diverse range of customer needs, offering both convenience and specialized products.
Street Stalls: These small shopkeepers are often found at street crossings or busy corners. They attract passers-by and sell affordable goods like hosiery, toys, or soft drinks. They get their supplies from local wholesalers.
General Stores: General stores offer a wide variety of products under one roof, typically in local markets and residential areas. They meet daily needs, stay open for long hours, and may offer credit to regular customers.
Single-line Stores: These are small shops that focus on selling only one specific type of product, such as garments, stationery, or medicines. They are commonly located in market areas.
Specialty Stores: Similar to single-line stores, specialty stores deal in a very particular kind of product within one category. For example, a sweet shop specializing in specific regional sweets.
Seconds Shops: These shops sell used or second-hand goods, or sometimes new items with minor defects, at low prices. Examples include old books, furniture, or clothes.
In simple words: Small fixed shop retailers include Street Stalls (selling cheap goods at busy spots), General Stores (selling many daily items), Single-line Stores (selling one type of product), Specialty Stores (selling unique items), and Seconds Shops (selling used or slightly faulty goods).

🎯 Exam Tip: Identify and briefly describe each type of fixed shop small retailer, highlighting their product range and typical location to differentiate them effectively.

 

Question 3. Explain the advantages of Departmental Stores:
Answer: Departmental stores offer several benefits:
Convenience in buying: These stores make shopping very easy for all family members. They can buy almost all their needed items in one single place. Because a wide variety of goods are available, customers save time and do not need to visit many different shops to complete their shopping. This type of store saves a lot of effort for the buyer.
Attractive services: Departmental stores aim to provide many services and facilities. These include home delivery of goods, taking telephone orders, providing rest rooms, restaurants, salons, and children's play areas. Such diverse services make the shopping experience more enjoyable.
Central location: These stores are often located in central parts of a city or town. This makes it easy for many people to reach them. A central location helps attract a larger customer base.
Elimination of Middleman: A departmental store handles both selling goods to customers and storing them. They buy products directly from the companies that make them and have their own separate storage places. This helps remove unnecessary middlemen, which can make products cheaper.
Economies of Large Scale Operations: Departmental stores buy goods in very large amounts. Because they buy in bulk, they get special discounts, which helps them save money. This benefit allows customers to get good quality products at lower prices. Bulk purchasing is a key advantage for big stores.
In simple words: Departmental stores are convenient because they offer many goods and services in one central spot. They buy in bulk, cut out middlemen, and give customers a good experience with extra facilities.

🎯 Exam Tip: When describing advantages, focus on how each point benefits the customer (e.g., convenience, savings) or the business (e.g., efficiency, lower costs).

 

Question 4. Explain the features of chain stores:
Answer: Chain stores have several key features:
Location: These stores are carefully placed in different busy areas to make it easy for customers to find and choose goods based on what they like. Strategic placement helps ensure easy access for potential buyers.
Nature of product: Chain stores typically focus on selling a specific type of product line. They specialize in standardized and well-known branded consumer products. This specialization helps build brand recognition.
Centralized management: All the work of making or buying goods for every store unit is managed from a single head office. From this central office, goods are then sent out to each individual store. This ensures consistent quality and supply.
Fixed price: The prices for goods in chain stores are set and do not change. All sales are made using cash only. This policy simplifies transactions and helps avoid credit issues.
Role of Sales personnel: The staff in these stores actively help customers with their shopping. They assist customers in selecting and choosing goods that match their preferences. Good sales support can improve customer satisfaction.
In simple words: Chain stores are managed from one main office, sell specific branded products at fixed prices, and are located conveniently. Their staff help customers choose items easily.

🎯 Exam Tip: Remember that chain stores prioritize consistency across all branches, from product offerings to pricing and management.

 

Question 5. What are all the advantages of chain stores?
Answer: Chain stores offer several benefits:

• Economies of large scale: Multiple shops are owned and managed by either manufacturers or other companies. Buying goods in large amounts and centrally leads to lower costs. These shops are set up in populated areas where many customers can easily visit. Buying in bulk helps reduce overall expenses.
• Nature of product: These shops focus on selling a particular kind of product line. They specialize in consumer goods that are standardized and have well-known brands. This helps them become experts in their product area.
• Centralized management: The production or purchase of goods for all retail units is managed from a single head office. From here, goods are sent to each shop. This centralized system ensures efficient operations.
• Fixed price: The prices of goods are set and remain the same across all stores, and all sales are made in cash. This simple pricing policy avoids confusion for customers.
• Role of Sales personnel: Sales staff play an active role in helping customers complete their shopping. They assist in selecting and choosing goods according to customer preferences. Trained staff can significantly enhance the shopping experience.
• Elimination of middlemen: Goods are sold in multiple shops at relatively low prices. By selling directly to consumers, chain stores can remove unnecessary middlemen. This direct approach often means better prices for customers.
• No bad debts: All sales in these shops are made strictly on a cash basis. This means there are no debts from customers, and the working capital of the business remains stable. Selling only for cash avoids financial risks.
• Convenience in shopping: Shops are located in all important areas, making them easily accessible. Therefore, customers do not need to travel long distances for their purchases. Easy access is a major draw for customers.
• Public confidence: Multiple shops gain public trust because they offer fixed prices, standard quality, a uniform appearance, and help from salespersons in selecting goods. Consistency builds customer loyalty.

In simple words: Chain stores benefit from buying in bulk, having simple pricing, and central management. They are convenient for customers, remove middlemen, and earn public trust due to consistent quality and service.

🎯 Exam Tip: When listing advantages, try to group similar benefits together (e.g., cost-related, customer-related) to make your answer clearer and more organized.