UP Board Solutions for Class 10 Commerce Chapter 9 Home Trade: Wholesale and Retail Trade

UP Board Solutions for Class 10 Commerce Chapter 9 Home Trade: Wholesale and Retail Trade

Home Trade: Wholesale and Retail Trade Objective Type Questions (1 Mark)

Question 1.
Weight of the commodity only is called: (UP 2016)
(a) Gross weight
(b) Total weight
(c) Net weight
(d) None of these
Answer:
(c) Net weight

Question 2.
When the businessman changes the shape and qualities of the thing, the process is known as:
(a) Industry
(b) Manufacturing
(c) Business
(d) None of these
Answer:
(b) Manufacturing

Question 3.
Only the weight of the packing is known as:
(a) Tare
(b) Advertisement
(c) Binding
(d) None of these
Answer:
(a) Tare

Question 4.
Trade may be either have trade or………
(a) Internal Trade
(b) Wholesale Trade
(c) Retaling Trade
(d) Foreign Trade
Answer:
(d) Foreign Trade

Question 5.
………. is the document whereby the seller credits the account of the buyer with the amount overcharged.
(a) Debit Note
(b) Credit Note
(c) Cash Memo
(d) Voucher
Answer:
(b) Credit Note

Home Trade: Wholesale and Retail Trade Definite Answer Type Questions (1 Mark)

Question 1.
Write down the full form of C. O. D.
Answer:
Cash on Delivery.

Question 2.
Which type of document is made if the buyer is undercharged can the invoice for any reason?
Answer:
Debit note.

Question 3.
What kind of discount is not entered in the books?
Answer:
Trade Discount.

Question 4.
Which type of delivery is takes place when the seller gives the documents of ownership of goods instead of goods?
Answer:
Constructive Token Delivery.

Question 5.
Name the one kind of Home Trade.
Answer:
Manufacturing.

Home Trade: Wholesale and Retail Trade Very Short Answer Type Questions (2 Marks)

Question 1.
What denotes ‘Trade’?
Answer:
Trade refers to the sale, transfer or exchange of goods and services and constitutes a central activity around which the other business functions like banking, transportation, insurance, packaging, warehousing and advertising cluster.

Question 2.
Name the types of Trade.
Answer:
Trade may be either Home Trade or Foreign Trade.

Question 3.
What is “Cash Down Payment”?
Answer:
Cash down payment. It means that the buyer will have to make the payment of the time of sale of goods.

Question 4.
What is “Franco”?
Answer:
Franco includes all the expenses which are incurred in sending the goods up to to the godown of the buyer. All the expenses are made by the seller and the buyer does not make any payment for expenses, but they are all included in the price of the goods.

Question 5.
When actual delivery takes place?
Answer:
Actual delivery takes place when the seller actually hands over the goods to delivery.

Home Trade: Wholesale and Retail Trade Short Answer Types Questions (4 Marks)

Question 1.
Describe any four services rendered by a retail trader. (UP 2019)
Answer:

  1. Collection of the necessary information.
  2. Relieves from retail work.
  3. Relieves from a local advertisement.
  4. Advantages of increased sales.

Question 2.
What is Retail Trading? Write two merits of Retail Trading? (UP 2014)
Answer:
Retail Trading. It is one of which a retailer purchases goods from wholesalers, deals in small quantities of goods but his business is not specialised in one line of goods and selling goods to ultimate consumers.

  1. Regular availability of goods for the consumer.
  2. Supply of goods according to fashion for the consumers.

Question 3.
Write two differences between Inland Trade and Foreign Trade. (UP 2014)
Answer:

Inland Trade Foreign Trade
1. This is done within the boundaries of the country. 1. This is done with some other country.
2. There is no problem with the exchange rate as the trade is done in-home currency. 2. Rate of exchange between the countries is to determined.

Question 4.
Name the trade between India and the United States of America and Define it. (UP 2014)
Answer:
Foreign Trade: Foreign Trade means the trade that is carried on between living in different countries or between the government of different countries.

Question 5.
What are the benefits of an advertisement in the newspaper?
Answer:
Following are the benefits Benefits of Advertisement in Newspaper:

  1. At a comparatively cheap cost, such advertisement can be presented for numerous customers who could not otherwise approach.
  2. Any business houses increasing a sale by advertisement in a newspaper.

