chapter 9

Question 1

what is internal trade?

Answer 1

when buying and selling of goods takes place within the geographical limits of a country. It is known as internal trade.

Question 2

main features of internal trade

Answer 2

1. buying and selling of goods and services takes place within a country.
2. the payments are made and received in the home country only
3. there are no or very few formality to be completed by traders
4. various local modes of transport can be used for transfer of goods and services

Question 3

two types of internal trade

Answer 3

1. wholesaler
2. retailer

Question 4

wholesale trader

Answer 4

wholesaler trade refers to the trade in which goods are sold in large quantities

Question 5

features of wholesale trader

Answer 5

1.act as a link between producer and seller
2. deals with large quantities of goods
3. generally specialised in one line of product
4. large investment
5. sells goods in small lots to retailers
6. margin of profit is low
7. first intermediary in the distributionvhain

Question 6

services to manufactures by wholesaler

Answer 6

1. facilitate large scale of buying nd economics of scale
2. helps in marketing functions
3. expert advice
4. storage
5. financial assistance
6. bearing risks
7. facilitate production continuity

Question 7

services to retailers by wholesaler

Answer 7

1. availability of goods
2. grant of credit
3. risk sharing
4. specialised knowledge
5. publicity
6. marketing support
7. economics of scale

Question 8

retail trade

Answer 8

retail trade is the last link in the distribution chain.

Question 9

features of retail trade

Answer 9

1. last link in the distribution chain
2. sells the goods or services directly to consumers
3. deals with a variety of products
4. buys and sells a small quantity of goods
5. generally located in residential areas
6. maintains personal relation with customers
7. act as middle man between wholesaler and customers

Question 10

services to consumer by retailer

Answer 10

1. regular availability of products
2. wide selection
3. new products information
4. demonstration and after sale services
5. home delivery
6. convince in buying
7. credit facility

Question 11

services to wholesaler and manufacture by retailer

Answer 11

1. helps in distribution of goods
2. personal selling
3. enabling large scale production
4. helpful in promotion
5. collecting market information

Question 12

factors affecting classification of retailers

Answer 12

1.size
2.product mix
3.pricing
4.service level
5. form of owenership

Question 13

two types of retailer

Answer 13

1. Itinerant retailers
2. fixed shop retailer

Question 14

what is itinerants retailer?

Answer 14

Itinerants refers to retailers who have no fixed place of sale.

Question 15

types of itinerants retailer

Answer 15

1. hawkers and pedlars
2. periodic market traders
3. street trader
4. cheap jacks

Question 16

what are hawkers and pedlars?

Answer 16

Hawkers and pedlars move from street to street in search of customers.

Question 17

main features of hawkers and pedlars

Answer 17

1. move from street to street in search of customers
2. sell a variety of goods
3. deal with non-branded and local item
   4.supply goods at the doorstep of the customers
4. no fixed price

Question 18

Periodic market traders

Answer 18

These traders sell their goods on fixed days in different market places.

Question 19

main features of Periodic market traders

Answer 19

1. sell their goods in the weekly markets or monthly bazaars or annual fairs.
2. display their goods on temporary structures made outside the shops
3. sell low price and low quality goods
4. also set up shops on special occasions

Question 20

street traders

Answer 20

these retailers displays their articles on busy street corner, pavements and etc.

Question 21

main features of street traders

Answer 21

1. operate near public places
2. deal in a variety of goods
3. deal in low priced products of common use
   4.very popular

Question 22

cheap jacks

Answer 22

they display their goods in hired shops or in tents for a temporary period in different localities

Question 23

main features of cheap jacks

Answer 23

1. hire small shops or display in tents in residential colonies
2. shift from locality to locality depending upon the prospects of business
3. they deal in low priced, household articles
4. remain in one locality for a temporary period only

Question 24

fixed shop retailers

Answer 24

the retailers having a fixed place of sale are known as fixed shop retailers.

Question 25

two type of fixed shop retailers

Answer 25

1. small scale 2. large scale

Question 26

type of small scale fixed retail shops

Answer 26

1. general stores 2.single line stores 3. street shops 4. second-hand goods shop 5. seconds shop

Question 27

general stores

Answer 27

general stores are small shops located in residential areas

Question 28

main features of general stores

Answer 28

1. deals in items of daily use 2.have a large variety run each line of products 3. provide freee home delivery, credit facility and other services 4. create personal relationship with customers 5. general stores located in posh areas also keep popular brands of product

Question 29

single line stores

Answer 29

single line stores are small shops which deal with one line of product

Question 30

main features of single line stores

Answer 30

1. deal with one line of products 2. deal in a variety of goods in that line of product 3. generally situated in market places 4. provide customer service 5. generally cater to the require my of a particular category of customers

Question 31

street shops

Answer 31

these shops are situated at street crossing or main road or on corners of colonies

Question 32

features of street shops

Answer 32

1. temporary platforms 2.limited space 3. a wide variety of low priced articles 4. retailers display their Goods on tables

Question 33

second hand goods shop

Answer 33

these shops deal;s with second hand or used articles

Question 34

features of second hand goods shop

Answer 34

1. sell used goods 2. low price 3. mostly for poor people 4. goods are brought from public and private auction.

Question 35

seconds shop

Answer 35

these are the shops to sell goods which are not produced according to the required specifications

Question 36

features of seconds shops

Answer 36

1. sold at a heavily discounted price 2. goods have manufacturing defects 3.new defective goods 4.price of goods depend on defects

Question 37

large scale fixed retail shop

Answer 37

large scale retailers deal in a large stock of goods and purchase goods in bulk

Question 38

features of large scale fixed retail shop

Answer 38

1. huge investment 2.large showroom 3.located in central place 4.large numbers of customers

Question 39

two types of large scale fixed retail shop

Answer 39

1. department 2. multiple / chain stores

Question 40

departmental store

Answer 40

a departmental store s a large retail showroom having a number of departments under one roof, each department specialising inn one line of product.

Question 41

main features of departmental stores

Answer 41

1. large size 2. wide range 3. departmentally organised 4. central purchases 5. central location 6.services 7.elimination of middleman 8. advertising

Question 42

multiple stores

Answer 42

multiple shop refers to a number of identical retail shops located in different parts of the city

Question 43

features of multiple stores

Answer 43

1. large size 2. specialised in one line 3. centralised purchasing 4.decentralised sale 5.quality 6.elimination of middlemen 7. uniformly price 8. cash sales

Question 44

GST

Answer 44

GST is a tax on supply of goods and services.