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 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.

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

Facilitating large scale production is one of the services of wholesalers to manufacturers. What do wholesalers do through this function?

  1. Wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them.

  2. They bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

  3. Wholesalers collect small orders from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities.

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

Large scale production refers to the production of a commodity on a large scale with a large sized firm. It requires huge investments in plant and machinery. Large scale production can be carried out if the market size is large and expanding.Large scale firms are division of labor and production and sale of goods in large quantities. They cater to a large market. The industrial revolution laid the foundation of the factory system. The factory system which extensively used machinery and adopted division of labor made large scale production possible.

The following are some of the motives of large scale production.

  1. Desire for economy.
  2. Desire for increase in sales.
  3. Desire for a large customer base.
  4. Desire for large profits.
  5. Desire to become a global company.
  6. Desire for economic power.
  7. Desire for continuous growth and expansion.
  8. Desire to increase demand.
  9. Desire to overcome competition.
  10. Desire to achieve monopoly status.
  11. Desire for achieving long term profitability.

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

Which of the following is referred to as 'Voluntary chains?'

  1. Co-operative retailing

  2. Retailers co-operatives

  3. Consumer's cooperatives

  4. Instalment selling
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Retailers' cooperatives, where independent retailers join together to perform wholesale functions, are often referred to as voluntary chains.

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

What service of wholesalers helps the retailers in managing their business with relatively small amount of working capital?

  1. Marketing support

  2. Grant of Credit

  3. Availability of goods

  4. Specialised knowledge
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Wholesalers often provide credit to retailers, which allows retailers to stock goods without needing to pay upfront, thus managing with less working capital.

Multiple choice business organisation and correspondence employment opportunities in commerce meaning and essential elements of retail trade employment opportunities in insurance sector and capital market middlemen 2 - retailer

Itinerant retailers are small traders operating with limited resources.

  1. True

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

Itinerant means traveling from place to place.Itinerant retailers have no fixed place of business. They move from place to place for selling their goods to the consumers. Itinerant sell in small quantities.