UP Board Solutions Class 10 Commerce Chapter 9 Home Trade Wholesale and Retail Trade

Home Trade: Wholesale And Retail Trade Objective Type Questions (1 Mark)

Question 1. Weight of the commodity only is called:
(a) Gross weight
(b) Total weight
(c) Net weight
(d) None of these
Answer: (c) Net weight
In simple words: Net weight refers to the actual weight of the goods themselves, excluding any packaging. It is the weight of the product a consumer is paying for.

🎯 Exam Tip: Understanding different types of weights (gross, net, tare) is crucial for commerce and accounting, often appearing in basic calculation problems.

Question 2. When the businessman changes the shape and qualities of the thing, the process is known as:
(a) Industry
(b) Manufacturing
(c) Business
(d) None of these
Answer: (b) Manufacturing
In simple words: Manufacturing is the process of converting raw materials or components into finished goods through various processes, thus changing their form and properties. This process adds value to the product.

🎯 Exam Tip: Distinguish between industry (broader economic activity), manufacturing (specific production process), and business (overall commercial activity) for clear understanding.

Question 3. Only the weight of the packing is known as:
(a) Tare
(c) Binding
(d) None of these
Answer: (a) Tare
In simple words: Tare refers to the weight of the packaging material, container, or vehicle that holds the goods, which is then subtracted from the gross weight to find the net weight of the goods.

🎯 Exam Tip: Tare weight is important in shipping and pricing to ensure customers are charged only for the product, not its packaging.

Question 4. Trade may be either have trade or.........
(a) Internal Trade
(b) Wholesale Trade
(c) Retaling Trade
(d) Foreign Trade
Answer: (d) Foreign Trade
In simple words: Trade can broadly be classified into two main categories: internal trade, which occurs within a country's borders, and foreign trade, which involves transactions between different countries.

🎯 Exam Tip: Remember the two fundamental divisions of trade (home/internal and foreign/international) as a foundational concept in commerce.

Question 5. .......... is the document whereby the seller credits the account of the buyer with the amount overcharged.
(a) Debit Note
(b) Credit Note
(c) Cash Memo
(d) Voucher
Answer: (b) Credit Note
In simple words: A credit note is a commercial document issued by a seller to a buyer to acknowledge a reduction in the amount owed for goods or services, typically due to returns, allowances, or overcharging.

🎯 Exam Tip: Understand the purpose of a credit note as a reverse invoice, indicating money owed *back* to the buyer or a reduction in their payable balance.

Home Trade: Wholesale And Retail Trade Definite Answer Type Questions (1 Mark)

Question 1. Write down the full form of C. O. D.
Answer: Cash on Delivery.
In simple words: Cash on Delivery (COD) is a payment method where payment for goods is made at the time of delivery rather than in advance.

🎯 Exam Tip: COD is a common payment term, especially in e-commerce, ensuring buyers pay only upon receipt of goods.

Question 2. Which type of document is made if the buyer is undercharged can the invoice for any reason?
Answer: Debit note.
In simple words: A debit note is issued by a seller to a buyer when the buyer has been undercharged on an invoice, requiring them to pay an additional amount.

🎯 Exam Tip: A debit note increases the amount owed by the buyer, correcting an undercharge on a previous invoice.

Question 3. What kind of discount is not entered in the books?
Answer: Trade Discount.
In simple words: Trade discount is a reduction in the list price of goods given by a seller to a buyer, especially for bulk purchases, and is not recorded in the accounting books as it's adjusted at the time of sale.

🎯 Exam Tip: Differentiate between trade discount (not recorded in books, reduces invoice amount) and cash discount (recorded in books, encourages prompt payment).

Question 4. Which type of delivery is takes place when the seller gives the documents of ownership of goods instead of goods?
Answer: Constructive Token Delivery.
In simple words: Constructive token delivery occurs when the physical goods are not directly handed over, but rather documents or keys that symbolize ownership and control of the goods are transferred to the buyer.

🎯 Exam Tip: This type of delivery is common for large items or goods stored in a warehouse, where physical transfer is impractical at the point of sale.

