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NIOS Class 10 Business Studies Chapter 14 Retail Trade
Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Business Studies Chapter 14 Retail Trade Solutions, NIOS Secondary Course Business Studies Solutions for All Chapter, You can practice these here.
Retail Trade
Chapter: 14
NIOS TEXTBOOK QUESTIONS ANSWERS
Intext Questions 14.1
1. Match the following:
| Column A | Column B |
| (i) Super Bazar | (a) Deals in goods of one brand only. |
| (ii) Itinerant retailer | (b) Sell different varieties of the same product line. |
| (iii) Speciality Store | (c) Large variety of goods of general use. |
| (iv) Variety Store | (d) Large-scale retail trade. |
| (v) Single Line Store | (e) Sell articles on carts. |
Ans:-
| Column A | Column B |
| (i) Super Bazar | (c) Large variety of goods of general use. |
| (ii) Itinerant retailer | (e) Sell articles on carts. |
| (iii) Speciality Store | (a) Deals in goods of one brand only. |
| (iv) Variety Store | (b) Sell different varieties of the same product line. |
| (v) Single Line Store | (d) Large-scale retail trade. |
Intext Questions 14.2
Fill in the blanks with suitable words:
(i) Sale of goods and commodities in __________ quantities directly to consumers is called retail trade.
Ans:- Small.
(ii) When a shopkeeper sells groceries and other items of needs to customers through his shop, he is engaged in _________ activities.
Ans:- Retailing.
(iii) When one or more types of goods are sold to customers through big shops it is called _________ retail trade.
Ans:- Large – scale.
(iv) In large-scale retail trade, shops are located at __________ and sell goods to ________number of customers.
Ans:- Central places, large.
(v) Large scale retail shops may be opened by big __________ to sell their products directly to the customers.
Ans:- Manufactures.
Intext Questions 14.3
Whether the following statements relating to Departmental Stores are true or false, write ‘T’ for true and ‘F’ for false against each statement:
(i) A departmental store is a retail shop where different goods are sold at different counters/ departments in the same building.
Ans:- True.
(ii) The different departments like electronic goods, garments etc are managed separately for convenience of control.
Ans:- False.
(iii) There is direct contact between the customers and the owner of the departmental store through various departments.
Ans:- False.
(iv) Departmental Stores offer additional services to customers apart from the goods available for sale.
Ans:- True.
(v) These stores are conveniently located in residential areas for the benefit of large number of customers.
Ans:- False.
(vi) Departmental stores offer goods at high prices to customers due to the high cost involved in maintaining and operating the store as well as providing various facilities for customers.
Ans:- True.
Intext Questions 14. 4
I. Indicate whether the following statements about Super Bazar are right or wrong. Write ‘R’ for a right statement and W for a wrong one:
(i) Like departmental stores, super bazaars also sell a variety of goods in one building only.
Ans:- True.
(ii) They are organised as cooperative societies where the members provide the capital.
Ans:- True.
(iii) Goods are sold on credit basis for the convenience of members of the co-operative society.
Ans:- False.
(iv) Super Bazars cannot afford to hire professional managers leading to inefficiency in their operations.
Ans:- True.
(v) To provide goods at cheaper rates, super bazars offer inferior quality goods for sale.
Ans:- False.
II. Identify the type of large scale retail trade the following sentence refer to:
(i) Sale of goods is through different outlets located at different places.
Ans:- Multiple Shops.
(ii) Goods are generally available at a price higher than its market price elsewhere.
Ans:- Departmental Store.
(iii) The stores are mostly controlled by a group of consumers.
Ans:- Super Bazar.
(iv) A number of facilities are offered to customers apart from the product for sale.
Ans:- Departmental Store.
(v) Goods of the same type are sold to customers.
Ans:- Multiple Shops.
III. From the following sentences relating to large scale Retail Trade choose the suitable word(s) from those given in brackets:
(i) Goods are generally purchased in bulk from ___________________ ( manufacturers, middlemen) for sale to the consumers.
Ans:-Manufacturers.
(ii) Goods are made available to consumers mostly _____________(under same roof, in different shops)
Ans:- Under same roof.
(iii) It sells goods to _________(limited, large) number of customers.
Ans:- Large.
(iv) Goods are sold on _________ (credit, cash) basis to customers.
Ans:- Cash.
(v) The amount of capital investment required in large-scale retail trade is _______________ (mostly equal to, much greater than) the capital investment in local retail shops.
Ans:- Much greater than.
