GSEB Class 11 Organization of Commerce and Management Important Questions Chapter 9 Internal Trade

Gujarat Board GSEB Class 11 Organization of Commerce and Management Important Questions Chapter 9 Internal Trade Important Questions and Answers.

GSEB Class 11 Organization of Commerce and Management Important Questions Chapter 9 Internal Trade

Short Answer Type Questions

Question 1.
Give two examples of internal trade.
Answer:

1. A trader of Ahmedabad selling mangoes within city or to any other city of Gujarat,
2. A trader of Surat selling goods to a trader of Bombay i.e. another state.

Question 2.
What remains common in internal trade?
Answer:
Currency, weights and measurements, laws, trade practices, etc.

Question 3.
Define wholesale trade.
Answer:
A trader who purchase goods in large quantity from the producer and sells them to retailers in small quantities as per their requirements is called a wholesaler and the trade is called wholesale trade.

Question 4.
How and what kind of information does a wholesaler provides to the producer?
Answer:
A wholesaler is in direct contact with several retailers spread- across a vast geographical region. This helps him to obtain information about demand of the product, its feedback, customer’s preference, fashion, etc. of various regions. The wholesaler then shares this information with the producer.

Question 5.
How does wholesaler reduce storage requirement of producer?
Answer:
Wholesaler orders goods in large quantity and stores them in his own godowns. This helps producer to maintain less storage space.

Question 6.
How can wholesaler give producer relief of capital?
Answer:
At times either produces can ask for advance payment from wholesalers or wholesalers themselves may pay in advance to the producers as per trade policies or to assure that wholesaler would receive their order quantity on time. This helps producers to maintain less working capital.

Question 7.
Explain goods on credit as a wholesaler’s service to retailer.
Answer:
At times, wholesalers sell the goods to retailers on credit. This motivates retailers to conduct and expand their business with quite less capital.

Question 8.
How do retailers help in solving customer complaints?
Answer:
Retailers are in direct contact with customers, If customers have any complaints regarding a product then they complain to retailers. Retailers pass these complain to wholesalers and wholesalers pass them to producers and solve complains quickly.

Question 9.
Define retail trade.
Answer:
A trader who purchase goods in small quantity from wholesaler or in some cases from producer and sells them directly to the customers is called retailer and the trade is called retail trade.

Question 10.
How can a retailer help in providing information about the market?
Answer:
Retailer is always in direct contact with customers. He understands their demands, preferences and mindsets. So, he can share customer’s views with wholesalers and producers and provide them rich information about the features that customers seek in a product.

Question 11.
State few facilities that a retailer provides to customer.
Answer:
Home delivery of goods, credit and installment facility, redressal of complaints, etc.

Question 12.
Which type of after sales services does a retailer provide?
Answer:
Retailers provide after sales services such as assisting in installation, repair, exchanging faulty products or taking them back, etc.

Question 13.
How do retailers helps customer to buy?
Answer:
Retailers provide customers information on utility, features, quality, price, etc. of the products. Their explanation and selling skills helps the customer make decision about buying a product. Moreover, retailers at times also offer credit and installment facilities.

Question 14.
What kind of guidance do retailers provide to customers?
Answer:
Retailers guide the customers in various ways. They guide them about the changes likely to occur in near future, new products and schemes about to be issued by producers, guide them about supply or demand of a product, price rise that it may witness, etc.

Question 15.
Why perishable goods increases risk of retailer?
Answer:
Perishable goods like milk and milk products, fruits and vegetables, etc. perish very fast. If a retailer is unable to sell them on time they perish and the retailer has to bear the loss.

Question 16.
How retailer’s bias towards producer pose danger for producers?
Answer:
Sometimes a retailer may have some bias for a particular producer or his product. For example, he may not be happy with the commission he gets on the product or he may dislike the product personally. Owing to these reasons he may be bias towards them and not promote their sales.

Question 17.
Classify the trading activities on major forms.
Answer:

• Trading from the view point of boundary
• Trading from the view point of distribution
• Trading from the view point of payment
• Trading from the view point of delivery.

Question 18.
State the types of trade based on distribution method.
Answer:
Direct trade and indirect trade.

Question 19.
Classify trade on the basis of payment.
Answer:
Cash trading and credit trading.

Question 20.
State the types of trading based on delivery of goods.
Answer:
Spot trading and future trading.

