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Types of retail organisation - class-XI

Description: types of retail organisation
Number of Questions: 23
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Tags: internal trade business studies middlemen 2 - retailer commerce retail trade business organisation and correspondence
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Under Mail Order House, for obtaining orders, potential customers are approached through _________.

  1. advertisements in newspapers or magazines

  2. samples and bills

  3. price lists sent

  4. all of the above


Correct Option: D
Explanation:

mail-order house is a company that sells or manages mail-order advertising or a mail-order business. A company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-order house.

The people entrusted with the management of cooperative stores lack expertise as they are not trained in running the stores efficiently.

  1. True

  2. False


Correct Option: A
Explanation:
  1. Research. Luckily, this tip is easy to follow because most of us end up online shopping when we're bored. 
  2. Don't window shop. We advise against window-shopping since it's usually a waste of time. 
  3. Budget. 
  4. Go alone. 
  5. Have an open mind. 
  6. Price match. 
  7. Watch out for promotions.
  8. Know the return policy.

The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middlemen between the buyers and sellers are eliminated.

  1. True

  2. False


Correct Option: A
Explanation:

The main advantage of selling through catalogs is the ability to reach hundreds of thousands of readers with just one mailing. This dramatically increases a retailers exposure to potential shoppers. With mail order sales, the catalog is essentially your "store" and the copy is the salesperson.

Sellers cannot clear all the doubts of customers through catalogues and advertisements. This is because of _____.

  1. High promotion cost

  2. No after sales service

  3. Delayed delivery

  4. Lack of personal contact with customers


Correct Option: D
Explanation:

Poor Customer service occured due to customers needs and expectation are not satisfied, failing to managing a customer service operation and company standerd , laking of organised planned to execute cutomer service,laking of motivational skills, and laking of good communication skills in concern of product/service.

The consumer cooperative stores normally sell goods on cash basis.

  1. True

  2. False


Correct Option: A
Explanation:

Cash Basis Accounting -Cash Basis accounting recognizes revenue and expense when cash is actually spent or received. For example, revenue from sale of goods is recognized when payment is received from the customer, not when an invoice is created.

The profits earned by consumer cooperative stores are utilised for ________________.

  1. declaring bonus to members.

  2. strengthening the general reserve.

  3. social and educational benefit of members.

  4. all of the above


Correct Option: D
Explanation:

Consumer Cooperative Stores. These are retail stores owned by the consumers themselves for their own benefit. These stores are owned and managed by a group of consumers, and their primary aim is not profit making, but mutual benefits for consumers.

There can be different alternatives for receiving payments for a Mail Order House. They are _______.

  1. full payment in advance

  2. Value Payable Post (VPP)

  3. the goods may be sent through a bank

  4. All of the above


Correct Option: D
Explanation:

A card not present transaction (CNP, MO/TO, Mail Order/ Telephone Order, MOTOEC) is a payment card transaction made where the cardholder does not or cannot physically present the card for a merchant's visual examination at the time that an order is given and payment effected.

To ensure fair management of funds the accounts of the stores are audited by _______.

  1. Registrar of Cooperative Societies

  2. Registrar of Companies

  3. Registrar of Retail Stores

  4. Joint Stock Company


Correct Option: A
Explanation:

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.

The seller approaches the customers by advertising the goods through ______.

  1. the press

  2. sending circulars

  3. samples and catalogs

  4. all of the above


Correct Option: D
Explanation:

A consultative or need based selling approach is where you identify your customer's needs and use it as the basis for a sales approach. It takes the hard edge out of product selling, and you can customize it to meet their needs.

Mail order business is known as shopping by ___. 

  1. email

  2. fax

  3. post

  4. website


Correct Option: C
Explanation:

Mail order business, also called direct mail marketing, method of merchandising in which the seller's offer is made through mass mailing of a circular or catalog or through an advertisement placed in a newspaper or magazine and in which the buyer places an order by mail.

Mail order houses are confronted with the problems like _______.

  1. damage of goods in transit

  2. excessive operating cost

  3. credit policies

  4. all of the above


Correct Option: D
Explanation:
1.  Lack of personal contact
In mail order business, the producer/seller and customers cannot have direct personal contact with each other. The customers cannot get as much satisfaction as desired from the goods. As a result, they may be attracted to other retailing institutions to buy necessary goods.
2. unnecessary delay
Unnecessary delay is a major disadvantage of mail order business. As in this method of purchase order takes a comparatively long time to reach the producers' hand and also to give delivery of goods to buyers by mail, mail order business is a delay-making business.
3. Lack of selection of goods
in mail order business, the customers cannot inspect goods; they cannot get the selection facility and buy preferred goods.

