Class 11 Business Studies Chapter 4 Business Services Question answers to each chapter are provided in the list so that you can easily browse through different chapters HS 1st Year Business Studies Notes, AHSEC Class 11 Business Studies Chapter 4 Business Services, AHSEC Class 11 Business Studies Question Answer In English Notes and select needs one.
Class 11 Business Studies Chapter 4 Business Services
Also, you can read the NCERT book Notes Class 11 Business Studies Chapter 4 Business Services online in these sections Solutions by Expert Teachers as per AHSEC Class 11 Business Studies Chapter 4 Business Services (CBSE) Book guidelines. These solutions are part of AHSEC All Subject Solutions. Here we have given Assam Board Class 11 Business Studies Chapter 4 Business Services Solutions for All Subjects, You can practice these here NCERT Class 11 Business Studies Chapter 4 Business Services.
Business Services
Chapter: 4
VERY SHORT TYPE QUESTIONS ANSWERS (1 MARK EACH)
A. Multiple Choice Question :
1. DTH services are provided by______.
(a) Transport companies.
(b) Banks.
(c) Cellular companies.
(d) None of the above.
Ans: (c) Cellular companies.
2. The benefits of public warehousing includes
(a) Control.
(b) Flexibility.
(c) Dealer relationship.
(d) None of the above.
Ans: (b) Flexibility.
3. Which of the following is not a function of insurance ?
(a) Risk sharing.
(b) Assist in capital formation.
(c) Lending of funds.
(d) None of the above.
Ans: (c) Lending of funds.
4. Which of the following is not applicable in life insurance contract?
(a) Conditional contract.
(b) Unilateral contract.
(c) Indemnity contract.
(d) None of the above.
Ans: (c) Indemnity contract.
5. CWC stands for _______.
(a) Central water commission.
(b) Central Warehousing commission.
(c) Central warehousing corporation.
(d) Central water corporation.
Ans: (c) Central warehousing corporation.
Short Answer Questions
1. Define services and goods.
Ans: American Marketing Association was one of the pioneer is defining the word services in 1960. Accordingly, the definition services had been activities, benefits, or satisfactions which are offered for sale, or provided in connection with the sale of goods.
On the other hand, goods is a physical product which can be delivered to a purchaser and transferred the ownership. The goods are commodities on items of all types.
2. What is e-banking? What are the advantages of e-banking.
Ans: E-banking or Electronic banking, also called internet banking implies the banking activities performed by using internet are electronic system. With the application of computer technology in various fields the bank authorities are also facing pressure to make banking more liberal. Consequently majority banks of the world have started web preserve in form of ATM internet banking, support services etc.
Advantages of e-banking: Following are the advantages of e-banking-
(i) E-banking facilitates on- line management of customer’s accounts. In this systems, customers can deposit/withdraw their money from any other branches irrespective of the branch where their account is hold which provides a greater security to travelling people.
(ii) Customers can use services of ATMs anywhere which reduces the risk of carrying cash.
(iii) E-banking also provides the common banking task or writing cheques, paying bills, transferring funds, printing statements and balance inquiry etc.
(iv) E-banking plays a important role in financial market. Through E – banking channels investors can invest their money in stock market without brokers.
(v) At present internet baking is also used for payment of taxes, bill payments like Electricity water, municipal and telephones etc.
3. Write a note on various telecom services available for enhancing business.
Ans: Telecommunications include a number services such as the telephonic services, telegraphic services, e-mailing services, fax services, internet services on so. With the development of sophisticated communication technologies, we find a big change in the services profile of telecommunication organisation.
Various Telecommunication services are:
(i) Telephone services local, National, international.
(ii) Supporting telegraph service National international.
(iii) E-mail, e-commerce, facsimile, Fax services, Data-point-to-point on PSTN, on public telex.
(iv) Internal, Internet, e-business.
4. Explain briefly the principles of insurance with suitable examples.
Ans: Following are the main principles of insurance :
(i) Insurable interest: Any person taking an insurance policy must have an insurable internet in the subject matter that is misused. A person is said to have insurable internet in the property on subject matter insured if he is benefited by its existence and is prejudiced by its destruction.
(ii) Utmost Good faith: Both the insured and the insurer must have the utmost good faith on each other. The proposer (insured) must make the fullest disclosure of all. Material facts desired by the insurer.
(iii) Indemnity: The principle of indemnity is applicable to all insurance policies except life insurance policies. This means that the misuser makes a promise to compensate the less suffered by the insured i.n. case of any loss.
(iv) Principle of contribution: This principle is applicable when the property is insured with more than one insurer. The insured under this principle cannot claim compensation for more than this loss from all the companies.
Example: A has a property of Rs.1,00,000. He makes an insurance policy with B-&C for Rs.50,000 and another policy with C & Co for Rs.50,000. Now, if the property is damaged by fire for Rs.40,000
A cannot claim compensation of Rs.40,000/- from both B Co and C& Co. He can claim compensation of Rs.20,000 each from both companies.
