Internal Trade Class 11 Business Studies Important Questions

Important Questions Class 11

Please refer to Internal Trade Class 11 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 11 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 11 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 11.

Class 11 Business Studies Important Questions Internal Trade

Short Answer Type Questions

Question. Discuss services of retailer to manufacturer and wholesaler.
Answer : 

Internal Trade Class 11 Business Studies Important Questions

Question. Jyoti has shifted residence in a new settlement colony. There are no retail shops nearby. What difficulties will Jyoti face in above case?
Answer : 
Difficulties faced by Jyoti in above cases are listed below:
1. She will not enjoy the benefit of regular availability of products as and when needed.
2. She will not get updated of the new products launched in the market.
3. She will face inconvenience because for each and every thing she need to go far
4. She will not get wide variety of choice of product under one roof
5. She will not enjoy the benefit of after sale services like home delivery.
6. She will not enjoy the facility of credit

Question. A manufacturing Co. manufacturing cloth open shops at different locations in India. He sells goods on cash only. The shops have identical decorations. The prices of goods are fixed. In this way they eliminate unnecessary middleman thus benefiting the consumers.
(a) Identify the type of shop referred to.
(b) Elaborate characteristics of such shops
Answer : 
(a) This is a Chain store or Multiple shop. Chain stores are A number of shops with similar appearance are established in localities, spread over different parts of the country. These different shops normally deal in standardised and branded consumer products, which have rapid sales turnover. These shops are run by the same organisation and have identical merchandising strategies, with identical products and displays
(b) Characteristics of Chain Stores are as follows:
• These shops are located in fairly populous localities, where sufficient number of customers can be approached
• Centralised at the head office, from where the goods are despatched to each of these shops
• Shop is under the direct supervision of a Branch Manager, who is held responsible for its day today management
• Controlled by the head office, which is concerned with formulating the policies and getting them implemented
• The prices of goods in such shops are fixed and all sales are made on cash basis

Question. Mention differences between departmental store and multiple shops.
Answer :

LOCATIONCentral PlaceWhere Large customer approach
RANGE OF PRODUCTSWide range of productsSpecified range of products
SERVICES OFFEREDMaximum service to customerLimited service to customer
PRICING No uniform pricing policyUniform pricing policy
CLASS OF CUSTOMER Cater to High income groupCater to different types of customers
CREDIT FACILITY FLEXIBILITYCredit facility is availed Only Cash basis
Flexibility in respect to line of goods marketed
Not much scope of flexibility

Question. Enumerate the limitation of Multiple shops
Answer :
• They do not sell products of other manufacturers. In that way the consumers get only a limited
choice of goods
• looking up to the head office for guidance on all matters, and takes away the initiative from
them to use their creative skills to satisfy the customers
• Lack of initiative in the employees sometimes leads to indifference and lack of personal touch in
• The management may have to sustain huge losses because of large stocks lying unsold at the
central depot

Long Answer Type Questions

Question. Discuss the services of a wholesaler to the manufacturer and retailer.
Answer :
Services to Manufacturers

Internal Trade Class 11 Business Studies Important Questions

Services to Retailers

Internal Trade Class 11 Business Studies Important Questions

Question. Discuss the features of fixed shop retailers? Explain different types of fixed shop small retailers?
Answer :
 Retail shops who maintain permanent establishment to sell their merchandise are called as fixed shop retailers. They, therefore, do not move from place to place to serve their customers
• Greater resources and operate on a relatively large scale
• Deal in different products, including consumer durables as well as nondurables
• Greater credibility in the minds of customers
Types of Fixed Shop Small Retailers
• General stores
These shops carry stock of a variety of products required to satisfy the day-to-day needs of the consumers residing in nearby localities. They remain open for long hours at convenient timings and often provide credit facilities to some of their regular customers
• Speciality shops
Instead of selling a variety of products of different types, these retail stores specialise in the sale of a specific line of product. The speciality shops are generally located in a central place where a large number of customers can be attracted, and they provide a wide choice to the customers in the selection of goods
• Street stall holders
They attract floating customers and deal mainly in goods of cheap variety like hosiery products, toys, cigarettes, soft drinks, etc. They get their supplies from local suppliers as well as
wholesalers. The total area covered by a stall is very limited and, therefore, they handle goods on a very small scale.
• Second-hand goods shop
These shops deal in second-hand or used goods, like books, clothes, automobiles, furniture and other household goods. The shops, selling second-hand goods may be located at street crossings or in busy streets in the form of a stall having very little structure — a table or a temporary platform to display the books or may have reasonably good infrastructure, as in the case of those selling furniture or used cars or scooters or motorcycles

Question. Uma a village girl comes to Delhi to visit her relatives. She goes with her cousin to a shop, which is centrally located. She becomes astonished byte varieties of goods which are sold here.
(a) Identify this type of shop.
(b) Quoting lines from the above paragraph describe two characteristics of the shop.
(c) Explain advantages of such shops.
Answer :
(a) A departmental store is a large establishment offering a wide variety of products, classified into well defined departments, aimed at satisfying practically every customer’s need under one roof. It has a number of departments, each one confining its activities to one kind of product
(b) Characteristics of Departmental Stores are as follows:
1. Located at a central place in the heart of a city, which caters to a large number of customers.
2. Offering large variety of goods under one roof
(c)Advantages of Departmental Stores are as follows:
• As located at central places, they attract a large number of customers
• Offering large variety of goods under one roof
• Aims at providing maximum services to the customers
• Organised at a very large scale, the benefits of large scale operations, particularly, in respect of purchase of goods are available to them
• Considerable amount of money on advertising and other promotional activities, which help in boosting their sales

Question. A London based manufacturing co. manufacturing washing machines wish to add 2 new products in India namely AC’s ad Refrigerators. Out of a lot of 10 applicants the co. chose two wholesale firms (headed by females) whose proposals were very competitive and attractive. The wholesaler firm of AC’s hired the services of a (differently able retailer) Hari at competitive prices to sell AC’s in Delhi, Hari informs his wholesalerfirm’s head that the consumers of Delhi wish that their houses are cold when they reach their homes in the scrotching heat of Delhi.
(a)Explain three services rendered by retailers to wholesalers or manufacturers.
(b) Identify two values which are being adhered to in the above paragraph
Answer :
(a) Three services rendered by retailer to wholesalers or manufacturers are as follows:

Internal Trade Class 11 Business Studies Important Questions

(b) Values which are being adhered to are:
1. Women Empowerment: The company chose two wholesale firms (headed by females) whose
proposals were very competitive and attractive which helped in the empowerment of women.
2. Social Concern: The wholesaler firm of AC’s hired the services of a (differently able retailer) Hari