Class 11 NCERT Solutions Business Studies - Chapter 10 - Free PDF Download
FAQs on NCERT Solutions for Class 11 Business Studies Chapter 10 Internal Trade
1. What are the primary documents used in Internal trade
- Invoice – in the event of credit purchases, a statement is supplied by the vendor of products within which he gives particulars of products purchased by the customer like quantity, quality, rate, total value, sales tax, discount, etc. it's also called a Bill or Memo. The customer gets information all about the amount he has got to pay to the vendor from invoice only.
- Pro-Forma Invoice – The forwarding letter of the statement containing the information of products consigned from consigner to consignee is known to be a Pro-forma Invoice. It presents the particulars as regards quantity, quality, price and expenses incurred on the products consigned.
2. What are some of the terms of trade?
The following are the principal terms utilized in the trade.
- a. Cash on delivery: It relates to a sort of transaction during which payment for products or services is made at the time of delivery. If the customer is unable to make payment when the products or services are delivered, then it'll be returned to the vendor.
- Free on Board or Free on Rail: It relates to a contract between the vendor and the buyer during which all the expenses up to the act of delivery to a carrier (it could also be a ship, rail, lorry, etc.) are to be borne by the vendor.
3. Specify the characteristics of fixed shop retailers according to the Chapter 10 of Class 11 Business Syllabus.
Retailers who remain at one place to sell their goods and services are called fixed shop retailers. Some of the characteristics of fixed shop retailers are as follows:
Resources available at fixed shop retailers are more than the itinerant traders
They have a facility of home delivery for their customers
They have higher credibility as the good can be exchanged in case of default
4. What purpose is served by wholesalers providing warehousing facilities according to the Chapter 10 of Class 11 Business Syllabus?
Wholesalers deal in bulk orders, which they take from manufacturers. Apart from purchasing goods, wholesalers also provide warehouses for distribution purposes. The entire responsibility of storage and any unseen risk is borne by the wholesaler. This is known as “place utility”. This pushes the manufacturers to work on a big scale and lets them free of the storage facilities. Apart from this, wholesalers do provide “time utility” by providing the facility of marketing and distribution.
5. What is internal trade according to the Chapter 10 of Class 11 Business Syllabus?
According to Chapter 10 of Class 11 Business Studies, the trade which is done within the reach or boundary of the country is known as internal trade. In other words, dealing in goods and services within the home country is called internal trade. Some of the common internal trade examples are when we purchase goods from a local shop or visit a mall or for purchase. In Internal trade, the government does not put any import duties as they are trading within the country and meant for meeting the domestic demand.
6. What are the types of internal trade according to the Chapter 10 of Class 11 Business Syllabus?
There are two types of internal trade:
Wholesale Trade - Wholesale trade is a trade where trading is on a larger scale as buying and selling takes place in bulk
Retail Trade - Retail trade is a trade in which trading is done in small quantities as buying and selling take place on a small scale
7. Explain the types of internal trade.
Internal trade is classified into two categories:
Retail Trade - It is a type of trade where the purchase is made from the wholesalers for consumption purpose
Wholesale Trade - It is a type of trading where the purchase is made in bulk from the manufacturers for re-selling purposes.
8. What is a trade according to the Chapter 10 of Class 11 Business Syllabus?
Trade is a concept that is entirely involved with buying and selling goods within the country or outside the country in return for money. Trading is important as no country is self-sufficient in all the goods and services. Trade is usually done with the motive of earning profit. It is classified into two broad categories namely - Internal trade (within a country) and External trade (two or more countries).
9. Who is the wholesaler according to the Chapter 10 of Class 11 Business Syllabus?
A wholesaler is a person who does trading of goods and services in bulk quantity. The purchase is made directly from the manufacturer or producers who make the goods in their factory. Retailers purchase goods from wholesalers and sell the goods in different parts of the country. In every city, there are wholesale markets where you can get goods at cheaper prices in comparison to retailers.