Under ________ system the goods can be sent to all the places having postal services.

  1. mail order houses

  2. chain Stores

  3. departmental store

  4. specialty shops


Correct Option: A
Explanation:

Mail-order house is a company that sells or manages mail-order advertising or a mail-order business. 

company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-order house.

Mail order retailing is also referred to as _______.

  1. non-store impersonal retailing

  2. shopping by post

  3. selling by post

  4. (A) or (B) or (C)


Correct Option: D

What are the disadvantages that Consumer Cooperative store faces?

  1. Lack of patronage.

  2. Lack of business training.

  3. Shortage of funds

  4. All of the above


Correct Option: D
Explanation:
Disadvantages are:
  • Lack of Secrecy: A cooperative society has to submit its annual reports and accounts with the Registrar of Cooperative Societies.
  • Lack of Business Acumen: The member of cooperative societies generally lack business acumen. 
  • Lack of Interest.
  • Corruption.
  • Lack of Mutual Interest.

Name the type of goods that are suitable for trading through mail order houses.

  1. Goods that can be graded and standardized

  2. Goods that can be easily transported at a low cost

  3. Goods that can be described through pictures

  4. All of the above


Correct Option: D
Explanation:

Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

Only the goods that can be:
(i) graded and standardised
(ii) easily transported at low cost
(iii) have ready demand in the market
(iv) are available in large quantity throughout the year
(v) involve least possible competition in the market and
(vi) can be described through pictures etc., are suitable for this type of trading. 

How the capital of a cooperative store is raised?

  1. Through issue of shares.

  2. By inviting subscriptions from the members

  3. By raising funds from the general public.

  4. All of these


Correct Option: A
Explanation:

Directly from members. member contributions with no individual ownership attached, such as service fees. Member share capital represents individual member commitment to the cooperative form of business. It also identifies the individual member's financial stake.

The success of mail order business depends heavily on the availability of __________ at a place.

  1. efficient postal services

  2. credit facilities

  3. after sale services

  4. none of the above


Correct Option: A
Explanation:
It means postal services can deliver more efficiently to their customers, helping to unlock new opportunities and fuel economic growth.

What are the minimum number of members required to form Consumer Cooperative Store?

  1. 5

  2. 10

  3. 15

  4. 20


Correct Option: B
Explanation:

A consumer cooperative store is an organisation owned, managed and controlled by consumers themselves. The objective of such stores is to reduce the number of middlemen who increase the cost of produce, and thereby provide service to the members.

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.

What are the disadvantages that acts as a hindrance while trading through mail order houses?

  1. Delayed delivery

  2. No credit facilities

  3. Lack of personal contract

  4. All of these


Correct Option: D
Explanation:

The definition of a mail-order house is a company that sells or manages mail-order advertising or a mail-order business. A company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-order house.

What are the main advantages of Consumer cooperative stores?

  1. Democratic management

  2. Ease of information

  3. Limited liability

  4. All of the above


Correct Option: D
Explanation:

cooperative store. Word Origin. noun. a retail store owned and managed by consumer-customers who supply the capital and share in the profits by patronage dividends. a store operated by a farmers' cooperative organization or by a cooperative chain.

Which of the following is a characteristic of a mail order house?

  1. Huge capital requirement

  2. Elimination of middle man

  3. Presence of bad debt

  4. None of the above


Correct Option: B
Explanation:

The term "middleman" describes an intermediary between a producer and an end customer. In a typical distribution channel, the middleman is the wholesaler or the retailer. Manufacturers would eliminate the middleman by selling products directly to retail stores or consumers.

The accounts of cooperative stores are audited for ____________.

  1. registrar of companies

  2. manager of the store

  3. registrar of cooperative societies

  4. none of the above


Correct Option: C
Explanation:

co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Where do cooperative stores purchase their goods?

  1. Directly from Wholesalers.

  2. From retailers.

  3. From manufacturers

  4. Both A and C


Correct Option: D
Explanation:

A consumers' cooperative is one in which individuals combine their buying power, usually for the purchase and wholesale or retail distribution of agricultural or otherproducts. Cost savings are achieved by buying directly from the producer or farmer.

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