TN State Board 11th Commerce Important Questions Chapter 24 Retailing
What is Retailing?
Retailing is the process of selling the goods and services directly to the ultimate consumers in small quantities. The trader who deals small quantities is known as retailers.
State the meaning of multiple shops.
Anumber of identical retail shops with similar appearance normally deal in standardised and branded consumer products established in different localities owned and operated by manufacturers or intermediaries are called as Chain stores or Multiple shops.
Mention any two benefits of Vending machines.
Automatic vending machine is a new form of direct selling. It is a machine operated by coins or tokens. The buyer inserts the coin or the tokens into the machine and receives a specified quantity of a product from the machine. Machine provides quick service to the customers.
What are specialty stores?
Speciality Stores deal in a particular type of product under one product line only. For example, sweets shop specialized in Tirunelveli halwa, Bengali sweets etc.
Explain the features of general stores.
- General Stores sell a wide variety of products under one roof, most commonly found in a local market and residential areas
- General stores are to satisfy the day-to-day needs of the customers residing in nearby localities.
- These stores remain open for long hours at convenient timings.
- Provide credit facilities to their regular customers.
eg: a provision store deals in grocery, bread,butter, toothpaste, soaps, washing powder, soft drinks, confectionery, stationery, cosmetics, etc.
Give any four points of distinction between selling.
Hire purchase system
Installment system of selling
|Contract of sale: It is not a contract of sale as the ownership is still retained by the seller.||It is a contract of sale as the buyer becomes the rightful owner after payment of the first installment.|
|Rights of buyer: The buyer cannot hire, sell or pledge the articles bought.||The buyer can do anything with the article|
|Action on default: A default in payment of installment leads to seizure of articles and the buyer foregoes the money paid so far.||For a default in payment of installment the article cannot be seized but legal action can be taken for the recovery of dues.|
|Bad debts: As the ownership is retained by the seller, the risk of bad debt is the minimum.||As the buyer becomes the rightful owner even before paying the foil amount the chances of bad debts are more.|
Explain the characteristics of super markets.
The important characteristics of a super market are listed below:
- Supermarkets are generally situated at the main shopping centres.
- The goods kept on racks with clearly labelled price and quality tags in such stores,
- The customers move into the store to pickup goods of their requirements, bring them to the cash counter, make payment and take home delivery.
- The goods are sold on cash basis only. No credit facilities are made available.
- Supermarkets are organised on departmental basis.
- It requires huge investment.
What is meant by ‘mail order retailing?
Mail order houses are the retail outlets that I sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading. Procedure:
- Advertisements provide information about the products to consumers.
- Order receiving and processing.
- On receiving the orders, the goods are sent to the customers through the post office by Value Payable Post (VPP).
State the features of Departmental stores.
(i) Large Size:
A department is a large scale retail showroom requiring a large capital investment by forming a joint stock company managed by a board of directors.
(ii) Wide Choice:
It acts as a universal provider of a wide range of products from low priced to very expensive goods (Pin to Car) to satisfy all the expected human needs under one roof.
(iii) Departmentally organised:
Goods offered for sale are classified into various departments. Each department specialises in one line of product and operates as a separate unit.
(iv) Facilities provided:
It provides a number of facilities and services to’ the customers such as restaurant, rest rooms, recreation, packing, free home delivery, parking,etc.
(v) Centralised purchasing:
All the purchases are made centrally and directly from the manufacturers and Operate separate warehouses whereas sales are decentralised in different departments.
What is meant by Consumer Cooperative Store? Explain merits in brief.
- A consumers cooperative store is a retail organisation owned, managed and controlled by the consumers themselves to obtain products of daily use at reasonable low prices.
- Its objective is to eliminate profits to middlemen by establishing a direct contact with the manufacturers.
- People belonging to middle and low income groups , at least 25 persons have to come together to form a voluntary association and get it registered under the Cooperative Societies Act.
