NCERT Solution For Class 11 Business Studies Chapter 4 – Business Services

A broad variety of definitions and introduction to the topic are offered by NCERT Solutions for Class 11 Business Studies, which includes all the questions provided in the NCERT books.

Economics is a social science concerned with the production, distribution (allocation) and expenditure or utilization of goods and services. It is a study of how individuals, trades, governments and countries make choices on the distribution of resources in order to convince their needs and to try to determine how these categories should combine and coordinate efforts to achieve maximum output. Economic analysis generally advances through analytical processes, more like mathematical logic, where the inferences of distinct human pursuits are reflected in the “means-ends” substructure.

NCERT Solutions of the 11th Std Business Studies has been provided to ace up your preparation. Access and use the direct links available for Chapterwise Class 11 NCERT Solutions whenever you want. The detailed approach used to explain the NCERT Solutions of the 11th Std Business Studies makes it easy for you to understand the concepts behind them.

NCERT Solutions is said to be an extremely helpful book during the preparation of the CBSE Class 11 Business Studies Exams. This study material has deep knowledge, and the solutions collected by the subject matter wizards are not separate.

NCERT Solutions For Class 11 Business Studies Chapter 4 – Business Services provides us with all-inclusive information on all concepts. As students would have to learn the basics about the subject of economics in class 11, this curriculum for class 11 is a comprehensive study material, which explains the concepts in a great way.

Short Questions

1. Define services and goods?

Services are referred to as any intangible activity that involves interaction between the service provider and the consumer. Ownership of any physical item is not obtained by purchasing the service.Goods refers to objects that are tangible and have a physical form. The ownership of a good is transferred as soon as it is purchased.

2. What is e-banking? What are the advantages of e-banking?

Electronic banking or e-banking is the application of electronic medium to conduct various types of banking transactions including money transfer, checking account balances, applying for check books and applying loans. These services are provided by banks to help their customers access banking facilities anywhere, anytime. Some of the benefits of e-banking are:1. It ensures round the clock availability of most banking services which helps to make life comfortable for customers.2. Banking transactions can be done at any time through mobile or computer / laptop.3. It reduces the load on banks by facilitating online transactions.

3. Write a note on various telecom services available for enhancing business?

Various types of telecom services are available which help in enhancing business. These are mentioned below:

1. Cellular Mobile Service: This includes all types of voice, non-voice and data transmission services.2. Radio paging service: This service helps in transmitting information in the form of a voice, numerical or alphanumeric message.3. Fixed-line service: It is about services that include voice, non-voice and data services that establish links for long-distance traffic using network connectivity via fiber optic cable.4. Cable service: In cable service, media information is transmitted in a defined area and a license is required for the transmission of such information. The flow of information is one-way in this type of service.5. VSAT service: VSAT is for very small aperture terminals, it is a type of satellite based communication system that can be used to provide information to remote areas.6. DTH service: DTH is for direct-to-home services, these are satellite based media services in which media channels can be transmitted through a satellite and received through a small dish and antenna.

4. Explain briefly the principles of insurance with suitable examples?

Principle of insurance are as follows:

1. Best Faith: This principle states that both the insurer and the insured must trust each other and the contract signed by them. E.g. If a person is suffering from cancer, and does not inform the insurance company, the insurance claim can be rejected.2. Insurable interest: The owner of an insurance policy must have a proprietary interest in the insured subject matter or item. The absence of insurable interest makes the policy null and void. For example, the truck driver has an insurable interest in the truck because it is a source of income, if he sells the truck he cannot make more money than it.3. Indemnity: The principle of indemnity ensures that the insurance contract protects and compensates the insured from any loss. For example, if a car is insured for 2 lakhs, it suffers a loss of 1 lakh rupees, then the insurance company will pay only 1 lakh compensation to the insured. The idea is to compensate the insured, not to make any profit to him.4. Presumptive Cause: This principle is used to determine the cause of loss and if the loss is caused by the insured item. E.g. If a house is burnt by a fire, it will be checked to see how the fire started, and compensation will be based on insurance against the fire.5. Subordination: This principle states that once the proper compensation is paid, the ownership of the property or item is transferred to the insurer, so that the insured cannot sell the property for profit.E.g. If a person receives 1 lakh from the car insurance as a loss to the car, then he can repair the car, but cannot sell it for profit.6. Contribution: If there are 2 insurances, from which insurance is taken, then in case of any loss, both will contribute to cover the insurance loss. E.g. A person has taken a loan from 2 banks, then in case of repayment both banks should contribute equally.7. Mitigation: The insured must take care of the insured. Like it was taken care of before taking insurance. E.g. If the car is purchased then the owner should take proper care and maintain the car.

5. Explain warehousing and its functions?

Warehousing was initially thought of as a system of warehousing of goods in a scientific way to preserve their quality, value and utility. In modern times, it has become more relevant as a logistics service provider with an emphasis on providing goods in the right time and cost-effective way, while preserving value and quality.Warehouse Functions:1. Goods that are not needed on an immediate basis can be kept in warehouses. Goods can be supplied as required by customers.2. Consolidation is necessary for items that are produced in small quantities but sold in bulk to customers. Warehouse helps in consolidation of goods.3. A warehouse also stocks goods in bulk and then ships small quantities as per the requirements of the consumers. This is called bulk breaking.4. The packaging, labeling, and sorting of goods are some of the value-added services that a warehouse provides.5. It also helps in price stabilization by adjusting the supply of goods according to the demand in the market.

