This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 9 Internal Trade – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 9 Internal Trade Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements is false about advantages of departmental stores? A) Diffusion of risk. B) Attracts large number of customers. C) Convenience in buying. D) Economy of large scale operation. Show Answer Correct Answer: A) Diffusion of risk. 2. What is a key function of wholesalers? A) Providing credit to consumers. B) Selling directly to consumers. C) Facilitating distribution to retailers. D) Collecting market information. Show Answer Correct Answer: C) Facilitating distribution to retailers. 3. Lack of initiative in the employees while dealing with customers in chain stores results in A) C. Conflicts. B) B. Low sales. C) A. Lack of personal touch. D) D)Loose the customers. Show Answer Correct Answer: C) A. Lack of personal touch. 4. Service businesses would include: A) A tire shop and a clothing store. B) A dentist and an auto mechanic. C) A jewelry store and a pet food manufacturing company. D) JC Penney and Sam's Club. Show Answer Correct Answer: B) A dentist and an auto mechanic. 5. One of these words is not related to 'a person who buys goods or services for personal use'. A) Customer. B) Consumer. C) Purchaser. D) Marketer. Show Answer Correct Answer: D) Marketer. 6. It is characteristics of ..... where in one roof goods are sold by making different departments: A) Multiple shops. B) Departmental stores. C) Wholesale trade. D) None of these. Show Answer Correct Answer: B) Departmental stores. 7. What type of retail format sells common goods such as milk and bread at a higher price than a supermarket? A) Discount Store. B) Convenience Store. C) Wholesale club. D) Supercenter. Show Answer Correct Answer: B) Convenience Store. 8. The sale of goods or services directly to the final consumer. A) Clearance. B) Partnership. C) Fire Sale. D) Retail. Show Answer Correct Answer: D) Retail. 9. Shop where manufacturer also sells the goods: A) Chain shops. B) Departmental shops. C) Hawkers. D) Stall shops. Show Answer Correct Answer: A) Chain shops. 10. What is the main advantage of centralised procurement in multiple-shop organisations? A) It ensures economies of scale. B) It decentralises the management of shops. C) It reduces the quality of goods. D) It increases the cost of operation. Show Answer Correct Answer: A) It ensures economies of scale. 11. Number of sellers in the automatic vending machine: A) One who sell goods. B) Not even one. C) One who received goods. D) Two, one seller and other receiving payment. Show Answer Correct Answer: B) Not even one. 12. What does a wholesaler do? A) Sells goods in large quantities. B) Sells goods directly to consumers. C) Manufactures goods. D) None of the above. Show Answer Correct Answer: A) Sells goods in large quantities. 13. This is the sale of large quantities of goods to retailers. Examples are Dangote Cement, Uac Foods, Coca-Cola Corporation, etc. A) Manufacturing. B) Wholesale. C) Service Industry. D) Retail. Show Answer Correct Answer: B) Wholesale. 14. Retail seller sold goods to: A) Wholesaler. B) Consumers. C) Departmental stores. D) All of the above. Show Answer Correct Answer: B) Consumers. 15. What is the key feature of internal trade? A) Goods are traded within a single city. B) Trade involves only local currencies. C) Goods are exchanged for services only. D) Trade happens within the boundaries of a country. Show Answer Correct Answer: D) Trade happens within the boundaries of a country. 16. Goods of these store are generally higher than the market prices A) Consumer Cooperative Stores. B) Chain Stores. C) Departmental Stores. D) Super Markets. Show Answer Correct Answer: C) Departmental Stores. 17. Retailers who have no fixed place of sale are called ..... A) Market traders. B) Hawkers. C) Street traders. D) Itinerant retailers. Show Answer Correct Answer: D) Itinerant retailers. 18. What are the typical customers of retail trade? A) Large corporations. B) Government agencies. C) Non-profit organizations. D) Individual consumers and households. Show Answer Correct Answer: D) Individual consumers and households. 19. Related to business A) Commercial. B) Complain. C) Complex. D) Common. Show Answer Correct Answer: A) Commercial. 20. What is considered retail selling according to the text? A) Selling goods to manufacturers. B) Selling goods to wholesalers. C) Selling goods in bulk quantities. D) Selling goods directly to ultimate consumers. Show Answer Correct Answer: D) Selling goods directly to ultimate consumers. 21. Products purchased for personal use A) Consumer. B) Retailer. C) Industrial User. D) Final User. Show Answer Correct Answer: A) Consumer. 