Commerce Exam  >  Commerce Questions  >   Direction: Read the following text and answe... Start Learning for Free
Direction: Read the following text and answer the questions that follow:
Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.
Q. Identify which of the following is not an advantage of a chain store?
  • a)
    Elimination of middlemen
  • b)
    No bad debts
  • c)
    High operating cost
  • d)
    Diffusion of risk
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Direction: Read the following text and answer the questions that foll...
Operating expenses (OPEX) are the costs a business incurs to stay up and running. They're also called Selling, General, and Administrative (SG&A) expenses. Examples of operating expenses are rent, payroll and benefits, inventory, banking fees, marketing ads, business licenses, and transportation.
View all questions of this test
Most Upvoted Answer
Direction: Read the following text and answer the questions that foll...
High operating cost
Elimination of middlemen
- One advantage of a chain store is the elimination of middlemen, which can help in reducing costs and increasing profits. By directly selling products to customers through chain stores, the need for middlemen is eliminated, resulting in higher margins for the business.
No bad debts
- Another advantage of a chain store is the reduction in bad debts. Since chain stores typically operate on a cash basis or have strict credit policies in place, the risk of incurring bad debts is minimized. This ensures a steady cash flow and reduces the financial risk for the business.
Diffusion of risk
- Chain stores also offer the advantage of diffusion of risk. By having multiple branches in different locations, a business can spread out its risk. This means that if one branch is not performing well, the overall impact on the business is minimized as the other branches can still generate revenue.

High operating cost
- However, one disadvantage of a chain store is the high operating cost. Managing multiple branches requires additional resources such as manpower, rent, utilities, and logistics. These costs can add up and impact the profitability of the business. As a result, businesses need to carefully manage their expenses to ensure that the benefits of having a chain store outweigh the high operating costs.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer?
Question Description
Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following text and answer the questions that follow:Malti often noticed that nuclear families where both husband and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of time, so as an entrepreneur she started gathering information regularly and developed a new product line of selling chopped vegetables in hygienic packaging under the brand name ‘Sabjiwala’. She started her shop in her home space. In the beginning, she catered to the orders of customers directly but later on as demand increased, it was difficult for her to manage all the orders from that space. Her friends advised her to sell the products by opening her chain stores. This will increase her sales turnover and eventually the profits. Following her friend’s suggestion now she has expanded her business to an extent that from a small shop operating from her home, she has changed it to a chain store having its 6 branches in the city.Q. Identify which of the following is not an advantage of a chain store?a)Elimination of middlemenb)No bad debtsc)High operating costd)Diffusion of riskCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev