Question

Mr Mohan does such a business in which almost 10% goods are on credit and 90% on cash. On the other hand, Mr Sohan is doing such a business in which almost 90% of goods are sold on credit and 10 % on cash. Indentify both types of business​

Answer 1

Answer: 10% on credit and 90% on cash :- Retail Business

And 90% on credit and 10% on cash:- Wholesale Business

Explanation:

Answer 2

(1) Retail business.

In the type of  business Mr. Mohan is doing, most goods are sold for cash. This type of business is called Retail business. In the retail business, the seller sells small lots of products to a large number of customers. So, most goods are sold for cash.

(2) Wholesale business.

In the types of business Mr. Sohan is doing, most goods are sold on credit. This type of business is called Wholesale business. This type of business is called Wholesale. In the wholesale business, the seller sells large quantities of products to retailers who will sell them to customers in smaller quantities.