Bhagya

Students can Download Commerce Chapter 24 Retailing Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 24 Retailing

Samacheer Kalvi 11th Commerce Retailing Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Retailers deal in ……………… quantity of goods.
(a) Small
(b) Large
(c) Medium
(d) Limited
Answer:
(a) Small

Question 2.
Small scale Fixed retailers include ………………
(a) General stores
(b) Pedlars
(c) Cheap Jacks
(d) Hawkers
Answer:
(a) General stores

Question 3.
Small shops which deal in a particular line of products are called as ………………
(a) Market traders
(b) Single line stores
(c) Retailer
(d) Consumers
Answer:
(b) Single line stores

Question 4.
……………… are mobile traders Who deal in low priced articles with no fixed place of business.
(a) Shopping malls
(b) Supermarkets
(c) Street stalls
(d) Itinerant traders
Answer:
(d) Itinerant traders

II. Very Short Answer Questions

Question 1.
What is Retailing?
Answer:
Retailing is the process of selling goods and services directly to the ultimate consumers in small quantities.

Question 2.
State the meaning of multiple shops.
Answer:
A number of identical retail shops with similar appearance normally deal in standardised and branded consumer products established in different localities owned and operated by manufacturers or intermediaries are called Chain stores or Multiple shops.

Question 3.
Mention any two benefits of Vending machines.
Answer:

1. Vending machines are placed at a convenient location.
2. The buyer himself inserts the coin or the token and receives the quantity of the product from the machine.

Question 4.
What are specialty stores?
Answer:
Specialty Stores deal in a particular type of product under one product line only. For example, Sweets shop specialised in Tirunelveli Halwa, Bengali Sweets, etc.

III. Short Answer Questions

Question 1.
Explain the features of general stores.
Answer:
General Stores sell a wide variety of products under one roof, most commonly found in a local market and residential areas to satisfy the day-to-day needs of the customers residing in nearby localities. For example, a provision store deals in grocery, bread, butter, toothpaste, soaps, washing powder, soft drinks, confectionery, stationery, cosmetics, etc.
The following are the main features of general stores:

• They remain open for long hours at convenient timings.
• Often provide credit facilities to their regular customers.

Question 2.
Give any four points of distinction between the hire purchase system and the installment system of selling.
Answer:
Hire Purchase System:

• It is a system by which the seller agrees to sell the articles to the buyer on the condition that the payment of the article will be made in a fixed number of installments till the sale price is paid.
• Though the buyer gets possession of the goods immediately on signing the contract the ownership does not pass on till the payment of the last installment.
• The buyer prefers to pay a lump sum or a part of the price initially i.e., down payment and the balance in installments as per the contract.
• The seller continues to be the owner of the article till then.

Installment System:

• Installment system is a type of purchase in which the price amount of the product is not paid initially but in installments.
• Title or ownership of articles as well as possession is passed on to the buyer as soon as the first installment is paid.
• It is also called a deferred payment system.
• On default of payment, the seller cannot seize the article but recover the dues through the court.

Question 3.
Explain the characteristics of supermarkets.
Answer:
The important characteristics of a supermarket are listed below:

• Supermarkets are generally situated at the main shopping centres.
  The goods kept on racks with the clearly labelled price and quality tags in such stores,
• The customers move into the store to pick up goods of their requirements, bring them to the cash counter, make a payment, and take home delivery.
• The goods are sold on a cash basis only. No credit facilities are made available.
• Supermarkets are organised on a departmental basis.
• It requires a huge investment.

Question 4.
What is meant by ‘mail-order retailing’?
Answer:
Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

IV. Long Answer Questions

Question 1.
State the features of Departmental stores.
Answer:
Meaning:
A Departmental Store is a large retail establishment offering a wide variety of products, classified into well-defined departments. Each department is like a separate shop with centralised purchasing, selling and accounting.
Features of Departmental Store:
Large Size:
A department is a large scale retail showroom requiring a large capital investment by forming a joint-stock company managed by a board of directors. There is a Managing Director assisted by a general manager and several department managers.

Wide Choice:
It acts as a universal provider of a wide range of products from low priced to very expensive goods (Pin to Car) to satisfy all the expected human needs under one roof.

Departmentally organised: ,
Goods offered for sale are classified into various departments. Each department specializes in one line of products and operates as a separate unit.

