NCERT Solutions Class 11 Business Studies Chapter 10 Internal Trade
NCERT Solutions Class 11 Business Studies Chapter 10 Internal Trade: National Council of Educational Research and Training (NCERT) Class 11 Business Studies Chapter 10 Solutions – Internal Trade.
Board |
NCERT |
Class |
11 |
Subject |
Business Studies |
Chapter |
10 |
Chapter Name |
Internal Trade |
Topic |
Exercise Solutions |
Short Answer Questions:
(1) What is meant by internal trade?
Ans: Internal trade refers to the process of buying and selling of goods and services within geographical boundary of a country.
(2) Specify the characteristics of fixed shop retailers.
Ans: (i) These shops have a fixed place of sale in the market, residential localities etc.
(ii) These shops deal with the items of daily use like – stationary, grocery etc.
(3) What purpose is served by the wholesaler providing warehousing facilities?
Ans: Wholesalers providing warehousing facilities serves the purpose of storing of finished products of the manufactures.
(4) How does market information provided by the wholesalers benefits the manufactures?
Ans: The wholesalers provides the information regarding the choices of the customers about the competitor’s product, demand for the product etc to the manufactures and helps them to produce the product according to the need of the market and customers.
(5) How does wholesaler help the manufactures in availing the economics of scale?
Ans: Wholesalers help the manufactures to avail the benefits of large-scale operation or economics of scale as they buy their products in large quantity.
(6) Distinguish between single line stores and specialty stores. Can you identify such stores in your locality?
Ans: Single line stores deals with a single product having various designs, colour, shape, brand etc whereas a speciality store deal with a particular brand of product.
(7) How would you differentiate between street traders and street shops?
Ans: Street traders do not have a particular fixed place for selling their product whereas street shops have a fixed place of selling their products.
(8) Explain the service offered by wholesalers to manufactures.
Ans: The services offered by wholesalers to manufactures are as follows:
(i) Wholesalers facilities economics of scale for the manufacturers.
(ii) Wholesalers provide financial support to the manufacturers by buying their products in cash.
(iii) The wholesalers provide information regarding the preferences and expectations of the customers to the manufacturers.
(9) What are the services offered by retailers to wholesalers and consumers?
Ans: The services provide by retailers to wholesalers are as follows:
(i) The retailers provide personal selling efforts to the producers or the wholesalers in order to boost their sales.
(ii) Retailers relieves the wholesalers from the burden of supplying their products to consumers.
The services provided by retailers to consumers are as follows:
(i) Retailers helps the customers by making the products available to them at their convenient location.
(ii) Retailers provide a wide variety of products to the consumers under our roof.
Long Answer questions:
(1) Itinerants traders have been an integral part of internal trade in India. Analyse the reason for their survival in spite of competition from large scale retailers.
Ans: Itinerant retailers are traders who do not have a fixed place of business to operate from and keep on moving with their wares from street to street or place to place in search of customers.
They are popular and still surviving due to its eminent features as follows:
(i) They are small traders operating with limited resources.
(ii) They normally deal in consumer products of daily use like to toiletry products fruits and vegetables etc.
(iii) The emphasis of such traders is in providing greater customer service by making the products available at the doorstep of the customers.
(2) Discuss the features of a departmental store. How are they different from multiple shops or chain stores?
Ans: The features of a departmental store is as follows:
(i) Large size: These are a large retail stores that requires a huge investment and huge space to operate their business.
(ii) Central location: Departmental stores are centrally located i.e. in a shopping complex or at a convenient place so that it is easily accessible by customers.
(iii) Variety: These stores provide a wide range of products from low price to expensive of various brands, quality etc.
The difference between departmental stores and chain stores are as follows:
Basis | Departmental Store | Chain Store |
(i) Services offered | (i) These stores offer various services like – Free home delivery, packing, etc | (i) Chain stores do not provide such services to customers. |
(ii) Flexibility | These stores have flexibility in operation as changes in policies can be made anytime. | (ii) These stores do not have such flexibility in operation as policies are formed b head offices. |
(iii) Credit Facility | (iii) These stores offer both cash and credit facilities to the customers | (iii) These stores sell their product only on cash basis. |
(3) Why are consumer’s co-operative stores considered to be less expensive? What are its relative advantages over large scale retailers?
Ans: Consumer’s cooperative stores are considered to be less expensive because the main objectives of these stores is to reduce the number of middlemen who increases the cost of the products. These stores generally by large quantity of products from manufactures or wholesalers and sell them to the consumers at a reasonable price.
The advantage of these stores over large scale retailers are as follows:
(i) Ease in formation: A consumer cooperative store can be easily formed with less formalities and investment.
(ii) Lower prices: A cooperative store purchase goods directly from the manufactures and sells them to the customers hereby eliminating the middlemen and reducing the price of the product.
(iii) Convenient location: These stores are generally opened at convenient public places so that people can buy the products as per their requirement.
(iv) Cash sales: These stores sells products for cash and thus reduces the need for working capital.
(4) Imagine life without your local market. What difficulties would a consumer face if there is no retail shop?
Ans: The difficulties faced by consumers if there are no retail shop are as follows –
(i) Difficulty in accessing commodities: Without the retailers, it would become difficult for consumers to get their products at their convenient locations.
(ii) No option for choice of products: A retail shop provides wide variety of products under one roof and without retail shops such choices become limited.
(iii) Absence of after sale services: Without the retailers a consumer cannot get additional services like – customer care services, repairs, warranty etc.
(iv) Absence of credit facility: A customer can get the benefit of credit purchase from retail shops, but it is not available from wholesalers or others.
(5) Explain the usefulness of mail order houses. What type of products are generally handled by them? specify.
Ans: The usefulness or advantages of mail order houses are as follows:
(i) Limited capital requirement: These business (Retail outlets) does not require heavy expenditure on building and other infrastructure facilities as it is carried out by mail services.
(ii) Elimination of middlemen: From the consumer’s point of view, the main advantage of mail-order business is the absence of middlemen between the sellers and buyers and this leads to lower cost of the product.
(iii) Wide reach: This opens wide scope for business as a large number of people throughout the country can be reached through postal services.
(iv) Absence of bad debt: As mail order houses do not extend any credit facilities to the customer, there are no chances of bad debt for the sellers.
The Type of products handled by mail order houses are as follows:
(i) Goods that are non-perishable in nature and are graded and standardized.
(ii) Goods that can be easily transported with low cost.
(iii) Goods that have ready demand in the market and are available in large quantity throughout the year.
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