Question 5. Name the one kind of Home Trade.
Answer: Manufacturing.
In simple words: Home trade refers to all commercial activities conducted within the geographical boundaries of a single country, which includes various aspects like manufacturing, wholesale, and retail.

🎯 Exam Tip: Home trade encompasses all economic transactions involving goods and services that originate and conclude within the national borders.

Home Trade: Wholesale And Retail Trade Very Short Answer Type Questions (2 Marks)

Question 1. What denotes ‘Trade'?
Answer: Trade refers to the sale, transfer or exchange of goods and services and constitutes a central activity around which the other business functions like banking, transportation, insurance, packaging, warehousing and advertising cluster.
In simple words: Trade is the fundamental economic activity involving the exchange of goods and services between parties, forming the core around which all other business functions operate. It facilitates the movement of products from producers to consumers.

🎯 Exam Tip: Define trade clearly by highlighting its core function of exchange and its role as the central hub for other business activities.

Question 2. Name the types of Trade.
Answer: Trade may be either Home Trade or Foreign Trade.
In simple words: Trade is generally categorized into home trade, which takes place within a country, and foreign trade, which involves transactions across national borders.

🎯 Exam Tip: Knowing the two main categories of trade is essential for understanding the scope of commercial activities both domestically and internationally.

Question 3. What is “Cash Down Payment”?
Answer: Cash down payment. It means that the buyer will have to make the payment of the time of sale of goods.
In simple words: A cash down payment means that the buyer must pay the full amount for the goods or services at the exact moment of the transaction or sale.

🎯 Exam Tip: Cash down payment indicates an immediate and complete payment requirement, differing from credit or installment plans.

Question 4. What is “Franco”?
Answer: Franco includes all the expenses which are incurred in sending the goods up to to the godown of the buyer. All the expenses are made by the seller and the buyer does not make any payment for expenses, but they are all included in the price of the goods.
In simple words: "Franco" refers to a pricing term where the seller bears all costs, including transportation and delivery, until the goods reach the buyer's warehouse, with these costs already factored into the final price.

🎯 Exam Tip: Understanding "Franco" helps clarify who is responsible for freight and related costs in a sales transaction, impacting the buyer's effective purchase price.

Question 5. When actual delivery takes place?
Answer: Actual delivery takes place when the seller actually hands over the goods to delivery.
In simple words: Actual delivery happens when the seller physically transfers possession of the goods directly to the buyer or their designated recipient.

🎯 Exam Tip: Actual delivery signifies the physical transfer of goods, which is a key event for recognizing revenue and transfer of risk in sales.

Home Trade: Wholesale And Retail Trade Short Answer Types Questions (4 Marks)

Question 1. Describe any four services rendered by a retail trader.
Answer:
1. Collection of the necessary information.
2. Relieves from retail work.
3. Relieves from a local advertisement.
4. Advantages of increased sales.
In simple words: Retail traders provide valuable services by gathering market information, simplifying the purchase process for consumers, supporting local advertising efforts, and ultimately contributing to higher sales by making products accessible.

🎯 Exam Tip: Focus on how retailers bridge the gap between wholesalers/producers and ultimate consumers, offering convenience and support services.

Question 2. What is Retail Trading? Write two merits of Retail Trading?
Answer: Retail Trading. It is one of which a retailer purchases goods from wholesalers, deals in small quantities of goods but his business is not specialised in one line of goods and selling goods to ultimate consumers.
1. Regular availability of goods for the consumer.
2. Supply of goods according to fashion for the consumers.
In simple words: Retail trading involves selling goods in small quantities directly to the final consumers, often purchasing from wholesalers without specializing in a single product line. Its merits include ensuring consistent product availability and adapting to consumer fashion trends.

🎯 Exam Tip: Emphasize that retail trading is the final link in the distribution chain, directly serving consumers and responding to their needs and preferences.

Question 3. Write two differences between Inland Trade and Foreign Trade.
Answer:

🎯 Exam Tip: Key differentiators for inland vs. foreign trade are geographical boundaries, currency, and associated regulatory frameworks.

