This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 9 Internal Trade – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 9 Internal Trade Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If Country A can produce coffee beans at a lower opportunity cost than Country B, then Country A has a(n) ..... in the production of coffee beans A) Absolute Advantage. B) Comparative Advantage. C) All the above. D) None of the above. Show Answer Correct Answer: B) Comparative Advantage. 2. It comes under Internal Trade. A) Wholesale Trade. B) Retail Trade. C) Both the above. D) None of the above. Show Answer Correct Answer: C) Both the above. 3. Which of the following is an example of internal trade? A) A shop selling products within the same city. B) A farmer selling goods at a local market. C) A company importing products from abroad. D) A product being shipped to another country. Show Answer Correct Answer: A) A shop selling products within the same city. 4. Which of the following is NOT a key term related to internal trade? A) Super markets. B) Retailers. C) Import duties. D) Departmental stores. Show Answer Correct Answer: C) Import duties. 5. Soon, an E-Commerce website provides 24 hr customer service to its customers.Which of the following cannot be an outcome? A) Large scale labour movement due to long working hours. B) Higher profits. C) More customers complaining about the lack of after sale services. D) Higher customer satisfaction. Show Answer Correct Answer: A) Large scale labour movement due to long working hours. 6. What is retail trade? A) Retail trade is the exchange of goods between businesses. B) Retail trade involves the production of goods for sale. C) Retail trade refers to the transportation of goods from one place to another. D) Retail trade refers to the sale of goods or services to consumers for their personal use. Show Answer Correct Answer: D) Retail trade refers to the sale of goods or services to consumers for their personal use. 7. If a company lays off (sacks) half of its employees during a recession, what can you reasonably conclude? A) Another company wanted to higher the employees. B) The company couldn't afford to pay the employees. C) The employees were bad at their job. D) The employees were overqualified for their jobs. Show Answer Correct Answer: B) The company couldn't afford to pay the employees. 8. I am a restaurant owner and I like to keep my customers happy by providing them with excellent food and options?what industry am I in? A) Agriculture. B) Wholesale. C) Manufacturing. D) Service. Show Answer Correct Answer: D) Service. 9. Trade removes the hindrance of A) Place. B) Time. C) Person. D) Finance. Show Answer Correct Answer: C) Person. 10. It refers to buying and selling of goods and services within the boundaries of a nation. A) Trade. B) Internal Trade. C) External Trade. D) None of the above. Show Answer Correct Answer: B) Internal Trade. 11. What does trade refer to? A) Buying and selling of goods and services for earning profit. B) Only selling of goods. C) Only buying of services. D) None of the above. Show Answer Correct Answer: A) Buying and selling of goods and services for earning profit. 12. E-Commerce websites are? A) Wholesalers. B) Retailers. C) Producers. D) All the above. Show Answer Correct Answer: D) All the above. 13. Which of the following are the limitations of Multiple shops? A) Limited selection of goods. B) Lack of initiative. C) Lack of personal touch. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Only producing certain goods instead of everything you need is known as A) Importing. B) Balance of trade. C) Specialization. D) Absolute advantage. Show Answer Correct Answer: C) Specialization. 15. What is the primary focus of internal trade as described in the learning objectives? A) Trade between different countries. B) Trade within the boundaries of a country. C) Trade involving only large-scale retailers. D) Trade involving only small-scale retailers. Show Answer Correct Answer: B) Trade within the boundaries of a country. 16. Which of the following are not Services provided by Wholesalers (to Retailers and Manufactures). A) Risk sharing. B) Large scale production. C) Home delivery. D) Storage. Show Answer Correct Answer: C) Home delivery. 17. I am a restaurant owner and I need to buy supplies for my business. Which industry would I buy from? A) Manufacturing. B) Agriculture. C) Service. D) Wholesale. Show Answer Correct Answer: D) Wholesale. 18. What are the typical customers of wholesale trade? A) Manufacturers. B) Individual consumers. C) Service providers. D) Retailers, resellers, and other businesses that need bulk quantities of products. Show Answer Correct Answer: D) Retailers, resellers, and other businesses that need bulk quantities of products. 19. What is the primary source of funds for consumer cooperative stores? A) Government grants. B) Donations from the public. C) Money raised from members by issue of shares. D) Loans from banks. Show Answer Correct Answer: C) Money raised from members by issue of shares. 20. They are small producers or petty traders who carry the products on a vehicle and move from place to place to sell their merchandise at the doorstep of the customers A) Paddlers and Hawkers. B) Market Trader. C) Street trader. D) Cheap Jacks. Show Answer Correct Answer: A) Paddlers and Hawkers. 