Jagran Josh
CBSE Class 11 Internal Trade Revision Notes: This article hands out handwritten revision notes for CBSE Class 11 Business Studies Chapter 10, Internal Trade. A PDF download link for the same has also been attached at the end of the article, for your reference. These short notes have been prepared according to CBSE’s Revised Syllabus 2024.
Internal Trade Class 11 Notes: Revision notes are prepared by students to recall the studied material and cover all aspects of the chapter, in less time, during examinations. They are essential study materials that come in handy for last-minute revision and covering of syllabus. Thus, students should have a look at revision notes before appearing for their examinations.
This article brings to you detailed revision notes for CBSE Class 11 Business Studies Chapter 10, Internal Trade. Students can also find attached a PDF download link for the same. These revision notes are based on Updated CBSE Syllabus 2024. Students appearing in the upcoming annual examinations in 2024, must have a look at it.
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Revision Notes for CBSE Class 11 Business Studies Chapter 1
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Revision Notes for CBSE Class 11 Business Studies Chapter 4
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Revision Notes for CBSE Class 11 Business Studies Chapter 6
Revision Notes for CBSE Class 11 Business Studies Chapter 7
Revision Notes for CBSE Class 11 Business Studies Chapter 8
Revision Notes for CBSE Class 11 Business Studies Chapter 9
Revision Notes for CBSE Class 11 Business Studies Chapter 10 are presented below:
Internal Trade– Buying and selling of goods and services within the boundaries of a nation are referred to as internal trade.No custom duty or import duty is levied on such trade as goods are part of domestic production and are meant for domestic consumption.
Wholesale Trade– Wholesale trade refers to buying and selling goods and services in large quantities for the purpose of resale or intermediate use. Wholesalers serve as an important link between manufacturers and retailers. They purchase in bulk and sell in small lots to retailers or industrial users.
Service of Wholesalers:
Wholesalers provide services to various sections, which are further described in detail, below.
- Service to manufacturers
- Facilitating large-scale production
- Bearing risk
- Financial assistance
- Expert advice
- Help in the marketing function
- Facilitate production continuity
- Storage
- Service to Retailers
- Availability of goods
- Marketing support
- Grant of credit
- Specialized knowledge
- Risk sharing
Retail Trade– A retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers. The retailer normally buys goods in large quantities from the wholesalers and sells them in small quantities to the ultimate consumers. The retails represents the final stage in the distribution where goods are transferred from the hands of the manufacturers or wholesalers to the final consumers or users.
Service of Retailers
Service of retailers is also classified into two types, which are mentioned below as:
- Services to Manufacturers and Wholesalers
- Help in the distribution of goods
- Personal selling
- Enabling large-scale operations
- Collecting market information
- Help in Promotion
- Service to consumers
- Regular availability of products
- New products information
- Convenience in buying
- Wide selection
- After-sales services
- Provide credit facilities
Types of Retailing Trade
- Itinerant retailers
- Fixed shop retailers
1.Itinerant retailers– Itinerant retailers are traders who do not have a fixed place of business to operate from.
Characteristics:
- They are small traders operating with limited resources.
- They normally deal in consumer products of daily use such as toiletry products, fruits and vegetables, and so on.
- The emphasis of such traders is on providing greater customer service by making the products available at the very doorstep of the customers.
- As they do not have any fixed business establishments to operate from, these retailers have to keep their limited inventory of merchandise either at home or at some other place.
Types of itinerant retailers:
- Peddlers and hawkers
- Market traders
- Street traders (pavement vendors)
- Cheap jacks
2.Fixed shop retailers– These are retail shops that maintain permanent establishments to sell their merchandise. They, therefore, do not move from place to place to serve their customers.
Characteristics:
- Compared with the itinerant traders, normally they have greater resources and operate on a relatively large scale. However, there are different size groups of fixed shop retailers, varying from very small to very large.
- These retailers may be dealing in different products, including consumer durables as well as nondurables.
- This category of retailers has greater credibility in the minds of customers, and they are in a position to provide greater services to the customers such as home delivery, guarantees, repairs, credit facilities, availability of spares, etc.