Question 21.
Who is a hawker?
Answer:
A person who moves from one place to another and sells his goods mainly by shouting and promoting is called a hawker. For example, fruit and vegetable seller.

Question 22.
What do you mean by mobile shop?
Answer:
Goods sold by moving from one place to another on foot, carts, temporary stalls, bicycles, van, etc. are called mobile shops.

Question 23.
Define temporary traders.
Answer:
People selling goods only during specific period, festival, occasion or seasons of the year are called temporary traders.

Question 24.
Who are called fixed-day traders?
Answer:
In some cities, towns or villages a market is set-up at a certain place on a fixed day of every week or month. Sellers who bring their goods to sell in such a market are called fixed-day traders.

Question 25.
What are the markets in which fixed-day traders sell goods called?
Answer:
Flea market, Gujari or Hat.

Question 26.
What is a departmental store?
Answer:
A departmental store is a retail store that sells a wide range of consumer goods in different product categories known as departments. The wide varieties of products that such stores offer are categorized into various departments. For example, there will be a department of fruits and vegetables, another for grocery, cosmetics and so on.

Question 27.
State the objective of a departmental store. What kind of goods does it sell?
Answer:
The objective of such stores is to offer customer goods for his daily needs to luxuries. So, a department store may sell vegetables and grocery for daily needs as well as well as luxurious cosmetics.

Question 28.
Why and which type of training is provided to employees of departmental stores?
Answer:
The store owner arranges special training for the store employees. The employees are trained on how to behave warmly with customers, how to encourage them to buy, how to arrange stock in departments, etc.

Question 29.
Why maintaining a departmental store costly?
Answer:
Building infrastructure of departmental store and maintaining it is a costly affair. High cost is incurred on making departments, refrigeration and air-conditioning, lightening, salaries, etc.

Question 30.
Define chain stores.
Answer:
Chain stores or retail chain are very large retail shops that have branches at different areas, cities or even states. All the stores are owned by a single person and have standardized trade practices.

Question 31.
What kind of goods do chain stores sell?
Answer:
Chain stores generally sell limited items, falling in similar categories and which are essential for daily needs. For example, pizza, burger, grocery, etc.

Question 32.
What is the advantage of same exterior and interior of all chain stores?
Answer:
The exterior designs and even interior layout of chain stores are similar. This helps customers to recognize and associate them easily with the store brand.

Question 33.
What does common identification of chain stores refer to?
Answer:
All the chain stores will have similar exterior and interior designs, glow sign boards, uniform of employees, etc. This gives a common identification to all stores.

Question 34.
What is mail order shop?
Answer:
A method of trading where in buying and selling of goods takes place through mails without coming in direct contact is called mail order trading. The owners of such businesses are called owners of mail order shops or direct mail shops.

Question 35.
What is the biggest advantage of mail order trading?
Answer:
The biggest advantage of mail shops is that goods can be sold and sent to any person residing at any part of the country.

Question 36.
Define franchise.
Answer:
A well-known and established brand when gives a special right or privilege to someone to use his brand name or trade mark and process for manufacturing or selling the products or service is called franchise.

Question 37.
What advantages does a franchise holder get?
Answer:
Permission to use brand name and trade mark of franchisor, raw and finished material, training, goodwill benefit, easier business, etc.

Question 38.
What do you mean by parent company?
Answer:
A company that allows its franchises to use company’s logo, trade mark and brand name, policies, strategies and business model against a fix charge called royalty is called a parent company.

Question 39.
Define super market.
Answer:
A super market is a huge retail shop selling a very large variety of products on a large scale. These markets purchase a very large quantity of products directly from the company or producers. Such stores sell all the daily utility as well as life essential products.

Question 40.
Define shopping mall.
Answer:
A large enclosed building that contains many small and big shops selling various types of national and international branched goods both for daily utility and luxury is called a shopping mall or simply a mall. Shopping malls are much bigger than super markets.

Question 41.
With respect to goods what does a shopping mall offers its customers?
Answer:
Shopping malls offer a large variety of national and international brand products under one roof so customers can have a wide variety of options to select from.

Question 42.
Explain giving example how a shopping does increases competition among products of identical categories?
Answer:
Similar discount schemes and sales are mall offered on products of identical categories, This increases competition among such products and it can be termed as a special characteristic of the mall. For example, both Reebok and Nike brands may offer discount of flat 40% during festive season.

