Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,245 Questions

Consumer Protection and Commerce encompasses consumer rights, unfair trade practices, retail operations, and e-commerce strategies. It details how goods and services are regulated, sold, and managed within various markets. Questions from this area are common in commerce, economics, and general awareness exam sections.

E-Commerce PlatformsRetail Trade TypesConsumer Rights ProtectionUnfair Trade PracticesOmnichannel StrategiesTariff Impacts

Consumer Protection and Commerce Questions

Multiple choice

Changes in consumer fashion is an example of

  1. Static Risk

  2. Insurable Risk

  3. Dynamic Risk

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is a dynamic risk, as changes in consumer fashion are due to change in economy. It is a result of misallocation of resources. They are a source of gain to society in the long run and cannot be predicted and do not tend to occur regularly.

Multiple choice

Bata Stores in India is an example of

  1. Departmental Stores

  2. Chain Stores

  3. Mail Order Business

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

.Bata Stores in India is an example of Chain Stores. Chain Stores or multiple shops are a group of branches dealing in same line of goods under single ownership and centralized management. Bata Stores deal in one line of products that is footwears under single ownership and centralized management

Multiple choice

Packaging does not helps in

  1. Protecting the goods from damage <o:p></o:p>

  2. Making the goods attractive<o:p></o:p>

  3. Improving the quality of products<o:p></o:p>

  4. Protecting the goods from leakage

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Right Answer Because the quality of products cannot be improved by packaging. It  depends that how the product is manufactured, not by packaging.

Multiple choice

Consumer behaviour includes

  1. Need and requirement of consumer

  2. Marketing System

  3. Place

  4. Tax policy

  5. All of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Consumer behavior is primarily concerned with understanding the needs, requirements, motivations, and decision-making processes of the consumer.

Multiple choice

Retailer is a Part of

  1. Product mix

  2. Price mix and Rebate planning

  3. Place mix

  4. Promotional mix

  5. All of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Retailers act as intermediaries in the distribution channel, making them a key component of the 'Place' mix, as they facilitate the availability of the product to the end consumer.

Multiple choice

Bin card is maintained by

  1. purchase department

  2. production department

  3. marketing department

  4. storeskeeper

  5. none of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The storeskeeper is responsible for the physical custody of materials and maintains the bin card to track the movement of stock in and out of the storage area.

Multiple choice

Which of the following business models is used in Quikr.com or Olx.com websites?

  1. Business - to - Business (B2B) business model

  2. Business - to - Consumer (B2C) business model

  3. Consumer - to - Business (C2B) business model

  4. Consumer - to - Consumer (C2C) business model

  5. Government - to - Business (G2B) business model
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is the correct answer. The website following C2C business model helps consumers to sell their assets like cars, motorcycles, etc. or rent a room by publishing their information on the website.

Multiple choice

Which of the following statements is correct about m-commerce?

  1. It is adapting an existing U.S. centric website to another language and culture.

  2. It relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business.

  3. Its exchanges involve transactions between and among consumers.

  4. It is the buying and selling of goods and services or the transmission of funds or data, over an electronic network, primarily the internet.

  5. It is the process of buying, selling or exchanging products, services or information, usually physical, meaning there is the existence of a physical store.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business.

Multiple choice

Which of the following is incorrect about B2C business E-commerce model?

  1. In this e-commerce type, business and consumers are involved.

  2. Here, customers deal directly with the organisation, avoiding any intermediaries.

  3. B2C business E-commerce model performs comparison shopping.

  4. Amazon, Yahoo, etc. do not come under B2C business E-commerce model.

  5. B2C business E-commerce model sells to the public, typically through catalogs utilising shopping cart software.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amazon, Yahoo, etc. follow B2C business E-commerce model.

Multiple choice

Which of the following E-commerce models is followed by Monster website?

  1. Consumer to Business E-commerce business model

  2. Business to Consumer E-commerce business model

  3. Consumer to Consumer E-commerce business model

  4. Peer to Peer E-commerce business model

  5. Traditional commerce
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Peer to Peer E-commerce business model is followed by Monster website.

Multiple choice

Which of the following is incorrect about B2B business E-commerce model?

  1. In B2B business E-commerce model, business and consumers are involved.

  2. B2B business E-commerce model includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management and service and support.

  3. In B2B business E-commerce model, pricing is based on quantity of orders and is often negotiable.

  4. In B2B business E-commerce model, participants are organisations.

  5. FreeMarkets, Dell, General Electric, etc. are some websites which use B2B business E-commerce model.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The companies included in the B2B E-commerce are manufacturers, wholesalers, rather than retailers only. Hence, the given statement is incorrect.

Multiple choice

What, if true, would be the best reason why the sales of CFL didn't show any rise?

Directions: Answer the question based on the following passage.

The city of Orgville introduced discounts for people who use CFL. This was done with an aim to reduce the electricity consumption of the city. The Electricity Board compared the new bills with the previous ones and decided whether a household was eligible for discount or not. The program was a huge success and majority of the residents availed of the discounts. But the retailers reported no increase in the sales of CFL after the announcement of the discount program.

  1. CFLs didn't produce as much light as claimed by the manufacturers.

  2. CFLs could not withstand voltage fluctuations and were repeatedly replaced by the residents, ultimately by the fluorescent lamps.

  3. The residents became more alert to energy conservation measures.

  4. The residents borrowed CFLs temporarily to claim discounts in electricity bills.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(1): Incorrect. We have to reconcile stagnant sales with success of program. The light output of CFLs doesn't materially affect the contradiction. (2): Incorrect. The replacement by fluorescent lamps would add to the power consumption and heighten the contradiction. (3): Correct. The criterion adopted for claiming discount was the saving in power consumption actually effected; so the people conserved power to claim discount, with CFL or without CFL. (4): Incorrect. Borrowing of CFLs for a few days would not lower bills. (5): Incorrect. If bought after launch of program, these would still increase sales.