(v) Principle of Subrogation: This principle is applicable to all insurance policies except life insurance. Thus, if the insured claims compensation from the insurance company he cannot claim the same compensation for any other party.
Example: A gets his house insured for Rs.1,00,000/-. Show house is set on fire by B. A claims compensation from the insurance company. Now, A cannot sue B to get compensation from him. Whatever right A had against B will now be shifted to the insurance company who can claim compensation from B to make good the loss suffered by it. Subrogation is thus the transfer of rights and remedies of the insured to the insurer.
5. Explain warehousing and its functions.
Ans: Storage and warehousing enables us to adjust supply according to the changes in the market demand for goods. All irregularities in production a not distribution can be removed by timely adjustment between demand and supply. Price stability in the market can thus be maintained. Warehousing and storage facilities are required by farmers, producers, processors, dealers, mercantile, agents, exporters and importers, wholesalers, and all those engaged in trade and commerce.
Functions of warehousing: Following are the functions of warehousing :
(i) Warehousing provides a convenient resting place for surplus stock of goods not required in the market for the time being.
(ii) The gap between certain time intervals between production and consumption can be easily filled by warehouses.
(iii) Goods can be stored in warehouses and their supply regulated according to the demand in the market.
(iv) Owners of goods can transfer the risk of loss through fire, theft, damage to the warehouses, who in turn can transfer it to the insurance companies.
(v) Warehouses also offer many incidental marketing services like assembling, standardisation and grading, packing etc on reasonable charges to the traders storing goods with them.
(vi) Warehouse owners issue warehouse warrants or receipts which can be used by the traders as security for loans from banks.
Long Answer Questions
1. What are services? Explain there distinct characteristics.
Ans: Various services can be classified into the following types such as
(i) Business services.
(ii) Social services.
(iii) Personal services.
Business services include banking, insurance transportation, warehousing and communication services. Social services include health care, education services provided by NGO and agencies.
Personal services are experienced differently by different customers. These are not consistent in nature.
Characteristics of services: Following are the characteristics of services –
(i) Services are intangible: A product is an object a device, a thing as against service which is a deed, a performance an effort. Therefore, when a product is bought it is something that can be seen touched, smelt, heard or worn, While there is nothing tangible to show for it where a service is sold. One can say that services are consumed but not possessed.
(ii) Services are heterogenous: That is the services are non – standardised and uniform in very clear terms. It is argued that it is often impossible to assure consistency in the services provided by a seller to standardise offerings among the sellers of the same service while it is possible to offer consistency and uniformity in case of products.
(iii) Services are inseparable: With customer participation in the process. Services are typically produced and consumed at a time. This is services are produced and consumed simultaneously. Generally, products are produced, then sold and finally consumed. However, services are sold first and then produced and consumed at the same time. Thus, a pager service company pager services while the pager user consumes it.
(iv) Services are perishable: The utility of majority of services is short-lived. As a result they can not be produced ahead of time and stocked for the periods of peak loads of demand. The perishability of services is not a problem. So, long as demand is steady for it is easier to staff for the service in advance.
(v) Services are susceptible to changing demand: The marke for services has under fluctuations. These fluctuations in demand might be seasoned, monthly, weekly, daily no even hourly. During off season one needs less transport in a day, day time than morning and evenings the demand for public transport dwindles, during nigh time one needs lesser telephone services, tourism has seasonal demand, cricket fields are unused in rainy season while golf courses in winter.
(vi) Services are subject to special pricing tactics: The distinct characteristics of perishability, fluctuations in demand and inseparability in services involve significant implications in pricing Consumers may postpone purchase or perform some services themselves. Competition plays a secondary role in many services. Quality of services cannot be fully standardised.
2. Explain the function of commercial banks with an example of each.
Ans: The functions of commercial bank’s may be discussed under the following headings
(i) Primary function.
(ii) Secondary function.
(iii) General utility functions.
(iv) Agency functions.
(i) Primary function (Accepting deposits): The primary function of banks are to accept money from the public, business, institutions as deposits, on which interest is paid. These deposits are kept with the bank for specified periods and can be withdrawn by the depositors according to the agreement made with the banks. These deposit are lent by the banks to the public, business and institutions from whom interest is realised on the money given as loans: Deposits made in banks can be made indifferent forms like time deposit savings deposit and current deposit.
(i) Primary function (making loans and advances): From the deposits received by bank loans and advances are made to the general public, business and various organisations. The banks make their earning from these loans or advances on which interest is charged. Banks thus accept deposits from the public having surplus funds, and extends these deposits to industry and commerce and personal use. Thereby helping in economic development of a country. It is therefore said that banks mobilise the surplus funds of the public and invests these in productive economic activity.
(iii) Secondary Functions: Acceptance of deposits and making loans and advances by a bank is a primary function. But is also takes up secondary or subsidiary functions. Which are of equal importance to a bank. for the point of view of service to the public.
These subsidiary functions are:
(a) Agency functions.
(b) General utility functions.
(a) Agency functions: Following are the agency functions :
(i) collection of bills, cheques, interest etc.
(ii) making payments and executing standing orders.