Home Trade: Wholesale and Retail Trade Long Answer Type Questions (8 Marks)

Question 1.
What is meant by Retail Trader? Differentiate between retailer and wholesale trader. Mention the services provided by a retailer towards society.
Or
What is wholesale trade? Distinguish between wholesale trade and retail trade. (UP 2011, 15)
Answer:
The retailer is one who purchases goods from wholesalers, deals in small quantities of goods but his business is not specialized in one line of goods and he sells goods to ultimate consumers.
Differences between Wholesalers and Retailers:

Basis of Difference Wholesalers Retailers
1. Nature of Business They purchase goods from producers and sell them to retailers for the purpose of further sale. They purchase goods from wholesalers and sell them to consumers for the purpose of consumption.
2. Quantity of purchases They purchase goods in large quantities and sell them in comparatively smaller quantities to retailers. They purchase goods in small quantities from a wholesaler and sell them in still smaller quantities to consumers.
3. Nature of Transactions Credit is the basis of wholesale trade. They generally do cash transaction.
4. Scale They carry the business on a very large scale. They carry the business on both, small as well as large scale but usually on small scale.
5. Capital Huge capital is required by them. They do not require huge capital.
6. Position They are a link between producers and retailers. They are a link between wholesalers and consumers.
7. Commodity They deal in less number of commodities. They deal in many commodities.
8. Place of Business Their business is spread in a very wide area. Their business is centralised in one place.
9. Buyers They sell goods to dealers or industrial users. They sell goods to ultimate consumers.
10. Knowledge of Business They have full knowledge of the situation in the market. They have full knowledge of the taste and requirements of the consumers.
11. Price Wholesale price is lower than the retail price. Retail price is higher than the wholesale price.

Question 2.
Differentiate between Debit Note and Credit Note. (UP 2015)
Answer:
Differences between Debit Note and Credit Note:

Debit Note Credit Note
1. Debit note is made if the buyer is undercharged in the invoice for any reason viz-error, omission etc. 1. The credit note is made if the buyer has been overcharged in the invoice and to amend the error which is made.
2. It is prepared with ordinary ink which is used in our daily routine. 2. It is either written in red ink or is printed red in colour.
3. The amount of the debit note is debited in the account of the buyer. 3. The amount of credit note is credited in the account of the buyer.
4. The purchaser has to make more payment than invoice amount i.e., the number of invoice increases. 4. The purchaser has to make less payment than invoice amount i.e., the number of invoice decreases.
5. The employees of the seller give information about the error. 5. The error is pointed out by the complaint letter of the buyer.

Question 3.
What is meant by Mail Order Business? Write the merits of Mail Order Business.
Answer:
Mail Order Business: Under the mail-order business, all the transactions pertaining to purchase and sales are done by post. There is no direct link or any conversation between a buyer and a seller. Under this system, the order is placed through the post and the goods are despatched through the post. Thus, the mail-order business may be described as shopping by post, as the goods are despatch through V.P.P.

Merits of Mail Order Business: Businessman, as well as customers both, have advantages from the mail-order business.
Some of them are as follows:

  1. Less Capital is Required: The business can be started with little capital because there is no need for storing goods. After receiving the order he can collect the goods for executing the order.
  2. No Shop and Display Expenditure: There are no overhead expenses in the mail order business. There is no need for a shop. Goods are not to be displayed as no stock is maintained.
  3. No Bad Debts: All transactions are on a cash basis and thus, there is no danger of bad debts.
  4. Elimination of Middlemen: There is no need for middlemen in such type of business. Hence, the businessman is able to allow more commission to the customers.
  5. High Profits: Because of the low operating cost of business, the margin of profit is very high.

There are so many merits to the customers by this form of retail trade. Some of them are as follow:

  1. The customers get the goods at their homes. They do not have to go to the market to purchase the goods.
  2. The customers can make a selection of goods in their free time with the help of price-list.
  3. The customer can purchase even those goods which are not available in the shops in his town or village.
  4. In such type of business, the customers feel that goods are of standard quality.
  5. The customer gets goods on reduced rates due to less overhead expenses and the elimination of middlemen.

UP Board Solutions for Class 10 Commerce

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