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Meaning and essential elements of retail trade - class-XI

Description: meaning and essential elements of retail trade
Number of Questions: 24
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Tags: business organisation and correspondence employment opportunities in commerce internal trade commerce retail trade business studies middlemen 2 - retailer business and industry
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Itinerant retailers are small traders operating with limited resources.

  1. True

  2. False


Correct Option: A
Explanation:

Itinerant means traveling from place to place.Itinerant retailers have no fixed place of business. They move from place to place for selling their goods to the consumers. Itinerant sell in small quantities. 

Effective display of products and through their personal selling efforts retailers provide new product information to customers.

  1. True

  2. False


Correct Option: A
Explanation:

Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales representatives develop scripts for all or part of the sales process.

Which of the following is/are the crucial factor(s) for establishing a retail outfit?

  1. Scale of operation

  2. Amount of Capital

  3. Selection of Products

  4. All of the above


Correct Option: D
Explanation:
  1. Research the location. 
  2. Take the time to research the location where you will most easily attract your customers. 
  3. Make a business plan.
  4. Research your customers.
  5. Look at your competitors.
  6. Take a test run. 
  7. Read disclosure statements.
  8. Find an existing fit-out

The retailer should adopt a suitable sales policy to increase sales and profits.

  1. True

  2. False


Correct Option: A
Explanation:

Suitable Sales Policies sells its products only through authorized equipment distributors for resale in the agricultural and landscaping irrigation markets, plus other markets. Credit sales are made only to authorized distributors with established open accounts, subject to applicable credit limits.

Identify the correct statement from the following.

  1. Information about the consumers received from the retailers enable the manufactures to make suitable adjustments in the design, size and contents of their products.

  2. Many retailers offer free home delivery of goods purchased.

  3. Retailers are often ready to take back goods with which consumers are not satisfied and replace them.

  4. None of the above


Correct Option: D
Explanation:

retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities. A retailer essentially maintains a variety of merchandise. The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.

While selecting a new area for commencement of business, a retailer should consider which of the following?

  1. Income level of the prospective customers

  2. Access to wholesale markets, transportation and other facilities

  3. Research on the trend of population

  4. All of the above


Correct Option: D
Explanation:

Commencement of Business under Companies Act, 2013. A Public and Private Limited company having share capital cannot commence business until it has obtained the certificate of commencement of business (COB) from the concerned Registrar of Companies.

All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by _________.

  1. wholesalers

  2. retailers

  3. mediators

  4. commission agents


Correct Option: B

Services which retailer provide to manufacturers and wholesalers are ______________.

  1. enabling large scale operations

  2. collecting market information

  3. promotion

  4. all of the above


Correct Option: D

General stores are most commonly found in a local market and residential areas.

  1. True

  2. False


Correct Option: A
Explanation:

A general merchant store (also known as general merchandise store, general dealer or village shop) is a rural or small town store that carries a general line of merchandise.General goods are basic items, usually needed for everyday survival, including basic drinks, food, and some basic profession or trade skill tools. Vendors for these items can be found in just about every major city or village.

_______ are the small retailers who are commonly found at places where huge floating population gathers.

  1. Street traders

  2. Peddlers and hawkers

  3. Market traders

  4. Cheap jacks


Correct Option: A
Explanation:

Street trading is defined as the selling or offering for sale of any article in thestreet. Traders who use the public highway to sell goods or services must have astreet trading licence to carry out trade from a designated site/pitch and display of goods in front of a shop.

Through the service of ________ retailers make the products available to the final consumers, who may be scattered over a large geographic area.

  1. distribution of goods

  2. promotion

  3. collecting market information

  4. enabling large-scale operations


Correct Option: A
Explanation:

Distribution is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.

n a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.In a command economy, also known as a planned economy, the government largely determines what is produced and in what amounts.

Retailers help manufacturers to advertise their products and offer short-term incentives in the form of coupons, free gifts, sales contests. This service is identified as _________.

  1. Help in distribution of goods

  2. Help in promotion

  3. Collecting market information

  4. Enabling large-scale operations


Correct Option: B
Explanation:

Promotion is a type of communication between the buyer and the seller. The seller tries to persuade the buyer to purchase their goods or services through promotions. It helps in making the people aware of a product, service or a company. It also helps to improve the public image of a company. Promotion is the element in an organization's marketing mix that serves to inform, persuade and remind the market of the organization or its products.

Using internet, identify the ways to sell products.

  1. Build a fully responsive website to place the products, as well as to enable customers to order these products.

  2. Buy ad space on social media.

  3. Create a customer loyalty email list to email offering exclusive sales or information on upcoming products.

  4. Any of the above


Correct Option: D
Explanation:
Selling Techniques -
  • Challenging the Status Quo. Most salespeople see the sales process as a linear process. 
  • Finding Your Value Wedge. 
  • Telling Stories with Contrast. 
  • Making the Customer the Hero. 
  • Using 3D Props.
  • Selling Benefits. 
  • Competing in a Bake-Off. 
  • Marketing to Personas.

The Latest entrants in the field of retailing is what?

  1. Super markets

  2. Hyper-markets

  3. Cooperative retailing

  4. Instalment selling


Correct Option: B

The word "retailer" is originated from ______.

  1. german

  2. french

  3. greek

  4. italy


Correct Option: B
Explanation:

The word "retailer" is originated from the french word 'Tailer' which meant to cut off or divided that gave the concept of selling in small units. 

Which type of traders mainly deals with the agricultural products?

  1. Itinerant Retailers

  2. Fixed shop retailers

  3. Small-size retail shop

  4. Large scale retailing institutions


Correct Option: A

A concept in retailing that helps explain the emergence of new retailers is called the __________ hypothesis.

  1. product life cycle

  2. service assortment

  3. retail life cycle

  4. wheel-of-retailing


Correct Option: D

One Entrepreneur who is into the hosiery business found out the reason his hosiery was not selling as its color. What could be the best source of this information?

  1. Supplier

  2. Retailer

  3. Competition

  4. Government bureau


Correct Option: B

Debit note is sent  __________.

  1. when seller in having debt

  2. when buyer is having debt

  3. when company is having some financial problems

  4. none of the above


Correct Option: A

In Delivery Challans _____ is mentioned.

  1. quality of product

  2. quantity of product

  3. maintenance date of product

  4. manufacturing date of product


Correct Option: B

Services which retailer provide to customers are _______________.

  1. wide selection of goods

  2. after sale services

  3. credit facilities

  4. all of the above


Correct Option: D

Name the business enterprise that is engaged in the sale of goods and services directly to the ultimate customers?

  1. Retailer

  2. Wholesaler

  3. Manufacturer

  4. Brokers


Correct Option: A
Explanation:
  • A retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers.
  • He/she normally buys goods in large quantities from wholesalers and sells them in small quantities to the ultimate consumers.
  • He/she represents the final stage in the distribution where goods are transferred from the hands of traders to final consumers or users. 

25-year bond issued by a Company would now trade in the ________________.

  1. private money market.

  2. secondary money market.

  3. private capital market.

  4. secondary capital market.


Correct Option: D
Explanation:

The secondary market, also called the aftermarket and follow on public offering is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. 

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