Question 43.
How do shopping malls create maximum attraction among customers compared to all other forms of retail trades?
Answer:
Shopping malls offer a variety of national and international brand products, very modern and large infrastructure, competition among identical products, multiplexes, game zones, restaurants and eateries, ample parking, centrally air-conditioned complex, etc. to create maximum attraction among customers.

Question 44.
What is automatic vending machine?
Answer:
An automatic vending machine is a machine that dispenses items such as snacks like wafers, biscuits, etc. beverages, ice-cream, chocolates, news-papers, etc. to customer automatically after the customer inserts currency coins as mentioned on the machine.

Question 45.
What is telemarketing?
Answer:
Marketing of goods or services through
telephone calls or promotion through demonstration of product as advertisements on television is called telemarketing.

Question 46.
State the types of telemarketing.
Answer:

1. Telephonic marketing and
2. Television marketing.

Question 47.
What is telephonic marketing?
Answer:
A trade method where in potential customers are contacted through telephones and information and features about products is given and then sold is called telephonic marketing

Question 48.
What is television marketing?
Answer:
The method of demonstrating features of products and providing their information on television to attract viewers and encourage them to buy the shown products is called trade through television marketing.

Question 49.
What is internet marketing?
Answer:
The process of marketing and selling products or services by promoting them on company’s websites, shopping websites like Amazon, Snapdeal, Flipkart, etc. or social networking websites like Facebook or by sending e-mails to prospective customers is called internet marketing.

Question 50.
What is catalogue?
Answer:
A complete list of items generally in alphabetical order or categorical order of the products/services that a company sells is called a catalogue. It can be either in printed form or electronic form.

Question 51.
Define order.
Answer:
A confirmed request by one party to another to buy, sell, deliver or receive goods or services under specified terms and conditions is called an order.

Question 52.
What is invoice?
Answer:
A list of goods sent or services provided along with details of their costs, discounts, taxes, etc. and the total payable amount is called an invoice.

Question 53.
What is delivery of goods?
Answer:
The process of transporting goods from a source location to a predefined destination is called delivery of goods. Goods can be delivered via. rickshaws, trucks, buses, train, ships, airways, etc.

Question 54.
What is a trademark?
Answer:
A distinctive design, graphic, logo, symbol, words or any combination thereof that uniquely identifies a firm and/or its goods or services, guarantee the item’s genuineness and gives its owner the legal right to prevent its unauthorized use is called a trademark. For example, now no other company can ever use the name, font style, colour combination, etc. similar to McDonalds because the company owns the trademark on McDonalds.

Question 55.
What is brand?
Answer:
Unique design sign, symbol, words or a combination of these, used in creating an image that identifies a product and differentiates it from its competitors is called a brand. For example, McDonalds, Domino’s, Nike, Bata, etc.

Question 56.
What is Cash On Delivery (COD)?
Answer:
A payment system where in the buyer pays in cash against the delivery of goods is called cash on delivery (COD).

Question 57.
What is Free on Board (FOB)?
Answer:
Term of sale under which the seller agrees to bear all the delivery charges upto buyer’s place is called Free on Board (FOB)

Question 58.
What is Cost, Insurance and Freight (CIF)?
Answer:
CIF is a short term signifying that the price quoted by seller is inclusive of cost of product, its transit insurance and delivery upto the buyer’s place.

Question 59.
What is Errors and Omissions Excepted (E&OE)?
Answer:
E&OE is an expression mentioned at the end of an invoice or total as a disclaimer against clerical error. This means that any accounting or calculating mistakes found in the invoice will be accepted by the issuer of invoice, generally seller.

Long Answer Type Questions

Question 1.
State the meaning of internal trade and classify trading activities with the help of a chart.
Answer:
Internal trade:

• Any trading activity done within the geographical boundary of a country is known as internal trade.
• For example, trade within a city, between two cities of same state, between two cities of two different states, etc. are all examples of internal trade.
• Since the trade takes place within the country every trader follows a common currency, weight and measurement system, trade practices and legal formalities. This helps the internal trade to be smooth and transparent.
• Owing to these reasons internal trade has several advantages like trade occurs faster, lesser risk, seller and buyer can easily come in contact, transportation is easy, etc.

