Internal Trade Test - 26

General Stores come under Fixed Shop Small Retailers. These shops provide products which are required to satisfy the day to day requirements of the customers like stationery, household items. They maintain permanent establishment in a locality.

Wholesale Trader is the person who buys and sells goods and services in large quantities for the purpose of resale or intermediate use. They buy in bulk quantities unlike retail traders and sell them to retailers who ultimately sell the goods to end consumers.

The principal-agent relationship is an arrangement in which one entity legally appoints another to act on its behalf. In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act. 

Brokers are agents who merely bring the buyer and the seller into contact. They execute the orders as per the buyer without physically involving the buyer in the transaction.

Multiple shop is a network of a number of branches situated at different localities in the city or in the different parts of the country. A multiple shop consists of a number of similar shops owned by a single business firm. This is an attempt on the part of the manufacturers or the wholesalers to establish a direct link with the consumers by avoiding middlemen.

Franchising is a form of licensing in which a parent company (the franchisor) grants another independent entity (the franchisee) the right to do business in a prescribed manner. This right can take the form of selling the franchisers products, 'using its name, production and marketing technique, or general business approach.

Thus it can be said that in a franchising agreement, franchisee uses patents, designs, its know-how, copyrights, trade marks so that it can sell the products of franchiser in the market by fulfilling proper legal requirements.

Franchising is a term used in connection with the provision of services. McDonalds, for instance, operates fast food restaurants the world over through its franchising system.

The advantages of trade. International trade brings a number of valuable benefits to a country, including.Producing a narrow range of goods and services for the domestic and export market means that a country can produce in at higher volumes, which provides further cost benefits in terms of economies of scale.

Super market is a large retailing business unit, which sell a wide variety of consumer goods under one roof. It has separate departments for each item like food, household, stationery, etc. under one roof. 

General Stores are the small scale retailers which provide the convenience of shopping to consumers at a fixed location. Other options are small scale but they do not provide a fixed location advantage to the consumers as they are constantly moving or selling goods in periodical markets.