22. What currency is used in internal trade? A) National currency. B) Foreign currency. C) Cryptocurrency. D) None of the above. Show Answer Correct Answer: A) National currency. 23. The keep on changing their business from one locality to another, depending upon the potentiality of the area. A) Peddlers and hawkers. B) Cheap jacks. C) Street traders. D) Market traders. Show Answer Correct Answer: B) Cheap jacks. 24. Which of these is not a feature of departmental store. A) Elimination of middlemen. B) Centralized buying and Decentralized selling. C) Shopping Convenience. D) Cash and Carry. Show Answer Correct Answer: D) Cash and Carry. 25. These store are also known as Multiple shops. A) Departmental stores. B) General stores. C) Chain stores. D) Hawkers. Show Answer Correct Answer: C) Chain stores. 26. How does internal trade promote competition among businesses? A) Internal trade promotes competition by expanding market access, encouraging innovation, and driving down prices. B) Internal trade reduces the number of businesses in the market. C) Internal trade has no impact on prices or innovation. D) Internal trade eliminates competition by creating monopolies. Show Answer Correct Answer: A) Internal trade promotes competition by expanding market access, encouraging innovation, and driving down prices. 27. Who are known to check price fluctuations by holding goods? A) Wholesalers. B) Agents. C) Brokers. D) Retailers. Show Answer Correct Answer: A) Wholesalers. 28. What is one of the risks that wholesalers bear? A) Risk of theft. B) Risk of customer dissatisfaction. C) Risk of high production costs. D) Risk of low sales. Show Answer Correct Answer: A) Risk of theft. 29. The last link with the ultimate consumer in the chain of distribution is ..... A) Manufacturer. B) Wholesaler. C) Retailer. D) None of these. Show Answer Correct Answer: C) Retailer. 30. A Chain Stores sells only one or two line of Goods is Known as A) Limited choice. B) Low Cost. C) Diffusion of risk. D) Flexibility. Show Answer Correct Answer: A) Limited choice. 31. Vending machine does not have the following disadvantage. A) Initial cost is high. B) Maintenance and repair cost are high. C) Cannot return the product. D) Convenient. Show Answer Correct Answer: D) Convenient. 32. If Spain's opportunity cost for producing wine is 1.5 cars and France's opportunity cost for producing wine is 0.8 cars, which country has a comparative advantage in wine production? A) France. B) Spain. C) All the above. D) None of the above. Show Answer Correct Answer: A) France. 33. These are a branch stores which are typically owned by a company or a franchise A) Departmental Stores. B) Chain Stores. C) Super Markets. D) Consumer Cooperative Stores. Show Answer Correct Answer: B) Chain Stores. 34. Which of the following statements is false regarding the mail-order business? A) Sell their merchandise through the mail. B) Customers are approached through advertisements. C) Direct personal contact between the buyers and the sellers. D) No bad debt. Show Answer Correct Answer: C) Direct personal contact between the buyers and the sellers. 35. ..... are the oldest form of retailers in the market place. A) Cheap jacks. B) Street traders. C) Peddlers and hawkers. D) Mail order houses. Show Answer Correct Answer: C) Peddlers and hawkers. 36. What is one major disadvantage of mail order business in terms of customer satisfaction? A) High promotion cost. B) High dependence on postal services. C) Delayed delivery. D) No after sales service. Show Answer Correct Answer: D) No after sales service. 37. Which of the following is not a service provided by retailers to Manufacturers and wholesalers A) Personal selling. B) Regular availability of products. C) Help in distribution of goods. D) Help in promotion of goods. Show Answer Correct Answer: B) Regular availability of products. 38. What is the last link in the distribution chain? A) Retail Trade. B) Wholesale Trade. C) Manufacturing. D) None of the above. Show Answer Correct Answer: A) Retail Trade. 39. The tertiary sector A) Is only done in rich countries. B) Is only done in physical shops. C) Offers the process of a product. D) Offers activities and services. Show Answer Correct Answer: D) Offers activities and services. 40. What distinguishes cheap jacks from other types of retailers? A) They have independent shops of a temporary nature. B) They operate on a large scale. C) They sell luxury items. D) They maintain permanent establishments. Show Answer Correct Answer: A) They have independent shops of a temporary nature. 