Below are the reasons given for non popularity of departmental stores in Inida:

1. High cost:

One of the major disadvantages of such stores is that the cost of doing business is very high. Due to excessive departmentalisation and additional facilities offered, cost of such business remains high. In order to cover such costs, goods are generally sold at a high price. As a result, only rich customers who care for quality and services take the advantages of departmental stores.

2. Local inconvenience:

Since departmental stores are situated at central shopping areas, people living at distant places can not avail the services of such stores. For buying daily use goods and frequently purchased items, such stores are of little use since the customer cannot go to a long distance to purchase daily use items. Rather, customers prefer purchases from nearby shops.

3. Higher rent for premises:

As departmental stores are located at central shopping areas, the rents of such premises are usually very high. This also adds to the overhead expenses.

4. Lack of personal touch in selling:

In departmental stores, there is always absence of personal touch in selling because of hired salesmen, managers and supervisors. These hired personnel with different likings and temperaments cannot provide personal attention to the customers. On the other hand, a small retailer can pay personal attention to the needs of the customers.

5. Lack of proper supervision:

There is always a lack of proper supervision in the departmental store operations because of the expenses of the business. Management has to depend upon managers and supervisors who may lack interest in the business.

6. Large capital:

Departmental store requires large amount of capital for establishment and operation. In fact, a departmental store cannot be started with small capital.

Advantages are as follows :

1. Attract large number of customers :As these stores are usually located at central places, they attract large number of customers during the best part of the day.
2. Convenience of buying : By offering large variety of goods under one roof, the department stores provide great convenience to customers in buying almost all goods of their requirements at one place. As a result, they do not have to run from one place to the other, to complete their shopping.
3. Attractive services : A department store aims at providing maximum services to the customers. Some of the services offered by it include home delivery of goods, execution of telephone order, grant of credit facilities and provision for rest-room, etc.
4. Economy of large-scale operations : As they stores are organized on a very large scale, the benefits of large-scale operations, particularly, in respect of purchase of goods, are available to them.

5. Promotion of sales : The department stores are in a position to spend considerable amount of money on advertising and other promotional activities, which help in boosting their sales.
Limitations :
1. Lack of personal attention : Because of the large-scale operations, it is very difficult to provide adequate personal attention to the customers in a departmental store.

2. High operating cost : As the departmental stores give more emphasis on providing services, their operating costs tend to be on the higher side. These costs, in turn, make the prices of the goods high. They are, therefore, not attractive to the lower-income group of people.

3. High possibility of loss : As a result of high operating costs and large-scale operations, the chances of incurring losses in a departmental store are high. For example, if there is any change in the tastes of customers or latest fashions, it necessitates selling of such out-of-fashion articles in clearance sale, to reduce the huge inventory of goods built up.

4. Inconvenient location : As a department store is generally situated at a central location, it is not convenient for the purchase of goods that are needed at short notice.

Mail Order Houses : Mail order houses are retail concerns which carry on business through mail. Mail order business is known as "selling through post" for the retailer and "shopping by post" for the consumer.
Usefulness or advantages of Mail Order Houses :
Mail order business is beneficial to both sellers and buyers in the following ways :
1. Convenience : The customer can buy the goods without spending his time and money in travelling to the seller’s place. He gets home delivery of goods and can arrange for payment after giving the order. He can easily buy goods not available in the local market. He often gets a money back guarantee and can return the goods which are not up to the mark. Customers get an opportunity to select goods from a large range.
2. Low operating costs : A mail order house can be located at any place. It is not necessary to maintain showrooms, well-decorated and furnished shops, or a large sales force. There are no bad debts. Thus, the overhead costs of mail order business are low. Risk is also very low. Cross-freights are eliminated because goods can be despatched directly from the manufacturers to customers.

3. Small investment : The seller need not keep stocks as he can procure the goods after receiving orders. Therefore, mail order business can be operated with a small investment and with little risk.

4. Elimination of middlemen : Through mail order business, a manufacturer can directly sell goods to his customers. He need not depend upon middlemen. Direct contact with customers provides control over distribution channel and helps him in understanding customers preferences.

5. Country-wide market : Sales are not limited to local population. A businessman can sell goods to a large number of customers scattered throughout the country. Far off markets can be exploited with the help of postal facilities. The post office acts as the carrier of goods and the collector of sale proceeds. Temporary depressions in local markets do not result in complete loss of business.

