Question 7.
\nWhich among the following helps in issue management of shares,
\n(a) Mutual fund
\n(b) Merchant banks
\n(c) Venture Capital
\n(d) Factoring
\nAnswer:
\n(b) Merchant banks<\/p>\n
Question 8.
\nClassify the following bank into Appropriate Categories,<\/p>\n
- \n
- IDBI<\/li>\n
- HDFC<\/li>\n
- Axis Bank<\/li>\n
- Canara Bank<\/li>\n
- HSFC<\/li>\n
- CITI Bank<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- IDBI – Private Bank<\/li>\n
- HDFC – Private Bank<\/li>\n
- Axis Bank – Public Bank<\/li>\n
- Canara Bank – Public Bank<\/li>\n
- HSFC – Private Bank<\/li>\n
- CITI Bank – Foreign Bank<\/li>\n<\/ol>\n
Question 9.
\nWhich facility allows a current account holder to withdraw more amount than his deposit?
\nAnswer:
\nOverdraft<\/p>\nQuestion 10.
\nWhich of the following is not applicable in life insurance contract?
\n(a) Conditional contact
\n(b) Unilateral contract
\n(c) Indemnity contract
\n(d) None of the above
\nAnswer:
\n(c) Indemnity contract<\/p>\nQuestion 11.
\nWhen the same subject matter is insured with more than one insurer, it is called
\nAnswer:
\nDouble insurance<\/p>\nQuestion 12.
\n________ is a contract of insurance entered into by the insurer with another insurer to reduce the risk.
\nAnswer:
\nReinsurance<\/p>\nQuestion 13.
\nRajiv insures his shop for \u20b95,00,000 against fire. His shop is completely damaged by a mob attack. Rajiv claims \u20b95,00,000\/- from the insurance company.<\/p>\n- \n
- Will the company admit the claim of Rajiv?<\/li>\n
- Which principle of insurance is applicable here?<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- No.<\/li>\n
- Causa Proxima<\/li>\n<\/ol>\n
Question 14.
\nPrinciple of indemnity does not apply to __________
\n(a) Life insurance
\n(b) Health insurance
\n(c) Fire insurance
\n(d) Marine insurance
\nAnswer:
\n(a) Life insurance<\/p>\nQuestion. 15
\nI will give security against fraudulent practices of employees who deal with cash or other variables. Can you identify me? Explain its features?
\nAnswer:
\nFidelity insurance<\/p>\nQuestion 16.
\nGovind insures his shop for \u20b96,00,000. in a fire accident. The shop incurred a loss of \u20b93,00,000. But he claimed for the assured sum. Will the insurance co admit the claim in full? Identify the principle of insurance which is applicable here.
\nAnswer:
\nNo. Principle of indemnity<\/p>\nQuestion 17.
\nLife insurance is a contract of ________
\nAnswer:
\nGuarantee<\/p>\nQuestion 18.
\n_______ principle states, the insurer step into the shoes of insured.
\nAnswer:
\nSubrogation.<\/p>\nQuestion 19.
\nJacob purchased a new car for \u20b915,00,000 and insured it with National insurance company and Oriental Insurance Company for \u20b915,00,000 each. On an accident, the car was damaged completely and he claimed compensation from both companies.<\/p>\n- \n
- Can he get compensation from both companies?<\/li>\n
- Identify relevant principle of insurance.<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- No<\/li>\n
- Principle of Contribution<\/li>\n<\/ol>\n
Question 20.
\nAccording to _________ principle, the insured is not allowed to make any profit out of his loss.
\nAnswer:
\nIndemnity<\/p>\nQuestion 21.
\nRajan wants to take an insurance policy covering the risk arising from the dishonesty of employees. Which type to policy close he have to take?
\nAnswer:
\nFidelity insurance<\/p>\nQuestion 22.
\n__________ is a contract whereby the insurer, in consideration of premium, undertakes to compensate the insured for the loss or damage suffered due to fire.
\nAnswer:
\nFire insurance<\/p>\nPlus One Business Services Two Mark Questions and Answers<\/h3>\n
Question 1.
\nDefine service and goods. (2)
\nAnswer:
\nServices are those identifiable and intangible activities that provide satisfaction of wants. Goods is a physical product which can be delivered to a purchaser and involves the transfer of ownership from the seller to customer.<\/p>\nQuestion 2.
\nExplain various telecom services available for enhancing business. (2)
\nAnswer:
\nThe various types of telecom services are:<\/p>\n1. Cellular mobile services:
\nMobile communication device including voice and non-voice messages, data services and PCO services utilising any type of network equipment within their service area.<\/p>\n2. Radio paging services:
\nIt means of transmitting information to persons even when they are mobile.<\/p>\n3. Fixed line services:
\nIt includes voice and non-voice messages and data services to establish linkage for long distance traffic.<\/p>\n4. Cable services:
\nLinkages and switched services within a licensed area of operation to operate media services which are essentially one way entertainment related services.<\/p>\n5. VSAT services (Very small Aperture Terminal):
\nIt is a Satellite-based communication service. It offers government and business agencies a highly flexible and reliable communication solution in both urban and rural areas.<\/p>\n6. DTH services (Direct to Home):
\nIt is a Satellite based media services provided by cellular companies with the help of small dish antenna and a set up box.<\/p>\nQuestion 3.
\nMr. Dino is running a textile shop. He insured the shop for \u20b91,00,000 against natural calamities. After this the shop was completely destroyed by fire due to electrics short circuit. He claimed for compensation. But the insurance company refused to admit the claim on the ground that the shop was insured against natural calamities. (2)<\/p>\n- \n
- Can you justify the decision of insurance company.<\/li>\n
- Which principle of insurance is applicable here.<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- Yes.<\/li>\n
- Causa proxima. It states that insurance company will admit the claim only if mishap has resulted directly by an event covered by under insurance.<\/li>\n<\/ol>\n
Question 4.
\nMr. Sabu is running a provision store. He insured the shop for \u20b9 50,000 against fire. One day during course of business the shop caught fire and Mr. Sabu purposefully did not take any efforts to minimize the loss. He claimed for compensation. In this situation. (2)<\/p>\n- \n
- What will be your decision assuming that you are the officer in charge of admitting the claims for insurance company?<\/li>\n
- Which principle is applicable here?<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- The claim can not be admitted because the insurer did not take any reasonable steps to minimize the loss.<\/li>\n
- Principle of mitigation of loss<\/li>\n<\/ol>\n
Question 5.
\nWhy do we say that the principle of indemnity is not applicable to life insurance. Illustrate your answer. (2)
\nAnswer:
\nThe loss due to death of the insured cannot be measured in terms of money. So principle of indemnity is not applicable to Life insurance.<\/p>\nQuestion 6.
\nMr. Sibi purchased a new car and it was completely damaged in an accident. Subsequently, he lodged a claim with the insurance company and the same was admitted. Later, the insurance company recovered the destroyed property. (2)<\/p>\n- \n
- Why did the company take ownership of the car?<\/li>\n
- State the relevant principle. Explain.<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- Ownership of the damaged car is vested with the insurance company.<\/li>\n
- According to the principle of subrogation, once the claim of the insured has been settled, the right of ownership of such property passes to .the insurer.<\/li>\n<\/ol>\n
Question 7.
\nMr. Anand your friend has started a new business. He decided to open a bank account with SBI. He has only a vague idea about the type of accounts available to the business people. So he seeks your help to choose the most favourable account for him. Give reason. (2)
\nAnswer:
\nMr. Anand can open current account. There is no restriction on the frequency and volume of deposits or withdrawals of money.<\/p>\nQuestion 8.
\nMatch the following<\/p>\n\n\n
\n A<\/td>\n B<\/td>\n<\/tr>\n \n Warehousing<\/td>\n Mutual Funds<\/td>\n<\/tr>\n \n Unit Trust Of India<\/td>\n Hindrance Of Time<\/td>\n<\/tr>\n \n Insurance<\/td>\n External Comunication<\/td>\n<\/tr>\n \n Telecom<\/td>\n Causa proxima<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Answer:<\/p>\n
\n\n
\n A<\/td>\n B<\/td>\n<\/tr>\n \n Warehousing<\/td>\n Hindrance Of Time<\/td>\n<\/tr>\n \n Unit Trust Of India<\/td>\n Mutual Funds<\/td>\n<\/tr>\n \n Insurance<\/td>\n Causa proxima<\/td>\n<\/tr>\n \n Telecom<\/td>\n External Comunication<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Plus One Business Services Three Mark Questions and Answers<\/h3>\n
Question 1.
\nMr. Janardhanan, a business man, has a current a\/c of \u20b91,00,000 in the S.B.I. He is in need of another \u20b950,000 for the purpose of expansion of his business. By availing which facility, can he have money from the bank? Explain its features. (3)
\nAnswer:
\nOverdraft: Overdraft is an arrangement where customers are allowed to withdraw up to a level over and above their deposits in the current account. Interest is to be paid only on the actual amount of overdraft availed by him. OD is granted to businessmen against their current account.<\/p>\nQuestion 2.
\nWrite a detailed note on various facilities offered by Indian Postal Department. (3)
\nAnswer:
\n1. Postal services:
\nIndian post and telegraph department provides various postal services across India. Various facilities provided by postal department are
\n(a) Financial facilities:
\nThey provide postal banking facilities to the general public and mobilise their savings through the saving schemes like public provident fund (PPF), Kisan Vikas Patra, National Saving Certificate, Recurring Deposit Scheme and Money Order facility<\/p>\n(b) Mail facilities:
\n1. Mail services consist of<\/p>\n- \n
- Parcel facilities that is trans-mission of articles from one place to another<\/li>\n
- Registration facility to provide security of the transmitted articles<\/li>\n
- \u00a0Insurance facility to provide insurance cover for all risks in the course of transmission by post.<\/li>\n<\/ul>\n
2. Allied Postal Services<\/p>\n
- \n
- Greetings Post: Greetings card can be sent through post offices.<\/li>\n
- \u00a0Media Post: Corporate can advertise their brands through post cards, envelops etc.<\/li>\n
- \u00a0Speed Post: It allows speedy transmission of articles to people in specified cities.<\/li>\n
- \u00a0e-bill post: The post offices collect payment of telephone, electricity, and water bills from the consumers.<\/li>\n
- \u00a0Courier Services: Letters, documents, parcels etc. can be sent through the courier service.<\/li>\n<\/ul>\n
(2) Telecom Services:
\nThe various types of telecom services are:<\/p>\n1. Cellular mobile services:
\nMobile communication device including voice and non-voice messages, data services and PCO services utilising any type of network equipment within their service area.<\/p>\n2. Radio paging services:
\nIt means of transmitting information to persons even when they are mobile.<\/p>\n3. Fixed line services:
\nIt includes voice and non-voice messages and data services to establish linkage for long distance traffic.<\/p>\n4. Cable services:
\nLinkages and switched services within a licensed area of operation to operate media services which are essentially one way entertainment related services.<\/p>\n5. VSAT services (Very Small Aperture Terminal):
\nIt is a Satellite-based communication service. It offers government and business agencies a highly flexible and reliable communication solution in both urban and rural areas.<\/p>\n6. DTH services (Direct to Home):
\nIt is a Satellite based media service provided by cellular companies with the help of a small dish antenna and a setup box.<\/p>\nQuestion 3.
\nWhat is e-banking? What are the advantages of e-banking? (3)
\nAnswer:]
\ne-banking is a service provided by many banks, that allows a customer to conduct banking transactions, such as managing savings, checking accounts, applying for loans or paying bills over the internet using a personal computer, mobile telephone. Eg. Electronic Fund Transfer (EFT), ATM etc.<\/p>\nQuestion 4.
\nBabu insures his shop for \u20b93,00,000. In a fire accident the shop burned and incurred a loss of \u20b91,50,000. Babu claimed for the assured sum i.e, \u20b93,00,000. (3)<\/p>\n- \n
- Will the insurance company admit the claim in full. Why?<\/li>\n
- Which principle of insurance is applicable here.<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- No. According to the principle of indemnity, in the event of occurrence of loss, the insured will be indemnified to the extent of actual value of his loss or the sum insured which ever is less,<\/li>\n
- Principle of Indemnity<\/li>\n<\/ol>\n
Question 5.
\nMrs. Anjali has a medical shop and it is insured with two insurers for \u20b950,000 each against natural calamities. During the rainy season, the subject matter was partly destroyed by flood. The total amount of loss was estimated at ? 30,000. She claimed compensation from both insurance companies for \u20b930,000 each. (3)<\/p>\n- \n
- Can she get the claim from both the insurers?<\/li>\n
- Justify your answer with regard to the relevant principle of insurance.<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- No. She cannot get claim from both the insurance.<\/li>\n
- According to the principle of contribution, the insured is eligible to receive a claim only up to the amount of actual loss suffered by her.<\/li>\n<\/ol>\n
Question 6.
\nMr. Joy keep stock of inflammable materials in his shop premises, takes an insurance policy for the shop against fire. But he did not disclose anything about the inflammable materials to the insurance company. Later, the inflammable goods caught fire and the shop was completely destroyed by fire. The insurance company refused to admit the claim of Mr. Joy on the ground that he did not disclose information about the inflammable goods. (3)<\/p>\n- \n
- Can you justify the decision of the insurance company?<\/li>\n
- What principle of insurance is applicable here ?<\/li>\n<\/ol>\n
Answer:<\/p>\n
- \n
- Yes.<\/li>\n
- Principle of utmost good faith. The insured must disclose all material facts about the subject matter to the insurer. Otherwise, the insurer can cancel the contract. The insurer must disclose all the terms and conditions in the insurance contract to the insured.<\/li>\n<\/ol>\n
Plus One Business Services Four Mark Questions and Answers<\/h3>\n
Question 1.
