Internal Trade Test

Result

Internal Trade Test - 6

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Weekly Quiz Competition

Question 1
1 / -0

The results of over-trading may be ____________.

A
Overcapitalization

B
Liquidity

C
Technical insolvency

D
All of the above

E
Both (B) and (C) above

Solution

Over-trading occurs when there is a disproportionately high turnover of assets compared to the volume of sales. The high turnover is indicative of less amount of cash invested in current assets which can result in liquidity and might even lead to technical insolvency.
Hence option (E) is the correct answer.
Question 2
1 / -0

Which amongst the following strategy extends the firm's distinctive competence into new industries that are similar to the firm's original business?

A
Related diversification

B
Vertical integration

C
Unrelated diversification

D
Horizontal integration
Question 3
1 / -0

Purchase and sale of goods in relatively small quantities, generally to the ultimate consumers, is referred to as _________.

A
wholesale trade

B
retail trade

C
Internal trade

D
External trade
Question 4
1 / -0

Each retail shop in case of chain stores is under the direct control of the ____________.

A
head office

B
branch manager

C
inspectors

D
none of the above
Question 5
1 / -0

Services which retailer provide to manufacturers and wholesalers are ______________.

A
enabling large scale operations

B
collecting market information

C
promotion

D
all of the above
Question 6
1 / -0

What are the advantages of departmental stores?

A
They attract large umber of customers.

B
Convenience in buying.

C
Attractive services.

D
All of the above
Question 7
1 / -0

Which is termed as trade bill?

A
An inland instrument drawn outside India.

B
An instrument drawn outside India.

C
An outside trade bill drawn in India.

D
None of the above.

Solution

Trade bills are typically drawn by the seller of goods and are accepted by the buyer. Accommodation bills do not involve the sale or purchase of any goods and/ or services; rather they are agreements between two parties with the purpose of financial support.
A bill of exchange (= a document ordering someone to pay a particular amount at a particular time) that is used to pay for goods: If the trade bill is accepted, in effect the buyer is getting credit from the seller.
Question 8
1 / -0

Which of the following is not true in relation to wholesalers?

A
Wholesalers serve as an important link between manufacturers and retailers.

B
Most of the functions performed by wholesalers are such which can be eliminated.

C
They generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name

D
Both B and C
Question 9
1 / -0

______________ generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name.

A
Brokers

B
Wholesalers

C
Retailers

D
Manufacturers
Question 10
1 / -0

Name the store who deals with the sale of a specific line of products?

A
Single line stores

B
Speciality stores

C
General stores

D
Street stall holders

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Re-Attempt Weekly Quiz Competition

Internal Trade Test - 6

Result

Internal Trade Test - 6

Score

-

Rank

-

SHARING IS CARING

Question 1

Overcapitalization

Liquidity

Technical insolvency

All of the above

Both (B) and (C) above

Solution

Question 2

Related diversification

Vertical integration

Unrelated diversification

Horizontal integration

Question 3

wholesale trade

retail trade

Internal trade

External trade

Question 4

head office

branch manager

inspectors

none of the above

Question 5

enabling large scale operations

collecting market information

promotion

all of the above

Question 6

They attract large umber of customers.

Convenience in buying.

Attractive services.

All of the above

Question 7

An inland instrument drawn outside India.

An instrument drawn outside India.

An outside trade bill drawn in India.

None of the above.

Solution

Question 8

Wholesalers serve as an important link between manufacturers and retailers.

Most of the functions performed by wholesalers are such which can be eliminated.

They generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name

Both B and C

Question 9

Brokers

Wholesalers

Retailers

Manufacturers

Question 10

Single line stores

Speciality stores

General stores

Street stall holders

User

Question Analysis

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Score

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Rank

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