Revision Notes for CBSE Class 11 Business Studies Chapter 10 - Free PDF Download















FAQs on Internal Trade Class 11 Notes CBSE Business Studies Chapter 10 [Free PDF Download]
1. What are the primary documents used in Internal Trade?
Two primary documents are used in Internal Trade:
Invoice: In the event of credit purchases, the product vendor supplies a statement which contains particulars of products purchased by the customer like quantity, quality, rate, total value, sales, tax, discount, etc. Based on this invoice (also called Bill or Memo), the customer makes payment to the vendor.
Pro-forma Invoice: The forwarding letter of the statement containing the information of products consigned to the consignee. It represents the particulars like quantity, quality, price, and expenses incurred on the products consigned.
2. What are some important terms of trade?
The following are some important terms used in the trade:
Cash on Delivery (COD)
Free on Board or Free on Rail (FoB or FoR)
Cost, Insurance, and Freight (CFF)
Errors and Omissions Excepted (E&OE)
3. What is Internal trade class 11 business?
Internal trade can be defined as a process of buying and selling goods and services within the boundaries of the country. In internal trading, it does not include any kind of imports or exports from other countries. It is all about producing and consuming the goods and services domestically by the people of the country. Internal trading is not subjected to any customs or import taxes. There are two broad categories of internal trade which are wholesale trade and retailing trade.
4. What are the types of internal trade Class 11?
There are two types of Internal trade, which are as follows:
Wholesale trade- Wholesale trade is a trade in which goods and services are bought from the manufacturers and sold to the retailers in large quantities. The person who manages the wholesale trading is called a wholesaler.
Retailing trade- In retailing trade, the goods and services are sold in smaller amounts to the consumers. The person who manages the retailing trade is called a retailer. The retailers are the medium to link the manufacturer and wholesalers to the consumers.
5. What are the main documents used in internal trade Class 11?
The main documents used in internal trade are as follows:
Invoice- A statement enclosing the information about the purchase such as quantity, price, sales tax, etc.
Pro-Forma Invoice- This statement encloses the details of the goods that are consigned to the consignee from the consigner.
Debit Note- A note sent to the seller telling the amount debited from his account for the returned goods.
Credit Note- A note sent to the seller telling the amount credited from his account for accepting the claim of the returned goods.
Lorry Receipt- It is a receipt that is issued by the Transport Company for sending goods from one place to another place.
Railway Receipt- Receipt issued by Railways for sending goods from one station to another.
6. What is trade in Business Studies class 11?
In Business studies Class 11, trade is referred to as buying and selling of goods and services to make a profit based on the geographical location of buyers and sellers is called trade in general. Basically, it can be further divided into two groups:
Internal trade- Internal trade can be defined as a trade done within the geographical boundaries of a country.
External trade- External trade can be defined as a trade done across the national boundaries of different countries.
7. Is Business Studies difficult in Class 11?
No subject is difficult if you pay proper attention to grasp its concepts and religiously try to understand it. Business Studies is often looked up as a tough subject, usually because it is a whole new subject for the students who have just entered Class 11. This subject covers every aspect that is related to business or enterprises. Some parts of this subject might feel complicated to study, but you can get a grip on the subject by absorbing its basics thoroughly. For further clarity on this concept or to download revision notes for free, visit the page Business studies Class 11 on Vedantu website or download the Vedantu app.