This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 9 Internal Trade – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 9 Internal Trade Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Distribution is deciding: A) How much it cost. B) Physically moving and storing goods. C) Getting a product setup. D) Selling a product. Show Answer Correct Answer: B) Physically moving and storing goods. 2. Which of the following is not the feature of Departmental stores? A) Located at central place of the city. B) Wide spectrum of facilities under one roof. C) Eliminate middlemen. D) Less operating costs. Show Answer Correct Answer: D) Less operating costs. 3. Which of these is the merit of departmental Store A) These stores deal in the good of one manufacturer only. B) These stores have high operating costs. C) Prices of these stores are comparatively low. D) These provide economy of Large scale operations. Show Answer Correct Answer: D) These provide economy of Large scale operations. 4. Describe why good customer service is important A) Bad customer service helps to retain customers and will maintain or increase sales. B) It helps retain and gain customers, which will help maintain or increase sales and ultimately profit. C) All the above. D) None of the above. Show Answer Correct Answer: B) It helps retain and gain customers, which will help maintain or increase sales and ultimately profit. 5. The channel of distribution ends at ..... A) Retailers. B) Consumers. C) Wholesalers. D) Manufacturers. Show Answer Correct Answer: B) Consumers. 6. A Shopping complex is an example of A) Chain stores. B) Departmental store. C) Speciality store. D) General store. Show Answer Correct Answer: C) Speciality store. 7. Which of the following is a type of wholesale trade? A) Selling through vending machines. B) Selling through door-to-door sales. C) Selling in bulk for resale. D) Selling to final consumers. Show Answer Correct Answer: C) Selling in bulk for resale. 8. Which is the service of the wholesaler to the consumer? A) Personal selling. B) Enabling large scale operation. C) Helps in promotion. D) Wide selection. Show Answer Correct Answer: D) Wide selection. 9. In India, which tax replaced multiple indirect taxes? A) VAT. B) Service tax. C) Income tax. D) GST. Show Answer Correct Answer: D) GST. 10. The risk of bad dept is eliminated in this business, especially when the payment is through V.P.P. A) Departmental store. B) Mail-order business. C) Cooperative store. D) None of these. Show Answer Correct Answer: B) Mail-order business. 11. Everything from 'a pin to plane' is the spirit behind a ..... A) Departmental store. B) Vending machine. C) Chain stores. D) Street stall holders. Show Answer Correct Answer: A) Departmental store. 12. Which type of business produces goods? A) Wholesale. B) Target market. C) Retail. D) Manufacturing. Show Answer Correct Answer: D) Manufacturing. 13. What are the main features of hawkers and pedlars? A) They move from street to street. B) They sell a variety of goods. C) They deal with non-branded items. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Imports are ..... A) Limits to what can be traded. B) Tariffs. C) Are products one country buys from another. D) Products that one country sends to another. Show Answer Correct Answer: C) Are products one country buys from another. 15. Why is it important for goods to be distributed fairly through internal trade? A) To ensure that all regions receive equal amounts of goods and services. B) To increase the number of wholesalers. C) To reduce competition. D) To encourage export. Show Answer Correct Answer: A) To ensure that all regions receive equal amounts of goods and services. 16. Chamber of commerce works for the interest of industries and business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 17. What does the term 'Cash on Delivery' (COD) refer to? A) Payment made at the time of delivery. B) Payment made before delivery. C) Payment made through credit. D) Payment made after delivery. Show Answer Correct Answer: A) Payment made at the time of delivery. 18. Internal trade does NOT include: A) Selling goods within national boundaries. B) Importing goods. C) Selling through wholesalers. D) Buying and selling within a city. Show Answer Correct Answer: B) Importing goods. 19. Which of the following statements is false about advantages of multiple chain stores? A) Elimination of middlemen. B) No bad debts. C) Economies of scale. D) Convenience in buying. Show Answer Correct Answer: D) Convenience in buying. 20. A service provided by a wholesaler to manufacturer and retailer is ..... A) Credit facility. B) Continuous availability of goods. C) Market information. D) None of these. Show Answer Correct Answer: C) Market information. 