Intext Questions 14. 5
Fill in the blanks with suitable words relating to Multiple Shops:
(i) Various shops selling similar range of products at _________ price and usually run by big manufacturers are called multiple shops.
Ans:- Same.
(ii) For easy identification, all multiple shops of the same manufacturer have similar display and _________ .
Ans:- Decoration.
(iii) Since all sales are on cash basis there is no risk of ___________.
Ans:- Bad debts.
(iv) Due to elimination of _____________ goods are available to customers at low prices.
Ans:- Middleman.
(v) The multiple shops are centrally managed by the _________ leading to lack of initiative on the part of branch mangers.
Ans:- Head office.
(vi) Customers get standard quality and genuine goods through multiple shops leading to public _______ in the products.
Ans:- Confidence.
(vii) Multiple shops provide ________ variety of products for customers through their branches.
Ans:- Limited.
(viii) These shops provide ________ of location through their presence in main markets and busy shopping centres.
Ans:- Convenience.
Intext Questions 14.6
I. Whether the following statements are True and False, Write ‘T’ for true statements and ‘F’ for false statements.
(i) In mail order business, the seller approaches the customer through catalogues, magazines, television etc. to tell him/her about the product.
Ans:- True.
(ii) Mail Order Business can be successfully operated through telephone and television channels and does not require use of postal services.
Ans:- False.
(iii) Goods like jewellery, fruits and vegetables, foodgrains generally use mail order business for sale to customers.
Ans:- False.
(iv) Teleshopping saves time and effort as order can be placed over the telephone.
Ans:- True.
(v) Exchange of goods is easily possible in case of teleshopping.
Ans:- False.
(vi) Risk of fraud and dishonesty is present in Teleshopping as the consumer does not get the opportunity to inspect the goods before purchase.
Ans:- True.
II. Fill in the blanks with suitable word(s).
(i) To buy goods any time during the day or night, a convenient mode is ________.
Ans:- Automatic vending machine.
(ii) The desired goods can be bought by inserting ___________ in the automatic vending machine.
Ans:- Coins/tokens.
(iii) Credit cards are used for purchase of products through _________________.
Ans:- Internet shopping/online shopping.
(iv) To buy books or magazines from anywhere in the world, _________ may be the preferred system of retailing.
Ans:- Internet shopping/online shopping.
(v) Advertisement about the product is not required in _______________.
Ans:- Automatic Vending Machine.
(vi) Time and effort of ___________ is saved in on-line shopping.
Ans:- Customers.
(vii) The limitation of automatic vending machines is that the _______ is very expensive.
Ans:- Machine.
(viii) Knowledge of computers is required to buy goods through _______________.
Ans:- Internet shopping/online shopping.
III.
| Multiple Choice Questions |
(i) The type of trade which is totally dependent up on advertisement is called:
(a) Departmental Store.
(b) Mail Order Business.
(c) Cooperative Stores.
(d) Multiple Store.
Ans:- (b) Mail Order Business.
(ii) Which business deals in variety of goods under one roof and one management
(a) Departmental Store.
(b) Cooperative Store.
(c) Multiple Shops.
(d) None of these.
Ans:- (a) Departmental Store.
(iii) The place where different types of shops are available within one building is called:
(a) Multiple Shops.
(b) Departmental Store.
(c) Super Bazar.
(d) Wholesale Market.
Ans:- (b) Departmental Store.
(iv) There is no need of salesman in
(a) Automatic Vending Machine.
(b) Internet Shopping.
(c) Departmental Stores.
(d) Malls.
Ans:- (b) Internet Shopping.
(v) Teleshopping is done through
(a) Telephone.
(b) T.V.
(c) Personal Visit.
(d) None of these.
Ans:- (a) Telephone.
| Terminal Exercise |
1. Define ‘Large-Scale Retail Trade’
Ans:- Large scale retail trade is a type of trade in which either single type of goods or a variety of goods are made available to a large number of consumers in a big shop under a single roof or may be made available at the convenience of customers.
2. Give two examples each of Departmental Stores and Multiple Shops in India.
Ans:- The two examples of department stores are: electronic goods and jewellery.
The two examples of multiple shops are: HMT watch shop and McDonalds restaurant.
3. What is meant by Super Bazar?
Ans:- Super Bazar is a large scale consumers’ co-operative store, which sells a wide variety of products like food items, vegetables, fruits, groceries as well as durable consumer goods all under one roof. It is formed with the objective of selling goods of daily necessity to its members and also to the general public at a reasonable price by eliminating the middlemen in the process of distribution.
