Tag: internal trade

Questions Related to internal trade

By the term SCM, we mean _________.

commerce types of trade features of internal trade internal trade business and industry

  1. supply chain management

  2. supply chain monitoring

  3. supply chain movement

  4. none of the above

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Correct Option: A

The results of over-trading may be ____________.

commerce types of trade features of internal trade internal trade business and industry

  1. Overcapitalization

  2. Liquidity

  3. Technical insolvency

  4. All of the above

  5. Both (B) and (C) above

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Correct Option: E
Explanation:

Over-trading occurs when there is a disproportionately high turnover of assets compared to the volume of sales. The high-turnover is indicative of less amount of cash invested in current assets which can result in liquidity and might even lead to technical insolvency.

If the realized collection period is more than the terms of trade it can be said that __________________.

commerce types of trade features of internal trade internal trade business and industry

  1. The collection job is over

  2. The quality of debtors is poor

  3. The average daily sales are low

  4. All of the above

  5. Both (A) and (B) above

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Correct Option: E
Explanation:

If the realized collection period is more than the terms of trade, then it indicates that is taking more time to convert its receivables into cash. This could be due to poor collection efforts of the firm or poor quality of the debtors. 

The phenomenon of over-trading in working capital is characterized by _______________________.

commerce types of trade features of internal trade internal trade business and industry

  1. Less amount of cash invested in current assets

  2. Overcapitalizatiion of the company as compared to volume of sales

  3. High amount of cash invested in current assets

  4. All of the above

  5. Both (A) and (C) above

Show answer
Correct Option: A
Explanation:

Over-trading can be noticed from the disproportionately high turnover of assets compared to the volume of sales. This high turnover is indicative of less amount of cash invested in current assets which can create problems of liquidity at the time of making payments for current obligations.

Buying and selling of goods and services within the boundaries of a nation are referred to as __________.

commerce types of trade features of internal trade internal trade business and industry

  1. external trade

  2. internal trade

  3. sale transaction

  4. none of the above

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Correct Option: B

Purchase and sale of goods in relatively small quantities, generally to the ultimate consumers, is referred to as _________.

commerce types of trade features of internal trade internal trade business and industry

  1. wholesale trade

  2. retail trade

  3. Internal trade

  4. External trade

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Correct Option: B

Internal trade can be classified into two broad categories. The two categories of internal trade are _________ and _________.

commerce types of trade features of internal trade internal trade business and industry

  1. wholesale, retail trade

  2. inward , outward trade

  3. intra state, inter state trade

  4. none of the above

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Correct Option: A

Which is termed as trade bill?

commerce types of trade features of internal trade internal trade business and industry

  1. An inland instrument drawn outside India.

  2. An instrument drawn outside India.

  3. An outside trade bill drawn in India.

  4. None of the above.

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Correct Option: B
Explanation:

Trade bills are typically drawn by the seller of goods and are accepted by the buyer. Accommodation bills do not involve the sale or purchase of any goods and/ or services; rather they are agreements between two parties with the purpose of financial support.

a bill of exchange (= a document ordering someone to pay a particular amount at a particular time) that is used to pay for goods: If the trade bill is accepted, in effect the buyer is getting credit from the seller.

Buying or selling all 30 scrips of sensex in proportion of their current weights in the sensex in one go is called _____________.

commerce types of trade features of internal trade internal trade business and industry

  1. Basket trading

  2. Arbitrage

  3. Badla

  4. Margin Trading

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Correct Option: A
Explanation:

A basket trade is an order to buy or sell a group of securities simultaneously. Basket trading is essential for institutional investors and investment funds who wish to hold a large number of securities in certain proportions. 

A basket is a group of several securities created for the purpose of simultaneous buying or selling. Baskets are frequently used for program trading. Certain specific products can be seen as specialized baskets.

Carrying forward a transaction from one settlement period to the next is known as ______________.

commerce types of trade features of internal trade internal trade business and industry

  1. Basket Trading

  2. Margin Trading

  3. Badla

  4. Option deal

Show answer
Correct Option: A
Explanation:

A basket trade is an order to buy or sell a group of securities simultaneously. Basket trading is essential for institutional investors and investment funds who wish to hold a large number of securities in certain proportions.

In business a basket is a group of several securities created for the purpose of simultaneous buying or selling. Baskets are frequently used for program trading. Certain specific products can be seen as specialized "baskets".