MCQ Based Questions on Class 11 Business studies for chapter-10 Internal Trade
Find below MCQ Based Questions on Class 11 Business studies for chapter-10 Internal Trade all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer.
Find MCQ questions for class 11 Business studies-10 Internal Trade
Business Studies - MCQ on Internal Trade
Class XI
Q. 1.What is a trade?
I. Export
II. Buying and selling of goods and services
III. Selling of goods and services
IV. Exchanging goods by goods
Answer:
II.Buying and selling of goods and services
Explanation: Trade is the process of taking goods from the source of production or place of procurement to the consumers. Trade is exchanging goods and services through money
Q. 2.On the basis of geographical location trade can be classified into:
I. Local and inter state
II. Export and import
III. Internal and external
IV. Wholesale and retail trade
Answer:
III.Internal and external
Explanation: On the basis of geographical location of buyers and sellers, trade can broadly be classified into internal trade and External trade means trade within a county and outside the country
Q. 3.What is the objective of trade?
I. Developing society
II. Providing employment
III. Earning profit
IV. Economic Development
Answer:
III.Earning profit
Explanation: Earning profit is the main objective of trade. The trade is commercial activity which is carried for earning profit.
Q. 4.What do you mean by internal Trade?
I. Buying and selling of goods and services within the boundaries of a nation
II. Buying and selling of goods all over the world
III. Buying and selling of goods between states
IV. Buying and selling of goods with government
Answer:
I.Buying and selling of goods and services within the boundaries of a nation
Explanation: When the trade takes place in the country then it is known as internal trade. The purchase and sale of goods inside the country is known as internal trade
Q. 5.Custom duty is levied on internal trade
I. Yes
II. No
III. Partially
IV. None
Answer:
No
Explanation: II.No because custom duty is levied when the goods and services crosses the boundaries of a country
Q. 6.Wholesale trade comes under which category
I. Internal
II. External
III. Import
IV. Export
Answer:
Internal
Explanation: I.Wholesale Trade is a part of internal trade
Q. 7.In wholesale trade goods and services are sold in what type of quantities
I. Large Quantity
II. Small Quantity
III. Minimum Quantity
IV. None
Answer:
Large Quantity
Explanation:I. Purchase and sale of goods and services in large quantities is called wholesale trade
Q. 8.In local Trade producers and consumers belongs to
I. Inter state
II. Same place
III. Different countries
IV. None
Answer:
II.Same Place
Explanation: Goods are produced according to the local needs of the consumers .The producer and consumer belong to same place
Q. 9.Door to Door sales man will come under which category
I. External trade
II. Inter state trade
III. Internal trade
IV. None
Answer:
III.Internal trade
Explanation: The examples of internal trade are neighborhood shop in a locality or a central market or a departmental store or a mall or even from any door to-door salesperson is included.
Q. 10. Internal Trade can be classified into:
I. Inter state or local trade
II. Wholesale trade or retail trade
III. Import or emport
IV. None
Answer:
II.Wholesale trade or retail trade
Explanation: Internal trade can be classified into two broad categories wholesale trade and retail trade.
Q. 11. Goods and services used for the purpose of resale or intermediate comes under
I. Inter state
II. local trade
III. Wholesale trade
IV. retail trade
Answer:
III.Wholesale trade
Explanation: Purchase and sale of goods and services in large quantities, for the purpose of resale or intermediate use is known as wholesale trade.
Q. 12. Traders dealing directly with ultimate consumers are called:
I. Wholesaler
II. Retailer
III. Producer
IV. Shopkeeper
Answer:
Retailer
Explanation: II.Retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers.
Q. 13.Wholesaler comes in between
I. Producer and consumer
II. Manufacturer and retailer
III. Local producer and interstate consumer
IV. None
Answer:
II.Manufacturer and retailer
Explanation: Wholesalers serve as an important link between manufacturers and retailers. They buy goods from manufacturer and sell to retailer
Q. 14.Wholesalers relieve the retailers by
I. Storage,
II. Transportation,
III. Extend credit facilities
IV. All
Answer:
All
Explanation: Storing goods, transporting them and extending credit facilities to the retailers
Q. 15.Who is the risk taker
I. Wholesaler
II. Retailer
III. Both
IV. None
Answer:
I.Wholesaler
Explanation: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.
