11th Standard Syllabus & Materials
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Published on: 29/06/2021
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Questions + Answers key
Take MCQ Commerce Test1.
What are the limitations of departmental stores?
2.
Differentiate departmental Stores and multiple shop?
3.
What are theadvantages of departmental stores?
4.
Explain the features of chain stores.
5.
Explain the types of Mobil traders.
1.
The limitations of departmental stores are:
(i) High cost of operations:
A departmental store requires a large building with ample parking at a central place. It has to incur heavy expenditure on salaries, maintenance of building, customer services, advertising, etc. As a result, establishment and overhead cost of operations are very high.
(ii) Higher prices:
Due to high operating costs, prices of goods in a departmental store are comparatively high. Only rich persons can afford to buy goods at a departmental store.
(iii) Distance:
It is located at a central place of a city, away from people living in suburban areas have to travel a long distance to reach the store.
(iv) Lack of personal touch:
The management of a store finds it very difficult to maintain personal contact with .the customers. The salaried staff may not take interest in securing the satisfaction and goodwill of the customers
(v) Difficult to establish:
A large amount of capital investment and a large number of specialised persons are required to establish a departmental store.
(vi) High risk:
Due to central location and large-scale operations, risk of loss is very high. Change in tastes and fashion and market fluctuations may lead to heavy loss.
2.
| S.No. | Departmental Stores | Multiple shops |
|---|---|---|
| 1. | Definition (Establishment): It is organized by adding a number of departments in the same premises |
It is established by setting up branches in different locations. |
| 2. | Location: These stores are located centrally and attract people from far off places. |
These shops are located near the customer's residence, so selection of place for multiple shops is not a serious problem. |
| 3. | Variety of goods: These stores keep a variety of goods in their shops, so all the requirements of the consumer can be obtained under one roof. |
These shops deals with only a particular line of products, (i.e.,) they do not offer variety of goods. |
| 4. | Flexibility: , It when started initially faces a lot of problems such as finance, location, availability, of experts, etc., and its closure is also difficult. |
It can be opened very easily and it is also.very easy to close a shop if it is in loss. |
| 5. | Change of location: A shift in the location of a departmental store entails enormous difficulties in view of its huge establishment. |
If, the sales are down the shift in locality can be easily made, as each branch is a small sized unit. |
| 6. | Price: The overhead expenses and day-to-day expenses are high in the case of departmental store, this can be compensated by increasing the price of products, so the prices charged by a departmental store are more than the ordinary retailers |
These shops do not provide much facilities to the consumers, so the price of products is equal to or less than the market price. |
| 7. | Buying comforts: Buying, in stores, is pleasant because of the facilities like restrooms, restaurants, telephone booths, etc., are provided. |
These shops do not provide comforts to the customers while buying. |
| 8. | Bad debts: Credit sales are allowed, so bad debts are unavoidable. |
It follows the principle of 'carry and cash system' so bad debts are avoided. |
| 9. | Movement of stock of goods: The inter-departmental transfer of goods is not possible as each department deals in a separate line of goods. |
If a particular branch of a multiple shop is facing any temporary storage of goods, it can be immediate supplies from another branch and thus manages the situation. |
| 10. | Capital: These stores require large capital because they sell all the products from a 'Pin' to a 'Car' |
Comparatively, it requires less capital to carry out business activities. |
| 11. | Advertisement: These stores advertise the goods locally, because they can satisfy the needs of the local people. |
These shops carry their campaign throughout the country because they satisfy the needs of large number of people. |
| 12. | Freedom of the Departmental head and the branch manager: The departmental head has some power to fix the price of goods and other prevailing conditions. |
The branch manager has no power in making purchases, fixing prices, alter the prices to suit the local conditions. |
3.
(i) Convenience in buying:
The departmental stores provide great convenience to all the members in a family in buying almost all goods of their requirements at one place. A large variety of goods available in all the departments enable customers to save time and no need to run from one place to another to complete their shopping.
(ii) Attractive services:
It aims at providing maximum services and facilities to the customers such as home delivery of goods, execution of telephone orders, restrooms, restaurants, salons, children game centers, etc.
(iii) Central location:
These stores are usually located in central places so that more people can approach easily.
(iv) Elimination of middleman:
A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses. It helps in eliminating undesirable middlemen between the producers and the consumers.
(v) Economies of large scale operations:
The Departmental stores are organised at a large scale i.e., buy goods in bulk, therefore they enjoy the benefit of special discount. In turn, the customers get their goods in quality and lower price.
4.
Location
These shops are located in fairly populous localities where sufficient number of customers can be approached.
Nature of product
These shops deal in a particular product line and specialise in the same product i.e, standardised and branded consumer products.
Centralised management
The manufacturing or procurement of goods for all the retail units is centralised at the head office, from where the goods are despatched to each of these shops
Fixed price
The prices of goods are fixed and all sales are made on cash basis.
Role of Sales personnel
The sales persons play an active role in helping the consumers to complete their shopping i.e., in the selection and choice of their goods as per the tastes
5.
The types of ltinerants are as follows:
a. Peddlers and Hawkers:
Peddlers are individuals who sell their goods by carrying on their head or shoulders moving from place to place on foot. Hawkers are petty retailers who sell their goods at various places such as. bus stop, railway station, Public Park and gardens, residential areas and other public places using a convenient vehicle to carry goods from place to place
b. Street Vendors:
The traders sit on the footpath of the road or at the end of the road (pavement) and sell their goods such as fruits, vegetables, books, etc. are called Street vendors.
c. Market Traders:
Small traders open their shops at different places on fixed days or dates such as every Sunday or alternative Wednesdays and so on (Varasandhai - weekly market). They deal in one particular line of merchandise and in low priced consumer items of daily use. Examples Pollachi, Manapparai, Ranipet, etc.
d. Cheap Jacks:
Those retailers who have independent shops of temporary nature in a business locality are depending upon the potentiality of the area. They deal in consumer goods and services such as shoes and chappals, plastic items, repair of watches, etc.
11th Standard Syllabus & Materials
11th Standard
TN 11th Tamil பீடு பெற நில் - செய்யுள் - காவடிச்சிந்து Important Questions And Answers Study Material - QB365 Set A
NEW11th Standard
TN 11th Tamil பீடு பெற நில் - உரைநடை - மலை இடப்பெயர்கள் : ஓர் ஆய்வு Important Questions And Answers Study Material - QB365 Set A
NEW11th Standard
TN 11th Tamil மாமழை போற்றுதும் - துணைப்பாடம் - யானை டாக்டர் Important Questions And Answers Study Material - QB365 Set A
NEW11th Standard
TN 11th Tamil மாமழை போற்றுதும் - செய்யுள் - ஐங்குறுநூறு Important Questions And Answers Study Material - QB365 Set A
Tamilnadu Stateboard 11th Standard Subjects

Maths

Commerce

Economics

Biology

Business Maths and Statistics

Accountancy

Computer Science

Physics

Chemistry

Maths

Biology

Economics

Physics

Chemistry

History

Business Maths and Statistics

Computer Science

Accountancy

Computer Applications

History

Computer Technology

Commerce

Computer Applications

Computer Technology

Tamil

English

French
Tamilnadu Stateboard Standards