NCERT Solutions <\/a>Class 11 Business Studies<\/a>Business Studies Sample Papers<\/a><\/p>\n I. Multiple Choice Questions<\/strong><\/span> II. Short Answer Type Questions<\/span><\/strong> Question 2. What is e-banking? What are the advantages of e-banking?<\/strong> Question 3. Write a note on various telecom services available for enhancing business.<\/strong> Question 4. Explain briefly the principles of insurance with suitable examples.<\/strong> Question 5. Explain warehousing and its functions.<\/strong> III. Long Answer Type Questions<\/span><\/strong> Question 2. Explain the functions of commercial banks with an example of each.<\/strong> Question 3. Write a detailed note on various facilities offered by Indian Postal Department.<\/strong> Question 4. Describe various types of insurance and exercise the nature of risks protected by each type of insurance.<\/strong> Question 5. Explain in detail the warehousing services.<\/strong> Secondary Functions of a Warehouse<\/strong><\/p>\n I. Multiple Choice Questions<\/strong><\/span> II. Short Answer Type Questions<\/strong><\/span> Question 2. Explain the functions of e-banking.<\/strong> Question 3. What do you mean by mode of transport? Name different modes of transport.<\/strong>TEXTBOOK QUESTIONS SOLVED<\/strong><\/span><\/h3>\n
\nTick the appropriate answer:<\/strong>
\n Question 1. DTH services are provided by<\/strong>
\n (a) Transport companies (b) Banks<\/strong>
\n (c) Cellular companies (d) None of the above<\/strong>
\n Question 2. The benefits of public warehousing includes<\/strong>
\n (a) Control (b) Flexibility<\/strong>
\n (c) Dealer relationship (d) None of the above<\/strong>
\n Question 3. Which of the following is not a function of insurance?<\/strong>
\n (a) Risk sharing (b) Assist in capital formation<\/strong>
\n (c) Lending of funds (d) None of the above<\/strong>
\n Question 4. Which of the following is not applicable in Life Insurance contract?<\/strong>
\n (a) Conditional contract (b) Unilateral contract<\/strong>
\n (c) Indemnity contract (d) None of the above<\/strong>
\n Question 5. CWC stands for<\/strong>
\n (a) Central Water Commission (b) Central Warehousing Commission<\/strong>
\n (c) Central Warehousing Corporation (d) Central Water Corporation<\/strong>
\n Answers:<\/strong>
\n1. (c) 2. (b) 3. (c) 4. (c) 5. (c)<\/p>\n
\nQuestion 1. Define services and goods.<\/strong>
\n Answer:<\/strong>\u00a0A good is a physical product which can be delivered to a buyer and involves the ownership from seller to customer. For example; mobile phone, book, purse etc. Services are those separately identifiable, essentially intangible activities which provide satisfaction of wants, and are not necessarily linked to the sale of a product or another service. For example, communication services, teaching services, legal services etc.<\/p>\n
\n Answer:<\/strong>\u00a0E-banking is a service provided by many banks, in which a customer is allowed to conduct banking transactions through internet. It includes ATMs, credit cards, debit cards, mobile banking and internet banking.
\nAdvantages of e-banking<\/strong><\/p>\n\n
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\n Answer:<\/strong>\u00a0Various telecom services available for enhancing business are as follows:<\/p>\n\n
\n Answer:<\/strong>\u00a0The principles of insurance are explained below:<\/p>\n\n
\nUnder this insurance, contract both the parties should have faith over each other. As a client it is the duty of the insured to disclose all the facts to the insurance company. Any fraud or misrepresentation of facts can result into cancellation of the contract.<\/li>\n
\nUnder this principle of insurance, the insured must have interest in the subject matter of the insurance. Absence of insurance makes the contract null and void. If there is no insurable interest, an insurance company will not issue a policy.
\nAn insurable interest must exist at the time of the purchase of the insurance. For example, a creditor has an insurable interest in the life of a debtor, A person is considered to have an unlimited interest in the life of their spouse etc.<\/li>\n
\nIndemnity means security or compensation against loss or damage. The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured\u2019s economic loss.
\nIn this type of insurance the insured would be provided compensation with the amount equivalent to the actual loss and not the amount exceeding the loss.
\nThis is a regulatory principle. This principle is observed more strictly in property insurance than in life insurance.