Q. 16.Retailer is a link between
I. Producer and consumer
II.
III. Producer and wholesaler
IV. None
Answer:
II.Wholesaler and consumer
Explanation: It purchases goods from wholesaler and sell it to ultimate consumer
Q. 17.What are the services provided by the retailer to whole seller
I. Help in distribution of goods
II. Personal selling
III. Enabling large-scale operations
IV. All
Answer:
. IV.All
Explanation: Retailer distribute goods and services in many areas, it gives personal attention to consumer and enable manufacturer to produce on large scale.
Q. 18.Who provide the awareness about the new product to the consumer
I. Wholesaler
II. Manufacturer
III. Retailer
IV. Anyone
Answer:
.III.Retailer
Explanation: Awareness about the new product is given by retailer to consumer about latest fashion and useful goods
Q. 19.On the basis of size retailers are classified into:
I. Small
II. Medium
III. Large
IV. All
Answer:
IV.All
Explanation: On the basis of size of investment retailers are classified into
small, medium and large retailer
Q. 20.On the basis of fixed lace of business they are classified into
I. Itinerant retailers, and
II. Fixed shop retailers
III. Both
IV. Merchandise handled
Answer:
Both
Explanation: Traders who have a fixed place are fixed shop retailers and traders who do not have fixed place Itinerant retailers
Q. 21.Itinerant retailers are
I. Small traders
II. Large traders
III. Medium traders
IV. Fixed place shop keepers
Answer:
I.Small traders
Explanation: They are small traders operating with limited resources They normally deal in consumer products of daily use
Q. 22.Who are the oldest form of Itinerant retailers
I. Shopkeepers
II. Peddlers and hawkers
III. Street traders
IV. Cheap jacks
Answer:
II.Peddlers and hawkers
Explanation: Peddlers and hawkers are probably amongst the oldest form of retailers in the market place who have not lost their utility even during modern times.
Q. 23.Who are cheap jacks ?
I. Petty traders who carry the products on a bicycle,
II. Small retailers who open their shops at different places on fixed days
III. Street traders are the small retailers who are commonly found at places where huge floating population gathers
IV. Independent shops of a temporary nature in a business locality.
Answer:
IV. Independent shops of a temporary nature in a business locality.
Explanation: They keep on changing their business from one locality to another, depending upon the potentiality of the area
Q. 24. Fixed Shop Retailers are
I. Greater resources and operate
II. Deals in different products
III. Greater services to the customers
IV. All
Answer:
IV.All
Explanation: Fixed Shop Retailers havepermanent establishment to sell their merchandise who have better resources, deals in various products and provide satisfactory services
Q. 25.What are specialty shops
I. Selling variety of goods
II. Selling specialized goods
III. Found at street crossing
IV. Secondhand goods shop
Answer:
II. Selling specialized goods
Explanation: These retail stores specialize in the sale of a specific line of products. For example, shops selling children’s garments, men’s wear, ladies shoes,
Q. 26.Departmental stores offers
I. Specialized products
II. Wide variety of products
III. Consumer durables
IV. None
Answer:
II.Wide variety of products
Explanation: Modern departmental store may provide all facilities such as restaurant, travel and information bureau, telephone booth, restrooms,
Q. 27.What are the main limitations of departmental stores?
I. Lack of personal attention
II. High operating cost
III. High possibility of loss
IV. All
Answer:
IV.All
Explanation: All of these are the limitationsBecause of the large-scale there is operations Lack of personal attention High operating cost due to good services so there may b a possibility of loss
Q. 28.Chain Stores or Multiple Shops:
I. Wholesalers
II. Manufacturers
III. Traders
IV. None
Answer:
I.Wholesalers
Explanation: Chain stores or multiple shops are networks of retail shops that are owned and operated by manufacturers