6. Flexibility : The type of goods and the media of advertising can be adjusted easily to suit changing fashions. The mailing list can also be changed with shifts in population, etc. Sales are not dependent on the capacity of salemen as sales appeals are designed by experts.

Goods handled by mail order business : Mail order business is not possible in all types of goods. In order to be handled by mail order house, goods must satisfy the following conditions :

1. They should not be easily perishable, i.e., they must not get easily spoiled or deteriorated during the course of transit by post or rail parcel. Goods should be durable.

2. Goods should be standardised or gradable in quality.

3. They should be identified by a brand name or trade mark.

4. They should not be too heavy or bulky to be sent by mail.

A departmental store is a large establishment offering a wide variety of products, classified into well-defined departments, aimed at satisfying practically every customer’s need under one roof. It has a number of departments, each one confining its activities to one kind of product, e.g., there may be separate departments for toiletries, medicines, furniture, groceries, electronics, clothing and dress material. Thus, they satisfy diverse market segments with a wide variety of goods and services.
Some of the important features of a departmental store are as follows
(i) A modem departmental store may provide all facilities such as restaurant, restrooms, etc. In this way they try to provide maximum service to higher class of customers for whom price is of secondary importance.
(ii) These stores are generally located at a central place in the city, which caters to a large number of customers.
(iii) They are generally formed as a joint stock company managed by a board of directors as the size
of these stores is very large.
(iv) A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses thereby eliminating undesirable middlemen between the producers and the customers.
Chain stores or multiple shops are networks of retail shops that are owned and operated by manufacturers or intermediaries. Under this type of arrangement, a number of shops with similar appearance are established in localities, spread over different parts of the country in contrast to departmental stores which are established at a central place in the city. These different types of shops normally deal in standardized and branded consumer products, which have rapid sales . turnover. These shops are run by the same organisation and have identical merchandising strategies, with identical products and displays.

Retailer renders following services to the wholesalers
(i) Help in Distribution of Goods Wholesalers provide help in the distribution of goods and making them available to final consumers.
(ii) Personal Selling In this the retailers relieve the producers of this activity and help them in actualising the sale of the products.
(iii) Enabling Large Scale Operations It enables them to operate at large scale and fully concentrate on activities.
(iv) Collecting Market Information Retailers remain in touch with the buyers they know about the tastes, attitudes, preference, etc. Such information is very useful in taking marketing decisions in an organisation.
Some of the important services of retailers from the point of view of consumers are as follows
(i) Regular Availability of Products In order to buy products as and when needed retailer maintains the regular availability of the product.
(ii) New Products Information By arranging effective display of products and personal selling retailers, provide important information about their products.
(iii) Convenience in Buying Retailers are situated very near to the residential areas and remain open for long hours which enables customer to buy products of their requirement.
(iv) After Sales Service Retailers provide after sales services to the customers in the form of
home delivery, supply of spare parts, etc.

GST stands for "Goods and Services Tax", and is proposed to be a comprehensive indirect tax levy on the manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. The Goods and Services Tax, or GST is a major indirect tax reform introduced in India by integrating the major indirect taxes of the centre and states. It is a comprehensive tax levied on the manufacture, sale, and consumption of goods and services. The GST is a destination based consumption tax made on value addition.

The terms of trade (TOT) is the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. Terms of trade (TOT) is a measure of how much imports an economy can get for a unit of exported goods. • Since, economies typically export and import many goods, measuring the TOT requires defining price indices for exported and imported goods and comparing the two.

Main Documents Used In Internal Trade
The following are the main documents used in the Internal trade.
1. Invoice – In case of credit purchases, a statement is supplied by the seller of goods in which he gives particulars of goods purchased by buyer such as quantity, quality, rate, total value, sales tax, trade discount, etc. It is also called a Bill or Memo. Buyer gets information all about the amount he has to pay to the seller from Invoice only.

2. Pro-Forma Invoice – The statement (or forwarding letter) containing the details of goods consigned from consigner to consignee is known as aPro-forma Invoice. It gives the particulars as regards quantity, quality, price and expenses incurred on the goods consigned. In case of consignment, consignee is an agent of consigner who is supposed to sell goods on behalf of consigner and this statement/proforma invoice is only for his information. It is also known as interim invoice.

3. Debit Note – It refers to a letter or note which is sent by the buyer to the seller stating that his (seller’s) account has been debited by the amount mentioned in note on account of goods returned herewith. It states the quantity, rate, value and the reasons for the return of goods.

