Business Services Overview
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What are the restrictions placed on withdrawal from fixed accounts?

  • Withdrawal is not allowed under any circumstances
  • Only number of withdrawals is restricted
  • No restrictions on amount or frequency
  • Amount and frequency restrictions apply (correct)

    • What is the primary advantage of fixed accounts over savings accounts?

  • They have lower interest rates
  • They offer a higher rate of interest (correct)
  • They require no minimum balance
  • They allow unlimited withdrawals

    • What is a potential consequence of a premature withdrawal from a fixed account?

  • Additional fees for the bank
  • Increased interest rates
  • No penalties imposed
  • Forfeiture of a percentage of interest (correct)

    • Which of the following is NOT considered an allied service provided by banks?

    <p>Real estate loans</p> Signup and view all the answers

    What primary activity do commercial banks perform in addition to providing fixed accounts?

    <p>Lending of funds</p> Signup and view all the answers

    What is a key feature of e-banking?

    <p>Allows online financial transactions</p> Signup and view all the answers

    Which of the following is NOT a method of Electronic Funds Transfer (EFT)?

    <p>Post office transfer</p> Signup and view all the answers

    What does RTGS stand for in the context of banking?

    <p>Real-Time Gross Settlement</p> Signup and view all the answers

    What is the primary purpose of insurance?

    <p>To manage and transfer the risk of financial loss</p> Signup and view all the answers

    How does insurance benefit policyholders in terms of risk?

    <p>It spreads the loss over a large pool of contributors.</p> Signup and view all the answers

    What do policyholders contribute to an insurance plan?

    <p>Premiums that make up a common fund</p> Signup and view all the answers

    What is meant by the 'premium' in an insurance context?

    <p>A fee paid by the insured for coverage</p> Signup and view all the answers

    Which sector of the Indian economy accounts for the largest Gross Value Added (GVA)?

    <p>Services</p> Signup and view all the answers

    How does an insurer determine probable losses?

    <p>By analyzing past events and loss data</p> Signup and view all the answers

    What is the main role of an insurance company?

    <p>To manage and pay legitimate claims from a pooled fund</p> Signup and view all the answers

    What percentage of India’s total Gross Value Added (GVA) did the services sector account for in 2016-17?

    <p>53.66%</p> Signup and view all the answers

    What is the primary function of insurance?

    <p>To provide protection from probable chances of loss</p> Signup and view all the answers

    What does the principle of utmost good faith entail in an insurance contract?

    <p>Both parties are required to disclose all relevant facts</p> Signup and view all the answers

    How does insurance assist in capital formation?

    <p>By allowing insurers to invest premiums into profitable ventures</p> Signup and view all the answers

    What is the role of risk sharing in insurance?

    <p>To distribute losses among all insured members</p> Signup and view all the answers

    Which principle states that all material facts must be disclosed by both parties in an insurance contract?

    <p>Utmost good faith</p> Signup and view all the answers

    What does an insurance policy typically require from the insured concerning the risk?

    <p>The insured should voluntarily disclose all material facts</p> Signup and view all the answers

    In the context of insurance, what function does the concept of indemnity serve?

    <p>To replace or compensate for losses incurred</p> Signup and view all the answers

    Why does a person have an insurable interest in a property?

    <p>Because they are financially involved with that property</p> Signup and view all the answers

    What happens to the ownership of property once the insured is compensated for a loss?

    <p>The ownership of the property passes to the insurer.</p> Signup and view all the answers

    Which of the following is a required disclosure for Personal Accident insurance?

    <p>Previous medical history</p> Signup and view all the answers

    According to the principle of contribution in insurance, what is the insurer's right once a claim is paid?

    <p>To call upon other insurers to share the loss.</p> Signup and view all the answers

    What is one reason why insured individuals must not profit from their insurance claims?

    <p>To prevent fraud and maintain fairness in the insurance system.</p> Signup and view all the answers

    In the case of double insurance, what does the insured have no right to recover?

    <p>More than the full amount of their actual loss.</p> Signup and view all the answers

    Which type of insurance requires the disclosure of driver details?

    <p>Motor insurance</p> Signup and view all the answers

    What is a common risk associated with life insurance?

    <p>The certainty of death.</p> Signup and view all the answers

    What is a possible risk an individual may face regarding life insurance if they live too long?

    <p>The risk of becoming too old to earn income.</p> Signup and view all the answers

    What is one risk that cargo faces while being transported by ship?

    <p>Fire damage</p> Signup and view all the answers

    Which type of insurance covers the loss of freight if the cargo does not reach its destination?

    <p>Freight insurance</p> Signup and view all the answers

    What is a fundamental principle that distinguishes marine insurance from life insurance?

    <p>It is a contract of indemnity.</p> Signup and view all the answers

    Who is responsible for compensating the owner of a ship or cargo for losses at sea?