Q. 29. What is the idea behind multiple stores?
I. To get all type of products at one place
II. To serve the customers at a point which is nearest to their residence
III. Specialized products are available
IV. None
Answer:
II.To serve the customers at a point which is nearest to their residence
Explanation: These shops are located in fairly populous localities, where sufficient number of customers can be approached rather than attracting them to a central place
Q. 30. Controls of multiple shops is
I. Centralized
II. Decentralized
III. Department wise
IV. Supervisors
Answer:
I. Centralized
Explanation: The manufacturing/procurement of merchandise for all the retail units is centralized at the head office, from where the goods are dispatched to each of these shops
Q. 31. What are Mail Order Houses?
I. Retail outlets that is centrally located
II. Retail outlets that sell through mail
III. Retail outlets that have specialized goods
IV. Retail outlets that have street crossing
Answer:
II.Retail outlets that sell through mail
Explanation: There is generally no direct personal contact between the buyers and the sellers in this type of trading. For obtaining orders, potential customers are approached through advertisements in newspapers or magazines, circulars and sent to them by post.
Q. 32.Is a mail order house suitable for all types of business?
I. Yes
II. No
III. May be
IV. Not sure
Answer:
II.No
Explanation: This type of business is not suitable for all types of products. For example, goods that are perishable in nature or are bulky and cannot be easily handled.
Q. 33. Consumer Cooperative Store is owned, managed and controlled by
I. Producers
II. Consumers
III. Individual
IV. Departments
Answer:
II. Consumers
Explanation: A consumer cooperative store is an organization owned, managed and controlled by consumers themselves.
Q. 34.How many persons are required to form a Consumer Cooperative Store
I. 2
II. 7
III. 10
IV. 20
Answer:
III.10
Explanation: To start a consumer cooperative store, at least 10 people have to come together and form a voluntary association and get it registered under the Cooperative Societies Act.
Q. 35. A large retailing business unit selling wide variety of consumer goods on the basis of self-service and heavy emphasis on merchandising appeal.
I. Departmental Store
II. Super Market
III. Consumer Cooperative Store
IV. None
Answer:
II.Super Market
Explanation: A super market is a large retailing business unit selling wide variety of
consumer goods on the basis of low margin appeal, wide variety and assortment, self-service and heavy emphasis on merchandising appeal.
Q. 36.Vending Machines are operated by
I. Credit card
II. Debit Card
III. Coin
IV. E-cash
Answer:
III. Coin
Explanation: Vending machines are the newest revolution in marketing methods. Coin operated vending machines are proving useful in selling several products such as hot beverages, platform tickets, milk, soft drinks.
Q. 37.Chambers of Commerce and Industry was formed as an association of business and industrial houses to
I. Protect consumers
II. Promote and protect the interest and goals trade and commerce
III. Promote democratic view
IV. None
Answer:
II.Promote and protect the interest and goals trade and commerce
Explanation: These associations or chambers regard themselves as the national guardians of trade, commerce and industry.
Q. 38.Indian Chambers of Commerce and Industry has been playing a catalytic role in strengthening
I. Internal trade
II. External Trade
III. Local Trade
IV. All trades
Answer:
I. Internal trade
Explanation: The Indian Chambers of Commerce and Industry has been playing
a catalytic role in strengthening internal trade to make it an important part of overall economic activity.
Q. 39.What do Indian Chambers of Commerce and Industry promote
I. Marketing of agro products
II. Labour legislation
III. Promoting sound infrastructure
IV. All
Answer:
.IV.All
Explanation: Industrial chamber promote all the aspects of business for a proper functioning of the business
Q. 40.What is single line stores
I. Departmental Stores
II. Super Market
III. Specialized in a particular product line
IV. Specialsed in variety of goods
Answer:
III. Specialized in a particular product line
Explanation: Single line stores are those shops which deal in a single product line such as readymade garments, watches, textiles, shoes, automobiles, tyres, computers, books, and stationery