\nThe purpose of this principle is to set back the insured to the same financial position that existed before the loss or damage occurred.<\/li>\n
\nThe principle of subrogation enables the insured to claim the amount from the third party responsible for the loss. It allows the insurer to pursue legal methods to recover the amount of loss. For example, if you get injured in a road accident, due to reckless driving of a third party, the insurance company will compensate your loss and will also sue the third party to recover the money paid as claim.<\/li>\n
\nIf the same subject matter, except life is insured by more than one insurers, then the actual loss will be shared by all the insurers.<\/li>\n
\nIf means that the insured should try to minimise the loss of the subject matter of the insurer even if it is insured.<\/li>\n
\nProximate cause literally means the \u2018nearest cause\u2019 or \u2018direct cause\u2019. This principle is applicable when the loss is the result of two or more causes. The proximate cause means; the most dominant and most effective cause of loss is considered. This principle is applicable when there are series of causes of damage or loss.<\/li>\n<\/ol>\n
\n Answer:<\/strong>\u00a0Warehousing refers to holding or keeping of goods from the time of their production or purchase until they are sold or consumed. It removes time gap between production and consumption and thereby creates time utility. In addition to providing services of storage, warehouse also provides logistical service in a cost effective manner.
\nFunctions of Warehouses<\/strong><\/p>\n\n
\nQuestion 1. What are services? Explain their distinct characteristics.<\/strong>
\n Answer:<\/strong>\u00a0A service is an act or performance offered by one party to another. They are economic
\nactivities that create value and provide benefits for customers at specific times and places as a result of bringing desired change. According to Sir William B, \u201cService refers to social efforts which includes the Govt.to fight five giant evils – wants, disease, ignorance, squalor and illness in the society\u201d.
\nCharacteristics of Services<\/strong>
\nService is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing about a desired change in or on behalf of the recipient of the service. The term, service, is not limited to personal services like medical services, beauty parlors, legal services, etc. According to the marketing experts and management thinkers the concept of services is a wider one. The term services are defined in a number of ways but not a single one is universally accepted. The distinct characteristics of services are mentioned below:<\/p>\n\n
\nFor example: Railways sells a train ticket from A destination to B destination. Here it is the matter of consumer\u2019s perception of services than smelling it or tasting it.<\/li>\n
\nFor example: a consumer can use personal care services or medical services or can use a hotel room or swimming pool. However, the ownership remains with the providers.
\nAccording to Philip Kotler, \u201cA service is an activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything\u201d From this it is clear that the ownership is not affected in the process of selling the services.<\/li>\n<\/ol>\n
\n Answer:<\/strong>\u00a0The main functions of commercial banks are accepting deposits from the public and advancing them loans.
\nHowever, besides these functions there are many other functions which these banks perform. All these functions can be divided under the following heads:
\n1. Accepting deposits; 2. Giving loans;
\n3. Overdraft; 4. Discounting of Bills of Exchange;
\n5. Investment of Funds; 6. Agency Functions.<\/p>\n\n
\nThe most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks.
\nFor example, fixed and low income group people deposit their savings in small amounts from the points of view of security, income and saving promotion. On the other hand, traders and businessmen deposit their savings in the banks for the convenience of payment.
\nTherefore, keeping the needs and interests of various sections of society, banks formulate various deposit schemes. Generally, there are three types of deposits which are as follows:
\n(i) Current Deposits:<\/strong>
\nThe depositors of such deposits can withdraw and deposit money whenever they desire. Since banks have to keep the deposited amount of such accounts in cash always, they carry either no interest or very low rate of interest. These deposits are called Demand Deposits because these can be demanded or withdrawn by the depositors at any time they want. Such deposit accounts are highly useful for traders and big business firms because they have to make payments and accept payments many times in a day.
\n(ii) Fixed Deposits:<\/strong>
\nThese are the deposits which are deposited for a definite period of time. This period is generally not less than one year and, therefore, these are called as long term deposits. These deposits cannot be withdrawn before the expiry of the stipulated time and, therefore, these are also called as time deposits.
\nThese deposits generally carry a higher rate of interest because banks can use these deposits for a definite time without having the fear of being withdrawn.