Classification of Trading Activities:

Question 2.
Classify types of retail trade with the help of a chart.
Answer:

Question 3.
Write a short note on mobile shops. Explain various types of mobile shops.
Answer:
Mobile shops:
Goods sold by moving from one place to another on foot, carts, temporary stalls, bicycles, van, etc. are called mobile shops.

Mobile shops can be classified as follows:
(A) Hawkers:

• A person who moves from one place to another and sells his goods mainly by shouting and promoting is called a hawker. For example, fruit and vegetable seller. Hawkers sell goods on roads, near our homes, railway station, bus station, etc.
• They sell goods like fruits and vegetables, newspapers and magazines, small home utility items like plastic ware, etc.
• Hawkers sell things at prices lower than shops because their expenses are quite less than shop-owners.

(B) Temporary trader:

• People selling goods only during specific period, festival, occasion or season of the year are called temporary traders.
• For example, people selling goods in fairs and exhibitions, people selling kite and string in uttrayan, crackers during diwali, rain coat and umbrella during monsoon, woollen clothes in winter, etc. are all called temporary traders.
• Such traders may be hawkers or even shop owners but their selling period would be temporary.

(C) Fixed-day traders:

• In some cities, towns or villages a market is set-up at a certain place on a fixed day of every week or month. Sellers who bring their goods to sell in such a market are called fixed-day traders. These markets operate whole day or even night on the day they are organized.
• Such markets are called flea markets, Gujari or Hat. For example, one such Gujari market in set-up every Sunday near Ellis Bridge in Ahmedabad.

(D) Street sellers:
Street-sellers sell daily utility goods to customers on the corner of streets, foot-paths, cross-roads, pols, etc. to people living around. Example, vegetable and fruit seller.

Question 4.
List the various types of fixed shops.
Answer:
Fixed shops can be classified as below:
(A) Big shops:

• Departmental stores
• Chain stores
• Mail order stores
• Franchise
• Super market
• Shopping mall

(B) Small shops

Question 5.
What is telemarketing? Explain its types.
Answer:
Telemarketing:
Marketing of goods or services through telephone calls or promotion through demonstration of product as advertisements on television is called telemarketing.

Types :
(A) Telephonic marketing
(B) Television marketing

(A) Telephonic marketing:

• A trade method where in potential customers are contacted through telephones and information and features about products is given and then sold is called telephonic marketing.
• If the potential customers show interest on telephone, the telemarketers take – their appointment and visit them at decided time. They then explain the product in detail and try to sell.
• This method is largely used for selling financial products like home loans, vehicle loan, insurance, credit cards, etc.
• Telemarketing is advantageous to customers as they can meet the sales executives at their convenient time and place.
• The products are demonstrated and sold directly by executives of companies i.e. without involving any middleman. Hence, they can sell the products cheaper and also offer discounts and schemes.

(B) Television marketing:

• The method of demonstrating features of products and providing their information on television to attract viewers and encourage them to buy the shown products is called trade through television marketing.
• Telemarketers display their telephone numbers and website address on which customers can contact and place their orders. Products are then delivered at customer’s home.
• Customers can make payment in two ways;
  1. Pay in advance through credit/ debit card or
  2. Pay cash to the person who delivers the product i.e. Cash on Delivery (COD) method.
• Products of home utilities and luxury such as mixer grinder, bed sheets, gym equipments, crockery, clothes, etc. are sold through television marketing. Television marketers sell their products directly to customers without having any wholesalers or retailers in between. Hence, customers get products at reasonable prices.

Question 6.
What is telephonic marketing? Explain.
Answer:
Telephonic marketing:

• A trade method where in potential customers are contacted through telephones and information and features about products is given and then sold is called telephonic marketing.
• If the potential customers show interest on telephone, the telemarketers take – their appointment and visit them at decided time. They then explain the product in detail and try to sell.
• This method is largely used for selling financial products like home loans, vehicle loan, insurance, credit cards, etc.
• Telemarketing is advantageous to customers as they can meet the sales executives at their convenient time and place.
• The products are demonstrated and sold directly by executives of companies i.e. without involving any middleman. Hence, they can sell the products cheaper and also offer discounts and schemes.