Types of fixed shop retailers:
- Small shop keepers- General stores, Speciality shops, Street stall holders, Second-hand goods shop,
- Large retailers- Departmental stores, Chain stores, or multiple shops
Advantages of departmental stores:
- Attract a large number of customers
- Convenience in buying
- Attractive services
- The economy of large-scale operations
- Promotion of sales
Limitations of departmental stores:
- Lack of personal attention
- High operating cost
- High possibility of loss
- Inconvenient location
Advantages of Multiple shops
- Economies of scale
- Elimination of middlemen
- No bad debts
- Transfer of goods
- Diffusion of risk
- Low cost
- Flexibility
Limitations of multiple shops
- A limited selection of goods
- Lack of initiative
- Lack of personal touch
- Difficult to change demand
Differences between departmental stores and multiple shops
|
Departmental Stores |
Multiple Shops
|
|
Located at a central place where a large number of customers can be attracted. |
Located at multiple locations to gather a large number of customers. |
|
They carry a variety of products to fulfill the needs of customers under one roof. |
The multiple stores generally aim to satisfy the requirements of customers relating to a specified range of their products only. |
|
Departmental stores lay great emphasis on providing maximum service to their customers. |
The multiple shops provide very limited service confined to guarantees and repairs if the sold-out goods turn out to be defective |
|
They do not have a uniform pricing policy for all the departments; rather they have to occasionally offer discounts on certain products and varieties to clear their stock. |
The multiple shop chains sell goods at fixed prices and maintain uniform pricing policies for all the shops |
|
The departmental stores cater to the needs of a relatively high-income group of customers |
They cater to different types of customers, including those belonging to the lower-income groups, who are interested in buying quality goods at reasonable prices. |
|
The departmental stores may provide credit facilities to some of their regular customers |
All sales in the multiple shops are made strictly on a cash basis. |
|
They have a certain flexibility in respect of the line of goods marketed |
There is not much scope for flexibility in the chain stores, which deal only in a limited line of products. |
Mail Order Houses– Mail order houses are the retail outlets that sell their merchandise through the mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.
Advantages of Mail Order Houses:
- Limited capital requirement
- Elimination of middlemen
- Absence of bad debt
- Wide reach
- Convenience
Limitations of Mail Order House:
- Lack of personal contact
- High promotion cost
- No after-sales service
- No credit facilities
- Delayed delivery
- Possibility of abuse
- High dependence on postal service
Consumer Cooperative House– A consumer cooperative store is an organization owned, managed, and controlled by consumers themselves. The objective of such stores is to reduce the number of middlemen who increase the cost of produce, and thereby provide service to the members. The cooperative stores generally buy in large quantities, directly from manufacturers or wholesalers and sell them to the consumers at reasonable prices.
Advantages of Consumer Cooperative House:
- Ease information
- Limited liability
- Democratic management
- Lower prices
- Cash sales
- Convenient location
Limitations of Consumer Cooperative House:
- Lack of initiative
- Shortage of funds
- Lack of patronage
- Lack of business training
Super Markets– A supermarket is a large retailing business unit selling a wide variety of consumer goods on the basis of low price appeal, wide variety and assortment, self-service, and heavy emphasis on merchandising appeal.
Characteristics of Super Markets:
- A supermarket generally carries a complete line of food items and groceries, in addition to non-food convenience goods.
- The buyers can purchase different products as per their requirements under one roof in such markets
- A supermarket operates on the principle of self-service. The distribution cost is, therefore, lower.
- The prices of the products are generally lower than other types of retail stores because of bulk purchasing, lower operational costs, and low-profit margins.
- The goods are sold on a cash basis only.
- The supermarkets are generally located at central locations to secure high turnover.
Advantages of Super Markets:
- One roof, low cost
- Central location
- Wide selection
- No bad debts
- Benefits of being large scale
Limitations of Super Markets:
- No credit
- No personal attention
- Mishandling of goods
- High overhead expenses
- Huge capital requirement
Vending Machines– Coin-operated vending machines are proving useful in selling several products such as hot beverages, platform tickets, milk, soft drinks, chocolates, newspaper, etc., in many countries. Vending machines can be useful for selling pre-packed brands of low-priced products which have high turnover and which are uniform in size and weight.
For complete Revision notes of Class 11 Business Studies Chapter 10, click on the link below.
Also find:
CBSE Class 11 Syllabus 2023-24 (All Subjects)
CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)
NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)
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