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CBSE Questions for Class 11 Commerce Business Studies Internal Trade Quiz 5 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Internal Trade
Quiz 5
The term business includes every lawful trade, occupation and profession.
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True
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False
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Sometimes false
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None of the above
Explanation
The term business includes any lawful trade, commerce, manufacture or even any adventure or concern in the nature of trade, commerce or manufacture. The term includes every trade occupation or profession.
NAFTA is____________________.
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treaty signed between two companies of Europe
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free trade between America and Europe
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free trade agreement between US, CANADA and MEXICO.
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free treaty between any two countries
Explanation
The North American Free Trade Agreement, which eliminated most tariffs on trade between Mexico, Canada and the United States, went into effect on Jan. 1,1994.
NAFTA's purpose
is to encourage economic activity between North America's three major economic powers.
Identify the interests and aims of Chambers of Commerce and Industry.
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Transportation or inter-state movement of goods.
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Octroi or other local levies.
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Harmonisation of VAT structure.
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All of the above
Explanation
Interests and aims of chambers of commerce and industry:
(i) Transportation or inter state movement of goods: The Chambers of Commerce and Industry help in many activities concerning inter state movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.
(ii) Octroi and other local levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits.
(iii) Harmonisation of sales tax structure and Value Added Tax: The Chambers of Commerce and Industry play an important role in interacting with the government to harmonise the sales tax structure in different states.
Which among the following is an indirect tax?
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Income tax
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Wealth tax
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Custom duty
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Gift tax
Explanation
Custom duty is the example of an indirect tax and others income tax, wealth tax and gift tax are example of direct tax.
_________ not only enable(s) the producers to reach large number of buyers spread over a wide geographical area.
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Wholesaler
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Retailer
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Government
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All of the above
Explanation
Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.
Among the following types of taxes, find the one which is Indirect.
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Gift Tax
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Corporate Income Tax
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GST
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Wealth Tax
Explanation
An indirect tax is a tax which is imposed on one person and is paid partly or wholly by another party. This means that the effect or incidence of an indirect tax is not upon the party who pays the tax but on someone else. For example, sales tax is imposed on the sales of a business. This tax is collected by the seller from his customers and paid to the government. Here the seller does not bear the impact of the tax, rather he simply collects the tax and deposits the same with the sales tax department. The impact of the tax is borne by the customer who actually purchases the goods. Since this tax is paid not by the buyer himself, but by the seller, it is called indirect tax. Other examples of indirect taxes are value added tax, excise duty, service tax, GST etc
Advising the manufacturers about various aspects including customers' tastes and preferences, market conditions, competitive activities and the features preferred by the buyers is one of the services given by the wholesaler. Identify the service.
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Help in the marketing function
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Financial assistance
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Facilitating large scale production
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Expert advice
Explanation
The advice
given by someone who has studied a subject thoroughly or who is very skilled at a particular job. You should seek
expert advice
before going into business. If you are travelling to a malarial area, get
expert advice
before you set off.
In India tax evasion is high at:
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20 %
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15%
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30%
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18%
Explanation
India's top tax rate is currently 30 per cent.
But it is not just the rich evading their taxes. Less than 3 per cent of Indians file income-tax returns at all, and officials said only about 1.5 million taxpayers claim they earn more than one million rupees per year. In the current year, o
f the 76 lakh individual assesses who declared income of above Rs 5 lakh, 56 lakh are in the salaried class.
MODVAT was introduced in the Union Budget of:
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1986-87
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1996-97
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2006-07
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None of the above
Explanation
MODVAT was introduced in the Union Budget of 1986-87. MODVAT stands for Modified Value Added Tax.
Through the service of ________ retailers make the products available to the final consumers, who may be scattered over a large geographic area.
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distribution of goods
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promotion
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collecting market information
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enabling large-scale operations
Explanation
Distribution
is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider or using indirect channels with distributors or intermediaries.
In a mixed economy, both market forces and government decisions determine which
goods and services
are produced and how they are
distributed
.In a command economy, also known as a planned economy, the government largely determines what is produced and in what amounts.
