Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

Choose the product related factor(s) that affect the choice of channels of distribution.

organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. Adoption of newer channels.

  2. Whether the product is perishable or a non-perishable.

  3. Financial strength of the company.

  4. Management want to have greater control on the channel members.

Show answer
Correct Option: B
Which option is incorrect among the following?
Functional wholesalers are classified into _______.
organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. brokers

  2. service wholesalers

  3. commission men

  4. selling agents

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Correct Option: B

The word retailer is of French origin, means _______.

organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. the sale of goods in small quantities.

  2. to cut again.

  3. to sell again.

  4. to deal with.

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Correct Option: B

There are ______ levels of distribution channels.

organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. one

  2. two

  3. three

  4. four

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Correct Option: D

Manufacturer- Agent- Wholesaler- Retailer- Consumer. This is the ________ channel of distribution. 

organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. Zero level

  2. One level

  3. Two level

  4. Three level

Show answer
Correct Option: D
Explanation:

Channels of distribution is a chain of business or intermediaries through which goods or services until it reaches the end customer .

Manufacturer-Agents-Wholesaler-Retailer-Consumer . This is the three level channel of distribution.

_______ is the most simple and shortest mode of distribution channel.

organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

  1. Indirect channel

  2. Direct channel

  3. Two level channel

  4. None of the above

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Correct Option: A

Arpana Pvt Ltd provide following information:
Sales = 10,00,000
Variable cost = 7,00,000
Fixed cost = 2,00,000
Debentures at $10\%$ = 5,00,000
What is the operating leverage of the company? 

organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

  1. 2

  2. 3

  3. 4

  4. 5

Show answer
Correct Option: B
Explanation:

Operating leverage = $\frac{Contribution}{EBIT}$
=  $\frac{Rs.3,00,000}{Rs.1,00,000}$
= 3

Debentures are preferred by investors who want _______ income at __________ risk.

organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

  1. fluctuating, lesser

  2. fixed, lesser

  3. fixed, higher

  4. fluctuating, higher

Show answer
Correct Option: B
Explanation:
The difference between the face value of the debenture and its purchase price is the return to the investor. Hence it is preferred by investors who want fixed income at lesser risk. There is a greater risk when the earnings of the company fluctuate.

Public issue of debentures requires that the issue be rated by a credit rating agency like _____.

organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

  1. SBI

  2. RBI

  3. SEBI

  4. CRISIL

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Correct Option: D
Explanation:

Public issue of debentures requires that the issue be rated by a credit rating agency like CRISIL. CRISIL is a global company which mainly provdes ratings to the companies.

_______ issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date.

organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

  1. Interest Certificate

  2. Share Certificate

  3. Debenture

  4. Demat Certificate

Show answer
Correct Option: C
Explanation:

Debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date. It is a long term security. Fixed interest is earned by issuing the debentures.