Question 4. Name the trade between India and the United States of America and Define it.
Answer: Foreign Trade: Foreign Trade means the trade that is carried on between living in different countries or between the government of different countries.
In simple words: Trade between India and the United States is an example of foreign trade, which is defined as any commercial exchange of goods and services that takes place between individuals or governments of two or more different countries.

🎯 Exam Tip: When defining foreign trade, highlight its cross-border nature and involvement of different national entities or governments.

Question 5. What are the benefits of an advertisement in the newspaper?
Answer: Following are the benefits Benefits of Advertisement in Newspaper:
1. At a comparatively cheap cost, such advertisement can be presented for numerous customers who could not otherwise approach.
2. Any business houses increasing a sale by advertisement in a newspaper.
In simple words: Newspaper advertisements offer a cost-effective way to reach a large number of potential customers that might otherwise be difficult to contact, thereby helping businesses to boost their sales.

🎯 Exam Tip: Emphasize reach and cost-effectiveness as primary benefits of newspaper advertising, especially for local markets.

Home Trade: Wholesale And Retail Trade Long Answer Type Questions (8 Marks)

Question 1. What is meant by Retail Trader? Differentiate between retailer and wholesale trader. Mention the services provided by a retailer towards society. Or What is wholesale trade? Distinguish between wholesale trade and retail trade.
Answer: The retailer is one who purchases goods from wholesalers, deals in small quantities of goods but his business is not specialized in one line of goods and he sells goods to ultimate consumers. Differences between Wholesalers and Retailers:

🎯 Exam Tip: Focus on the volume of goods, target customers, and position in the supply chain to clearly differentiate between wholesalers and retailers in your answer.

Question 2. Differentiate between Debit Note and Credit Note.
Answer: Differences between Debit Note and Credit Note:

🎯 Exam Tip: Remember that a Debit Note increases a buyer's liability, while a Credit Note reduces it. Pay attention to the impact on the buyer's account.

Question 3. What is meant by Mail Order Business? Write the merits of Mail Order Business.
Answer: Mail Order Business: Under the mail-order business, all the transactions pertaining to purchase and sales are done by post. There is no direct link or any conversation between a buyer and a seller. Under this system, the order is placed through the post and the goods are despatched through the post. Thus, the mail-order business may be described as shopping by post, as the goods are despatch through V.P.P.
Merits of Mail Order Business: Businessman, as well as customers both, have advantages from the mail-order business. Some of them are as follows:
1. Less Capital is Required: The business can be started with little capital because there is no need for storing goods. After receiving the order he can collect the goods for executing the order.
2. No Shop and Display Expenditure: There are no overhead expenses in the mail order business. There is no need for a shop. Goods are not to be displayed as no stock is maintained.
3. No Bad Debts: All transactions are on a cash basis and thus, there is no danger of bad debts.
4. Elimination of Middlemen: There is no need for middlemen in such type of business. Hence, the businessman is able to allow more commission to the customers.
5. High Profits: Because of the low operating cost of business, the margin of profit is very high.
There are so many merits to the customers by this form of retail trade. Some of them are as follow:
1. The customers get the goods at their homes. They do not have to go to the market to purchase the goods.
2. The customers can make a selection of goods in their free time with the help of price-list.
3. The customer can purchase even those goods which are not available in the shops in his town or village.
4. In such type of business, the customers feel that goods are of standard quality.
5. The customer gets goods on reduced rates due to less overhead expenses and the elimination of middlemen.
In simple words: Mail order business is a retail method where sales transactions and delivery are conducted entirely through postal services, eliminating direct interaction between buyer and seller. Its merits include low capital and overhead costs for businesses, no bad debts due to cash transactions, and elimination of middlemen, leading to higher profits. Customers benefit from home delivery, convenience in selection, access to unavailable goods, assured quality, and reduced prices.

🎯 Exam Tip: When discussing Mail Order Business, highlight its reliance on postal services, the absence of physical stores, and the resulting cost efficiencies for businesses and conveniences for customers.