This quiz works best with JavaScript enabled. Home > Class 11 > 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 (25 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 farmer selling goods at a local market. B) A company importing products from abroad. C) A product being shipped to another country. D) A shop selling products within the same city. Show Answer Correct Answer: D) A shop selling products within the same city. 4. Which of the following is NOT a key term related to internal trade? A) Departmental stores. B) Super markets. C) Import duties. D) Retailers. 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 customer satisfaction. C) Higher profits. D) More customers complaining about the lack of after sale services. 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 refers to the sale of goods or services to consumers for their personal use. C) Retail trade refers to the transportation of goods from one place to another. D) Retail trade involves the production of goods for sale. Show Answer Correct Answer: B) 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) The employees were bad at their job. B) Another company wanted to higher the employees. C) The company couldn't afford to pay the employees. D) The employees were overqualified for their jobs. Show Answer Correct Answer: C) 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) Wholesale. B) Service. C) Manufacturing. D) Agriculture. Show Answer Correct Answer: B) Service. 9. Trade removes the hindrance of A) Time. B) Person. C) Place. D) Finance. Show Answer Correct Answer: B) 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) Specialization. C) Balance of trade. D) Absolute advantage. Show Answer Correct Answer: B) 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) Large scale production. B) Home delivery. C) Risk sharing. D) Storage. Show Answer Correct Answer: B) Home delivery. 17. I am a restaurant owner and I need to buy supplies for my business. Which industry would I buy from? A) Wholesale. B) Agriculture. C) Manufacturing. D) Service. Show Answer Correct Answer: A) 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) Loans from banks. B) Money raised from members by issue of shares. C) Government grants. D) Donations from the public. Show Answer Correct Answer: B) 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-retailerRam-manufacturerRam's customers-Wholesalers. B) Sam-wholesalersRam-manufacturerRam's customers-retailer. C) Sam-manufacturersRam-retailersRam'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) Agriculture. B) Retail. C) Wholesale. D) Manufacturing. Show Answer Correct Answer: D) 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) Service. B) Wholesaler. C) Agriculture. D) Retail. Show Answer Correct Answer: C) Agriculture. 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