    <p>The insurer or underwriter</p> Signup and view all the answers

    What type of insurance insures against damage to the ship itself?

    <p>Hull insurance</p> Signup and view all the answers

    Which of the following is NOT a risk associated with cargo insurance?

    <p>Inflation impact</p> Signup and view all the answers

    What is the general outcome if a ship or cargo is captured by pirates?

    <p>Total loss claim eligibility</p> Signup and view all the answers

    In marine insurance, what is the role of the insured?

    <p>To pay a premium for coverage</p> Signup and view all the answers

    What primary function does a modern warehouse serve beyond just storage?

    <p>Logistical service providers</p> Signup and view all the answers

    Which type of warehouse is operated by a company for handling its own goods?

    <p>Private warehouses</p> Signup and view all the answers

    What is a significant benefit of private warehousing?

    <p>Improved dealer relations</p> Signup and view all the answers

    How are public warehouses typically accessed by users?

    <p>By paying a storage fee</p> Signup and view all the answers

    What role does the government have in regulating public warehouses?

    <p>They issue licenses to operate these warehouses.</p> Signup and view all the answers

    What type of warehouse allows the owner to delay payment of import duties?

    <p>Bonded warehouse</p> Signup and view all the answers

    What improvement is mentioned for modern warehouses in terms of product movement?

    <p>Automation of handling systems</p> Signup and view all the answers

    Which of the following is NOT a characteristic of private warehouses?

    <p>Open to all members of the public</p> Signup and view all the answers

    Study Notes

    Learning Objectives

    • State the characteristics of services
    • Distinguish services from goods
    • Classify different types of business services
    • Explain the concept of e-banking
    • Identify and classify different types of insurance policies
    • Describe different types of warehouses

    Business Services

    • All people have interacted with business services at some point in their lives
    • Examples include purchasing ice cream from a store, watching a movie, buying a bus ticket, etc.
    • Services are intangible activities, unlike goods, which are physical products
    • Services have some distinguishing characteristics compared to goods
    • The purchasing and experiencing of a service is different from purchasing and owning a good

    Nature of Services

    • Intangibility: Services cannot be physically touched or possessed
    • Inconsistency: Services depend on the person performing the service, making quality vary
    • Inseparability: The production and consumption of the service happen simultaneously.
    • Inventory (Less): Services cannot be stored for use in the future as they happen when needed
    • Involvement: The consumer participates in the delivery of the service

    Types of Services

    • Business Services: Services utilized by other businesses (e.g., banking, transportation)
    • Social Services: Services provided to benefit society (e.g., healthcare, education)
    • Personal Services: Services experienced differently by individual consumers (e.g., restaurants, entertainment)

    Banking

    • Commercial banks are important institutions for lending money
    • They act as both borrowers and lenders
    • Banks accept various deposit types (current, savings, fixed)
    • Banks provide loans and advances to businesses.

    Insurance

    • Insurance is a way to transfer risk
    • People buy insurance to pay a small amount (premium) for possible major losses
    • Insurance companies estimate possible losses and compensate the insured if an event occurs.

    Types of Insurance

    • Life Insurance: Protects families or dependents in the event of death
    • Fire Insurance: Compensates for losses resulting from fire
    • Marine Insurance: Protects goods at sea during transport
    • Other types exist (e.g., health, motor, burglary, crop)

    Warehousing

    • Warehousing stores goods in a safe manner to preserve the product's quality
    • Warehouses are used by businesses, manufacturers, importers and retailers
    • They can hold products until needed, such as during off-season or slow periods
    • Different types exist, including private, public, bonded, and government warehouses

    Communication Services

    • Communication is essential for business.
    • Telecom and Postal services allow businesses to communicate with each other and their customers

    Transportation

    • Services move goods (freight) and people (passengers) across distances
    • Various forms exist: roads, railways, airways, waterways
    • Efficiency and infrastructure are important factors.

    Social Security Schemes

    • Atal Pension Yojana: Pension scheme for individuals aged 18–40.
    • Pradhan Mantri Suraksha Bima Yojana: Accident and disability insurance with low premium.
    • Pradhan Mantri Jan Dhan Yojana: Savings account, accident, and life cover.
    • Pradhan Mantri Jeevan Jyoti Bima Yojana: Term life insurance with low premium.

    Types of Digital Payments

    • Cash, Plastic cards (debit, credit)
    • Digital methods (AEPS, UPI, BHIM, Mobile wallets, Prepaid cards, USSD)

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    Related Documents

    NCERT Class 11 Business Studies Chapter 4 PDF

    Description

    This quiz tests your understanding of business services, including their characteristics, classification, and the differences between services and goods. Additionally, it covers concepts like e-banking and various types of insurance policies and warehouses.

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