41. Super bazar is a biggest retail institute ..... A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 42. What was the primary goal of implementing Goods and Services Tax (GST) in India? A) To increase the cost of goods. B) To create a unified market and ensure smooth flow of goods. C) To eliminate all taxes in the country. D) To promote international trade. Show Answer Correct Answer: B) To create a unified market and ensure smooth flow of goods. 43. Itinerant means ..... A) The ones who sell standardized products. B) The ones who have low sales turnover. C) The ones who do not have money. D) None of these. Show Answer Correct Answer: D) None of these. 44. Stores which are not coming under the category of fixed shops. A) General Stores. B) Street stallholders. C) Second-hand goods shops. D) Mail order house. Show Answer Correct Answer: D) Mail order house. 45. ..... can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices raise. A) Retailer. B) Agent. C) Wholesaler. D) Mercantile agent. Show Answer Correct Answer: C) Wholesaler. 46. What is a limitation of supermarkets? A) They appoint salespersons to assist customers. B) They are located in inaccessible areas. C) They offer free home delivery services. D) They do not offer credit facilities. Show Answer Correct Answer: D) They do not offer credit facilities. 47. Companies that buy the raw materials and convert them into finished goods for customers are a part of A) Manufacturing sector companies. B) Wholesaling companies. C) Retailing sector companies. D) Service sector companies. Show Answer Correct Answer: A) Manufacturing sector companies. 48. Who is a link between wholesalers and consumers? A) Manufacturers. B) Wholesalers. C) Retailers. D) None of the above. Show Answer Correct Answer: C) Retailers. 49. Who is not an itinerant retailer? A) Market trader. B) Peddlers and hawkers. C) Street stallholder. D) Chain store. Show Answer Correct Answer: D) Chain store. 50. What is the definition of trade? A) Selling goods at a loss. B) Only trading services. C) Exchanging goods without profit. D) A) Buying and selling of goods or services to earn profit. Show Answer Correct Answer: D) A) Buying and selling of goods or services to earn profit. 51. An entrepreneur can change a customer/client's life by providing a ..... or ..... that is needed. A) Good/service. B) Good/payment. C) Recommendation/payment. D) None of the above. Show Answer Correct Answer: A) Good/service. 52. What is the purpose of centralised purchasing arrangements in departmental stores? A) To increase the number of departments. B) To decentralise sales in different departments. C) To eliminate undesirable middlemen between producers and customers. D) To reduce the size of the store. Show Answer Correct Answer: C) To eliminate undesirable middlemen between producers and customers. 53. Which of the following services is NOT provided by Retailers A) Financial assistance. B) Personal selling efforts. C) Regular availability of goods. D) None of the above. Show Answer Correct Answer: A) Financial assistance. 54. Retail means the sale of goods or services directly to people. Which word is the antonym of retail? A) Chain. B) Outlet. C) Wholesale. D) Manufacture. Show Answer Correct Answer: C) Wholesale. 55. Why is internal trade crucial for the development of a country's economy? A) It allows the country to produce everything it needs. B) It eliminates the need for exports. C) It discourages international competition. D) It connects producers and consumers within the country. Show Answer Correct Answer: D) It connects producers and consumers within the country. 56. Multiple stores are flourish in all over country. 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 not a feature of Itinerant retailers? A) Normally deal in daily use products. B) Available at very doorstep of the customers. C) They have fixed establishment to operate from. D) None of the above. Show Answer Correct Answer: C) They have fixed establishment to operate from. 58. What is GST primarily considered as in the Indian taxation system? A) A source of revenue for growth. B) A destination-based single tax on goods and services. C) A tax reform to replace direct taxes. D) A tax levied only on luxury goods. Show Answer Correct Answer: B) A destination-based single tax on goods and services. 59. Which of the following is a limitation of consumer cooperative stores? A) Lack of democratic management. B) High prices for consumer goods. C) Unlimited liability for members. D) Lack of initiative among honorary workers. Show Answer Correct Answer: D) Lack of initiative among honorary workers. 60. They are petty retailers who have independent shops of a temporary nature in a business locality A) Market Trader. B) Street Trader. C) Cheap Jacks. D) Hawkers and Paddlers. Show Answer Correct Answer: C) Cheap Jacks. ← PreviousNext →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 9 Internal Trade Quiz 1Class 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