21. The ..... act as an important link between producers and final consumers in the distribution of products and services. A) Wholesalers. B) Retailers. C) Producer. D) Marketer. Show Answer Correct Answer: B) Retailers. 22. Trade taking place within the boundaries of a nation is referred to as ..... trade. A) External trade. B) Local trade. C) Foreign trade. D) INTERNAL TRADE. Show Answer Correct Answer: D) INTERNAL TRADE. 23. In a recession, uncertainty about employment can deter spending. Which of the following is a synonym for "deter?" A) Facilitate. B) Discourage. C) Permit. D) Enable. Show Answer Correct Answer: B) Discourage. 24. What type of retailer deals in second-hand goods such as furniture, books, and clothes? A) Single line stores. B) Second-hand goods shops. C) General stores. D) Departmental stores. Show Answer Correct Answer: B) Second-hand goods shops. 25. What is one of the roles of Chambers of Commerce and industry in internal trade? A) Facilitating the promotion of internal trade. B) Supporting the implementation of GST. C) Classifying types of retailers. D) Promoting international trade agreements. Show Answer Correct Answer: A) Facilitating the promotion of internal trade. 26. Which of the following is a Limitation of Departmental Stores? A) High operating cost. B) Promotion of sales. C) Convenience in buying. D) Attractive services. Show Answer Correct Answer: A) High operating cost. 27. Which of the following come under fixed shop retailers? A) Departmental Stores. B) General Stores. C) Multiple Shops. D) Chain Stores. Show Answer Correct Answer: D) Chain Stores. 28. ..... run a temporary shop in business locality. A) Street traders. B) Cheap jacks. C) Market traders. D) Hawkers. Show Answer Correct Answer: B) Cheap jacks. 29. Select the service which is provided by retailers to consumers. A) New product information. B) Wide selection. C) After-sale services. D) All of the above. Show Answer Correct Answer: D) All of the above. 30. Which of the following is a service provided by retailers to consumers? A) Facilitating large scale production. B) Providing credit facilities. C) Bearing business risks. D) Collecting market information. Show Answer Correct Answer: B) Providing credit facilities. 31. Buying goods in large quantities and selling in small lots A) Wholesaler. B) Consumer. C) Retailer. D) Producer. Show Answer Correct Answer: A) Wholesaler. 32. What is meant by wholesale trade? A) Import of goods and services. B) Export of goods and services. C) Buying and selling of goods and services in bulk. D) Buying and selling of goods and services in small quantities. Show Answer Correct Answer: C) Buying and selling of goods and services in bulk. 33. Which of the following is a characteristic of fixed shop retailers? A) They operate without any inventory. B) They frequently change locations. C) They have a permanent establishment. D) They deal only in low-value items. Show Answer Correct Answer: C) They have a permanent establishment. 34. Trade is part of A) Insurance. B) Banking. C) Transportation. D) Commerce. Show Answer Correct Answer: D) Commerce. 35. What is the role of intermediaries in retail trade? A) Intermediaries have no role in the distribution process. B) Intermediaries only work with wholesalers and not directly with consumers. C) Intermediaries are responsible for manufacturing the goods. D) Intermediaries facilitate the distribution of goods and services between producers and consumers. Show Answer Correct Answer: D) Intermediaries facilitate the distribution of goods and services between producers and consumers. 36. Survival in a business situation means: A) Making less profit than last year. B) Making sure the business continues to operate. C) Providing good service rather than making profit. D) Making products cheaper than competitors. Show Answer Correct Answer: B) Making sure the business continues to operate. 37. 6 What is the exemption limit for a person to pay GST? A) 20 lakh. B) 40 lakh. C) 10 Lakh. D) 30 Lakh. Show Answer Correct Answer: A) 20 lakh. 38. An item that one buys A) Retail. B) Assume. C) Bargain. D) Purchase. Show Answer Correct Answer: D) Purchase. 39. What is the role of middlemen in trade? A) To facilitate the movement of goods from manufacturers to shops. B) To increase the price of goods unnecessarily. C) To eliminate the need for markets. D) To produce goods for consumption. Show Answer Correct Answer: A) To facilitate the movement of goods from manufacturers to shops. 40. Intermediaries that buy goods in large quantities from wholesalers and sells them in small quantities to the ultimate consumers are known as ..... A) Manufacturer. B) Retailers. C) Suppliers. D) Wholesalers. Show Answer Correct Answer: B) Retailers. 