Question 7.
What is television marketing? Explain.
Answer:
Television marketing:

• The method of demonstrating features of products and providing their information on television to attract viewers and encourage them to buy the shown products is called trade through television marketing.
• Telemarketers display their telephone numbers and website address on which customers can contact and place their orders. Products are then delivered at customer’s home.
• Customers can make payment in two ways;
  1. Pay in advance through credit/ debit card or
  2. Pay cash to the person who delivers the product i.e. Cash on Delivery (COD) method.
• Products of home utilities and luxury such as mixer grinder, bed sheets, gym equipments, crockery, clothes, etc. are sold through television marketing. Television marketers sell their products directly to customers without having any wholesalers or retailers in between. Hence, customers get products at reasonable prices.

Question 8.
Write a short note on internet marketing.
Answer:
Internet marketing:

• The process of marketing and selling products or services by promoting them on company’s websites, shopping websites like Amazon, Snapdeal, Flipkart, etc. or social networking websites like Facebook or by sending e-mails to prospective customers is called internet marketing.
• Customers while browsing the internet come across such advertisements or promotions or purposely visit shopping sites, studies the features of the products, compares them with other products and on other websites and then place their orders.
• Internet is a very large and effective way of marketing. Customers get products at cheaper prices compared to local markets because internet marketers do not bear expenses of shops and send the products directly to customer eliminating wholesalers and retailers. Customers also get after sales services such as product installation, demonstration, repair, replacement and refund, etc.
• Payment is made either through credit/debit cards, internet banking or cash on delivery mode.

Question 9.
Wholesaler is producer’s key to market. Give reason.
OR
wholesaler is an important link between producer and retailer. Give reason.
Answer:

• Wholesaler buys goods on very large quantities from the producers. This assures producers of confirmed sales. Rather than selling the goods to numerous retailers or even direct customers it is quite easy for producers to sell a bulk quantity to wholesaler.
• The wholesalers then supply the goods to retailers spread across a large region and hence cover a vast market for the producer.
• Moreover, wholesalers are in direct contact with retailers. Retailers provide several important information and views about market, customer’s preferences, products of other producers, etc. to the wholesalers.
• Wholesalers than share this invaluable information about market with the producers. Thus, wholesaler is producer’s key to market.

Question 10.
Though retailer is the smallest and last fastener of the sales channel he plays a very important role in deciding whether sales will occur or not. Give reason.
Answer:

• Retailers are people who buy goods from wholesalers or producers and sell them to consumers.
• They come in direct contact with the customers. So, they understand their taste, preference, economic conditions more than producers, wholesalers or any other middleman.
• Based on customer’s profile, they provide information about the market and explain their features, to customers .
• This way they motivate the customers to buy and this is how actual sales take place. Moreover, to boost sales they also provide facilities of home delivery, credit and installments or even tie-up with finance companies for arranging loans for customers.
• Retailers also take the responsibility of arranging after sales services like installation of product, repair or refund for damaged products, etc.
• Hence, though a retailer is the smallest and last fastener of the sales channel he plays a very important role in deciding whether sales will occur or not.

Question 11.
Common identification of chain stores increases foot-fall. Give reason.
Answer:

• Chain stores have several outlets spread across a city state or even a country.
• Chain store owners follow a common theme of design and appearance of the exterior and interior for each store.
• They put same type of glow sign boards, provide same dress-code to the employees, use same type of furniture, menu, advertisement hoardings, etc. As a result they develop a common identification for their stores.
• Customers visiting the store if like the products start publicizing the store through word-of-mouth and the brand gains popularity. Whenever the customer goes in some other area or city and sees the same chain store he easily recognizes it and chances are he may visit it to enjoy the products.
• For example, whenever we come across Domino’s Pizza store we become familiar about its identification.
  All these factors together increase foot-fall.

Question 12.
Mail order trading is mostly popular among educated class. Give reason.
Answer:
In mail order form of retail selling the sellers gather database of name address and e-mails of prospective customers from market. Then they send their product catalogues to these people either through e-mail or post. After studying the catalogue if people like the product they contact seller and place the order on telephone or through website.

• The sellers deliver the items to the buyers at their address and receives money either in cash i.e. COD or through VPP, etc.
• The marketers gather data of only those people who are educated to certain level and who have the mind-set to purchase goods in this manner.
• Also, an educated person can read and understand the product catalogue sent to him easily and so he is more likely to buy.
• As a result, mail order trading is mostly popular among educated class.

