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Business Studies 4 Marks Question

Business Services · CBSE STD 11 Commerce (CBSE - English Medium). 14 questions.

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4 Marks Question

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14 questions · timed · auto-graded

Question 14 Marks
Identify the types of bank accounts being highlighted in following situations:
(a) This account can be opened by any limited company. Payments can be made in the account unlimited number of times. Funds can be remitted from any part of the country to the corresponding account. Overdraft facility and Internet banking facility are available.
(b) It is a kind of account in which two free cheque books will be issued each year. Internet banking facility will be provided without any charge. Balance enquiry, NEFT, bill payment, mobile recharge, etc., are provided through mobile phones. Students can open this account with zero balance by providing the required documents.
(c) Any resident is eligible to open this account in single/joint names. The account can be opened for any period ranging from 6 months to 120 months for monthly installment. The amount selected for installment at the start of the scheme is payable every month and the number of installments once fixed, cannot be changed. The rate of interest is compounded quarterly and the final amount is paid on maturity.
(d) A kind of deposit scheme introduced by different banks, where the excess amount in the savings bank account is transferred to fixed deposit account and the account holder earns more rate of interest In short, it gives the account holder the interest of a term deposit with the flexibility of partial withdrawal, whereas, the remaining cash will get better. interest
Answer
(a) Current account.
(b) Savings deposit account.
(c) Recurring deposit account.
(d) Multiple option deposit scheme.
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Question 24 Marks
Your father got a promotion in his company and so he bought you a Digital Tablet. It came with an insurance cover for breakage and theft for 1 year, as part of an offer. After 8 months, you lost your Digital Tablet and didn't search well for it and did not report anyone as you were under the impression that you will get a new one from insurance company. But to your surprise the insurance company declined your request for a new Digital Tablet and also didn't even pay any claim to you.
Identify and explain the principle that you violated because of which the insurance company didn't pay you any claim.
Answer
The principle that is violated is Mitigation of loss
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Question 34 Marks
Manish Roy purchased a new car and got it insured with Oriental Insurance Company for ₹3,00,000 and National Insurance Company for ₹4,00,000. In an accident, the car was damaged. He claimed for a compensation of ₹70,000 from both the companies.

(a) Is he entitled to get a compensation from both the companies?
(b) Explain the relevant principle of insurance applicable in this regard.
(c) How much compensation will be received from both companies?

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Question 44 Marks
Identify the principle of insurance highlighted in each of the following statements:
(a) The insured is expected to disclose all the important facts related to the property insured.
(b) Insured must have some economic interest in the subject matter of Insurance contract.
(c) To claim for insurance the insured must take reasonable steps to minimize the loss.
(d) Insured is entitled to recover the loss suffered by him, up to the limit of policy amount.
Answer
(a) Principle of Utmost Good Faith.

(b) Principle of Insurable Interest.

(c) Principle of Mitigation.

(d) Principle of Indemnity

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Question 54 Marks
Balaji Transport Company has maintained a fleet of refrigerated transportation vehicles to ensure fresh delivery of Fruits and Vegetables from Nagpur to other parts of country. The consignment is always sent on the most direct route, with fewest transit stops, thereby minimizing the elapsed time and eliminating unnecessary climatic changes Balaji transport company has accident insurance policy for all its vehicles. A truck of the company carrying oranges from Nagpur to Varanasi met with an accident. There was no damage to the oranges but the consignment had to be reloaded in a new truck. Due to the time consumed in unloading and reloading, the oranges got spoiled.

On the basis of given information, answer the following questions:
(a) Will the company get compensation for the loss of oranges from the insurance company? Give reason in support of answer.
(b) Explain the relevant principle of insurance.

Answer
(a) No, the company will not get compensation for the loss of oranges from the insurance company because nearest cause of losses is time consumed loading and unloading which is not covered in insurance policy.

(b) Principle of Causa proxima/proximate cause: According to this principle, an insurance policy is designed to provide compensation only for such losses as are caused by the perils which are stated in the policy. When the loss is the result of two or more causes,the proximate cause means the direct, the most dominant and most effective cause of which the loss is the natural consequence. In case of loss arising out of any mishap, the most proximate cause of the mishap should be taken into consideration.

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Question 64 Marks
Satish took an insurance policy for his car. But he sold the car within a year to his friend Ramesh and got the registration done in Ramesh's name. After few months the car was stolen from Ramesh's Garage. Satish made a claim to Insurance Company. But his claim was rejected on the ground that he has not suffered any financial loss due to theft of the car.

On the basis of the given information about Satish, answer the following questions:
(a) Explain the insurance principle followed by Insurance Company in rejecting the claim?
(b) Who can claim the compensation from Insurance Company and why?

Answer
(a) The insurance principle followed by Insurance Company in rejecting the claim is Principle of Insurable interest. As per this principle, the insured must have an interest in the preservation of the thing or life insured, so that he/she will suffer financially on the happening of the event against which he/she is insured. In case of insurance of property, insurable interest of the insured in the subject matter of the insurance must exist at the time of happening of the event.

(b) Mr. Ramesh can claim the compensation from Insurance Company as he has insurable interest in car at the time of the loss.

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Question 74 Marks
Identify the various types of Postal Services highlighted in the following situations:
(a) A service wherein postal certificate is issued by the post office as an evidence of positing a letter.
(b) An innovative vehicle for Indian corporate to advertise their brand through postcards, envelopes, aerogram and telegrams.
(c) The latest offering of the department to collect bill payment across the counter for BSNL and Bharti Airtel.
(d) It is a postal facility where the mail order reaches the addresses as fast as possible.
Answer
(a) Registered post.

