TN Board 11th Commerce Important Questions Chapter 24 Retailing

Students get through the TN Board 11th Commerce Important Questions Chapter 24 Retailing which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 24 Retailing

Very short answer questions

Question 1.
What are the types of Itinerant traders?
Answer:

1. Peddlers and hawkers
2. Street traders,
3. Market traders,
4. Cheap jacks traders.

Question 2.
What are the types of small-scale fixed retailer shops?
Answer:

1. Street stalls
2. General stores
3. Single line stores
4. Specialty stores
5. Second shops

Question 3.
What is street vendors?
Answer:
The traders sit on the footpath of the road or at the end of the road (pavement) and sell their goods such as fruits, vegetables, books, etc. are called street vendors.

Question 4.
What are Departmental stores?
Answer:
A departmental Store is a large retail establishment offering a wide variety of products, classified into well-defined departments.

Short answer questions

Question 1.
Who is an Itinerant trader?
Answer:
The traders who have no fixed place of the sale are called Itinerants. They move from one place to another place in search of customers. They are also known as Mobile traders. Mobile traders deal in low price, daily usable items such as fruits, vegetables, fish, clothing, books, etc.

Question 2.
What are the types of large-scale fixed retailers shop?
Answer:
Large scale fixed retailers:

1. Departmental stores.
2. Chain stores.
3. Consumer co-operative stores.
4. Supermarkets.
5. Hire purchase and installment.
6. Mail order houses.
7. Shopping malls.
8. Automatic vending machines.
9. Telemarketing.
10. Online shopping.

Question 3.
What are market traders?
Answer:
Small traders open their shops at different places on fixed days or dates such as every Sunday or alternative Wednesdays and so on (Varasandhai – weekly market). They deal in one particular line of merchandise and in low-priced consumer items of daily use. eg: Pollachi, Manapparai, Ranipet, etc.

Question 4.
What are cheap jacks?
Answer:
Those retailers who have independent shops of temporary nature in a business locality are depending upon the potentiality of the area. They deal in consumer goods and services such as shoes and chappals, plastic items, repair of watches, etc.

Question 5.
What are the limitations of chain stores?
Answer:

1. Limited variety: Multiple shops deal only in a limited range of products.
2. Absence of services: Customers do not get credit, home delivery, and other facilities.
3. Lack of personal touch: The owner loses direct personal contact with the customers. The paid staffs do not take a personal interest in each and every customer.
4. Inflexibility: All the branches centrally controlled and uniform policies are adopted for all the shops.

Question 6.
What is a supermarket?
Answer:
A Supermarket is a large retail store selling a wide variety of consumer goods on the basis of low price appeal, wide variety and assortment, self-service, and heavy emphasis on merchandising appeal. The goods traded are generally food products and other low-priced, branded and widely used consumer products such as grocery, utensils, clothes, household goods, electronic appliances, and medicines, eg: The Nilgiris.

Question 7.
What is Telephonic marketing?
Answer:
Potential Customers are contacted through telephone or mobile to provide information about the products. Willing customers visit the office and place the orders. This method is useful for loans, financing, insurance services, credit card, etc. No middlemen in this marketing and cost reduced accordingly.

Question 8.
What is Television marketing?
Answer:
In this method, customers are attracted by providing full information of product or service through TV demonstrations. Customers are given either a phone number or the name of the website to place the order. Payments for these products are made through two methods.

1. Advance payment by debit/credit card and
2. Payment in cash at the tithe of delivery, eg: Tablemate and other home appliances.

Question 9.
Examples of supermarkets?
Answer:

1. Ponni Supermarket – Salem.
2. Karpagam Super market – Vellore.
3. Kamathenu Supermarket – Chennai.
4. Chinthamani Supermarket – Coimbatore.

