Tag: retail trade

Questions Related to retail trade

Mail order houses are confronted with the problems like _______.

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. damage of goods in transit

  2. excessive operating cost

  3. credit policies

  4. all of the above

Show answer
Correct Option: D
Explanation:
1.  Lack of personal contact
In mail order business, the producer/seller and customers cannot have direct personal contact with each other. The customers cannot get as much satisfaction as desired from the goods. As a result, they may be attracted to other retailing institutions to buy necessary goods.
2. unnecessary delay
Unnecessary delay is a major disadvantage of mail order business. As in this method of purchase order takes a comparatively long time to reach the producers' hand and also to give delivery of goods to buyers by mail, mail order business is a delay-making business.
3. Lack of selection of goods
in mail order business, the customers cannot inspect goods; they cannot get the selection facility and buy preferred goods.

Under ________ system the goods can be sent to all the places having postal services.

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. mail order houses

  2. chain Stores

  3. departmental store

  4. specialty shops

Show answer
Correct Option: A
Explanation:

Mail-order house is a company that sells or manages mail-order advertising or a mail-order business. 

A company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-order house.

Mail order retailing is also referred to as _______.

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. non-store impersonal retailing

  2. shopping by post

  3. selling by post

  4. (A) or (B) or (C)

Show answer
Correct Option: D

What are the disadvantages that Consumer Cooperative store faces?

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. Lack of patronage.

  2. Lack of business training.

  3. Shortage of funds

  4. All of the above

Show answer
Correct Option: D
Explanation:
Disadvantages are:
  • Lack of Secrecy: A cooperative society has to submit its annual reports and accounts with the Registrar of Cooperative Societies.
  • Lack of Business Acumen: The member of cooperative societies generally lack business acumen. 
  • Lack of Interest.
  • Corruption.
  • Lack of Mutual Interest.

Name the type of goods that are suitable for trading through mail order houses.

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. Goods that can be graded and standardized

  2. Goods that can be easily transported at a low cost

  3. Goods that can be described through pictures

  4. All of the above

Show answer
Correct Option: D
Explanation:

Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

Only the goods that can be:
(i) graded and standardised
(ii) easily transported at low cost
(iii) have ready demand in the market
(iv) are available in large quantity throughout the year
(v) involve least possible competition in the market and
(vi) can be described through pictures etc., are suitable for this type of trading. 

How the capital of a cooperative store is raised?

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. Through issue of shares.

  2. By inviting subscriptions from the members

  3. By raising funds from the general public.

  4. All of these

Show answer
Correct Option: A
Explanation:

Directly from members. member contributions with no individual ownership attached, such as service fees. Member share capital represents individual member commitment to the cooperative form of business. It also identifies the individual member's financial stake.

The success of mail order business depends heavily on the availability of __________ at a place.

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. efficient postal services

  2. credit facilities

  3. after sale services

  4. none of the above

Show answer
Correct Option: A
Explanation:
It means postal services can deliver more efficiently to their customers, helping to unlock new opportunities and fuel economic growth.

What are the minimum number of members required to form Consumer Cooperative Store?

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. 5

  2. 10

  3. 15

  4. 20

Show answer
Correct Option: B
Explanation:

A consumer cooperative store is an organisation owned, managed and controlled by consumers themselves. The objective of such stores is to reduce the number of middlemen who increase the cost of produce, and thereby provide service to the members.

To start a consumer cooperative store, at least 10 people have to come together and form a voluntary association and get it registered under the Cooperative Societies Act.

What are the disadvantages that acts as a hindrance while trading through mail order houses?

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. Delayed delivery

  2. No credit facilities

  3. Lack of personal contract

  4. All of these

Show answer
Correct Option: D
Explanation:

The definition of a mail-order house is a company that sells or manages mail-order advertising or a mail-order business. A company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-order house.

What are the main advantages of Consumer cooperative stores?

business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

  1. Democratic management

  2. Ease of information

  3. Limited liability

  4. All of the above

Show answer
Correct Option: D
Explanation:

cooperative store. Word Origin. noun. a retail store owned and managed by consumer-customers who supply the capital and share in the profits by patronage dividends. a store operated by a farmers' cooperative organization or by a cooperative chain.