TN Board 11th Commerce Important Questions Chapter 22 Types of Trade

Students get through the TN Board 11th Commerce Important Questions Chapter 22 Types of Trade which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 22 Types of Trade

Very short answer questions

Question 1.
Explain-Division of merchant middlemen?
Answer:

Question 2.
Functions of wholesalers?
Answer:

1. Sale to other dealers: The wholesaler sells goods to retailers. He does not come into direct contact with the ultimate consumer.
2. Buying directly from the manufacturer: Usually, the wholesaler buys directly from the manufacturer.

Question 3.
Features of Internal trade?
Answer:
It does not involve any custom/import duty, but buyers need not pay taxes to the government. The goods must be a part of domestic production.

Question 4.
India’s important export items.
Answer:

1. Petroleum products.
2. Jewelry.
3. Automobile
4. Bio-chemicals
5. Pharmaceuticals.

Question 5.
India’s important import items.
Answer:

1. Mineral fuels including oil.
2. Gem, precious metals.
3. Electrical machinery and equipment.
4. Machinery including computers.
5. Organic chemicals.

Question 6.
Name the Entrepot centres.
Answer:

1. Singapore.
2. Dubai.
3. Hongkong.

Question 7.
What are the functions of Wholesaler?
Answer:

1. Assembling and buying.
2. Storing or warehousing.
3. Financing.
4. Transportation.
5. Risk bearing
6. Grading packing and packaging
7. Providing market Information.

Short answer questions

Question 1.
Explain the services rendered, by a retailer?
Answer:

1. Organized link: The retailer is an important agency linking up the wholesaler on one side and the consumer on the other side.
2. Consumer preferences: The retailer is in close touch with the consumers. So he can inform the consumer’s preferences to the wholesaler.
3. Personal attention: The retailer is able to provide more personal attention to his customers. He gives special services on the spot when the articles require a minor repair.
4. Widening of the market: The retailer makes it possible to widen the size of the market. The relieves wholesalers from the burden of organizing sales outlets to various.

Long answer questions

Question 1.
Difference between Internal Trade and Foreign Trade.
Answer:

Internal Trade	Foreign Trade
It refers to the trade within a country.	It refers to trade between two or more countries.
It involves the exchange of goods and services within the country.	This involves the exchange of goods and services between two or more countries.
In-home trade there is no exchange of currencies.	In foreign trade exchange of currencies of different countries takes place.
In-home trade the risk of transportation is very less when compared to foreign trade.	In international trade, the goods are to be transported to long distances through various modes of transport, and hence the risk of transportation is more.
In-home trade only the laws prevailing in that country have to be followed.	In foreign trade, the laws, customs, and regulations of different countries are to be followed
The aim of home trade is to provide essential goods and services economically.	The aim of foreign trade is to raise the standard of living of the people.

Question 2.
What are the differences between the wholesaler and retailer?
Answer:

Wholesaler	Retailer
A wholesaler is a link between manufacturer and retailer.	The retailer is a link between a wholesaler and the ultimate consumer.
He buys in large quantities from the manufactures.	He buys in small quantities from the wholesaler.
He deals with one line of products.	He deals in different types of products.
Business spread to different areas.	Business located in particular place of the area.
He is very close to the manufacturer but distant from the consumer.	He is very close to the consumer and away from the manufacturer.
He operates his business in big commercial cities.	He operates even in the smallest villages and also big cities.
Do not provide after-sale service.	Provide after-sale service.

For Own Thinking

Question 1.
Students should go to a nearby internal trade unit and observe the trade activities.
Answer:
Student Name: Raja. He is going to Leather Garments, Keelkattalai (pouch).
1st step: Buying fill leather.
2nd step: Cutting the leathers in suitable shape.
3rd step: Stitching the leathers.
4th step: To form the pouch.

Question 2.
Students should go to the retail shops, and observe the trading activities.
Answer:
To observe the retail shop. Students observe the retail shop.

1. In retail shop all food items.
2. In retail shop all snacks items.
3. In retail shop all oil items.
4. In retail shop all kinds of soaps.

The student’s observation is all kinds of items are sold here.

For Future learning

1. In the future the location of trade houses will be completely changed, where the customers place an order by mobile phone or e-mail and it should be delivered at the doorstep of the buyer.
Answer:
In the future, he needs trade houses. Because nowadays by using the network to buy all the goods.

2. In the future there is no need for showrooms, displays, window decorations, etc. retail shops provide code numbers to the products and hence there is no heed for retail shops. So, the students should be prepared to meet future changes.
Answer:
Yes, students should be prepared to meet future changes. All items are available in net-based shopping.

Case Study

1. Mr. Kovalan completed his M.Com., degree and proposed to start a business dealing with power loom machines. After a complete analysis, it was found that it is better to buy from foreign countries than to buy from domestic manufacturers. So what is your opinion on whether to purchase from foreign countries or from domestic manufacturers?
Answer:
Better to buy from domestic manufactures. Because our country gets more income from income tax and giving more employment opportunities.

Multiple choice questions

1. The persons who come in between the primary producer and the final consumer to promote trade is called as:
(a) trader
(b) middleman
(c) agent
(d) auctioneer
Answer:
(b) middleman

2. An agent is appointed by the:
(a) wholesaler
(b) principal
(c) retailer
(d) manufacturer
Answer:
(b) principal

3. …….. is one which is carried on within the boundaries of a particular country.
(a) Home trade
(b) Foreign trade
(c) Import trade
(d) Export trade
Answer:
(a) Home trade

4. ……….. is a trade between one country with another country.
(a) Home trade
(b) Foreign trade
(c) Retail trade
(d) None of these
Answer:
(b) Foreign trade

5. The nature and type of product help in determining a decision about the channel of distribution are called:
(a) consumer factor
(b) market factor
(c) product factor
(d) middlemen factor
Answer:
(c) product factor

6. ……… is not personally liable for the contracts concluded
(a) Factors
(b) Brokers
(c) Commission agent
(d) Auctioneers
Answer:
(b) Brokers

7. ………. is a link between manufacturer and retailer.
(a) Factors
(b) Broker
(c) Auctioneers
(d) Wholesaler
Answer:
(d) Wholesaler

8. A warehouse keeper accepts goods for the purpose of:
(a) storage
(b) export
(c) selling
(d) packaging
Answer:
(a) storage

9. ………. are agents -who merely bring the buyer and the seller in to contact.
(a) Selling agent
(b) Commission agent
(c) Broker
(d) Stockist
Answer:
(c) Broker

10. Wholesaler’s deals in ……… quantity of goods.
(a) small
(b) large
(c) medium
(d) limited
Answer:
(b) large

11. Small scale fixed retailers include:
(a) general stores
(b) pedlars
(c) cheapjacks
(d) hawkers
Answer:
(a) general stores

12. Trade may be classified into home trade and:
(a) foreign trade
(b) retail trade
(c) entrepot
(d) itinerant trade
Answer:
(a) foreign trade

13. Business deals with goods and;
(a) exchange of goods
(b) services
(c) time
(d) place
Answer:
(b) services