4. Give examples of four products that are suitable for sale through Mail Order Business.
Ans:- The examples of four products that are suitable for sale through mail order business are:- Health and beauty products.
Office supplies, computer hardware and software. Clothing, jewellery and accessories. Home furnishings and decor.
5. State any four advantages of Multiple Shops to buyers and sellers.
Ans:- The multiple shops offer the following advantages to buyers and sellers:
(i) Easy identification: All multiple shops are often built alike. They have similar shop-front, display and decoration. This helps the customers to recognise the shops easily.
(ii) Elimination of middlemen: Multiple shops are generally owned by big manufacturers. So the middlemen are eliminated in the distribution process.
(iii) Economies of large-scale: These shops enjoy the benefits of large scale purchase or production of goods. Also, due to common advertisement these shops are able to save on the cost of advertising.
(iv) Low Price: The customers can get the goods at a cheaper rate because of low operating cost and elimination of middlemen in the process of distribution.
6. Explain any four advantages of Multiple Shops to buyers and sellers.
Ans:- The multiple shops offer the following advantages to buyers and sellers:
(i) No bad debts: All sales are strictly made on a cash basis. Hence the question of loss due to bad debts does not arise.
(ii) Public confidence: Standard quality and uniform price of the products help in winning the confidence of customers. The customers get the genuine and standard goods directly from the manufacturer. The chances of duplication of goods and cheating do not arise in these shops.
(iii) Convenient location: These shops are usually located in the main markets and in busy shopping centres. So the customers can buy goods of their choice easily from these shops.
(vi) Elimination of middlemen: Multiple shops are generally owned by big manufacturers. So the middlemen are eliminated in the distribution process.
7. How are Super Bazars beneficial for customers? Explain in about 60 words.
Ans:- Super Bazar is a large-scale consumers’ co-operative store, which sells a wide variety of products like food items, vegetables, fruits, groceries as well as durable consumer goods all under one roof.Super Bazars purchase goods in bulk from the manufacturers or government agencies and sell them to the members and general public at a reasonable margin of profit.A customer can find goods of different brands at one place. This makes comparison and selection easy. You can take your own time to select items of your choice. : In India most of the super bazaars are controlled by Central and State Governments. This helps to maintain price and possibilities of creating artificial shortage of goods can be avoided.
8. Outline the procedure for buying goods through Mail Order.
Ans:- The followings are the features/procedure of mail order business:
(i) The entire process is carried out through the postal system.
(ii) Buying and selling takes place without any face-to-face contact between the buyer and the seller.
(iii) Seller advertises the products giving detailed description of the goods, mode of payment, terms of sales, etc. in the newspapers, magazines, letters, catalogues, etc.
(iv) Seller receives order from the buyer by post.
(v) Seller sends the properly packed goods to the buyer through value payable post.
9. In Spite of being a convenient method of buying goods, tele shopping is not used by consumers very often. Why?
Ans:- Today the telephone has become an indispensable means of communication in business.They will deliver the goods at the desired place on receipt of the payment. Teleshopping is not used by consumers often because since orders are received orally on telephone, there is no record of dealings. Thus, disputes over terms and conditions of sale may be difficult to resolve. No facility is available for inspection of goods offered for sale. Hence the risk of fraud and dishonesty is unavoidable. The seller may provide misleading information regarding products to attract the customers.
10. Explain any six features of Departmental Stores.
Ans:- The features of department stores are listed below:
(i) These are generally located at the main commercial centres of the cities and towns, so that customers from different localities can easily come to buy goods as per their convenience.
(ii) The size of the stores is very large and divided into many departments or counters.
(iii) Each department deals with a particular type of goods, say, one department sells electronic goods, another sells ready-made garments, a third keeps food items, and so on.
(iv) The management and control of all departments is centralised.
(v) The Departmental Stores allow customers to enjoy shopping. It enables the customers to buy everything under one roof.
(vi) Facilities such as restaurant, rest rooms, telephone, ATM (Automated Teller Machine), etc. are also made available to customers inside the store.
