cbse-class-11-business-studies-notes-chapter-4.pdf

Revision Notes for Class 11 Business Studies Chapter 4 – Business Services Nature of Business Services 1. Intangibility: Services cannot be seen, touched, or smelled; they can only be felt. Benefits can still be enjoyed, such as receiving tre...

Revision Notes for Class 11 Business Studies Chapter 4 – Business Services Nature of Business Services 1. Intangibility: Services cannot be seen, touched, or smelled; they can only be felt. Benefits can still be enjoyed, such as receiving treatment from a doctor. 2. Inconsistency: Services vary based on individual customer demands and expectations. For example, experiences at a mobile service provider or beauty parlour differ from person to person. 3. Inseparability: Services are produced and consumed simultaneously. For instance, an ATM may replace a clerk, but the customer must be present to use the service. 4. Inventory Loss: Services cannot be stored or produced in advance for future use. For example, unused hotel rooms or airline seats during low demand cannot be saved for high-demand periods. 5. Involvement: Customer participation is essential in the service delivery process. For example, customers can often customise services to their specific requirements. Types of Services 1. Social Services: Voluntarily provided to achieve certain social goals, such as healthcare and education services offered by NGOs. 2. Personal Services: Services experienced differently by each customer, such as tourism or dining in restaurants. 3. Business Services: Services used by businesses to operate smoothly, including banking, insurance, communication, warehousing, and transportation. Banks Importance: Banks play a crucial role in modern business by supporting commercial and industrial growth. They promote saving among the public, mobilise small savings, and direct them into productive uses. Meaning: A bank is an institution that deals with money and credit. It collects deposits from the public, supplies credit, and performs additional functions such as credit creation and agency services. Class XI Business Studies www.vedantu.com 1 Primary Functions of Banks 1. Accepting Deposits: Banks provide various accounts to meet different needs: o Fixed Deposit Account: Money is deposited for a fixed period, usually earning higher interest. The deposit can be withdrawn after the specified period. Current Deposit Account: Used by businesses for frequent deposits and withdrawals. Funds are available on demand. Class XI Business Studies www.vedantu.com 2