Tag: types of retail organisation

Questions Related to types of retail organisation

Name a fixed shop large retailer in which the number of shops with similar appearances are located in different parts of the country.

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. Consumer cooperative store

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Correct Option: A

Name the advantages offered by Multiple shops to its customers.

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

  1. Economies of scale

  2. Low cost

  3. Diffusion of risk

  4. All of the above

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Correct Option: D

What restricts the purchasing power of buyers from Super markets?

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

  1. No credit facility.

  2. No personal attention.

  3. Huge operating costs.

  4. None of these.

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Correct Option: A
Explanation:

Buyers power refers to the pressure buy can exert on businesses by raising prices, lowering quality, or reducing the availability of their products. Further more, a strong buyer can make an industry more competitive and decrease the profit potential for the buyer.

The chances of incurring loses in departmental stores are high as a result of _________________.

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

  1. high operating costs

  2. large scale operations

  3. small scale operations

  4. both A and B

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Correct Option: D

What are the main characteristics of Super markets?

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

  1. They have wide variety and assortment.

  2. Self-Service

  3. Heavy emphasis on merchandising appeal.

  4. All of the above

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Correct Option: D
Explanation:

Characteristics of Supermarket 

(i) They are located in the main shopping centres of an area with adequate parking facilities.

(ii) They function on cash-and-carry lines and offer no credit.

(iii) There are no selling counters or selling assistants to help the customers.

(iv) They stock a very wide range of food and non-food products, particularly meat products, dairy products, tinned food, bakery items, vegetables and other household products.

(v) They are large retail organisations and are a useful channel of distribution.

(vi) They have low sales overheads since no salesmen are employed.

(vii) The products stored in a super market are properly packed and placed on separate racks in order to facilitate purchasing by the buyer.

(viii) It is one of the leading methods of retailing in the USA.

(ix) They use mass displays of goods, have low prices and operate on self-service basis.

(x) The buyer is completely at ease while buying as there is no undue sales pressure by counter salesmen.


Some of the services offered by departmental stores to its customers includes_________________.

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

  1. home delivery of goods

  2. execution of telephone orders

  3. grant of credit faciities

  4. all of the above

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Correct Option: D

Name the retailer enterprise in which sales are made strictly on cash basis.

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. Consumer cooperative store

  4. All of the above

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Correct Option: A

Why are the prices of goods lower in super markets than in other retail stores?

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

  1. Because of bulk purchasing.

  2. Low profit margins.

  3. Both A and B

  4. None of the above

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Correct Option: C
Explanation:

A super market is a large retailing business unit selling wide variety of consumer goods on the basis of low margin appeal, wide variety and assortment, self-service and heavy emphasis on merchandising appeal.

The prices of the products are generally lower than other types of retail stores because of bulk purchasing, lower operational cost, and low profit margins.