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Internal Trade MCQs

The other name for internal trade is homegrown trade. This is the trading of labor and products inside the restricted limits of the country. Import and commodity truly do add to the country's GDP yet the country significantly contributed from the inside exchange itself.

Internal Trade MCQs: This section contains multiple-choice questions and answers on Internal Trade. It will help the students to prepare well for their exams.

List of Internal Trade MCQs

1. Teleshopping is mostly useful for which age group?

1. Youngsters
2. Toddlers
3. Married Couples
4. Disabled or Elderly

Answer: D) Disabled or Elderly

Explanation:

Teleshopping is mostly useful for differently-abled people, elders or those who have restricted mobility.

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2. What is the main aim of a consumer store / co-operative store?

1. Provide an option to shop from home
2. To serve a link between the manufacturer and end consumers
3. To attract consumers using adequate advertisements
4. Represent a significant part of urban food consumption

Answer: B) To serve a link between the manufacturer and end consumers

Explanation:

The main aim of a consumer store / co-operative store is to identify the customer needs and provide services in the form the customer wants. Therefore, creating a link between the manufacturers and end consumers.

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3. What is the role of a wholesaler in the market?

1. Supply various goods and services in the market according to the demand of the consumers.
2. An important marketing channel for goods from producers
3. Purchases the goods from the manufacturer in bulk quantity and re-sells them to retailers in small quantity
4. None of the above

Answer: C) Purchases the goods from the manufacturer in bulk quantity and re-sells them to retailers in small quantity

Explanation:

The role of wholesalers in the market is to purchase the goods in large quantities from the manufacturer and then sell it to the retail shop in the demanded quantity thus creating a pivotal role in the market distribution channel.

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4. Who is responsible for holding back the goods when prices of a product fall and then selling the products when the prices rise?

1. Retailer
2. Wholesaler
3. Manufacturer
4. Agent

Answer: B) Wholesaler

Explanation:

The wholesaler keeps an eye on price fluctuations and then hold back the goods when the prices are down thus creating a huge demand and eventually releasing them in the market when the prices rise.

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5. Who is responsible for the acceptance of goods in a warehouse?

1. Warehouse Keeper
2. Manager
3. Mercantile Agent
4. Retailer

Answer: A) Warehouse Keeper

Explanation:

Warehouse Keeper is the person who is responsible for the acceptance of goods in the warehouse from the manufacturing unit. He is appointed by the governor and he is bonded to the warehouse directed to him by the authorities.

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6. What is Entrepot?

1. The mutual exchange of services or goods between international regions and borders
2. Bring goods from an external source
3. A commodity conveyed from one country or region to another for purposes of trade
4. The import of goods and re-export to a third party without having to pay Customs Duty

Answer: D) The import of goods and re-export to a third party without having to pay Customs Duty

Explanation:

Entrepot Trade means one country imports the goods to export them to some other country to avail a reduced or no customs duty. This type of trade is majorly used by Sri Lanka.

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7. Risk of payment or bad debts is overcome by which mode of payment in Mail Order Trading House?

1. National Electronic Funds Transfer
2. Real-Time Gross Settlement
3. Value Payable Parcel
4. Demand Draft

Answer: C) Value Payable Parcel

Explanation:

The risk of payment or bad debts is overcome by using Value Payable Parcel in Mail Order Trading House so that if the customer places an order for a certain good by post to the seller, then the product is sent through Value Payable Post to overcome the risk of payment.

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8. Which type of business has several branches situated in different areas of the city or different parts of the country?

1. Mail Order Trading House
2. Co-Operative Store
3. Hire Purchase System
4. Multiple Shop

Answer: D) Multiple Shop

Explanation:

Multiple Shop is the type of business in which the stores are located in different localities of a city or major states of the country, these stores are established and operated by the same organization.

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9. Who is responsible for the communication between the seller and the buyer?

1. Mercantile Agent
2. Broker
3. Commission Agent
4. Retailer

Answer: B) Broker

Explanation:

A broker is a person who is the mediator between the seller and the buyer and is solely responsible for the transaction made between both parties.

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10. Which type of business acts as a universal supplier for various types of goods?

1. Departmental Store / Co-operative Store
2. Retail Shop Owner
3. Hawkers
4. Vendors

Answer: A) Departmental Store / Co-operative Store

Explanation:

Departmental Store / Co-Operative Store is the type of business that is a universal supplier for all kinds of goods to small shops.

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