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OCM 3 Marks Each

Internal Trade · Gujarat Board (GSEB) STD 11 Commerce (GSEB - English Medium). 19 questions.

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19 questions · timed · auto-graded

Question 13 Marks
Write Short Note on : Automatic Vending Machine.
Answer
      • In this type of machine, well in advance supply is inserted to get it e.g. Cold Drink, Ice-Cream, Coffee, Newspapers, etc.
      • As per instruction, customer inserts currency coin in the slot and required quantity comes out.
      • The customer takes it. This type of vending machines are found in Shopping Mall, Airport, Railway station, Theatres etc., public places.
      • This type of machine was invested by a mathematician and engineer Alexandria Hero.
      • These machines are completely automatic. It saves time and money.
      • Salesman is not required. There is no question of training to the salesman.
      • These machines are active $24 \times 7$ at public places. Quantity and quality of the product is ensured.
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Question 23 Marks
Write Short Note on : Shopping Mall
Answer
      • Shopping malls are developed due to change in Departmental Stores.
      • They are spread in wider space than Super Market.
      • The building of shopping mall is absolutely modern.
      • There are many shops owned by more than one owner selling essential products.
      • Luxury products are available. Branded items are sold at one place.
      • It is called Shopping Mall. Various products of different brands are sold here.
      • Same articles of different brands are available here.
      • There is competition among same product of different brands.
      • Various schemes are used even in shopping malls to attract customers so that sale may grow.
      • In modem shopping malls restaurants, entertainment for children, multiplex theatre, Wi-Fi etc. facilities are provided to customers.
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Question 33 Marks
Write short note on : Super Market
Answer
Super market:
A super market is a huge retail shop selling a very large variety of products on a large scale.
  • These markets purchase a very large quantity of products directly from the company or producers. Such stores sell all the daily utility as well as life essential products.
  • They buy, stock and sell goods at such a large volume that even many retail shop owners purchase products from these stores and then sell them.
  • The stores are very huge even from point of view of construction. They are mainly located in big cities or towns where population density is large.
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Question 43 Marks
Write Short Note on : Franchise
Answer
      • When a special right is given by signing a contract with a businessman for selling or manufacturing its branded products under its own name, it is known as franchise.
      • The original company has given franchise right to the businessman and the shop of this business man is known as franchise shop.
      • The decoration of the shop, sign board, furniture, color are the same as the parent company.
      • Sometimes for manufacturing of product franchise is given.
      • In such cases raw-material is provided by parent company.
      • Constant supervision of the parent company provides guidance to maintain quality.
      • The parent company recovers royalty at the rate fixed in the contract against allowing to use its trade mark or brand.
      • Parent company imparts training to the employees of franchise receiver company.
      • Franchise receiver does have to spend for advertisement also.
      • Normally some centers such as $NUT, APTECH$, some restaurants like. Pizza Hut etc., provide products and services to customers.
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Question 53 Marks
Write Short Note on : Mail Ordered shop
Answer
      • A mail order shop means a shop selling useful essentials to the far off places by post and realizing money by post.
      • These shops send price list to their customers and receive orders from them.
      • These shops mostly sell light weight, small sized valuable articles.
      • They supply articles to all class of people at the door steps.
      • It requires no showroom. Direct contact with customers too is not required.
      • It does not require much capital investment.
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Question 63 Marks
State the difference : Retailer and wholesaler
Answer
No. Points Retailer Wholesaler
$1.$ Objective Sales to consumer and profit objective. Purchase for re-sale and profit objective.
$2.$ Party Purchase from a wholesaler and sells to customers. Purchases from a producer and sells to retailers.
$3.$ Capital investment Less investment in business. More capital invested in business.
$4.$ Purchase / sell Purchase in small quantity and sells as per need Purchase in lots and sells in small quantities.
$5.$ Varieties of products Numerable varieties of items. One or two lenities varieties.
$6.$ Place of activity In the area of customers. In large business centers.
$7.$ Number of Traders More in number. Less in number.
$8.$ Link Link between a wholesaler and he customer. Link between a producer and retailers.
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Question 73 Marks
State the difference: Departmental Store and Chain store.
Answer
No. Points Departmental Stores Chain Stores
$1.$ Objective To supply all goods at one place. Required products are supplied to customer’s residential area.
$2.$ Capital More capital required. Less capital required
$3.$ Sales Arrangement Sales at the same place in different. Branches at various places for sales.
$4.$ Risk More risk as all goods are at one place. Less risk as goods are sold at various places.
$5.$ Advertisement It is done in local area. It is done in big areas.
$6.$ Commodity All products are sold here. One or two varieties are sold.
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Question 83 Marks
Why there is huge capital invested in departmental store?
Answer
  • Departmental stores are located at prime location in a city. Huge amount of capital is required for land, building, furniture; various products and the same type of product of various brands have to be kept.
  • Experience and efficient salesmen are highly paid. Advertisement budget is very large. Customers are provided with many modern facilities. So it requires very huge capital to start departmental store.
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Question 93 Marks
How can chain shop sell at lower prices?
Answer
  • Chain store purchases bulk production from one or two manufacturers and through their own branches approach customers and sell the products.
