CBSE Business Studies Class XI

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Business Studies - CBSE CLASS XI

BUSINES SERVICES

 

TRANSPORTATION :

Meaning : Physical movement of goods and persons from our place to another.

Mode of transportation :- Rail, road, air & sea..

Need and importance of Transportation :- Transportation remove the hindrance of place and make goods available to the consumer from the place of production.

1. Transportation is required in the process of production and distribution of finished goods to market.


2. Efficient transportation reduces the cost of production and distribution and thereby the selling price of a product - Low price - mass consumption.


3. Transportation makes goods available, thereby increasing variety in consumption which helps to improve standard of living.


4. It facilitates foreign & internal trade.


5. It widens market. If there had been no means of transport, market for goods would have remain local.


6. It provides direct and immediate employment to millions of people, more over, it indirectly creates employments opportunities by providing a boost to trade and industry.


7. It helps to stabilize prices by moving the goods from the place where they are in excess supply to the place where they are scarce.

WARE HOUSING :

Meaning : Ware housing means storage & preservation of goods in a warehouse.

Warehouse : It is an establishment for keeping and storing goods, in a scientific & systematic manner so as to maintain their original quality, value & usefulness.

Types of Warehouse :

1. Private warehouse : Owned by multiproduct companies or retail chain stores for handling their own stock because of heavy cost of construction they are less in numbers.


2. Public warehouse : Govt. regulates their operation by issuing licences for them to private parties. They can be used for storage of goods by traders, manufactures or public after payment of fees.


3. Government warehouse : Fully owned and managed by govt. e.g. FCI, STC, CWC.


4. Cooperative warehouse : Owned, managed and controlled by some marketing cooperative societies for their own members. In India, the National cooperative Development cooperation is developing co-operative warehouse.


5. Bonded Warehouse : are licensed by the govt. to accept imported goods before the payment of custom duties by the importer of such goods.

FUNCTIONS OF WAVE HOUSE :

Stock piling and protection.
Risk bearing
Price Stabilization
Financing Consolidation
Break the bulk
Value added services: - e.g. transit mixing, packaging & Labeling.

Important Questions :

1 mark questions :

1. Define a service.
2. Mention any two features which distinguish services from goods.
3. Which institutes is called a borrower as well as a lender?
4. Name the Central Bank of our country and which is the largest Commercial Bank of our India?
5. Define insurance.
6. Principle of Indemnity is not applicable to which insurance?
7. Name the type of insurance where in insurable interest need not exist when the policy is taken?
8. What are the recent modes of communication?
9. What are the two categories of communication services?
10. Name the warehouse where imported goods are kept?

3/4 marks questions :

1. Define a bank? State various types of Banks.
2. Give three advantages of insurance.
3. What do you mean by internet? State its benefits.
4. Explain the importance of ware housing.
5. What is e-banking? What are the advantages of e-banking?

5/6 marks questions :

1. State and explain the characterization of services.
2. State and explain various means of communication.
3. (a) A factory owner gets his stock of goods insured, but he hides the fact that the electricity board has issued him statutory warning letter to get his factory’s wiring changed later on, the factory catches fire due to short circuit. Can he claim compensation?
   (b) Saurabh has taken a loan from Ashish against the security of his factory. Can Ashish take a fire insurance policy of that factory. State the name of “Principle” also in both the cases.
4. Explain the following function of ware housing.
consolidation
Price stabilization
Financing
5. Explain the advantages of transportation service by mentioning name of service.

CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
Email Id : [email protected]