\nMr. Surendran is running an electrical shop which is insured against fire for \u20b950,000. Due to heavy rainfall his stock was fully damaged and he claimed for compensation. The insurance company refused to admit the claim as goods were not insured against natural calamities. Can you justify the decision of the insurance company? Which principle of insurance is applicable here? (4)
\nAnswer:
\nYes. The decision taken by the insurance company is correct. Mr. Surendran has no right to claim compensation from the insurance company. The principle of insurance applicable here is causa proxima. It states that insurance company will admit the claim only if the mishap has resulted directly by an event covered under the insurance. An event covered under the insurance.<\/p>\nQuestion 2.
\nDraw a chart showing types of insurance. (4)
\nAnswer:
\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-4M-Q2.png\")
<\/p>\nQuestion 3.
\nExplain the functions of Transport. (4)
\nAnswer:
\nFunctions of Transport:<\/p>\n- \n
- Helps in the movement of goods and materials from one place to another<\/li>\n
- Helps in the stabilisation of prices.<\/li>\n
- Helps in the social, economic and cultural development of the country<\/li>\n
- Helps in national and international trade<\/li>\n
- Facilitates large scale production<\/li>\n
- Generates employment opportunities<\/li>\n
- Increases growth of towns and cities<\/li>\n
- Connects all part of the world<\/li>\n<\/ol>\n
Plus One Business Services Five Mark Questions and Answers<\/h3>\n
Question 1.
\nExplain the functions of warehousing. (5)
\nAnswer:
\nFunctions of Warehousing:<\/p>\n- \n
- Warehouse helps in supplying the goods to the customers when it is needed.<\/li>\n
- By maintaining a balance of supply of goods warehousing leads to price stabilization.<\/li>\n
- By keeping the goods in the warehouse, the trader can relieve himself of the responsibility of keeping of goods.<\/li>\n
- The warehouse performs the function of dividing the bulk quantity of goods into smaller quantities.<\/li>\n
- Warehousing helps in the seasonal storage of goods to select businesses.<\/li>\n
- The functions of grading, branding, and packing of goods can be done in warehouses.<\/li>\n
- The warehousing receipt can be used as collateral security for obtaining loans.<\/li>\n<\/ol>\n
Question 2.
\nName the principle of insurance violated in the following cases. (5)<\/p>\n1. ‘A’does not own the building but is trying to get it insured as a party to the insurance policy.<\/p>\n
2.\u00a0 ‘A’ enters into life insurance contract with LIC of India. ‘A’ was ailing with heart decease but he did not reveal this at the time of entering the contract.<\/p>\n
3. ‘B’ enters into insurance contract with two companies ‘C’ and ‘D’. The subject matter is a building worth \u20b9 5 lakh. The building caught fire and properties worth \u20b93 lakhs were damaged. ‘C’ paid the entire claim and asked ‘D’ to share the claim. ‘D’ denies.<\/p>\n
4. Goods worth \u20b950,000 are damaged and the insurance company pays the claim to ‘Z’ for the loss. ‘Z’ not only took compensation for loss but also claims the damaged goods.<\/p>\n
5. ‘P’ takes an insurance policy for \u20b91 lakh with ‘Q’ company. The goods of ‘P’ are damaged due to fire the loss incurred is \u20b925,000. ‘Q’ shall restore the actual loss but ‘P’ claims full amount of the policy.<\/p>\n
Answer:<\/p>\n
- \n
- Principle of insurable interest<\/li>\n
- Principle of utmost good faith<\/li>\n
- Principle of contribution<\/li>\n
- Principle of subrogation<\/li>\n
- Principle of Indemnity<\/li>\n<\/ol>\n
Question 3.
\nMatch A with B and C.
\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-5M-Q3.png\")
\nAnswer:
\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-5M-Q3.1.png\")
<\/p>\nPlus One Business Services Six Mark Questions and Answers<\/h3>\n
Question 1.
\nDistinguish between life insurance and general insurance. (6)
\nAnswer:<\/p>\n
![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-8M-Q2.png\")
<\/p>\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-8M-Q3.png\")
![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/07\/Plus-One-Business-Studies-Chapter-Wise-Questions-and-Answers-Chapter-4-Business-Services-8M-Q3.1.png\")