Long Questions

1. What are services? Explain their distinct characteristics?

Services are referred to as any intangible activity that involves interaction between the service provider and the consumer. Ownership of any physical item is not obtained by purchasing the service.Typical features of the services are:1. Abstraction: The first and important feature of service is that it is intangible in nature, that is, it lacks physical form. It can only be experienced. 2. Inseparability: Services are inseparable in nature unlike goods which can be produced at one time and consumed at a different time. Service has to be consumed as soon as it is presented.3. Incompatibility: Services need to be executed every time and this should be as per the requirements of the customers. Therefore, it is inconsistent in nature.4. Participation: There should be a partnership between the service provider and the user providing the service at the time of service delivery. This is necessary for accurate delivery of services.5. Inventory: Services cannot be stored for use at a later date, it must be provided as soon as asked. If it is not consumed immediately the services lose value.

2. Explain the functions of commercial banks with an example of each.

Commercial banks perform the following functions:

1. Accepting deposits: Banks accept form savings account deposits, recurring deposits, fixed deposits and current account deposits from customers and pay interest to customers on quarterly or annual basis.2. Lending: Banks also act as lenders by giving loans in the form of overdrafts, cash credits, trade bills, etc. The bank makes a profit by charging interest from customers on such loans.3. Fund Remittance: Banks provide facility to transfer funds of customers to different places. These transfers have the facility of adding some transaction fees in the form of pay orders and bank drafts by banks.4. Check Extension Facility: Banks collect checks from other banks and hence act as a clearing house for all checks. There are two types of checks: bearer check and cross check.5. Other value-added services: Banks provide value-added services like locker facility, bill payment, sale and purchase of shares.

3. Write a detailed note on various facilities offered by Indian Postal Department.

The Indian Postal Department provides the following facilities:

Various saving schemes are offered which includes

1. Kisan Vikas Patra
2. National Savings Certificate
3. Fixed Deposit Scheme
4. Public Provident Fund
5. Recurring Deposit
6. Money order

Mail Services: Post office provides these type of facilities in mailing which includes:

1. Parcel Facility: It is the facility of providing parcel service from one destination to other.
2. Registration of parcels to provide security during the transit.
3. Insurance facility providing safety cushion.

Other Facilities:

1. Passport Service: Helps in applying for Passport
2. Direct Post: These comprises of brouchers, questionnaires, pamphlets.
3. This service involves speedy transfer of article to the intended addresses.

(iv) Speed Post:

It involves fast and speedy transfer of articles to the addressees within a specified period.

4. Describe various types of insurance and examine the nature of risks protected by each type of insurance.

Following types of insurance are there:

1. Life Insurance
2. Fire Insurance
3. Marine Insurance

Life insurance: It is a type of insurance where there is a contract between the insurer and the insured in which the insured agrees to pay a pre-specified amount upon the death of the insured or at the maturity of the insurance policy. The need for an insurance policy arises at the present time due to life’s uncertainties. In case of death of the insured, the family members receive a fixed sum, whereas if the insured survives till the maturity period, he will receive a specified amount. The insured requires the insurer to pay a premium which may be monthly, quarterly or yearly. Life insurance policies protect insurers from the risk of dying early.

Fire Insurance: This type of insurance protects the insured from damage to property caused by fire, here the insurer accepts the premium with the assurance of the insured to compensate the insured in the event of damage, damage to property caused by the fire. . Fire insurance protects against the risk of property damage due to fire.

Marine Insurance: In a marine insurance the owner of a ship, the cargo is protected from loss or damage to the ship or cargo at sea. It provides protection from the risks of the sea in the form of damage caused by high tide, piracy, storm, rock or fire. The insured will have to pay a fixed premium based on the protected amount.

5. Explain in detail the warehousing services.

Warehousing was initially thought of as a system of warehousing of goods in a scientific way to preserve their quality, value and utility. In modern times, it has become more relevant as a logistics service provider with an emphasis on providing goods in the right time and cost-effective way, while preserving value and quality.

Warehouse Functions:

1. Goods that are not needed on an immediate basis can be kept in warehouses. Goods can be supplied as required by customers.2. Consolidation is necessary for items that are produced in small quantities but sold in bulk to customers. Warehouse helps in consolidation of goods.3. A warehouse also stocks goods in bulk and then ships small quantities as per the requirements of the consumers. This is called bulk breaking.4. The packaging, labeling, and sorting of goods are some of the value-added services that a warehouse provides.5. It also helps in price stabilization by adjusting the supply of goods according to the demand in the market.

Tag – NCERT Solution For Class 11 Business Studies Chapter 4; Business Services Class 11; Class 11 Business Studies Chapter 4; Class 11 Business Studies; Class 11 Business Studies Chapter 4 notes; Business Services Class 11 Question Answer