Chapter internal-trade: Internal Trade Assertion-Reason Questions | business studies Class 11 CBSE

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): No custom duty or import duty is levied on internal trade. Reason (R): Internal trade involves buying and selling within the boundaries of a country, and goods are part of domestic production meant for domestic consumption.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 2

Logic Check

Assertion (A): Wholesalers help manufacturers concentrate on production activities. Reason (R): Wholesalers take over the marketing and distribution functions, relieving manufacturers from many marketing activities.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 3

Logic Check

Assertion (A): Wholesalers provide time utility to both manufacturers and consumers. Reason (R): Wholesalers store goods in warehouses and make them available when demanded, bridging the gap between production and consumption.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 4

Logic Check

Assertion (A): Retailers need to maintain a large stock of goods even when wholesalers are available. Reason (R): Wholesalers make a wide variety of goods from different manufacturers readily available to retailers in small quantities.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 5

Logic Check

Assertion (A): Itinerant retailers play a significant role in Indian retail trade despite competition from large retailers. Reason (R): Itinerant retailers offer doorstep convenience and deal in daily-use goods at low cost, making them relevant to a large segment of consumers.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 6

Logic Check

Assertion (A): Departmental stores are located in central areas of a city. Reason (R): Central location helps departmental stores attract large numbers of customers from different parts of the city.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 7

Logic Check

Assertion (A): Chain stores sell goods on credit to their customers. Reason (R): Chain stores fix prices centrally and all sales are made strictly on cash basis to simplify financial management.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 8

Logic Check

Assertion (A): Consumer cooperative stores sell goods at lower prices than the market. Reason (R): By eliminating middlemen and purchasing directly from manufacturers in bulk, cooperative stores reduce the cost passed on to consumers.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): Mail order business is not suitable for illiterate buyers. Reason (R): Mail order trading relies on written catalogues, advertisements, and order forms which can only be used by literate customers.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): Supermarkets operate on a self-service model. Reason (R): Self-service allows customers to browse and pick products freely, which reduces labour costs and is suited to the high-volume sales model of supermarkets.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 11

Logic Check

Assertion (A): Retailers provide regular availability of products to consumers. Reason (R): Retailers maintain stocks of various goods purchased from wholesalers and manufacturers so that consumers can buy goods as and when needed.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 12

Logic Check

Assertion (A): Wholesalers bear a variety of risks including price fall, fire, theft, and spoilage. Reason (R): Wholesalers buy goods on their own account and keep them in their warehouses until sold to retailers, during which time they are exposed to all these risks.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): Multiple shops are able to transfer goods from one branch to another. Reason (R): The head office centrally manages stock and can redistribute unsold goods from low-demand branches to high-demand branches.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 14

Logic Check

Assertion (A): Departmental stores offer a wider range of products than chain stores. Reason (R): Departmental stores aim to satisfy all customer needs under one roof, whereas chain stores typically specialise in a limited line of standardised products.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): Consumer cooperative stores do not distribute profits to their members. Reason (R): The surplus earned by cooperative stores is used to declare bonus to members and to strengthen general reserves.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 16

Logic Check

Assertion (A): Wholesalers purchase goods in bulk and sell in smaller quantities to retailers. Reason (R): Breaking bulk allows retailers to buy goods as per their storage capacity and demand, which is a key service provided by wholesalers.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 17

Logic Check

Assertion (A): Speciality shops are becoming increasingly popular in urban areas. Reason (R): Urban consumers prefer one-stop shopping for all their needs in a single store regardless of product category.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 18

Logic Check

Assertion (A): Mail order houses do not require heavy expenditure on buildings and infrastructure. Reason (R): Mail order trading operates without any physical retail space, allowing businesses to start with relatively low capital investment.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): Chambers of Commerce and Industry promote sound infrastructure for trade. Reason (R): Chambers interact with government agencies to facilitate investment into roads, ports, electricity, and railways which support trade activities.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 20

Logic Check

Assertion (A): Fixed shop retailers have greater credibility in the minds of customers than itinerant retailers. Reason (R): Fixed shop retailers maintain a permanent establishment, offer greater services, and are more accountable for the quality of goods they sell.