Multiple Choice Questions

Question 1.
Internal trade may be done between
(A) Countries
(B) States
(C) Cities
(D) Both (B) and (C)
Answer:
(D) Both (B) and (C)

Question 2.
_______ matter(s) is uncommon in internal trade.
(A) Trade practice
(B) Weight
(C) Measurement
(D) Product quality
Answer:
(D) Product quality

Question 3.
From the view point of distribution there are _______ forms of trade.
(A) 2
(B) 3
(C) 4
(D) 6
Answer:
(A) 2

Question 4.
Trading activities can be majority classified into types.
(A) 2
(B) 3
(C) 4
(D) 8
Answer:
(C) 4

Question 5.
Which of the following is not a form of trade category?
(A) Trading from the view point of boundary
(B) Trading from the view point of distribution
(C) Trading from the view point of payment
(D) None of these
Answer:
(D) None of these

Question 6.
Wholesalers help producer by
(A) Ordering goods in large quantity
(B) Increasing creditability
(C) Saving from risk of wastage
(D) Both (A) and (C)
Answer:
(A) Ordering goods in large quantity

Question 7.
When market trend, preference or fashion changes, goods have to be
(A) Sold at cheaper price
(B) Discarded
(C) Distributed freely
(D) Sent back to producer
Answer:
(A) Sold at cheaper price

Question 8.
Which of the following is not a type of mobile shop?
(A) Temporary trader
(B) Fixed day trader
(C) Automatic vending machine
(D) Hat trader
Answer:
(C) Automatic vending machine

Question 9.
Large scale retailers can be classified into types.
(A) 3
(B) 4
(C) 5
(D) 6
Answer:
(D) 6

Question 10.
Retail trade can be classified mainly into types.
(A) 2
(B) 3
(C) 4
(D) 6
Answer:
(B) 3

Question 11.
Which of the following sells the goods by moving and shouting?
(A) Franchise
(B) Vending machine
(C) Hawker
(D) Chain store
Answer:
(C) Hawker

Question 12.
Cost of goods is cheapest in form of business.
(A) Shopping malls
(B) Hawkers
(C) Chain store
(D) Temporary trader
Answer:
(B) Hawkers

Question 13.
Which of the following goods is generally not sold by hawkers?
(A) Magazines
(B) Furniture
(C) Vessels
(D) Dry fruits
Answer:
(B) Furniture

Question 14.
Those who sell kites, crackers, etc. only for limited period of year are called _______
(A) Temporary traders
(B) Hawkers
(C) Fixed day traders
(D) Street sellers
Answer:
(A) Temporary traders

Question 15.
Which of the following item seller does not fall in the category of temporary trade?
(A) Rain coat
(B) Crackers
(C) Woollen clothes
(D) Fruits
Answer:
(D) Fruits

Question 16.
Quite likely you may be able to buy antiques from
(A) Hawkers
(B) Gujari trader
(C) Temporary trader
(D) All of these
Answer:
(B) Gujari trader

Question 17.
Who of the following trades in all season?
(A) Hawker
(B) Fixed day trader
(C) Temporary trader
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 18.
Which form of trade will take place from same place irrespective of several years‘being passed?
(A) Hawking
(B) Hat
(C) Temporary trade
(D) Street selling
Answer:
(B) Hat

Question 19.
A will sell goods ranging from basic utility to luxury.
(A) Chain store
(B) Departmental store
(C) Mail order
(D) Both (A) and (C)
Answer:
(B) Departmental store

Question 20.
Which of the following can be mainly found in urban areas?
(A) Mail order
(B) Temporary trader
(C) Internet banking
(D) Departmental store
Answer:
(D) Departmental store

Question 21.
In which form of business special sales and behavioral training is given to employees?
(A) Chain stores
(B) Shopping malls
(C) Departmental stores
(D) All of these
Answer:
(D) All of these

Question 22.
Quite high infrastructural cost is incurred in
(A) Chain store
(B) Departmental store
(C) Franchise
(D) Automatic vending machine
Answer:
(B) Departmental store

Question 23.
Which of the following is not suitable for un-educated mass?
(A) Mail order
(B) Franchise
(C) Departmental store
(D) Shopping mall
Answer:
(A) Mail order

Question 24.
Catalogues give entry to producers into customer’s homes in form of trade.
(A) Internet banking
(B) Telephone marketing
(C) Television marketing
(D) Mail order
Answer:
(D) Mail order

