Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,192 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 business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The people entrusted with the management of cooperative stores lack expertise as they are not trained in running the stores efficiently.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  1. Research. Luckily, this tip is easy to follow because most of us end up online shopping when we're bored. 
  2. Don't window shop. We advise against window-shopping since it's usually a waste of time. 
  3. Budget. 
  4. Go alone. 
  5. Have an open mind. 
  6. Price match. 
  7. Watch out for promotions.
  8. Know the return policy.
Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middlemen between the buyers and sellers are eliminated.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The main advantage of selling through catalogs is the ability to reach hundreds of thousands of readers with just one mailing. This dramatically increases a retailers exposure to potential shoppers. With mail order sales, the catalog is essentially your "store" and the copy is the salesperson.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

Sellers cannot clear all the doubts of customers through catalogues and advertisements. This is because of _____.

  1. High promotion cost

  2. No after sales service

  3. Delayed delivery

  4. Lack of personal contact with customers
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Poor Customer service occured due to customers needs and expectation are not satisfied, failing to managing a customer service operation and company standerd , laking of organised planned to execute cutomer service,laking of motivational skills, and laking of good communication skills in concern of product/service.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The consumer cooperative stores normally sell goods on cash basis.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash Basis Accounting -Cash Basis accounting recognizes revenue and expense when cash is actually spent or received. For example, revenue from sale of goods is recognized when payment is received from the customer, not when an invoice is created.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The profits earned by consumer cooperative stores are utilised for ________________.

  1. declaring bonus to members.

  2. strengthening the general reserve.

  3. social and educational benefit of members.

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consumer Cooperative Stores. These are retail stores owned by the consumers themselves for their own benefit. These stores are owned and managed by a group of consumers, and their primary aim is not profit making, but mutual benefits for consumers.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

Mail order houses are confronted with the problems like _______.

  1. damage of goods in transit

  2. excessive operating cost

  3. credit policies

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
1.  Lack of personal contact
In mail order business, the producer/seller and customers cannot have direct personal contact with each other. The customers cannot get as much satisfaction as desired from the goods. As a result, they may be attracted to other retailing institutions to buy necessary goods.
2. unnecessary delay
Unnecessary delay is a major disadvantage of mail order business. As in this method of purchase order takes a comparatively long time to reach the producers' hand and also to give delivery of goods to buyers by mail, mail order business is a delay-making business.
3. Lack of selection of goods
in mail order business, the customers cannot inspect goods; they cannot get the selection facility and buy preferred goods.
Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

Mail order retailing is also referred to as _______.

  1. non-store impersonal retailing

  2. shopping by post

  3. selling by post

  4. (A) or (B) or (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mail order retailing involves selling goods through catalogs or mail, which is also described as non-store retailing, shopping by post, or selling by post.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

What are the disadvantages that Consumer Cooperative store faces?

  1. Lack of patronage.

  2. Lack of business training.

  3. Shortage of funds

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Disadvantages are:
  • Lack of Secrecy: A cooperative society has to submit its annual reports and accounts with the Registrar of Cooperative Societies.
  • Lack of Business Acumen: The member of cooperative societies generally lack business acumen. 
  • Lack of Interest.
  • Corruption.
  • Lack of Mutual Interest.
Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The success of mail order business depends heavily on the availability of __________ at a place.

  1. efficient postal services

  2. credit facilities

  3. after sale services

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
It means postal services can deliver more efficiently to their customers, helping to unlock new opportunities and fuel economic growth.
Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

What are the main advantages of Consumer cooperative stores?

  1. Democratic management

  2. Ease of information

  3. Limited liability

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

cooperative store. Word Origin. noun. a retail store owned and managed by consumer-customers who supply the capital and share in the profits by patronage dividends. a store operated by a farmers' cooperative organization or by a cooperative chain.

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

Where do cooperative stores purchase their goods?

  1. Directly from Wholesalers.

  2. From retailers.

  3. From manufacturers

  4. Both A and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A consumers' cooperative is one in which individuals combine their buying power, usually for the purchase and wholesale or retail distribution of agricultural or otherproducts. Cost savings are achieved by buying directly from the producer or farmer.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

Identify the argument against elimination of wholesalers.

  1. Wholesalers take all responsibilities for sales and distribution of goods, producers become free from the difficulties and troubles of marketing their products.

  2. During the slack seasons and scarcity in demand, the wholesalers resort to hoarding and stocking of goods and sell them at exorbitant prices charging excessive profits.

  3. Wholesalers are unnecessary links between the manufacturers and retailers.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

Wholesaling is concerned with the activities of those persons or establishments which sell to retailers and other merchants, and/or to industrial institutional and commercial users.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.
Examples of this would be plumbers supply houses, or electricians supply firms, or lumber firms that sell only to contractors. Car maufacturers typically sell their cars thru distribution channels direct to car dealers and function as their own wholesalers.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

_____ and agents are closer to the producers.

  1. Retailers

  2. Wholesalers

  3. Customers

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services.

 In general, it is the sale of goods to anyone other than a standard consumer.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

In which wholesaler's channel function might wholesalers provide quicker delivery to buyers because they are closer than the producers?

  1. Warehousing

  2. Risk bearing

  3. Financing

  4. Transportation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Transport or transportation is the movement of humans, animals and goods from one location to another. In other words the action of transport is defined as a particular movement of an organism or thing from a point A to the Point B. Modes of transport include air, land, water, cable, pipeline and space.