Long answer questions

Question 1.
What is the advantage of the departmental store?
Answer:

1. Convenience in buying: The departmental stores provide great convenience to all the members in a family in buying almost all goods of their requirements at one place.
   A large variety of goods available in all the departments enable customers to save time and no need to run from one place to another to complete their shopping.
2. Attractive services: It aims at providing maximum services and facilities to the customers such as home delivery of goods, execution of telephone orders, restrooms, restaurants, salons, children’s game centers, etc.
3. Central location: These stores are usually located at central places so that more people can approach easily.
4. Elimination of Middleman: A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses. It helps in eliminating undesirable middlemen between the producers and the consumers.
5. Economies of Large Scale Operations:
   The Departmental stores are organized at a large scale i.e., buy goods in bulk, therefore they enjoy the benefit of a special discount. In turn, the customers get their goods in quality and lower price.

Question 2.
What are the limitations of the departmental store?
Answer:

1. High cost of operations: A departmental store requires a large building with ample parking at a central place. It has to incur heavy expenditure on salaries, maintenance of the building, customer services, advertising, etc. As a result, the establishment and overhead costs of operations is very high.
2. Higher prices: Due to high operating costs, prices of goods in a departmental store are comparatively high. Only rich persons can afford to buy goods at a departmental store.
3. Distance: It is located at a central place of a city, away from people living in suburban areas who have to travel a long distance to reach the store.
4. Lack of personal touch: The management of a store finds it very difficult to maintain personal contact with the customers. The salaried staff may not take interest in securing the satisfaction and goodwill of the customers.
5. Difficult to establish: A large amount of capital investment and a large number of specialized persons are required to establish a departmental store.
6. High risk: Due to a central location and large-scale operations, the risk of loss is very high. Changes in tastes and fashion and market fluctuations may lead to heavy loss.

Question 3.
What are the features of a Chain store?
Answer:

1. Location: These shops are located in fairly populous localities where a sufficient number of customers can be approached.
2. Nature of product: These shops deal in a particular product line and specialize in the same product i.e, standardized and branded consumer products.
3. Centralized management: The manufactur¬ing or procurement of goods for all the retail units is centralized at the head office, from where the goods are despatched to each of these shops.
4. Fixed price: The prices of goods are fixed and all sales are made on a cash basis.
5. Role of Sales personnel: The salespersons play an active role in helping the consumers to complete their shopping i.e., in the selection and choice of their goods as per the tastes.

Question 4.
What are the advantages of a Chain store?
Answer:

1. Economies of large scale: Multiple shops are owned and operated by manufacturers or intermediaries. Centralized and bulk buying, results in lower costs.
2. Elimination of middlemen: Goods are sold in multiple shops at relatively low prices. By selling directly to the consumers, it is able to eliminate unnecessary middlemen.
3. No bad debts: All the sales are made in these shops on a cash basis only. So, no bad debts will arise, and no reduction of working capital.
4. Convenience in shopping; Shops are located in all important areas. Therefore, customers are not required to travel long distances for making purchases.
5. Public confidence: Multiple shops enjoy public confidence due to fixed prices, standard quality, uniform appearance, and selection of goods with the help of salesmen.

Question 5.
Difference between Departmental store and Multiple shops.
Answer:

Departmental store	Multiple shops
A Departmental store is organized by adding a number of departments in the same premises.	They are established by setting up branches in different, localities.
Location: These stores are located in the central places of cities. Therefore they try to attract customers from far-off places.	These shops are generally located near the customer’s residences. So the choice of site for locating multiple shops does not present a serious problem.
Variety of Goods: These stores keep a wide assortment of goods in their shops. They satisfy the needs of the consumers at one place for different goods.	These shops do not offer a variety of goods for their customers. But they satisfy only one particular type of need of the consumers.
Flexibility: A departmental store when started initially faces a lot of problems such as finance, location, availability of experts etc., Even their closure will be a difficult one.	A multiple shops can very easily open new branches. It is also very easy to close down a losing branch.
Change of location: A shifting of departmental Store to another location entails enormous difficulties in view of its huge establishment.	If sales are downward, a multiple shop can change easily the location of its branch to a better locality in the same city as each branch is a small-sized unit.