(iii) undertaking purchase and sale of securities.
(iv) transfer of funds.
(v) acting as administrators etc.
(b) Utility Functions: Following are the utility functions :
(i) Making safe custody of valuables.
(ii) issuing various credit documents.
(iii) Underwriting capital issues.
(iv) Acceptance of Bills.
(v) Providing trade information.
(vi) Dealing in Foreign Currency.
(vii) Dealing as advisors.
(viii) Providing credit information.
(ix) Financing of foreign trade.
3. Write a detailed note on various facilities offered by Indias
Ans: Various facilities offered by Indian Postal Department can be understood for its various services.
(i) Postal services: The basic post office services are carriage of letters articles and parcels under various categories from one place to another place both within the country and outside the post office takes the help of various means of transport. Communication like road, railways, airways and sea ways. The postal services can be categorised into various categories like-
(a) Letter.
(b) Book Post.
(c) Registered letters and parcels.
(d) Value payable post.
(e) Express Delivery.
(f) Under certificate of posting.
(g) Post boxes and bags.
(h) Parcels. and
(i) Returned letter office.
(ii) Banking and Investment functions of the post office: The post office also provides banking and investment functions. To encourage thrift and promote savings amongst the people the post office performs the following functions –
(a) Receiving deposits in saving bank account.
(b) Selling postal cash certificates.
(c) Purchasing selling and depositing Govt. Securities on behalf of customers.
(d) Depositing money with the Accountant General at internet.
(e) Issuing postal life insurance to Govt servants.
The post office also provides remittance services for sending money from one place to another.
This is done in the following ways:
(1) By money orders.
(ii) By postal orders.
(iii) By post stamps.
(iv) By Insurance.
(iii) communication services of the post office: Telegraph and telephone services of the post office forms a part of the telecommunication services of the post office by which long distances can be covered within the minimum time. Today however, computers are also used to general information through a wide network of electronic exchange (Internet). Following are the telegraph and telephone services of the post office-
(a) Telegraph.
(b) Telephone.
(c) Telex.
4. Describe various types of insurance and examine the nature of risks protected by each type of insurance.
Ans: Following are the various types of insurance.
(i) Life insurance/assurance: It is a contract whereby the agrees to pay the insured a specified sum of money to the insured, on the expiry of a certain period of time or an death of the insured.
(ii) Marine Insurance: It is a contract whereby the insurer undertakes to indemnify the insured against the risk of marine perils, upto the extent mentioned in the policy.
(iii) Fire Insurance: It is a policy of insurance whereby the insurer undertakes to guarantee the honesty of an employee of a concern, by compensating his employer for any loss caused by dishonesty of the employee.
(iv) Fidelity Insurance: It is an insurances whereby the insurer undertakes to guarantee the honesty of an employee of a concern, by compensating his employer for any loss caused by dishonesty of the employee.
(v) Accident Insurance: It is an insurance whereby the insurer undertakes to indemnify the insured against any physical injury or damages caused to property due to any accident.
(vi) Burglary Insurance: It is an insurance whereby the insurer undertakes to indemnify the insured against any loss caused due to burglary theft and decoity etc. can be taken by banks, companies, insurance companies, households etc.
(vii) Workmen compensation insurance: In this type of insurance the insurers undertake to compensate the employee for the payment the employer is required to make to his employees for any physical injury of loss of life, limb or damage of any description which employees may sustain in the course of their duty.
(viii) Motor car third party and comprehensive insurance: Motor cars are exposed to damaged or losses due to theft burglary, accident etc. To guard against all such risks the owner may take a policy. The owner can also take a third party insurance, which would misuse the owner against risks of damage to third parties while running his car on the road. In case he takes a comprehensive policy is would guard him against all possible sides of third party damage, theft, accident and damage.
(ix) Employees liability insurance: Such a policy is taken out by an employer to misuse him against the negligence of his inefficient employees for whose negligence the employer may have to compensate his client whose work was negligently done by an employee.
(x) Public liability insurance: This type of insurance policy covers the public who may be insured in the premises of a merchant.
(xi) Cash in transit insurance: This type of insurance covers the risks of theft or burglary of cash remitted from one place to another.
5. Explain in detail the warehousing services.
Ans : Following are the services rendered by warehousing:
(i) Warehousing facilities are required for the marketing of agricultural goods. Whose demand is regular but production is seasonal.
(ii) Due to the factory system of productive a huge quantity of goods accumulate at the factory. It thus regimes proper warehousing of goods from the stage of the factory to the homes of consumer’s.
(iii) Production of certain industrial goods may be continuous, but their demand may be seasonal, e.g. raincoats, umbrellas, woollen goods etc. These goods thus require warehousing facilities.
(iv) Today goods under the modern factory system are produced in large amount for a wide market. They need to be moved from centres of production to centres of consumption and at the same time they cannot be sold at once. Thus, during this period, warehousing would be required at all marketing points.
(v) Warehouses are also required by the farmers and traders to hold goods till a time they get favourable prices.
(vi) Banks also advances loans to traders and manufacturers against warehouse receipts.
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