Tag: types of retail organisation

Questions Related to types of retail organisation

The departmental store caters to the needs of relatively_________________ of people.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. high income group

  2. low income group

  3. Both A and B

  4. None of the above

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Correct Option: A
Explanation:

A high income economy is defined by the World Bank as a country with a gross national income per capita US$12,056 or more in 2017, calculated using the Atlas method. While the term "high income" is often used interchangeably with "First World" and "developed country", the technical definitions of these terms differ.

Goods are kept on racks with clearly labelled price and quality tags in such stores. This is a feature of which of the following store?

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. Consumer Cooperative Store

  2. Super Markets

  3. Mail Order Houses

  4. Any of the above

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Correct Option: B
Explanation:

A supermarket is a self-service shop offering a wide variety of food and household products, organized into sections and shelves. It is larger and has a wider selection than earlier grocery stores, but is smaller and more limited in the range of merchandise than a hypermarket or big box market.

Major disadvantage of large shop retailers are that they lack in providing personalized service to the customers.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. True

  2. False

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Correct Option: A
Explanation:

Disadvantages of large-scale retail businesses

  • Less ability to offer personal service

A small retailer may know all his clients personally due to constant interaction with them. He would know the tastes and preferences of his clients to be able to offer them a better personalized service, catering for their unique needs. A large retailer would not be able to do this as its aim is to sell, sell and sell. Time is money is such a large business and the more rapidly it sells, the higher the profit. Special small orders from customers are rarely accepted, especially if these do not generate enough cash to generate the required rate of return for the business. The customer may be considered nothing more than a number in a large superstore, but he would be a treasured regular customer for the small retail store.

  • Labour problems

The fact that it is constrained by time, pressure is transferred to the large retail store’s staff, which is expected to do more in less time. Most of the work is repetitive and they can hardly engage in conversations with the client or with colleagues. This leads to lower morale on the place of work and more costs of recruitment and retraining if workers regularly resign from their work.

  • Less control over pilfering

With a huge surface area full of thousands of items, it is difficult to have eyes all over the place to control pilfering. Large retailers are faced with the problem of people stealing small amounts from the shelves while no one is looking.  The temptation to steal is higher in a large shop than it is in a smaller shop where it is easier to be spotted by someone. Thieves may also think that it is less likely for larger retailers to notice occasional pilfered items due to the large quantities of material. Shoplifters are regularly convicted by large retailers than they are by the smaller ones. The business is faced with a loss-loss situation where it either invests in security or else it suffers the loss of pilferage. 


By selling directly to the consumers, the multiple-shop organisation is able to eliminate unnecessary middlemen in the sale of goods and services.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. True

  2. False

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Correct Option: A
Explanation:

It is an approach to operating a retail business in which you offer products to customers through multiple retail channels. Brick-and-mortar stores, catalogs and the Internet are three primary multiple channels used by many retailers, but other, smaller retail formats exist as well.

Name a large shop retailer that is generally formed as a Joint stock company managed by a board of directors.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. Chain stores

  2. Departmental Stores

  3. Mail order houses

  4. None of the above

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Correct Option: B

What are the advantages of departmental stores?

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. They attract large umber of customers.

  2. Convenience in buying.

  3. Attractive services.

  4. All of the above

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Correct Option: D

Operating costs of running a supermarket is less because of which of the following factors?

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. Being operational on a large scale

  2. Central location

  3. No bad debts

  4. One roof, low cost

Show answer
Correct Option: A
Explanation:

A supermarket - Offering a wide variety of food and household products, organized into sections and shelves. It is larger and has a wider selection than earlier  but is smaller and more limited in the range of merchandise .

The supermarket typically has aisles for meat, fresh dairy, and baked goods. Shelf space is also reserved for canned and packaged goods and for various non-food items such as kitchenware, household cleaners, pharmacy products and pet supplies. Some supermarkets also sell other household products that are consumed regularly, such as alcohol (where permitted), medicine, and some sell a much wider range of non-food products: DVDs, sporting equipment, board games, and seasonal items (e.g., Christmas wrapping paper in December).

The ________  may raise costs in super markets.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. lack of personal attention

  2. requirement of huge capital

  3. high overhead expenses

  4. mishandling of goods by customers

Show answer
Correct Option: D
Explanation:

One of the most basic reasons companies raise prices on their products and services is to adjust to increased business costs. A product reseller, for instance, might raise prices simply because its supplier raised prices on materials or finished goods.

Which of the limitation talks about lack of initiative under the Chain store or Multiple shops retailer?

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. Fluctuations in demand for the merchandise may lead to loss because of large stock.

  2. The personnel managing the multiple shops have to obey the instructions received from the head office which makes them habitual for directions.

  3. The multiple shops deal only in limited range of products.

  4. All of the above

Show answer
Correct Option: B
Explanation:

It is an approach to operating a retail business in which you offer products to customers through multiple retail channels. Brick and mortar stores, catalogs and the Internet are three primary multiple channels used by many retailers, but other, smaller retail formats exist as well.

Name some of the fixed shop large retailers that are present in the market.

elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

  1. Departmental stores

  2. Chain stores

  3. Mail order houses

  4. All of the above

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Correct Option: D