Reasoning Options

ByteNotes

Chapter sections

Chapter internal-trade: Internal Trade | Assertion-Reason

Assertion (A): No custom duty or import duty is levied on internal trade. Reason (R): Internal trade involves buying and selling within the boundaries of a country, and goods are part of domestic production meant for domestic consumption.

Assertion (A): Wholesalers help manufacturers concentrate on production activities. Reason (R): Wholesalers take over the marketing and distribution functions, relieving manufacturers from many marketing activities.

Assertion (A): Wholesalers provide time utility to both manufacturers and consumers. Reason (R): Wholesalers store goods in warehouses and make them available when demanded, bridging the gap between production and consumption.

Assertion (A): Retailers need to maintain a large stock of goods even when wholesalers are available. Reason (R): Wholesalers make a wide variety of goods from different manufacturers readily available to retailers in small quantities.

Assertion (A): Itinerant retailers play a significant role in Indian retail trade despite competition from large retailers. Reason (R): Itinerant retailers offer doorstep convenience and deal in daily-use goods at low cost, making them relevant to a large segment of consumers.

Assertion (A): Departmental stores are located in central areas of a city. Reason (R): Central location helps departmental stores attract large numbers of customers from different parts of the city.

Assertion (A): Chain stores sell goods on credit to their customers. Reason (R): Chain stores fix prices centrally and all sales are made strictly on cash basis to simplify financial management.

Assertion (A): Consumer cooperative stores sell goods at lower prices than the market. Reason (R): By eliminating middlemen and purchasing directly from manufacturers in bulk, cooperative stores reduce the cost passed on to consumers.

Assertion (A): Mail order business is not suitable for illiterate buyers. Reason (R): Mail order trading relies on written catalogues, advertisements, and order forms which can only be used by literate customers.

Assertion (A): Supermarkets operate on a self-service model. Reason (R): Self-service allows customers to browse and pick products freely, which reduces labour costs and is suited to the high-volume sales model of supermarkets.

Assertion (A): Retailers provide regular availability of products to consumers. Reason (R): Retailers maintain stocks of various goods purchased from wholesalers and manufacturers so that consumers can buy goods as and when needed.

Assertion (A): Wholesalers bear a variety of risks including price fall, fire, theft, and spoilage. Reason (R): Wholesalers buy goods on their own account and keep them in their warehouses until sold to retailers, during which time they are exposed to all these risks.

Assertion (A): Multiple shops are able to transfer goods from one branch to another. Reason (R): The head office centrally manages stock and can redistribute unsold goods from low-demand branches to high-demand branches.

Assertion (A): Departmental stores offer a wider range of products than chain stores. Reason (R): Departmental stores aim to satisfy all customer needs under one roof, whereas chain stores typically specialise in a limited line of standardised products.

Assertion (A): Consumer cooperative stores do not distribute profits to their members. Reason (R): The surplus earned by cooperative stores is used to declare bonus to members and to strengthen general reserves.

Assertion (A): Wholesalers purchase goods in bulk and sell in smaller quantities to retailers. Reason (R): Breaking bulk allows retailers to buy goods as per their storage capacity and demand, which is a key service provided by wholesalers.

Assertion (A): Speciality shops are becoming increasingly popular in urban areas. Reason (R): Urban consumers prefer one-stop shopping for all their needs in a single store regardless of product category.

Assertion (A): Mail order houses do not require heavy expenditure on buildings and infrastructure. Reason (R): Mail order trading operates without any physical retail space, allowing businesses to start with relatively low capital investment.

Assertion (A): Chambers of Commerce and Industry promote sound infrastructure for trade. Reason (R): Chambers interact with government agencies to facilitate investment into roads, ports, electricity, and railways which support trade activities.

Assertion (A): Fixed shop retailers have greater credibility in the minds of customers than itinerant retailers. Reason (R): Fixed shop retailers maintain a permanent establishment, offer greater services, and are more accountable for the quality of goods they sell.

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