(b) Media post.

(c) e-Bill post

(d) Speed post

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Question 84 Marks
Explain in brief different mail services provided by the post office.
Answer
Mail Services: The postal department provides facilities for transmission of post cards, inland letters, parcels, etc from one place to another. Various types of mail services offered by the Post and Telegraph Department are described below
  1. Registered Post: It is a postal facility under which it is ensured that the mail is either delivered to the address or it comes back to the sender by paying registration charges. The registered mail is marked ‘Registered Post' on its face, to differentiate it from the ordinary mail.
  2. Parcel Post: Parcels of specified size and weight can be sent to domestic and international locations under this service. Postal charges for parcels depend on the weight of the parcel and are reasonably low. Charges for foreign parcel post are higher than that for inland parcel post.
  3. Speed Post: This service is designed for very fast delivery of mail. The Post and Telegraph Department guarantees that all internal mail received upto 5pm at the specified post offices will be delivered within 24 hours. If it fails to do so, the extra fee charged for this service will be refunded.
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Question 94 Marks
Define services and goods.
Answer
Services: Services are essentially intangible activities which are separately identifiable and provide satisfaction of wants. We cannot kept it in stock. Their purchase does not result in the ownership of anything physical. Services involve an interaction to be realised between the service provider and the consumer.
Goods: A good is a physical product capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer. Goods also refer to commodities or items of all types, except services, involved in trade or commerce.
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Question 104 Marks
What functions does insurance perform in context to the modern world of business?
Answer
The various functions of insurance in context to the modern world are discussed below:
  1. Providing Certainty: Insurance provides certainty of payment for the risk of loss. There tools are uncertainties of happenings of time and amount of loss. Insurance removes these uncertainties and the assured receives payment of loss.
  2. Protection: The second main function of insurance is to provide protection from probable chances of loss. Insurance cannot stop the happening of a risk or event but can compensate for losses arising out of it.
  3. Risk Sharing: Another important function of insurance is risk sharing. On the happening of a risk event, the loss is shared by all the persons exposed to it. The share is obtained from every insured member by way of premiums.
  4. Assist in Capital Formation The accumulated funds of the insurer received by way of premium payments made by the insured are invested in various income generating schemes. Thus, it may assist in capital formation.
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Question 114 Marks
Differentiate between goods and services.
Answer
The differences between goods and services are:
S.No.
Basis
Goods
Services
1.
Nature
It is a physical object.
It is an activity or process.
2.
Type
It is homogeneous.
It is heterogeneous.
3.
Intangibility
It is tangible.
It is Intangible.
4.
Inventory
It can be kept in stock.
It cannot be kept in stock.
5.
Inseparability
Production and consumption are separated.
Production and consumption are simultaneous.
6.
Transfer of Ownership
Ownership can be transferred.
Ownership cannot be transferred.
7.
Example
DVD or CD of a movie.
Watching a movie in cinema hall.
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Question 124 Marks
Your friend is often confused about the meaning of commercial and central bank. He thought that the two are similar. How will 107 you make him understand?
Answer
I would tell him the following differences:
  1. The central bank is the apex monetary institution, which has been specially empowered to exercise control over the banking system of the country. The commercial bank, on the contrary, is a constituent unit of the banking system.
  2. The central bank does not operate with a profit motive. The primary aim of the central bank is to achieve the objectives of the economic policy of the government and maximise public welfare through monetary measures. On the other hand, the commercial banks have profit earning as their primary objective.
  3. The central bank is generally a state-owned institution, while the commercial banks can be privately owned institutions.
  4. The central bank does not deal directly with the public. The commercial banks, on the contrary, directly deal with the public.
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Question 134 Marks
Explain briefly the different types of services.
Answer
Services can be classified as follows:
  1. Business Services: They are those services which are to used by business enterprises for the conduct of business activities.
For example, transportation, banking, insurance, communication, etc.
  1. Social Services: These services are conducted to fulfil the social goals like improving standard of weaker sections of society. They are provided voluntarily for some consideration to cover their cost.
For example, an educational or healthcare Hey service provided by a Non-Governmental Organisation (NGO).
  1. Personal Services They are those services which are experienced differently by different customers. Such services are not consistent in nature and depend upon customer's preferences and demands.
For example, tourism and recreational services.
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Question 144 Marks
Discuss the need and importance of warehousing in the marketing of goods.
Answer
Producers, traders, manufacturers, etc have to store their goods in warehouses. Goods are produced well in advance according to the demand of customers but they are stored in warehouses till they are actually sold in the market. In this way, warehousing creates time utility on one hand and meanwhile offers certain marketing services also such as grading, packaging, labelling, etc. Thus, it can rightly be said that warehouses helps in the marketing of goods. The need and importance of warehousing will be clear from the following points:
  1. Warehouses protect the goods from loss and damage.
  2. Warehouses store the surplus of goods and help in regulating the supplies of goods according to the demand.
  3. Warehouses help the industrialists to no produce the goods on large scale as they don't bother about the problem of storage because of the presence of warehouses.
  4. Warehouses also help in getting the financial aid from bank as the receipt of warehouse can be used as a collateral security to borrow money from banks.
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4 Marks Question - Business Studies STD 11 Commerce Questions - Vidyadip