11. Distinguish between Departmental Stores and Chain Stores as large scale retail organisations.
Ans:-
| Basic | Department store | Chain store( large- scale organisation) |
| Ownership | Department stores are large retail establishments offering a wide range of products across various departments or categories under one roof. | Chain stores consist of multiple retail outlets that are owned and operated by the same company. |
| Product range | Department stores organise their merchandise into distinct departments, each specialising in specific product categories such as clothing, cosmetics, home goods, electronics, etc. | Chain stores may offer a diverse range of products like department stores, but they may not categorise their merchandise into departments as explicitly. |
| Customer experience | Department stores often prioritise providing a high-end, immersive shopping experience. | While some chain stores also focus on providing a pleasant shopping experience, they may prioritise efficiency and cost-effectiveness. |
| Marketing | Department stores often focus on building a strong brand identity associated with luxury, quality, and exclusivity. | Chain stores focus on establishing a recognizable brand identity associated with value, convenience, and affordability. |
12. Discuss the common features of the different types of large-scale retail trade.
Ans:- Generally we find the following types of Large-scale retailing business:
(1) Departmental Store: The features of department stores are discussed below:
(i) These are generally located at the main commercial centres of the cities and towns, so that customers from different localities can easily come to buy goods as per their convenience.
(ii) The size of the stores is very large and divided into many departments or counters.
(iii) Each department deals with a particular type of goods, say, one department sells electronic goods, another sells ready-made garments, a third keeps food items, and so on.
(iv) The management and control of all departments is centralised.
(v) The Departmental Stores allow customers to enjoy shopping. It enables the customers to buy everything under one roof.
(2) Multiple Shops: The features of multiple shops are discussed below:
(i) Under the same management and ownership these shops are operated at different places near the customers.
(ii) All shops are decorated in the same manner to facilitate easy recognition by customers.
(iii) Multiple shops deal in similar types of goods mostly of everyday use e.g., shoes, textiles, watches, automobile products, etc.
(iv) The price is uniform in all the shops for similar items. The head office fixes the price. This practice avoids bargaining and cheating.
(v) All multiple shops are managed and controlled by the head office.
(3) Super Bazar features are discussed below:
(i) These stores are set up in the form of co-operative societies.
(ii) These are centrally located and also establish their branches near the residential localities. Some Super Bazars have their mobile van, which is taken to the residential areas for sale of goods.
(iii) It deals in standard quality products only.
(iv) These stores are often run on a self-service basis. You can pick up the goods of your choice from the open shelves and take them to the cash counter for making payment. In some Super Bazars salesmen are also employed to assist the customer in the process of selection of goods.
(v) These stores are managed by elected members of the co-operative society.
13. Explain the advantages and limitations of Internet Shopping for customers?
Ans:- Advantages of Internet Shopping:
(i) Goods from the international market can be purchased sitting at home.
(ii) It saves time and effort of the customers.
(iii) It is the quickest mode of retailing.
(iv) The sellers find it economical because there is no need to keep large stocks of goods in their stores.
(v) This system is very useful in foreign trade.
Limitations of Internet Shopping:
(i) It is not useful for those people who do not have knowledge of using a computer.
(ii) It does not allow physical inspection of goods.
(iii) Payments are required to be made through credit card, which the common man cannot afford to have.
(iv) The pleasure of personal shopping is absent.
14. Sale of goods through Automatic Vending Machine is a system of retailing that offers a number of advantages to the seller and buyer. Discuss.
Ans:- Sale through an automatic vending machine is another technique of selling goods. It provides round-the-clock facility to the customers for purchase of goods. These machines are normally placed at convenient locations, near railway stations, bus terminals, busy shopping centres etc. By inserting a coin or token in the automatic vending machines, you can buy certain specified goods. This system of retailing is popular in foreign countries through which chocolates, milk, ice cream, soup, newspaper, etc. are sold to a large number of customers. In India this system is not very popular.
15. What is meant by ‘Internet Retailing’?
Ans:- Internet retailing, also known as online retailing or e-commerce, refers to the process of selling goods and services over the internet through websites or online platforms. It involves the buying and selling of products or services electronically, without the need for physical storefronts or face-to-face interactions between buyers and sellers.
16. Describe the different types of fixed shop retail trade.
Ans:- The different types of fixed shop retail trade are as follows:
(i) Department store: A Departmental Store is a large-scale retail shop where a large variety of goods are sold in a single building. The entire building is divided into a number of departments or counters. In each department specific type of goods like stationery items, books, electronic goods, garments, jewellery etc.
(ii) Super bazar: Super Bazar is a large-scale consumers’ co-operative store, which sells a wide variety of products like food items, vegetables, fruits, groceries as well as durable consumer goods all under one roof. It is formed with the objective of selling goods of daily necessity to its members and also to the general public at a reasonable price by eliminating the middlemen in the process of distribution.
(iii) Multiple shops: Chain stores or multiple shops refer to the network of retail shops established in localities spread in different parts of the country. These are owned and operated by the same organisation and have the same merchandising strategies with the same products and display.