\n(iii) Saving Deposits:<\/strong>
\nIn such deposits, money up to a certain limit can be deposited and withdrawn once or twice in a week. On such deposits, the rate of interest is very less. As is evident from the name of such deposits their main objective is to mobilise small savings in the form of deposits. These deposits are generally done by salaried people and the people who have fixed and less income.<\/li>\n
\nThe second important function of Commercial Banks is to advance loans to its customers. Banks charge interest from the borrowers and this is the main source of their income.
\nBanks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the accounts of borrowers. In other words, they create loans out of deposits and deposits out of loans. This is called as credit creation by Commercial Banks.
\nModern banks give mostly secured loans for productive purposes. In other words, at the time of advancing loans, they demand proper security or collateral. Generally, the value of security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refund of the loan.
\nAt times, banks give loan on the basis of personal security also. Therefore, such loans are called unsecured loan. Banks generally give following types of loans and advances:
\n(i) Cash Credit:<\/strong>
\nIn this type of credit scheme, banks advance loans to its customers on the basis of bonds, inventories and other approved securities. Under this scheme, banks enter into an agreement with its customers to which money can be withdrawn many times during a year. Under this set lip banks open accounts of their customers and deposit the loan money. With this type of loan, credit is created.
\n(ii) Demand Loans:<\/strong>
\nThese are such loans that can be recalled on demand by the banks. The entire loan amount is paid in lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.
\n(iii) Short-term Loan:<\/strong>
\nThese loans may be given as personal loans, loans to finance working capital or as priority sector advances. These are made against some security and entire loan amount is transferred to the loan account of the borrower.<\/li>\n
\nBanks advance loans to its customer\u2019s up to a certain amount through over-drafts, if there are no deposits in the current account. For this, banks demand a security from the customers and charge very high rate of interest.<\/li>\n
\nThis is the most prevalent and important method of advancing loans to the traders for short-term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. In this way, businessmen get loans on the basis of their bills of exchange before the time of their maturity.<\/li>\n
\nThe banks invest their surplus funds in three types of securities\u2014Government securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc.
\nOther securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks, units of UTI, shares of Regional Rural banks etc.<\/li>\n
\nBanks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:<\/p>\n\n
\n Answer:<\/strong>\u00a0Indian Post and Telegraph Department provides various postal services all over India. India has been divided into 22 postal circles for this. There are 1,54,149 post offices in India. It has 5,64,701 letter boxes, which transmits 1575 crore mails every year. 5,01,716 villages have a public telephone and 26000 post offices are connected through the network. It links major 97 countries across the world. It provides speed post facility for over 1000 destinations in India.
\nFacilities of postal department are broadly divided into:<\/p>\n\n
\n Answer:<\/strong>\u00a0There are many types of insurance. Some of them are shown with the help of diagram given below:
\n![\"NCERT](\"https:\/\/i2.wp.com\/www.cbselabs.com\/wp-content\/uploads\/2019\/10\/NCERT-Solutions-For-Class-11-Business-Studies-Business-Services-LAQ-Q4.jpg?resize=743%2C526&ssl=1\")
<\/p>\n![\"NCERT](\"https:\/\/i0.wp.com\/www.cbselabs.com\/wp-content\/uploads\/2019\/10\/NCERT-Solutions-For-Class-11-Business-Studies-Business-Services-LAQ-Q4.1.jpg?resize=774%2C650&ssl=1\")
<\/p>\n![\"NCERT](\"https:\/\/i2.wp.com\/www.cbselabs.com\/wp-content\/uploads\/2019\/10\/NCERT-Solutions-For-Class-11-Business-Studies-Business-Services-LAQ-Q4.2.jpg?resize=741%2C307&ssl=1\")
<\/p>\n
\n Answer:<\/strong>\u00a0Primary warehousing services include the following:<\/strong><\/p>\n\n
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MORE QUESTIONS SOLVED<\/span><\/strong><\/h3>\n