  • Its administration and advertisement is carried out through head office. Experts are appointed in these stores. so administration is perfect and efficient. As a result, expenses decrease. So products are sold at lower price.
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Question 103 Marks
In India why are departmental stores not much developed?
Answer
  • Departmental stores are not developed in India.
  • They are found only in cities, big cities.
  • The reason is
$(1)$ Majority of the people in India reside in rural area.
$(2)$ Most of the people give importance to basic necessities of life rather than luxuries of life
$(3)$ Most of the people are poor.
$(4)$ Level of literacy is very low among people.
$(5)$ Rural people have no idea of the benefit of departmental store.
$(6)$ Infrastructure is not powerful. There is no facility of transportation in many parts.
$(7)$ Many villages face electricity and water supply problems.
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Question 113 Marks
Why are the products sold in departmental stores are costlier?
Answer
  • Departmental Stores are located in the prime location of a city. It is costly to convert a spacious building into a departmental store. Its furniture, maintenance, repairing, arrangement, counters, decoration etc., require huge capital.
  • Advertisement expense, high salary experienced persons, modern equipments for customers, library, multiplex, theatre, restaurant etc., are quite expensive. Administrative expense too is very high to make profit after paying all these expenses.
  • The product has to be sold at higher price in this store.
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Question 123 Marks
Among which type of customer’s mail order business is more popular?
Answer
  • Under mail order, business method customers get price list. According to which, customers place their order. After receiving the order, the trader sends goods through post parcel.
  • Customer makes payment to the postman and accepts delivery of parcel. Under this method, it is required that the customer should be literate.
  • It is difficult to do business through mail for illiterate person. Thus, literate customers prefer mail order business.
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Question 133 Marks
"Retailers are useful to Society and Customers." - Explain.
Answer
  • Retail trader supplies goods to the customers according to their requirements. He keeps almost all brands of the same product.
  • To save time and money he keeps shop very near to the residential area. He bears the loss of weight, breakage, wastage etc.
  • He provides satisfactorily after sales services. He informs them regarding new products. He settles their complaints. He sells on credit to known customers. In this way, the retail trader is useful to society.
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Question 143 Marks
"Retailers are the link between wholesale traders and customers". - Explain.
Answer
  • Customers' demand and taste regarding the size, color, weight, smell should be known. Manufacturer should know all such things.
  • Wholesalers and manufacturers do not come in direct contact with customers. It is the retailer who comes in direct contact with the customers.
  • All information related to customer is sent to the manufacturer via retailer who is in direct contact with customers.
  • Sometimes retailers send the information regarding customers demand and taste to the manufacturer. Thus, the retailers are link between wholesalers, manufactures and customers.
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Question 153 Marks
How is internal trade easier than foreign trade?
Answer
  • Internal trade is carried out within the boundary of the nation.
  • As a result
$(1)$ Accounts are settled in single currency
$(2)$ In internal trade weight and measurement are the same.
$(3)$ Transportation of goods is easy
$(4)$ Parties can contact each other
$(5)$ Language is not an obstacle.
$(6)$ Less risk of business is involved.
  • Looking to all these points, it is clear that internal trade is easier than foreign trade.
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Question 163 Marks
Explain - "Internal trade is a blessing".
Answer
  • Internal trade means purchase and sale activity carried out within the boundary of the country. Actually it can be said grace of God.
  • It is a blessing of god because each region has its own climate, soil, land, natural resources, water etc. Natural elements are different in each region.
  • Hence, different types of fruits, vegetables, grain grow in each region. Everybody needs certain specific item. They are required in other areas too.
  • Produce of one area is sent to another region by taking profit on it. If all things are produced everywhere, no question of internal trade would arise. In short, internal trade is a gift of God.
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Question 183 Marks
The owners of grocery stores in the Ahmedabad area place orders for 'Balaji Wafers' according to their needs. As a result, wholesalers supply the goods as per their requirements. Explain the difference between the relationships of traders based on this statement.
Answer
Difference Between Relationships of Traders:
  • Relationship between Grocery Store Owners and Wholesalers: This is a buyer-seller relationship based on demand and supply. Grocery store owners place orders according to their needs, and wholesalers supply the goods accordingly. This relationship is transactional and depends on individual requirements.
  • Relationship between Wholesalers and Manufacturers (like Balaji Wafers): This is more of a business partnership or supplier-distributor relationship, where wholesalers usually buy in bulk and distribute goods to retailers. The manufacturer relies on wholesalers for wide market coverage.
Thus, grocery stores and wholesalers interact directly for supply needs, while wholesalers and manufacturers collaborate for production and distribution.
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Question 193 Marks
In all branches of 'D-Mart', the prices of every item are much lower than the market price. Why is this? Explain with reasons.
Answer
Why are prices at D-Mart lower than market prices?
  1. Bulk Purchasing: D-Mart buys products in large quantities directly from manufacturers, which helps reduce the cost price due to economies of scale.
  2. Low Operating Costs: They keep operating expenses low by minimizing advertising and maintaining efficient store layouts.
  3. Limited Product Range: D-Mart focuses on essential and fast-moving items, reducing inventory costs and wastage.
  4. Efficient Supply Chain: They use an efficient supply chain management system to reduce transportation and storage costs.
These factors help D-Mart offer products at lower prices compared to other retailers.
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3 Marks Each - OCM STD 11 Commerce Questions - Vidyadip