Facilities provided:
It provides a number of facilities and services to the customers such as restaurants, restrooms, recreation, packing, free home delivery, parking,etc.

Centralised purchasing:
All the purchases are made centrally and directly from the manufacturers and operate separate warehouses whereas sales are decentralised in different departments.

Question 2.
What is meant by Consumer Cooperative Store? Explain its merits in brief.
Answer:
A consumer cooperative store is a retail organization owned, managed, and controlled by the consumers themselves to obtain products of daily use at reasonable low prices. Its objective is to eliminate profits to middlemen by establishing direct contact with the manufacturers.

People belonging to middle and low-income groups, at least 25 persons have to come together 1 to form a voluntary association, and get it registered under the Cooperative Societies Act. The capital of a cooperative store is raised by issuing shares to members. The management of the store is democratic and entrusted to an elected managing committee, where “one man one vote” is the rule.

The cooperative stores are very famous in Tamil Nadu. For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.

Question 3.
Describe the role of chambers of commerce in the promotion of internal trade.
Answer:
Role of Associations or Chambers

• Transportation or inter-state movement of goods: The Chambers facilitate registration of vehicles, surface transport policies, construction of highways and roads in promoting an interstate movement of goods.
• Harmonisation: CGST and SGST structure.
• Marketing of agro products and related issues: The associations of agriculturists and other federations interact with farming cooperatives to streamline local subsidies and formulate marketing policies for selling agro products.
• Weights and measures and prevention of duplication of brands: They help the Government in formulation and implementation of uniform policies in weights and measures and prevention of duplication of brands.
• Promoting sound infrastructure: They interact with Government to construct roads, ports, electricity, railways, etc.
• Labour legislation: They interact. with the Government on regular basis and the issues related to labour laws, retrenchments, compensation, etc. so that the industry can run efficiently, generate employment, and achieve maximum productivity.

Students can Download Commerce Chapter 25 International Business Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 25 International Business

Samacheer Kalvi 11th Commerce International Business Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Movement of goods, services, intellectual property, human assets, technology and so on among the countries ………………
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(a) International Trade

Question 2.
Goods are imported for purpose of re – export to another country is termed as ………………
(a) Import Trade
(b) Export Trade
(c) Entrepot Trade
(d) International trade
Answer:
(c) Entrepot Trade

Question 3.
Movement of goods, services among the countries ………………
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(b) International business

Question 4.
Selling of goods from home country to foreign country is called ………………
(a) Home Trade
(b) Entrepot Trade
(c) Foreign Trade
(d) Joint Venture
Answer:
(c) Foreign Trade

II. Very Short Answer Questions

Question 1.
What do you mean by international business?
Answer:
International business denotes all those business activities which take place beyond the geographical limits of the country. It involves the international movements of capital personnel, technology, and intellectual property like patents, trademarks, and know-how and copyrights.

Question 2.
What is meant by Export Trade?
Answer:
When the firm of a country sells goods and services to a firm of another country it is called export trade. Export trade indicates the selling of goods and services from the home country to a foreign country.

Question 3.
What is meant by Import Trade?
Answer:
When the business firm of a country purchases goods from the firm of another country it is called import trade. Importing means the purchase of foreign products and bringing them into one’s home country.
Example: Indian Enterprise purchases petroleum products, electrical goods. etc.

Question 4.
What is meant by Entrepot Trade?
Answer:
When the firm of country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade.

Question 5.
Give any two reasons for International Business.
Answer:

1. To avoid uneven distribution of natural resources across the world and specialization attained by certain countries.
2. To fully utilize the cost benefits.

III. Short Answer Questions

Question 1.
Describe the importance of external trade to an economy.
Answer:
1. Unequal Distribution of Natural Resources:
Countries across the world are not endowed with the natural resources of various types equally and equitably. This uneven distribution of resources worldwide makes it necessary the exchange of goods among the countries through international business.

2. Uneven Availability of Factors of Production:
The availability of various factors of production namely, land, labour, capital and technology for producing goods and services differ among different countries. International business moves the surplus factor in one country over to another country where it is in short supply.

3. Specialisation:
Certain countries or some geographical areas of a certain country specialize in the production of goods and services due to some natural advantages like abundant availability of skilled labour, favourable climatic conditions, availability of natural resources, technical know-how, etc. International business transfers the abundant surplus to other countries that do not have these specialized goods or products.