Question 25.
A person sitting at Ladakh can easily buy through
(A) Mail order
(B) Departmental store
(C) Internet shopping
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 26.
Which type of goods is not available through mail order?
(A) Durable
(B) Light weight
(C) Costly
(D) Delicate
Answer:
(D) Delicate

Question 27.
A franchise holder gets privilege to
(A) Freely use brand name of the company
(B) Purchase material from parent company
(C) Start a similar brand for which he has taken franchise
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 28.
Concept of royalty exists in _______ forms of business.
(A) Departmental store
(B) Chain store
(C) Franchise
(D) Shopping mall
Answer:
(C) Franchise

Question 29.
A franchise will definitely have _______
(A) Trained staff
(B) Parent company
(C) Freedom of doing business in its own way
(D) Both (A) and (B)
Answer:
(B) Parent company

Question 30.
A franchise incurs less expenses on advertisement because
(A) Foot fall of customers is very high, so advertisement is not needed
(B) Sale is very high due to reasonably prices goods
(C) Parent company advertises on behalf of franchises
(D) Franchisee cannot afford advertisements
Answer:
(C) Parent company advertises on behalf of franchises

Question 31.
Super markets attract
(A) Small retailers
(B) Chain store operators
(C) Shopping mall retailers
(D) Franchise holders
Answer:
(A) Small retailers

Question 32.
A major difference between super market and a shopping mall is _______
(A) Super market will always be bigger
(B) Shopping mall contains various stores
(C) Shopping mall sells cheaper than super market
(D) Super market sells only branded goods
Answer:
(B) Shopping mall contains various stores

Question 33.
Competition among identical products is the characteristic of
(A) Shopping mall
(B) Chain store
(C) Departmental store
(D) Franchise
Answer:
(A) Shopping mall

Question 34.
In shopping mall customers will get a/an _______
(A) Limited number of products
(B) Wide options of brands
(C) Option to refresh and relax
(D) Both (B) and (C)
Answer:
(D) Both (B) and (C)

Question 35.
Which of the following item you cannot purchase through vending machines?
(A) Cappuccino coffee
(B) Chocolate pastry
(C) Newspaper
(D) Freshly cooked sizzler
Answer:
(D) Freshly cooked sizzler

Question 36.
An automatic vending machine accepts
(A) Currency coins
(B) Cash
(C) Credit card
(D) All of these
Answer:
(A) Currency coins

Question 37.
The biggest advantage of an automatic vending machine is that
(A) It is quite cheap form of trade
(B) It can run throughout the day
(C) It requires no advertisement
(D) All of these
Answer:
(D) All of these

Question 38.
Who invented vending machine?
(A) Hercules
(B) Zeus of Georgia
(C) Hero of Alexandria
(D) The Great Protos
Answer:
(C) Hero of Alexandria

Question 39.
The inventor of vending machine was a
(A) Mathematician
(B) Physicist
(C) Engineer
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 40.
The inventor of Automatic vending machine belonged to
(A) Spain
(B) Russia
(C) Turkey
(D) Greece
Answer:
(D) Greece

Question 41.
In telephonic marketing, orders are placed after
(A) Personal meeting
(B) Studying catalogues
(C) Viewing product on website mentioned by telecaller
(D) Both (A) and (C)
Answer:
(A) Personal meeting

Question 42.
Sales of financial products is mainly done through
(A) Telephonic marketing
(B) Mail order
(C) Television marketing
(D) Internet marketing
Answer:
(A) Telephonic marketing

Question 43.
The biggest advantage of television marketing is that one can
(A) Purchase at quite reasonable price
(B) Have a full demonstration of the product
(C) One can see it and select it at his own convenience
(D) Both (A) and (B)
Answer:
(B) Have a full demonstration of the product

Question 44.
In internet marketing, one cannot pay through
(A) COD
(B) VPP
(C) Debit card
(D) Both (B) and (C)
Answer:
(B) VPP

Question 45.
Which of the following is not a shopping portal?
(A) Amazon
(B) Flipkart
(C) Snapdeal
(D) Yahoo
Answer:
(D) Yahoo

Question 46.
The most easiest way of comparing any product can be done in
(A) Internet shopping
(B) Shopping mall
(C) Departmental store
(D) All of these
Answer:
(A) Internet shopping