_______ are the small retailers who are commonly found at places where huge floating population gathers.
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Street traders
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Peddlers and hawkers
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Market traders
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Cheap jacks
Explanation
Street trading
is defined as the selling or offering for sale of any article in the
street
. Traders who use the public highway to sell goods or services must have a
street trading
licence to carry out
trade
from a designated site/pitch and display of goods in front of a shop.
General stores are most commonly found in a local market and residential areas.
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True
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False
Explanation
A general merchant store (also known as
general merchandise store
, general dealer or
village shop
) is a rural or
small
town store that carries a general line of
merchandise
.
General goods
are basic items, usually needed for everyday survival, including basic drinks, food, and some basic profession or trade skill tools. Vendors for these items can be found in just about every major city or village.
Identify the correct statement from the following.
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Information about the consumers received from the retailers enable the manufactures to make suitable adjustments in the design, size and contents of their products.
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Many retailers offer free home delivery of goods purchased.
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Retailers are often ready to take back goods with which consumers are not satisfied and replace them.
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None of the above
Explanation
A
retailer
purchases in bulk from the wholesalers and sells the products to the customers in small quantities. A
retailer
essentially maintains a variety of merchandise. The aim of a
retailer
is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.
Which of the limitation talks about lack of initiative under the Chain store or Multiple shops retailer?
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Fluctuations in demand for the merchandise may lead to loss because of large stock.
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The personnel managing the multiple shops have to obey the instructions received from the head office which makes them habitual for directions.
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The multiple shops deal only in limited range of products.
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All of the above
Explanation
It is an approach to operating a
retail
business in which you offer products to customers through
multiple retail
channels. Brick and mortar stores, catalogs and the Internet are three primary
multiple
channels used by many retailers, but other, smaller
retail
formats exist as well.
Retailers help manufacturers to advertise their products and offer short-term incentives in the form of coupons, free gifts, sales contests. This service is identified as _________.
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Help in distribution of goods
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Help in promotion
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Collecting market information
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Enabling large-scale operations
Explanation
Promotion
is a type of communication between the buyer and the seller. The seller tries to persuade the buyer to purchase their goods or services through
promotions
. It
helps
in making the people aware of a product, service or a company. It also
helps
to improve the public image of a company.
Promotion
is the element in an organization's marketing mix that serves to inform, persuade and remind the market of the organization or
its
products.
Identify the incorrect statement regarding large shop retailers.
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There are different size groups of fixed shop retailers.
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These retailers may be dealing in different products, including consumer durable as well as non-durable.
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This category of retailers has greater credibility in the minds of customers.
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They normally deal in consumer products of daily use.
Explanation
Large scale retail
trade is a type in which either single type of goods or a variety of goods is made available to a
large
number of consumers in a big shop under a singel roof or may be made available at the convenience of customers.
Which of the following is not a feature of Chain store?
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The manufacturing/procurement of merchandise for all the retail units is centralized at the head office.
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Each retail shop is under the direct supervision of a Branch Manager.
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As the size of these stores is very large, they are generally formed as a joint stock company.
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The prices of goods in such shops are fixed and all sales are made on cash basis.
Explanation
Chain store
is that it deals in one type of product. Thus the idea behind multiple shops is specialization. Thus we can say that
chain stores
mean a group of
stores
, handling similar lines of merchandise with single ownership and scattered locations.
Hence, C is the correct option.
Sellers cannot clear all the doubts of customers through catalogues and advertisements. This is because of _____.
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High promotion cost
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No after sales service
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Delayed delivery
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Lack of personal contact with customers
Explanation
Poor Customer service
occured due to
customers
needs and expectation are not satisfied, failing to managing a
customer service
operation and company standerd , laking of organised planned to execute cutomer
service
,laking of motivational skills, and laking of good communication skills in concern of product/
service.
The vending machine incorporates ______ which are placed inside the machine in order to store and dispense products.
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can feeder
0%
stack columns
0%
feeder trays
0%
all of the above
Explanation
The initial outlay is not too high and you can get a
machine
for Rupees 150 to rupees 450, meaning if you do not have a lot of cash to
invest
at the beginning, you can still break into the
vending machine
business by choosing bulk candy
vending machines
. The products inside these
machines
offer very
good
profit margins.
