HOTs Internal Trade Class 11 Business Studies

HOTs for Class 11

Please refer to Internal Trade HOTs Class 11 Business Studies provided below with Internal Trade. All HOTs for Class 11 Business Studies with answers provided below have been designed as per the latest syllabus and examination petter issued by CBSE, NCERT, KVS. Students of Standard 11 Business Studies should learn the solved HOTS for Class 11 Business Studies provided below to gain better marks in examinations.

Internal Trade Class 11 Business Studies HOTs

Question. Note down two categories of trade.
Answer :
The two categories of trade are.
• Wholesale trade
• Retail trade

Question. Define shops that deal with a specific line product.
Answer :
Specific line product shops refer to the shops that sell only one specific and not different type of items. These types of shop are located in the main market where a large number of customers can be attracted.

Question. Give two merits of the supermarket.
Answer :
The two merits of the supermarket are
• Sales are done with an exchange of cash which is not a bad debt
• Large scale buying and selling, resulting in less operation cost

Question. State the characteristics of fixed shop retailers.
Answer :
The two features of fixed shop retailers are
• Fixed shop retailers have wide resources and operate in large scale
• Manages different products, including both durable and nondurable
• Build trust with the customers

Question. What is the difference between wholesaler and retailer?
Answer :
Wholesale- A wholesale is selling of goods in bulk to the retailers and businesses at cheaper rates. The wholesaler buys the products in bulk, breaks it into small parts, repacked, and sells it to the retailers.
The wholesaler sells only specific items and is least interested in the location of the shop, packaging, and display of the goods. They are more interested in the quantity not the quality of a product.
For wholesale business, considerable investment is required, and not the promotion and advertisement. The customers of the wholesale are spread in various cities, town, and different states. Most of the purchases are sold through credit to the customers.
Retail- When buyers buy a product and sell it to the final customers for their consumption, and not for any resale, this is known as Retail. The retailers are the mediator between wholesaler and customers. They purchase goods from the wholesaler and sell them to the ultimate customers in small quantity.
The profit margin in the retail business is high as the retailer buy-in cheaper rates and sell it to the customers at a higher price. The final price in which the retailers sell the product includes expenses such as rent, electricity, salaries of workers, etc.