41. Which service provided by wholesalers helps retailers avoid risks such as storage, pilferage, and demand fluctuations? A) Risk sharing. B) Specialised knowledge. C) Grant of credit. D) Marketing support. Show Answer Correct Answer: A) Risk sharing. 42. Which type of retailer opens their shops on fixed days or dates, such as every Saturday or alternate Saturdays? A) Fixed shop retailers. B) Cheap jacks. C) Street traders. D) Market traders. Show Answer Correct Answer: D) Market traders. 43. Wholesaling is concerned with the activities of those persons or establishments which sell goods to A) Retailers. B) Industrial uses. C) Commercial uses. D) All of the above. Show Answer Correct Answer: D) All of the above. 44. Which of the following is a characteristic of external trade? A) It is limited to local markets. B) It occurs within a single country. C) It involves the exchange of goods between countries. D) It does not involve currency exchange. Show Answer Correct Answer: C) It involves the exchange of goods between countries. 45. Wholesale trade refers to buying and selling of goods and services in ..... quantities for the purpose of resale or intermediate use. A) A) Small. B) Large. C) Moderate. D) All of the above. Show Answer Correct Answer: B) Large. 46. Why are wholesalers important in the distribution process? A) They eliminate the need for retailers. B) They reduce the cost of production. C) They set the prices of goods. D) They connect producers to a large number of buyers. Show Answer Correct Answer: D) They connect producers to a large number of buyers. 47. Diffusion of risk is an advantage of ..... A) Departmental stores. B) Multiple shops. C) Mail order houses. D) Super markets. Show Answer Correct Answer: B) Multiple shops. 48. Which of the following options list the elements of the distribution channel in the correct order? A) Manufacturer, Retailer, Wholesaler, Customer. B) Manufacturer, Wholesaler, Retailer, Customer. C) Retailer, Manufacturer, Customer, Wholesaler. D) Wholesaler, Customer, Manufacturer, Retailer. Show Answer Correct Answer: B) Manufacturer, Wholesaler, Retailer, Customer. 49. What is the main purpose of retail trade? A) To offer financial services to businesses. B) To manufacture goods for industrial use. C) To sell goods and services to consumers for their personal use. D) To provide healthcare services to the community. Show Answer Correct Answer: C) To sell goods and services to consumers for their personal use. 50. What distinguishes fixed shop retailers from itinerant retailers? A) They have a fixed place of sale. B) They deal in low-priced items. C) They sell goods at temporary locations. D) They move from place to place. Show Answer Correct Answer: A) They have a fixed place of sale. 51. Ethics are based on A) Political values. B) Moral values. C) Social values. D) None of these. Show Answer Correct Answer: B) Moral values. 52. When buying and selling of goods and services is done with the objective of earning profit, it is called as ..... A) Trade. B) Service. C) Commerce. D) None. Show Answer Correct Answer: A) Trade. 53. Business by post is a example of retail trade A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. The decoration of chain stores are same in everywhere. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 55. Which of the following is NOT a function of a wholesaler? A) Buying goods in bulk. B) Selling goods in small quantities. C) Manufacturing products. D) Providing credit facilities to retailers. Show Answer Correct Answer: C) Manufacturing products. 56. The wholesalers advice the manufacturers about the aspects related to A) Market conditions. B) Competitive activities. C) Customers' taste and preferences. D) All of the above. Show Answer Correct Answer: D) All of the above. 57. Choose the sercive of manufacturers to retailers A) Facilitating large scale production. B) Facilitate production continuity. C) Grant of credit. D) Financial assistance. Show Answer Correct Answer: C) Grant of credit. 58. Which type of trade involves the transportation of goods from one place to another? A) Distribution trade. B) Wholesale trade. C) Retail trade. D) Export trade. Show Answer Correct Answer: A) Distribution trade. 59. These vendors are found at street crossing where flow of traffic is heavy? A) (a) Market traders. B) (b) Street stall holders. C) (c ) General Stores. D) (d Speciality shops. Show Answer Correct Answer: B) (b) Street stall holders. 60. Second hand goods shop is a type of fixed shop retailers? A) YES. B) NO. C) CAN'T SAY. D) None of the above. Show Answer Correct Answer: A) YES. ← PreviousNext →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 9 Internal Trade Quiz 1Class 11 Business Studies Chapter 9 Internal Trade Quiz 2Class 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