- The capital of a cooperative store is raised by issuing shares to members. The management of the store is democratic and entrusted to an elected managing committee, where one man one vote is the rule.
- The cooperative stores are very famous in Tantilnadu. For example, KamadhenU and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.
- Since the value of a share of a co-operative store is kept very low, even the member of the weaker section of the society can be benefitted by becoming its members.
- One-man one-vote’ principle ensures its democratic functioning.
- Members gain a lot as they get unadulterated goods of good quality.
- Even during times of scarcity, prices are not allowed to be raised. Only a fixed: margin of profit is added to the cost price.
- Unfair practices like false weighment and false measurements are absent.
Describe the role of chambers of commerce in promotion of internal trade.
The Chamber of Commerce and Industry is an association of business and industrial houses like merchants, financiers, manufacturers, etc. in a locality, region, or state. The main objective of these associations is to promote and protect the interest and goals of Indian commerce and industry. These associations are non-profit making organisation and its members are institutional members.
Role of Associations or Chambers:
(i) Transportation or inter-state movement of goods:
The Chambers facilitate registration of vehicles, surface transport policies, construction of highways and roads in promoting interstate movement of goods.
(ii) Harmonisation CGST and SGST structure.
(iii) Marketing of agro products and related issues:
The associations of agriculturists and other federations interact with farming cooperatives to streamline local subsidies and formulate marketing policies for selling Agro products.
(iv) Weights and measures and prevention of duplication of brands:
They help the Government in formulation and implementation of uniform policies in weights and measures and prevention of duplication of brands.
(v) Promoting sound infrastructure:
They interact with Government to construct roads, ports, electricity, railways, etc.
(vi) Labour legislation:
They interact with the Government on regular basis and the issues related to labour laws, retrenchments, compensation, etc. So that the industry can run efficiently, generate employment and achieve maximum productivity.
There are about two lakh retailers in Tamil Nadu. About one lakh in Chennai city. There was an abortive move in 2012 to invite FDI in retail sector by the central government. What is your opinion?
My opinion is not favour of central government because to affect domestic products.
Many products are available near the residence of people. How do these products reach the shops from the manufacturers?
Dealers take the goods from manufactures to retail stores.
Identify various fixed shop retailers in your locality and classify them according to the different types you have studied.
Street stalls – Vegetable shop and old book shop.
Single line products: Bata shop.
Do you know any retailer selling second¬hand goods in your area? Find out the category of the product that they deal in? Which products are suitable for resale? List out some of your findings. What conclusions do you draw?
Dress materials: Sarees, shirts.
Consumer durable goods: Refrigerator washing machine.
From your own experience, compare the features of two retail stores selling the same type products.
Textile shop: Departmental store.
Features: Same quality, Same price.
Choose the Correct Answer:
Retailers deal in _______ quantity of goods.
Small scale Fixed retailers include:
(a) general stores
(c) cheap jacks
(a) general stores
Small shops which deal in a particular line of products are called as _______.
(a) market traders
(b) single line stores
(c) sugar market
(d) street stalls
(b) single line stores
_______ are mobile traders who deal in low priced articles with no fixed place of business.
(a) Shopping malls
(b) Super markets
(c) Street stalls
(d) Itinerant traders
(d) Itinerant traders
Samacheer Kalvi 11th Commerce Notes Chapter 24 Retailing
→ Retailing is the process of selling the goods and services directly to the ultimate consumers in small quantities. Retail trade refers to buying of goods and services in relatively small goods and services in relatively small quantities to the ultimate consumers. The trader who deal in retail trade are known as retailers.
→ The economic growth of a country is determined by the volume of trade, both internal and external. Particularly internal trade serves as a power factor contributing immensely to the growth of gross domestic product of a country. Internal trade consists of small scale and large scale retail organisation.
→ eg: Small Scale Retailing-Retail shop, Large scale retailing-departmental understanding, mail order business, hire purchase system, Installment system, Consumer co-operative store, Internet and e-commerce.