11th Class Business Studies Internal Trade Question Bank Internal Trade (Short)

  • question_answer
    Explain different types of fixed shops under retail trade.


    Ans.     Fixed shops are of two types: (A) Small scale and (B) Large scale.
    (A) Small Scale:
    There are different types of small retailers which are explained as under:
    (i) Street Stalls Holders: These retailers carry their business on a very small scale basis in busy and crowded streets by erecting permanent shops. They purchase goods in large quantities from the wholesalers and local suppliers for reselling to the ultimate consumers.
    They usually deal in household articles and products of daily need. These stall holders are usually the sole proprietors of their shops i.e. carrying every activity right from buying till final disbursement of goods to the consumers.
    (ii) Second Hand Goods Sellers: These dealers deal in second hand or used articles. They purchase these articles from public or private auctions and private households. These articles usually include used garments, furniture, books etc. These dealers meet the needs of the poor people who cannot afford new articles.
    (iii) General Shops: They deal in different variety of goods and are known as general merchants. The goods are meant for daily use or household purposes. They carry their business in permanent shops. They manage the shops themselves and are most often assisted by sales assistants.
    Usually goods are sold on credit by these merchants to their permanent customers. They also provide free home delivery service and facility of exchange of rejected goods to the customers.                                     .
    (iv) Speciality Shops: These retailers deal in one particular line of goods e.g books, utensils shoes and medicines etc. These shops can be operated on small scale basis and managed by the owners themselves assisted by salesmen.
    The most important advantage which can be derived from these shops is that the owners possess the specialised knowledge about the product which is very helpful in satisfying the customers.
    (B) Large Scale Retailers:
    The second type of retailers under fixed shops is large scale retailers. The large scale production and rapid urbanisation are responsible for the establishment of large scale retailing organizations.
    Most prevalent of these are:
    (i) Departmental Stores;
    (ii) Multiple Shops or Chain Stores;
    (iii) Mail Order Houses;
    (iv) Super-Markets (v) Co-operative Stores; and (vii) Vending Machines

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