Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Internal Trade

Question:

Read the given below two statements and mark the correct answer.

Assertion (A):  A departmental store is located at a central place, where a large number of customers can be attracted to it. However, the multiple stores are located at a number of places for approaching a large number of customers.
Reason (R) : All sales in the multiple shops and departmental store are made strictly on cash basis.

Options:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is False

Assertion (A) is false but Reason (R) is true

Correct Answer:

Assertion (A) is true but Reason (R) is False

Explanation:

The correct answer is option 3- Assertion (A) is true but Reason (R) is False.

Assertion (A):  A departmental store is located at a central place, where a large number of customers can be attracted to it. However, the multiple stores are located at a number of places for approaching a large number of customers. THIS IS TRUE.
Reason (R) : All sales in the multiple shops and departmental store are made strictly on cash basis. THIS IS FALSE as the departmental stores may provide credit facilities to some of their regular customers.

So, the correct answer is option 3.