Chapter internal-trade: Internal Trade Short Questions | business studies Class 11 CBSE

ByteNotes

Chapter internal-trade: Internal Trade Short Questions | business studies Class 11 CBSE | ByteNotes.in

Short Answer

Easy difficulty • Direct answer format

Easy

Question 1

Quick Recall

What is internal trade? State any two of its features.

Internal trade refers to buying and selling of goods and services within the boundaries of a nation.
No custom duty or import duty is levied on internal trade as goods are part of domestic production meant for domestic consumption.
Payment in internal trade is generally made in the legal tender of the country or any other acceptable currency.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 2

Quick Recall

Distinguish between wholesale trade and retail trade.

Wholesale trade involves purchase and sale of goods in large quantities for the purpose of resale or intermediate use, whereas retail trade involves purchase and sale in small quantities to ultimate consumers.
Wholesalers generally sell to retailers, industrial users, or merchants, whereas retailers sell directly to the final consumers for personal or non-business use.
The scale of operations in wholesale trade is much larger and the number of buyers served is smaller compared to retail trade, which operates on a smaller scale but serves a large number of individual consumers.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 3

Quick Recall

How do wholesalers facilitate large-scale production for manufacturers?

Wholesalers collect small orders from a number of retailers and pool them together before passing these as a bulk order to manufacturers.
This enables manufacturers to plan and undertake production on a large scale, benefitting from economies of scale in terms of lower cost per unit.
Without wholesalers, manufacturers would have to deal with many small retailers individually, making large-scale and continuous production difficult.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 4

Quick Recall

Explain the risk-bearing function of wholesalers in relation to manufacturers.

Wholesalers purchase goods in bulk from manufacturers, take delivery and keep them in their warehouses, thereby assuming ownership of the goods.
In doing so, they bear various risks such as the risk of fall in prices, theft, pilferage, spoilage, and fire on behalf of the manufacturers.
By bearing these risks, wholesalers relieve the manufacturers from the uncertainty and financial loss associated with holding large stocks of finished goods.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 5

Quick Recall

What purpose is served by wholesalers providing warehousing facilities?

Wholesalers take delivery of goods when these are produced in the factory and store them in their godowns or warehouses, removing the burden of storage from manufacturers.
By holding stocks until goods are demanded by retailers or consumers, wholesalers create time utility — making goods available when they are needed.
This facility also enables manufacturers to avoid investment in large storage infrastructure and concentrate their capital and resources on production activities.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 6

Quick Recall

How does market information provided by wholesalers benefit manufacturers?

Wholesalers are in direct contact with retailers and are well informed about customer tastes, preferences, attitudes, and competitive activities in the market.
They pass this market intelligence to manufacturers, enabling them to make informed decisions about product design, pricing, and features preferred by buyers.
This expert advice helps manufacturers align their production with actual market demand, reducing unsold inventory and improving competitiveness.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 7

Quick Recall

State the services provided by wholesalers to retailers.

Wholesalers make products of various manufacturers readily available to retailers, saving them from the need to collect goods from several producers and maintain large inventories.
They extend credit facilities to regular retailer customers, enabling retailers to manage their business with a smaller amount of working capital.
Wholesalers also share specialised knowledge about new products, their uses, quality, and prices, and may advise retailers on store layout and product display.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 8

Quick Recall

How do retailers serve manufacturers and wholesalers?

Retailers help in the distribution of goods by making them available to the final consumers who may be scattered over large geographical areas, thereby providing place utility.
By undertaking personal selling efforts at the retail level, they relieve manufacturers and wholesalers of the task of making individual sales to consumers in small quantities.
Retailers collect valuable market information on the tastes, preferences and attitudes of customers and pass it on to manufacturers and wholesalers for better decision making.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 9

Quick Recall

What are the services offered by retailers to consumers?

Retailers maintain regular availability of various products produced by different manufacturers, enabling consumers to buy goods as and when they are needed.
They provide convenience in buying by stocking goods near residential areas, remaining open for long hours, and selling in small quantities as per customer requirements.
Retailers also offer after-sales services such as home delivery and supply of spare parts, provide wide selection of goods, and sometimes extend credit facilities to regular buyers.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 10

Quick Recall

Specify the characteristics of itinerant retailers.

Itinerant retailers are small traders operating with limited resources who do not have a fixed place of business and keep moving from street to street or place to place in search of customers.
They normally deal in consumer products of daily use such as toiletry products, fruits, vegetables, and other low-value items, and keep their limited inventory at home or some other place.
Their main emphasis is on providing greater customer service by making products available at the doorstep of customers, rather than requiring customers to come to a store.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 11

Quick Recall

Distinguish between peddlers/hawkers and market traders.

Peddlers and hawkers carry products on bicycles, handcarts, or on their heads and move from place to place to sell goods at customers' doorsteps, while market traders open their shops at different places on fixed days or dates.
Peddlers deal mainly in non-standardised, low-value products like toys, vegetables, fruits, and snacks; market traders may deal in one particular line of merchandise or general items catering to lower-income groups.
Peddlers are continuously on the move with no fixed location or timing, whereas market traders have a somewhat predictable schedule and location, operating on specific fixed days at the same place.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 12

Quick Recall

How would you differentiate between street traders and cheap jacks?

Street traders (pavement vendors) are found at places where huge floating populations gather such as near railway stations and bus stands, while cheap jacks have independent shops of a temporary nature in a business locality.
Street traders do not change their place of business frequently and sell items such as stationery, eatables, garments, and newspapers; cheap jacks shift their business from locality to locality depending on the potential of the area.
Cheap jacks also provide services like repair of watches, shoes, and buckets in addition to selling consumer items, which street traders typically do not offer.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 13

Quick Recall

Specify the characteristics of fixed shop retailers.

Fixed shop retailers maintain a permanent business establishment to sell their merchandise and do not move from place to place to serve customers.
Compared to itinerant traders, they generally have greater resources, operate on a relatively larger scale, and may deal in consumer durables as well as non-durables.
They have greater credibility in the minds of customers and can provide higher levels of service such as home delivery, guarantees, repairs, credit facilities, and availability of spare parts.

ByteNotes

Premium Access

Unlock all Short Questions

You are viewing 13 free short questions from this chapter. Upgrade to Premium to unlock the remaining 12 questions.

Upgrade to Premium12 questions locked

Chapter sections

Chapter internal-trade: Internal Trade | Short Questions

What is internal trade? State any two of its features.

Distinguish between wholesale trade and retail trade.

How do wholesalers facilitate large-scale production for manufacturers?

Explain the risk-bearing function of wholesalers in relation to manufacturers.

What purpose is served by wholesalers providing warehousing facilities?

How does market information provided by wholesalers benefit manufacturers?

State the services provided by wholesalers to retailers.

How do retailers serve manufacturers and wholesalers?

What are the services offered by retailers to consumers?

Specify the characteristics of itinerant retailers.

Distinguish between peddlers/hawkers and market traders.

How would you differentiate between street traders and cheap jacks?

Specify the characteristics of fixed shop retailers.

Unlock all Short Questions