Who cannot opt for Composition Scheme under GST?
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Taxpayer supplying exempt supplies.
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Supplier of services other than restaurant related services.
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Casual taxable person or a non-resident taxable person.
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All of the above
Explanation
The following people cannot opt for the scheme:
1. Supplier of services other than restaurant related services;
2. Manufacturer of ice cream, pan masala, or tobacco;
3. A casual taxable person or a non-resident taxable person;
4. Businesses that supply goods through an e-commerce operator.
Hence, D is the correct option.
Exemptions of Goods under GST apply to which of the following?
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Animal feeds and supplements
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Fresh milk and pasteurized milk
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Khadi garments /goods and made-ups
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All of the above
Explanation
List of Exempted Goods under GST includes:
Animal feeds and supplements,
Fresh milk and pasteurized milk,
Khadi garments /goods and made-ups
To ensure fair management of funds the accounts of the stores are audited by _______.
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Registrar of Cooperative Societies
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Registrar of Companies
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Registrar of Retail Stores
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Joint Stock Company
Explanation
A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.
In India, GST became effective from _______.
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1st April, 2017
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1st January, 2017
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1st July, 2017
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1st March, 2017
Explanation
The Goods and Services tax came into effect from July 1, 2017 through the implementation of 101st Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple cascading taxes levied by the central and state governments.
Advantages of GST:
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It eliminates the cascading effect of tax.
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Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit.
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The number of compliance is lesser
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All of the above
Explanation
Advantages of GST are:
GST eliminates the cascading effect of tax;
Higher threshold for registration;
Composition scheme for small businesses;
The simple and easy online procedure;
The number of compliances is lesser;
Defined treatment for E-commerce operators;
Improved efficiency of logistics;
The unorganized sector is regulated under GST.
Hence, D is the correct option.
There can be different alternatives for receiving payments for a Mail Order House. They are _______.
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full payment in advance
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Value Payable Post (VPP)
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the goods may be sent through a bank
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All of the above
Explanation
A card not present transaction (CNP, MO/TO,
Mail Order
/ Telephone
Order
, MOTOEC) is a
payment
card transaction made where the cardholder does not or cannot physically present the card for a merchant's visual examination at the time that an
order
is given and
payment
effected.
The seller approaches the customers by advertising the goods through ______.
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the press
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sending circulars
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samples and catalogs
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all of the above
________ are the small retailers who are commonly found at places where huge floating population gathers, for example, near railway
stations and bus stands.
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0%
Market traders
0%
Peddlers and hawkers
0%
Street traders
0%
Cheap jacks
Explanation
Street trading
is defined as the selling or offering for sale of any article in the
street
. Traders who use the public highway to sell goods or services must have a
street trading
licence to carry out
trade
from a designated site/pitch and display of goods in front of a shop.
Wholesalers undertake advertisements and other sales promotional activities to induce customers to
purchase the goods. The function performed by the wholesalers is ____.
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Grant of credit
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Specialized knowledge
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Marketing support
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Risk sharing
Explanation
Marketing Support
Service. A
Marketing Support
Service would typically include some or all of the the following elements
Stationery &
Marketing
Collateral management design, print, logistics. Website portfolio design and development. Advertising Campaign media planning / buying, creative, delivery & management.
Mail order business is known as shopping by ___.
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email
0%
fax
0%
post
0%
website
Explanation
Mail
order business
, also called direct
mail
marketing, method of merchandising in which the seller's offer is made through mass
mailing
of a circular or catalog or through an advertisement placed in a newspaper or magazine and in which the buyer places an
order
by
mail
.
______ may be dealing in one particular line of merchandise, say fabrics or ready-made garments, toys, or crockery.
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0%
Peddlers and hawkers
0%
Market traders
0%
Street traders
0%
All of the above
Explanation
An investor who makes many trades throughout a
trading
day, buying and selling securities in order to profit from short-term changes in prices. However,
traders
provide a great deal of liquidity to the
market
. See also: Registered Competitive
Trader
.
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Practice Class 11 Commerce Business Studies Quiz Questions and Answers
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