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Chapter 7: Internal Trade — Online MCQ Test

COMMERCE · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board
Practice Chapter 7: Internal Trade with a free chapter-wise online MCQ test. This chapter covers: Focusing on domestic commerce this chapter covers wholesale retail trade itinerant retailers fixed shop retailers departmental stores chain stores and GST concepts.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 7: Internal Trade — Important Questions & Answers

What is meant by internal trade?
  • A. Trade between two countries
  • B. Trade within the boundaries of a country
  • C. Trade through sea routes only
  • D. Trade conducted only online
Answer: B. Trade within the boundaries of a country
Internal trade refers to buying and selling of goods and services within the same country. It is also called domestic trade.
Which of the following is a feature of wholesale trade?
  • A. Selling goods in small quantities to final consumers
  • B. Buying goods from producers in bulk and selling to retailers
  • C. Selling only through mobile vans
  • D. Providing only after-sales service
Answer: B. Buying goods from producers in bulk and selling to retailers
A wholesaler buys goods in bulk from producers and sells them in large quantities to retailers or other traders.
A retailer buys goods from a wholesaler and sells them in small quantities to consumers. This process is called:
  • A. Production
  • B. Retail trade
  • C. Import trade
  • D. Warehouse trade
Answer: B. Retail trade
Retail trade involves selling goods in small quantities to the final consumers for personal use.
Which of the following best compares a chain store and a departmental store?
  • A. A chain store has one large building with many departments, while a departmental store has many small branches
  • B. A chain store has several branches, while a departmental store has one large store with departments
  • C. Both always sell only food items
  • D. Both are itinerant forms of retailing
Answer: B. A chain store has several branches, while a departmental store has one large store with departments
Chain stores are multiple outlets under central control, whereas a departmental store is a single large retail unit with different departments.
Which of the following is the correct sequence in the flow of goods from producer to consumer in a typical internal trade structure?
  • A. Producer → Retailer → Wholesaler → Consumer
  • B. Producer → Wholesaler → Retailer → Consumer
  • C. Wholesaler → Producer → Retailer → Consumer
  • D. Retailer → Wholesaler → Producer → Consumer
Answer: B. Producer → Wholesaler → Retailer → Consumer
In internal trade, goods usually move from producers to wholesalers, then to retailers, and finally to consumers.