NCERT Solutions Class 11 Business Studies Chapter 4 Business Services
NCERT Solutions Class 11 Business Studies Chapter 4 Business Services: National Council of Educational Research and Training (NCERT) Class 11 Business Studies Chapter 4 Solutions – Business Services.
Board |
NCERT |
Class |
11 |
Subject |
Business Studies |
Chapter |
4 |
Chapter Name |
Business Services |
Topic |
Exercise Solutions |
Short answer questions:
(1) Define services and goods.
Ans: Services are those separately identifiable, essentially intangible activities that provides satisfaction of wants, and are not necessarily linked to the sale of a product or another services. eg – banking.
Goods are termed as a physical object of homogenous nature and has a separation of production and consumption. eg – furniture.
(2) What is e-banking? what are the advantages of e-banking?
Ans: It is a part of virtual banking and another delivery channel for customers. It refers to electronic banking that allows customers to conduct banking transactions.
The advantages of e-banking are as follows:
(i) E-banking facilities digital payment and promotes transparency in financial statements.
(ii) E-banking provides 24 hours, 365 days a year services to the customers.
(3) Write a note on various telecom services available for enhancing business.
Ans: The various telecom services available are as follows:
(i) Cellular mobile services: These includes all types of mobile telecom services including voice and non-voice messages, data services etc.
(ii) Fixed line services: These includes all types of fixed services to establish linkage for long distance traffic.
(iii) Cable services: These are linkages and switched services within a licensed area of operation to operate media services.
(4) Explain briefly the principles of insurance with suitable examples.
Ans: The principles of insurance are as follows:
(a) Principle of utmost good faith – according to this principle, insurance is not a contract of business and both the insurer and the insured must not conceal any vital information from each other at the time of taking insurance.
Eg – at the time of purchasing life insurance, a person must disclose every details about his/her health.
(b) Principle of insurable interest: According to this the insured must have an insurable interest in the subject matter of insurance.
eg – a person can take an insurance policy for his/her relatives.
(c) Principle of Identity: according to this principle, an insured will be identified only upto the amount of loss suffered by him/her.
Eg – if the loss suffered due to fire is RS 50,000 the insured will be paid Rs 50,000 only even though the policy amount may be for Rs 1 lakh.
(d) Principle of contribution: as per this principle, it is the right of an insurance who has paid a claim under an insurance, to call upon other liable insurers to contribute for the loss payment.
eg – if person x takes the same insurance policy from Co. A & Co. B, then during the time of loss suffered, Co. A & B will proportionately contribute to Mr x.
(e) Principle of proximate cause: according to this, the loss suffered by the insured must be clearly and closely related with the subject matter of the insurance policy. For eg – if the subject matter of the policy is loss due to fire, then goods damaged by pests will not be covered under this.
(f) Principle of Mitigation: according to this, a insured must taken proper care of the property or the items for which the insurance has been taken.
For eg – If it is found that in a factory, there is no system to fight fire, then the insurance company may refuse to pay for the loss suffered due to fire.
(5) Explain warehousing and its functions.
Ans: Warehousing can be defined as a system or place of storing goods in a scientific and systemic manner so as to maintain their original quality, value and utility.
The functions of warehousing are as follows:
(a) Break the bulk: The warehouse performs the function of dividing the bulk quantity of goods received from the production plant into smaller quantity.
(b) Value added services: A warehouse provides various additional qualities to the products like packaging, lebelling, transit mining etc.
Long answer questions:
(1) What are services? Explain their distinct characteristics.
Ans: Services are those separately identifiable intangible activities that provides satisfaction of wants, and are not necessarily linked to the sale of a product.
The characteristics of services are as follows:
(i) Intangibility – Services cannot be touched or seen but only can be felt or experienced. The quality of the offer cannot be determined before consumption.
(ii) Inconsistency: services are inconsistent as there is no standard tangible product, and so services have to be performed exclusively each time and according to expectations & demand of customers.
(iii) Inseparability: services are the simultaneous activity of production and consumption and cannot be separated from the provider of it.
(iv) Inventory less: Services have little or no tangible components and cannot be stored for future use.
(2) Explain the functions of commercial banks with an example of each.
Ans: The functions of commercial banks are as follows –
(a) Acceptance of deposits: Deposits are the basis of the loan operations as banks are both borrowers and lenders of money. The deposits are taken in the form of current A/C, savings A/C, fixed deposit A/C.
(b) Lending of funds: This function of commercial banks involves providing loans and advances out money received through deposits. These can be made in the form of overdraft, cash credit, discounting trade bills, term loans etc.
(c) Cheque facility: Banks provide the facility of collecting the customer’s cheque drawn on other banks. There are two types of cheques – bearer cheques and crossed cheques.
(d) Remittance of funds: This provides the facility of fund transfer from one place to another, on account of interconnectivity of the branches. Transfer of fund is administered through bank drafts, pay order, mail transfer etc.
(e) Allied services: With addition to the above functions, bank also provide allied services like – bill payments, locker facilities, buying & selling shares etc.
(3) Write a detail note on various facilities offered by Indian postal department.
Ans: Indian post & telegraph department provides various postal services across India and for this whole country is divided into 22 postal-circles. These circles manage the day-to-day functioning of various head post offices.
The various facilities provided by Indian postal department are as follows:
(i) Financial facilities – These are provided through post offices savings scheme like – public provident fund (PPF), kasha Vikas Patra, National savings certificate along with other banking functions of monthly income schemes recurring deposits, time deposits, savings account etc.
(ii) Mail facilities: These include proved facilities which involves transmission of articles from one place to another, registration facility to provide security of the transmitted articles and insurance facility to cover all types of risk in the course of transmission by post.
(4) Describe various types of insurance and examine the nature of risk protected by each type of insurance.
Ans: The various of insurance are as follows:
There are mainly two types of insurance – (i) Life insurance, (ii) General insurance
(i) Life insurance: It is a protection against the uncertainity of life. It is defined as a contract in which the insurer in consideration of a certain premium agrees to pay to the assured or to the person for whose benefit the policy is taken on happening of specified event or expiry of a certain period.
(ii) General insurance: All the other types of insurance other than life insurance comes under this category.
They are as follows:
(a) Fire insurance: It is a contract where the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period. The risk covered under fire insurance is the loss resulting from fire, or other proximate cause to it.
(b) Marine insurance: It is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine loss. The risk covered under this is protection against perils of the sea like – collision of ship rock, ship attacked by enemies.
(c) Health insurance: This type of insurance covers the expenses related to medical treatments and surgeries. The risk covered under this insurance is the cost related to health issues of the insured.
(5) Explain in detail the warehousing services.
Ans: Warehousing can be defined as a place of sharing the goods systematically and scientifically in order to maintain the quality of the good intact.
Warehouses are of various types as discussed below:
(a) Private warehousing: these are operated, owned by a company or enterprises handling their own goods like – retail chain stores, multi-product companies etc.
(b) Public warehouses: These warehouses can be used for storage of goods by traders, manufactures or member of the public after payment of storage changes.
(c) Bounded warehouses: These are used to store goods (Imported) before payment of taxes and custom duty and are licensed by the government.
(d) Government warehouses: These are fully owned and managed by the government.
The functions of warehouses are as follows:
(i) Stock piling: This involves seasonal storage of goods and goods or raw materials that are not required immediately.
(ii) Consolidation: The warehouse receives and consolidates goods from different production plants and dispatches the same to a particular customer on a single transportation shipment.