Trade and Retail Business Quiz

What is the meaning of trade?

• Buying and selling of goods and services with the aim of making a profit

• Exchanging goods for services

• Selling of goods only

• Producing goods for personal use

Which of the following is an importance of trade?

• Discourages economic growth and development

• Reduces employment opportunities

• Encourages isolation and division of labor

• Creates an outlet for goods thereby enabling the producers to dispose of their surplus produce

What is the classification of trade based on geographical location?

• Local trade and international trade

• Domestic trade and foreign trade

• Internal trade and import trade

• Home trade and export trade

Which of the following is a characteristic of itinerant traders?

• They do not require a license to sell their goods

• They are not affected by bad weather conditions

• They are mainly found in sparsely populated areas

• They move from place to place in search of customers

What is the distinguishing feature between single shops and tied shops?

• Operators are usually trained by the manufacturer in both cases

• Prices of goods are determined by the shop owner in both cases

• Single shops are owned by individuals while tied shops are owned by the manufacturer

• Both single shops and tied shops sell products from different manufacturers

What is a characteristic of supermarkets?

• Stock a wide variety of goods

• Require customers to bargain

• Sell goods at high prices

• Offer credit facilities to customers

What is a disadvantage of mail order stores?

• Reach customers who are far away from shopping centres

• Require large storage space for goods

• Eliminate the loss associated with shop space

• Have limited variety of goods on offer

What is a feature of mobile shops?

• Visit different towns at regular intervals

• Require large amounts of capital to start

• Operate from larger fixed premises

• Offer a limited range of products

What is an advantage of chain stores/multiple shops?

• They strictly sell their goods on cash basis

• Operational costs are high due to the wide variety of services offered

• They cater mainly for the urban communities in which they are located

• They enjoy large trade discounts since they buy their goods in bulk centrally

What is a characteristic of departmental stores?

• They strictly sell their goods on cash basis

• Each department sells only one line of products

• They offer a wide variety of goods at relatively high prices

• They require a large number of customers to operate profitably