4. Credit Note – It refers to a letter or note which is sent by the seller to the buyer stating that his account has been credited by the mentioned amount on account of acceptance of his claim about the goods returned by him.

5. Lorry Receipt – It refers to a receipt issued by the Transport Company for goods accepted by it for sending from one place to another. It is also known as Transport Receipt (TR) and Bilty.

6. Railway Receipt – It refers to a receipt issued by the Railways for goods accepted for sending from one station to another.

A chain store is a group of similar retail shops that sell the same type of goods. All these shops or branches are under the control of the head office. Branches are opened in different parts of the city or even in different parts of the country.

Advantages of Chain Stores

1. Chain stores specialize in a particular product.

2. Such stores can cater to the needs of people in different localities.

3. Central location and luxurious premises are not required for chain stores.

Disadvantages of Chain Stores

1. As chain stores deal only in a particular item, they may not attract many customers.

2. The head office may find it difficult to exercise control over a number of retail outlets/branches established throughout the city/country.

3. The central office also has to maintain the relevant accounts in respect of every shop and this again is a tedious process.

4. The product quality, price etc., are decided by the controlling office. The retail shops have to sell what is supplied to them.

Sole proprietorship means a business owned, financed and controlled by a single person who is recipient of all profit and bearer of all risks.

It is SUITABLE IN AREAS OF PERSONALISED SERVICE like beauty parlour, hair cutting saloons & small scale activities like retail shops.

Features

1. Single ownership: It is wholly owned by one individual.
2. Control: Sole proprietor has full power of decision making.
3. No separate legal entity: Legally there is no difference between business& businessmen.
4. Unlimited liability: The liability of owner is unlimited. In case the assets of business are not sufficient to meet its debts, the personal property of owner can be used for paying debts
5. No legal formalities: Not required to start, manage and dissolve such business organization.
6. Sole risk bearer and profit recipient: He bears the complete risk and there is no body to share profit/loss with him.

It is generally believed that profit earning is the primary objective of business. However, as per modern thinking, business needs to have several objectives. Consistent and sustainable profit can be earned only if the business performs useful services to society. Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business. Five of the objectives of business are described below (i) Profit Maximization Profit is defined as excess of revenue over cost. Profitability refers to profit in relation to capital investment. Although, earning profit cannot be the only objective of business, its importance cannot be ignored. Every business makes an attempt to reap maximum profit as possible in the given market conditions. Profit may be regarded as an essential objective of business for various reasons (a)It is a source of income for business persons. (b) It can be a source of finance for meeting expansion requirements of business. (c) It indicates the efficient working of business. (d) It can be taken as society's approval of the utility of business. (e) It builds up the reputation of a business enterprise. (ii) Market Standing Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at standing on stronger footing in terms of offering competitive products to its customers and provide customer satisfaction. (iii) Innovation Innovation is the introduction of new ideas or methods. There are two kinds of innovation in every business (a) Product Innovation In product innovation a new product or service or an improved version of existing product is developed (b) Process Innovation This involves innovation in the methods, skills and activities needed to produce or supply products. Product demand starts declining after a span of time. At this stage, the business must introduce a new innovation to create fresh demand for the existing product by introducing new features in it or bring out a new product to sustain in the market. (iv) Productivity Productivity is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency. Higher productivity leads to reduction in costs as the same amount of output is produced with lesser amount of inputs. This ensures survival and growth of the enterprise. (v) Social Responsibility Every business operates within a society. It uses the resources of the society and depends on the society for its functioning. This creates an obligation on the part of business to look after the welfare of society. So, all the activities of the business should be such that they will not harm, rather they will protect and contribute to the interests of the society. The activities of business towards the welfare of the society earn goodwill and reputation for the business in the eyes of consumers as well as government.

Yes, I agree with this statement. Like eating is essential for survival of any human being, same way profit is essential and a must for survival of any business. But a person cannot survive for a long time and cannot lead a healthy life only by eating. A person has to perform other activities also such as social activities, religious activities and patriotic activities. 

Similarly, a business with the sole motive of earning profit cannot survive for a long time. lb capture a big share in market and to create the goodwill businessman must have social and individual objectives along with economic objective of earning profit. 

A business which operates on a small scale and required less capital, less labour and less machines is called small business. The goods are produces on a small scale. This business is operated and managed by the owner of the business. In India, the village and small Industries sector consists of both traditional Handlooms, Handicrafts, khadi and Village Industries. Modern small Industries – Small scale industries and Power looms.

Equity share capital is also called risk capital.