CBSE Questions for Class 11 Commerce Business Studies Internal Trade Quiz 7 - MCQExams.com

A departmental store is a large retail showroom having several departments under one roof, each department specializing in one line of product. Each of the departments is like a separate shop with centralized purchasing, selling, and accounting. Administrative activities of the departmental stores are managed by a General Manager.

A consumer cooperative store is an organization owned, managed, and controlled by consumers themselves. Merits of consumer cooperative societies are:-

1. Economic buying.
2. Elimination of middleman.
3. Consumer protection 
4. Low operating costs 
5. Social benefits

Cost, insurance, and freight (CIF) is a shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer's order while the goods are in transit.

A departmental store is a large retail showroom having several departments where each department specializes in a single line of products. Each department is like a separate shop with centralized purchasing, selling, and accounting.

The main features of a Mail Order House are:-

1. A detailed mailing list containing names and addresses of the potential customer is maintained by the mail-order house 
2. The seller sends circulars, catalogs, etc. to the customers by post.
3. The customer places the order by selecting the goods from the catalog.
4. Generally, only standardized items are bought and sold through mail-order houses, as inspection of goods is not possible.
5. Payment is received through V.P.P. or registered post.

In mail-order trading, retail sellers contact the potential buyers through advertisements and mail publicity that is by sending circulars, catalogs, price lists, samples, booklets, etc. The customers are required to place their order by post.

The features of a large-scale retailer are:

1. They require a huge investment.
2. They have large size showrooms to sell goods.
3. They are generally located at a central place or in shopping centers.
4. A large number of customers visit these showrooms.