21. The main disadvantage of departmental store A) Centrally located. B) Operating cost is too high. C) Attractive services. D) Promotion of sales. Show Answer Correct Answer: B) Operating cost is too high. 22. Sam's company supplies the product Paperlyt on a weekly basis to Ram's company. But recently Ram's customers complain about less supply and more demand for Paperlyt as the price of raw materials soared. Identify each of them A) Sam-wholesalersRam-manufacturerRam's customers-retailer. B) Sam-manufacturersRam-retailersRam's customers-wholesalers. C) Sam-retailerRam-manufacturerRam's customers-Wholesalers. D) Sam-manufacturersRam-wholesalersRam's customers-retailer. Show Answer Correct Answer: D) Sam-manufacturersRam-wholesalersRam's customers-retailer. 23. The making of goods either through manual labor or use of machinery, generally in a large scale production. A) Manufacturing. B) Agriculture. C) Retail. D) Wholesale. Show Answer Correct Answer: A) Manufacturing. 24. Describe how internal trade can lead to better resource allocation. A) Internal trade reduces competition and leads to resource wastage. B) Internal trade has no impact on resource allocation efficiency. C) Internal trade only benefits large corporations, not local businesses. D) Internal trade leads to better resource allocation by promoting specialization and efficiency, allowing resources to be used where they are most productive. Show Answer Correct Answer: D) Internal trade leads to better resource allocation by promoting specialization and efficiency, allowing resources to be used where they are most productive. 25. I am the science, art and business of cultivating the soil, producing crops and rising livestock. A) Agriculture. B) Wholesaler. C) Service. D) Retail. Show Answer Correct Answer: A) Agriculture. 26. This retail business acts as a universal supplier of a wide variety of products. A) Multiple shop. B) Wholesalers. C) Retailers. D) Departmental Stores. Show Answer Correct Answer: D) Departmental Stores. 27. A retail trader buys goods from the manufacturerand sells them to the customers. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 28. The person who carries on wholesale trade is known as ..... A) Promoter. B) Retailer. C) Wholesaler. D) Trader. Show Answer Correct Answer: C) Wholesaler. 29. What is the main advantage of a departmental store? A) High prices. B) Small scale operations. C) Limited product variety. D) Wide variety of products under one roof. Show Answer Correct Answer: D) Wide variety of products under one roof. 30. What is the main characteristic of periodic market traders? A) They have a fixed place of sale. B) They sell goods on fixed days. C) They deal in high-priced goods. D) They operate in residential areas. Show Answer Correct Answer: B) They sell goods on fixed days. 31. A ..... retailer moves from place to place, selling items directly to customers. A) Fixed shop. B) Itinerant. C) Departmental. D) Chain. Show Answer Correct Answer: B) Itinerant. 32. If transportation delays are causing problems for internal trade, what could be a solution? A) Reduce the production rate. B) Use alternative transportation methods like railways or local delivery services. C) Reduce the number of warehouses. D) Increase export sales. Show Answer Correct Answer: B) Use alternative transportation methods like railways or local delivery services. 33. Which type of trade is more common in traditional brick-and-mortar stores? A) Virtual trade. B) Online trade. C) Physical in-person trade. D) E-commerce trade. Show Answer Correct Answer: C) Physical in-person trade. 34. Which is a fixed shop retailer? A) Street traders. B) Hawkers. C) Market traders. D) Chain stores. Show Answer Correct Answer: D) Chain stores. 35. Which type of trade is more focused on marketing and advertising to attract individual customers? A) B2B (Business to Business). B) C2C (Consumer to Consumer). C) P2P (Peer to Peer). D) B2C (Business to Consumer). Show Answer Correct Answer: D) B2C (Business to Consumer). 36. What is wholesale trade? A) Wholesale trade refers to the sale of goods or merchandise to retailers, industrial, commercial, institutional, or other professional business users, or to other wholesalers, and related subordinated services. B) Wholesale trade is limited to online sales only. C) Wholesale trade only involves selling to other wholesalers. D) Wholesale trade is the sale of goods directly to consumers. Show Answer Correct Answer: A) Wholesale trade refers to the sale of goods or merchandise to retailers, industrial, commercial, institutional, or other professional business users, or to other wholesalers, and related subordinated services. 37. What happens to the profits earned by consumer cooperative stores? A) They are distributed among middlemen. B) They are used for declaring bonuses to members and strengthening general reserves. C) They are used for advertisements and promotions. D) They are kept by the managing committee. Show Answer Correct Answer: B) They are used for declaring bonuses to members and strengthening general reserves. 38. What is the main purpose of wholesale trade? A) To sell goods at a higher price than the manufacturer. B) To buy goods in large quantities from manufacturers and sell them to retailers or other businesses. C) To only buy goods from retailers. D) To provide goods directly to consumers. Show Answer Correct Answer: B) To buy goods in large quantities from manufacturers and sell them to retailers or other businesses. 39. Trade which takes place within the geographical boundaries of a country is known as ..... A) Internal trade. B) Import. C) Export. D) External trade. Show Answer Correct Answer: A) Internal trade. 