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Sources of business finance

Impt ques

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Mehul soni
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16 views19 pages

Sources of business finance

Impt ques

Uploaded by

Mehul soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTERNAL TRADE lll tamne | — » fARNING OBJECTIVES ja INTRODUCTION pe INTERNAL TRADE g3 WHOLESALE TRADE pa RETAIL TRADE 9 TERMS OF TRADE 96 TYPES OF RETAIL TRADE 97 FIXED SHOP SMALL RETAILERS 98 FIXED SHOP LARGE RETAILERS. 99 GOODS AND SERVICES TAX (GST) 9.10 VENDING MACHINES CHAMBERS OF COMMERCE AND INDUSTRY git 9.12. MAIN DOCUMENTS IN INTERNAL TRADE a INTRODUCTION _erefers to buying and selling of goods and services wi ith the aim of earnin, iS profits, he fr f trade has significantly i i japortance 0 ly increased in the modern times a: ; i snew ene gooloped every day rade helps in making the goods produced available Cee . oyusers. It means, trade removes the hindrance of person by creating a link betwe 7 iueers aa en << gnars The persons who are engaged in trade are known as traders ot aie Y en. ciisification’ of Trade i a onthe basis of geographical area, trade may be classified into two broad categories: yf Internal Trade: Itrefers to buying and selling of goods and services withi i ~ ‘joundaries of a country.) ices within the geograhaaeay | 1 ge 3 a TERNAL TRADE —; 9.2 INTERNAL THAU” Ty celing of 90 Tor nland Trade ne Pitatirade he eoT NSE + nor Inland Trade’ ot “DomestirTrag i cmnat trace is 8190 KNOY : ie aris tree from custom Su) Ot import duty one ace sy-internal trade is free voduction and are meant For domestic consumption: i at equitable distribution ‘of goods within a nation sy cedily and, a nd national home currency directly 6, internal trad reasonable co a Types of Internal Trade On the basis of scale of operations, the internal trade of a country may be divided inj, main types? o 1, Wholesale Trade —7 2, Retail Trade oth Wholesale Trade and Fetal Trade of© essential fo between producers and users Or! ultimate consumers. 9.3 WHOLESALE TRADE Fad eis hi aig molesale trade refers to buying and selling of goods and services in large quantities for the esate or intermediate usp The traders who deal in wholesale trade are known as w! Erp facilitate exchange of goods ‘and sence, gf le olesalersbuy the goods directly from manufacturers in wholesale Suantities tothe large number of retaile= Therefore, they serve as an imy Z portant link manufacturers and retailers. betwee, Features of Wholesale Trade ~Super Markets Malls Topics marked with ** sign have been deleted from the latest sylabus. However, they in the Power Booster Section for knowledge enrichment. are discussed pepfnental Stores Se { departmental store is a large establishment, which sells a wide variety of products and aim to satisfy all needs of the customers under one roof. The store is divided into anumber of departments and each department feals in a particular variety of goods. For zp le SAID be separate departments Toiletries fruits and vegetables SS clothing) Segments with a wide variety of goods an ervices. Everything from They satisfy diverse marl ‘Pin to Blane’ is the spirit beh typical department stove, Such stores are common in developed countries like USA. But, in India, real dey tores have not yet come in a big way. Still, Big BazaarsMore: Megastore or(Reliance Fresh Sto} play an important role in satisfyin; diver people. t estes of Departmental SOT tore are a8 follows: ‘The essential Features oF 4 eee reared at a central place in the city so that peopig a tion: Tt is genera’ 7 ving ily: vt Gepartmental store renders a number of = sie crant wave! and infor) Fes ang ~~ services to rant bureau, booth, rest rooms, ete. \. Corpo he: s generally formed as ajo aaa nets stores ward of Directors with a ted bya general manager 4-Elimin: “of middlemen: A dep! ies the ultimate.< ind several manufacturers, which sells them.{o and increases their profit margin. 5. Centralised purchasing: All the es in_a department store are made ceny vi rent, However, the sales are decentralised in different the purchase de} age variety of goods: These stores maintain 2 large variety of goods and ‘purchase almost all their requirements from these stores. “Advantages of Departmental Stores The departmental stores offer the following advantages: ‘Attract large number of customers: These stores are generally located located i city, Asa result, they are able to attract a large number of aoe ng 2 Convenience in buying: A departmental store offers wide range of = at nothave torun from one shop to another because they can do all shoppit ‘ 3, Attractive services: Most of the departmental stores provide nume: ae pee like liberal credit, free home delivery, execution of lente a jes, etc. Al i i c I such services make shopping a pleasant experience. 4, ti i ‘ arge quantities of goods directly from the producers and sell them to th ann Itel tes the need for middlemen and increases their profit mi jund financial position, which help in inereasings thelr vets | © Se essional management: As a oFganis vith, sound fina uncial position, Fea 8e4 8 ajoint ato ng becau les voliimne eete oF ; sii : Bes of sales: The departmental ae 3 O stion partmental stores can afford hy stising, Selling and prici s of Departmental Stores spitation : tal stores also suffer from the following limitations: partment sonal attention: There is lack of personal ti al louch in a departmen P @ departmental store ag it ive personal attention to large number of customers visiting the ste le store igh operating cost: The operating cost of running the departmental stores is very high wis to extensive services and facilities offered by them to the customers, As a rest srenotattractive to lowerincome group of people due to high pricesas compared to on jn small shops. percuo Biles 3 ish possibility of loss: The chances of incurring losses in a departmental store are high pecause of heavy operating costs and large-scale operations. For example, if any item has pecome out-of-fashion, then the store has to sell the huge stock at heavy discount, _ 4 Afconvenient location: The departmental stores are generally located in the centre of the city. Asa result, itis inconvenient for the customers, who prefer to buy goods from shops Conclusion the departmental stores are very popular in the western countries due to their benefits tohigh jpcome group people. In India, these stores are popular in metropolitan and big cities. (Gain Stores or Multiple SI \Geti-Htores or multiple shops a which are owned by the single iusiness enterprise. Its manageme ised. These shops are sprea ‘nalts of the ely oF in different cities) : — Alle retail shops deal in similar line of standardised and branded consumer products. They shave identical merchandising strategies, with identical products and displays. Bata, Pizza ty, Cafe Coffee Day, Nirula’s and Raymonds Shovsrooms are examples of multiple shops. fate susinees SHAG vet en ie a peatute she important oth ITT alities, where sufficient “oer ops near to the hese S| vie have Shops customers, pay! customers ca? & pa mactineg tem (08 : The head offi ane reched to different : ases forall theser mutt) kes all the purchases. sll rakes Shops as pef thel# requirements, Piet VS he Thereafter, goods aby the head office, which formiates egst of OP Porvntived cor ig, Branch Manager is responsible for ee "and get them implemented ss roftice in respect of sales, cash deposits me shop and sends daily Feports fc jrements of the stock 2 Vv Sane ‘Alithesales atthe multiple shops az made on aia basis andl cash isd the bank 9

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