4. Cost-Benefit
Production cost varies significantly among the countries due to differences in socioeconomic, geographical, demographical, technical, and political environments prevailing therein. This makes the firms engaged in international business import the goods available at lower prices from other countries and exports the goods which bring them better prices to other countries.

Question 2.
What is the necessity for entrepot trade?
Answer:
Entrepot is necessary because of the following reasons:

1. The country may not have any accessible trade routes connecting the importing country.
2. The goods imported may require further processing or finishing before exporting, and these facilities may be lacking in the exporting or importing country.
3. There may not have any bilateral trade agreement between both countries.

Question 3.
What are the limitations of international business?
Answer:
The following are the major limitations of international business.

• The parent firm has to make 100 percent equity investments in the foreign subsidiaries. As a result, international business is, not suitable for small and medium-sized companies which have insufficient fund.
• The parent company has to bear the entire losses resulting from the failure, of its foreign operations.
• International business is subject to greater political risks.

IV. Long Answer Questions

Question 1.
List out the advantages of international trade.
Answer:
Geographical Specialization:
Countries across the world differ significantly in terms of natural resources, capital equipment, manpower, technology and land and so on Some countries are rich in mineral resources hydro-electric power metallic resources, and so on. International business is required to exchange the surplus resources resulting from geographical specialisation for deficit resources in other countries.

Optimum use of Natural Resources:
The international business operates on a simple principle that a country which can produce more efficiently and trade the surplus production with other countries has to procure what it cannot produce more efficiently This enables the countries to optimally utilize the scarce resources available with them.

Economic Development:
International business helps the developing countries greatly in achieving rapid economic development by importing machinery, equipment, technology, talent, and so on. Even the developed countries like Japan, the USA, UK, etc., have achieved remarkable economic progress through the import of raw materials and export of manufactured goods.

Generation of Employment:
International business generates employment opportunities by assisting the expansion and growth of agricultural and industrial activities. It provides direct employment to those people who are hired by export and import firms and generates indirect employment to a number of intermediary firms like, clearing and forwarding agents, indent houses transport organizations, outsourcing agencies, etc.

Higher Standard of Living:
On account of international business, the citizens of the country can buy more varieties of goods and services which cannot be produced cost-effectively within the home country. This exchange of goods and services among the countries enhances the standard of living of people.

Price Equalization:
International business helps to stabilize the prices of various commodities which are fluctuating on a daily basis in the world market, international business prevents violent fluctuations of prices of various commodities and helps maintain prices of various commodities at a stable level in each and every country.

Prospects for Higher Profit:
International business helps the which produce goods in excess to sell them at a relatively higher price to various countries in the international market. This enables them to earn higher profits.

Capacity Utilisation:
International business enables firms across the country to sell their goods and services on a large scale in the international market. As a result, their machinery and equipment are used to their full capacity. In the short very prospect of selling goods in the international market besides selling the goods in home, market keeps the machinery, tools, equipment, and factory fully engaged all through the year.

International Peace:
International business makes countries across the world become inter-dependent while these countries are independent in their functioning. All the factors collectively contribute to maintaining international peace.

Question 2.
Enumerate the disadvantages of international trade.
Answer:
1. Economic Dependence : International trade is more likely to make the country too much dependent on imports from foreign countries. The former may not take any efforts to produce goods and services indigenously to substitute imported goods and thus becoming self sufficient.

2. Inhibition of Growth of Home Industries: International business may discourage the growth of the indigenous industry. Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether.

3. Import of Harmful Goods : International business may lead to import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well-being of people.

4. Shortage of Essential Goods in Home Country: The export of essential commodities out of the greed of earning more foreign exchange may result in an absolute shortage of these goods at home country and people may have to buy these commodities at an exorbitant price in the local market.

5. Misuse of Natural Resources : Excessive export of scarce natural resources to various countries across the world may lead to faster depletion of the resources in the exporting countries.

6. Political Exploitation : International business may create economic dependence among the countries which may threaten their political independence.

7. Rivalry among the Nations : Acute competition for exports may lead to rivalry among the nations. This may lead to a conflict of interest among the countries and end up in wars among them.

8. Invasion of Culture: International business may result in an invasion of a country’s culture. The younger generation is more likely to imitate foreign culture and buy goods and services beyond their means to gain acceptance in the affluent section of society. This will ruin the conventional lifestyle of the society.