Question 6.
What are the types of retailer?
Answer:
Itinerant Traders
(a) peddlers and hawkers
(b) street traders
(c) market traders
(d) cheap jacks traders

Fixed shop small retailers
(a) street stalls
(b) chain stores
(c) single-line stores
(d) specialty stores
(e) second shops

For Future learning

There are about two lakh retailers in Tamil Nadu. About one lakh in Chennai city. There was an abortive move in 2012 to invite FDI in the retail sector by the central government. What is your opinion?
Answer:
My opinion is not in favor of the central government because it affects domestic products.

For Own Thinking

1. Many products are available near the residence of people. How do these products reach the shops from the manufacturers?
Answer:
Dealers take the goods from manufactures to retail stores.

2. Identify various fixed shop retailers in your locality and classify them according to the different types you have studied.
Answer:
Street stalls – Vegetable shop and old book shop.
Single line products: Bata shop.

3. Do you know any retailers selling second-hand goods in your area? Find out the category of the product that they deal in? Which products are suitable for resale? List out some of your findings. What conclusions do you draw?
Answer:
Dress materials: Sarees, shirts.
Consumer durable goods: Refrigerator washing machine.

4. From your own experience, compare the features of two retail stores selling the same type of products.
Answer:
Textile shop: Departmental store.
Features: Same quality, Same price.

Multiple-choice questions

1. The day-to-day administration of a departmental store is looked after by the:
(a) managing director
(b) board of directors
(c) head clerk
(d) owner himself
Answer:
(a) managing director

2. Multiple shops are called chain stores in:
(a) England
(b) China
(c) America
(d) Japan
Answer:
(c) America

3. Distributive Co-operatives owe their origin to the pioneering efforts of 28 weavers in:
(a) America
(b) Germany
(c) France
(d) England
Answer:
(d) England

4. Though the buyer gets possession of goods immediately on signing the contract the ownership does not pass on to him. This system is called:
(a) installment system
(b) hire purchase system
(c) mail order business
(d) departmental store system
Answer:
(b) hire purchase system

5. The paperless exchange of business information using network-based technologies is called:
(a) electronic business
(b) e-commerce
(c) Internet
(d) electronic data interchange
Answer:
(b) e-commerce

6. Departmental stores are of:
(a) French origin
(b) American origin
(c) Latin origin
(d) none of these
Answer:
(a) French origin

7. The minimum number of Co-operative society is:
(a) 10
(b) 25
(c) 30
(d) 5
Answer:
(b) 25

8. Teleshopping is used by the:
(a) wholesales
(b) retailers
(c) customers
(d) owners
Answer:
(c) customers

9. ……….. is an easy way of shopping for the aged and the disabled people:
(a) Hire purchase system
(b) Installment system
(c) Teleshopping
(d) None of these
Answer:
(c) Teleshopping

10. ……….. are actively encouraged by the government.
(a) Co-operative societies
(b) Departmental stores
(c) Multiple shops
(d) all the above
Answer:
(a) Co-operative societies

11. The weavers Formed “Rochdale Pioneers Equitable Society in the year:
(a) 1844
(b) 1845
(c) 1944
(d) 1996
Answer:
(a) 1844

12. ……….. Provide free home delivery service to the customers.
(a) Wholesaler
(b) Retailers
(c) Manufacturer
(d) Owner
Answer:
(b) Retailers

13. A businessman who is appointed by a:
(a) broker
(b) factor
(c) mercantile agent
(d) retailer
Answer:
(c) mercantile agent

14. ………. is a link between manufacturer and retailer.
(a) Commission agent
(b) Auctioneers
(c) Factors
(d) Wholesaler
Answer:
(d) Wholesaler

15. The retailers are the connecting link between the producer and:
(a) consumer
(b) wholesaler
(c) retailer
(d) brokers
Answer:
(a) consumer