40. Personal selling is where businesses use people to sell the product after meeting face-to-face with the customer. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 41. The main feature of a departmental store is: A) Large central location. B) Wholesale operations. C) Door-to-door service. D) Temporary shop setup. Show Answer Correct Answer: A) Large central location. 42. What type of trade involves the purchase and sale of goods in small quantities? A) Import trade. B) Export trade. C) Retail trade. D) Wholesale trade. Show Answer Correct Answer: C) Retail trade. 43. Which of the following is NOT a type of retailer? A) Itinerant retailer. B) Wholesaler. C) Departmental store. D) Fixed shop retailer. Show Answer Correct Answer: B) Wholesaler. 44. What is retailing? A) The activities involved in selling merchandise to consumers. B) The process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. C) Selling goods to the public. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. Which of the following is a characteristic of itinerant retailers? A) They operate with limited resources. B) They have a fixed place of business. C) They are large-scale operations. D) They sell only luxury items. Show Answer Correct Answer: A) They operate with limited resources. 46. "AFTER SALE SERVICES" IS PROVIDED BY- A) Retailers. B) Wholesalers. C) Consumers. D) Manufacturers. Show Answer Correct Answer: A) Retailers. 47. What are the two categories of internal trade? A) Wholesale Trade and Retail Trade. B) Domestic Trade and International Trade. C) Online Trade and Offline Trade. D) None of the above. Show Answer Correct Answer: A) Wholesale Trade and Retail Trade. 48. Buying and selling of goods and services within the boundaries of a nation are referred to as A) External trade. B) Wholesale trade. C) Retail trade. D) Internal trade. Show Answer Correct Answer: D) Internal trade. 49. What is one of the key characteristics of a supermarket? A) It provides credit facilities to buyers. B) It offers free home delivery services. C) It appoints salespersons to convince customers. D) It operates on the principle of self-service. Show Answer Correct Answer: D) It operates on the principle of self-service. 50. Who are peddlers and hawkers? A) Large-scale producers who sell goods in bulk. B) Small producers or petty traders who sell goods door-to-door. C) Retailers who operate from fixed shops. D) Wholesalers who provide financial assistance to manufacturers. Show Answer Correct Answer: B) Small producers or petty traders who sell goods door-to-door. 51. What is internal trade also known as? A) Retail Trade. B) International Trade. C) Home Trade. D) Wholesale Trade. Show Answer Correct Answer: C) Home Trade. 52. What is the significance of trade in modern times? A) It helps in reducing the population. B) It ensures self-sufficiency for all countries. C) It makes new products available for consumption worldwide. D) It eliminates the need for markets. Show Answer Correct Answer: C) It makes new products available for consumption worldwide. 53. Which of the following is not a service offered by wholesalers to manufacturers ( in the case that manufacturers are not the wholesalers themselves)? A) Financial assistance. B) Facilitating large scale production. C) Granting of credit. D) Bearing risk. Show Answer Correct Answer: C) Granting of credit. 54. What is one of the services provided by wholesalers to manufacturers? A) Facilitating large scale production. B) Direct selling to consumers. C) Advertising. D) None of the above. Show Answer Correct Answer: A) Facilitating large scale production. 55. Buy in large quantities of goods from manufacturers, store the goods, and resell them to other businesses A) Manufacturer. B) Wholesaler. C) Retailer. D) Producer. Show Answer Correct Answer: B) Wholesaler. 56. Chamber of commerce is voluntary organization for industries and business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 57. Which of the following is the advantage of Chain Stores A) Lack of initiative. B) Diffusion of risk. C) Difficult to change demand. D) Limited selection of goods. Show Answer Correct Answer: B) Diffusion of risk. 58. Buying something for a good price can improve your mood. I make you feel so good that shopping can be ..... A) Useless. B) Addictive. C) Refund. D) Alter. Show Answer Correct Answer: B) Addictive. 59. How does internal trade contribute to the economic stability of a country? A) By creating barriers to foreign goods. B) By promoting international trade. C) By ensuring goods are distributed evenly within the country. D) By limiting the availability of goods. Show Answer Correct Answer: C) By ensuring goods are distributed evenly within the country. 60. Which of the following are the services provided by retailers to wholesalers? A) Help in distribution of goods. B) Personal selling. C) Collecting market information. D) All of the above. Show Answer Correct Answer: D) All of the above. Next →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 9 Internal Trade Quiz 2Class 11 Business Studies Chapter 9 Internal Trade Quiz 3Class 11 Business Studies Chapter 9 Internal Trade Quiz 4Class 11 Business Studies Chapter 9 Internal Trade Quiz 5Class 11 Business Studies Chapter 9 Internal Trade Quiz 6Class 11 Business Studies Chapter 1 Business, Trade And Commerce QuizClass 11 Business Studies Chapter 10 International Business QuizClass 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books