\n Question 1. Which of the following is an example of E-banking?<\/strong>
\n (a) EFT (b) Online banking<\/strong>
\n (c) ATM id) All of the above<\/strong>
\n Question 2. Who can get an overdraft from a bank?<\/strong>
\n (a) A Current Account Holder (b) A Saving Account Holder<\/strong>
\n (c) A Fixed Deposit Account Holder (d) A Recurring Deposit Account Holder<\/strong>
\n Question 3. Give full form of ATM.<\/strong>
\n (a) Automatic Tele Money (b) Any Time Money<\/strong>
\n (c) Automatic Teller Machine (d) Automatic Transfer Money<\/strong>
\n Question 4. In which type of insurance, interest must exist only at the time of insurance?<\/strong>
\n (a) Life Insurance (b) Marine Insurance<\/strong>
\n (c) Fire Insurance (d) All of the above<\/strong>
\n Question 5. Which of the following companies offer DTH services in our country?<\/strong>
\n (a) Reliance (b) Idea<\/strong>
\n (c) Tata sky (d) All of the above<\/strong>
\n Question 6. Name the type of banking under which ATM, credit card and EFT facilities are available.<\/strong>
\n (a) Internet Banking (b) E-banking<\/strong>
\n (c) Modern Banking (d) Online Banking<\/strong>
\n Question 7. VSAT stands for:<\/strong>
\n (a) Very Small Aperture Terminal (b) Vidyut Supply and Transport<\/strong>
\n (c) Very Small Application Terminal (d) Video Screening Aperture Terminal<\/strong>
\n Question 8. Name the controlling authority of telecom services in India,<\/strong>
\n (a) TRAI (b) SEBI<\/strong>
\n (c) RBI (d) IRDA<\/strong>
\n Question 9. In which of the insurance policy loss cannot be measured?<\/strong>
\n (a) Life Insurance (6) Marine Insurance<\/strong>
\n (c) Fire Insurance (d) All of the above<\/strong>
\n Question 10. To which insurance, principle of indemnity is not applicable? (a) Life Insurance (b) Marine Insurance<\/strong>
\n (c) Fire Insurance (d) All of the above<\/strong>
\n Question 11. Speed post in India connects major countries of the world.<\/strong>
\n (a) 120 (b) 140<\/strong>
\n (c) 97 (c) 82<\/strong>
\n Question 12. Sports insurance is not available for:<\/strong>
\n (a) Professional Sportsmen (b) Non-professional Sportsmen<\/strong>
\n (c) Rural Area Sportsmen (d) Urban Area Sportsmen<\/strong>
\n Question 13. FCI, STC, CWC are examples of:<\/strong>
\n (a) Bonded Warehouses (b) Government Warehouses<\/strong>
\n (c) Private Warehouses (d) Cooperative Warehouses<\/strong>
\n Question 14. It is the duty of the insured to make an effort for minimization of loss. It is the principle of:<\/strong>
\n (a) Utmost Good Faith (b) Contribution<\/strong>
\n (c) Mitigation id) Insurable Interest<\/strong>
\n Question 15. Insurer must have some pecuniary interest in the subject matter of interest. It is the principle of:<\/strong>
\n (a) Mitigation (b) Contribution<\/strong>
\n (c) Utmost Good Faith (d) Insurable Interest<\/strong>
\n Answers:<\/strong>
\n1. (d) 2. (a) 3. (c) 4. (a) 5. (d)
\n6. (b) 7. (a) 8. (a) 9. (a) 10. (a)
\n11. (c) 12. (a) 13. (b) 14. (c) 15. (d)<\/p>\n
\n Question 1. What is the difference between goods and services?<\/strong>
\n Answer:<\/strong>
\n![\"NCERT](\"https:\/\/i0.wp.com\/www.cbselabs.com\/wp-content\/uploads\/2019\/10\/NCERT-Solutions-For-Class-11-Business-Studies-Business-Services-SAQ-Q1.jpg?resize=740%2C398&ssl=1\")
<\/p>\n
\n Answer:<\/strong>\u00a0E-banking means banking transactions carried out with the help of computer systems (i.e., banking over the internet).<\/p>\n\n
\n Answer:<\/strong>\u00a0Modes Of Transport: Modes of transport can also be called as means of transport or transport mode or transport modality. It is a general term used to specify the
\ndifferent kinds of transport facilities that are used by people to move from one place to the other and also to shift the goods from one place to other.
\nWhen more than one mode -of transport is used by a person for transportation then it can be described as a multi-model transport.
\nGenerally there are four modes of transport that uses different types of vehicle, infrastructure and operation. Each mode of transport has its own advantages and disadvantages. The person will choose their mode of transport based on the cost, capability, routes and speed.
\nThe general modes of transport are as follows:
\n1. Human powered transport; 2. Animal powered transport;
\n3. Roadways; 4. Waterways;
\n5. Railways; 6. Airways;
\n7. Other modes like pipe line, sewage, cable cars.<\/p>\n