Question 3.
Distinguish between internal and international trade.
Answer:

Students can Download Commerce Chapter 16 Emerging Service Business in India Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 16 Emerging Service Business in India

Samacheer Kalvi 11th Commerce Emerging Service Business in India Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
A continuing relationship which provides a licence privileges do business and provides training, merchandising for a consideration is called …………….
(a) Franchising
(b) Factoring
(c) supply chain management
(d) Exchange
Answer:
(a) Franchising

Question 2.
A condition were a factors agrees to provide complete set of services like financing, debt collection, consultancy is called …………….
(a) Maturity factoring
(b) National factoring
(c) Full service factoring
(d) Recourse factoring
Answer:
(c) Full service factoring

Question 3.
Buying and selling ofgoods through electronic network is known as …………….
(a) E – commerce
(b) Internet
(c) Website
(d) Trade
Answer:
(a) E – commerce

Question 4.
An organization carrying out activities to move goods from producer to consumer is …………….
(a) Transport
(b) Logistics
(c) Channels
(d) Marketing
Answer:
(a) Transport

Question 5.
The role of government in logistics management is through …………….
(a) Legislations
(b) Governance
(c) Transport
(d) Distribution
Answer:
(d) Distribution

Question 6.
The main benefit of Logistics is …………….
(a) productivity
(b) Cost minimisation
(c) Profitability
(d) Storage
Answer:
(b) Cost minimisation

Question 7.
What aims for an effective management response over the longer run …………….
(a) Logistics
(b) Supply Chain Management
(c) Demand
(d) Supply
Answer:
(a) Logistics

Question 8.
The model that identifies alternatives, criteria for decision making and analyse alternatives to arrive at the best choice is …………….
(a) Routing model
(b) Scheduling model
(c) Inventory model
(d) Alternative Analysis
Answer:
(b) Scheduling model

Question 9.
A company under outsourcing transfers activities which are …………….
(a) Core
(b) Non – Core
(c) Business
(d) Non – Business
Answer:
(b) Non – Core

Question 10.
Business units can reduce expenditure by outsourcing front office work like ……………..
(a) Paper work
(b) file work
(c) Billing
(d) manufacture
Answer:
(b) file work

Question 11.
The main benefit of outsourcing is …………….
(a) Productivity
(b) Cost reduction
(c) Skill
(d) Units
Answer:
(b) Cost reduction

Question 12.
Outsourcing job is given to developing countries specifically for …………….
(a) Cheap labour
(b) Land
(c) Capital
(d) Factors
Answer:
(a) Cheap labour

Question 13.
Outsourcing is carried out for the benefit of …………….
(a) Global village
(b) Transport
(c) Factory
(d) Time and money
Answer:
(d) Time and money

II. Very Short Answer Questions

Question 1.
Who is a franchisee?
Answer:
The individual who acquires the right to operate the business or use the trademark of the seller is known as the franchisee.

Question 2.
State two disadvantages of franchising?
Answer:
Franchising fees: The initial franchising fee and the subsequent renewal fee can be very high in the case of successful businesses. From the franchisee’s point of view, this may be a deterrent. Fixed royalty payment: The franchisee has to make payment of royalty to the franchiser on a regular basis. This considerably reduces the income of the franchisee.

Question 3.
Who is a factor?
Answer:
The factor is an agent who buys the accounts receivables (Debtors and Bills Receivables) of a firm and provides finance to a firm to meet its working capital requirements.

Question 4.
Define outsourcing.
Answer:
BPO refers to outsourcing the work which is routine in nature, to an outside agency.

Question 5.
What is the need for outsourcing?
Answer:

• To obtain the benefit of specialization
• To reduce the cost
• To increase profit
• To cater to the dynamic demand

Question 6.
State the importance of BPO.
Answer:
BPO means getting contractual services of external companies or group of companies to complete special work or process of a company. For example call centres, data entry etc. This reduces the expenditure by using cheap labour available in developing countries like India, China etc.

Question 7.
What are the benefits of KPO?
Answer:

• It helps in the usage of the best skills
• It produces ultimate use of knowledge
• It helps in finding a solution to a complex problem
• It leads to a reduction of expenditure

Question 8.
Define Logistics.
Answer:
Logistics can be viewed as a logical extension of transportation and related areas to achieve an efficient and effective goods distribution system.

Question 9.
What is the need for Logistics?
Answer:
Logistics are needed in the following factors.
The following are the need for logistics:

• Development of the systems approach and total cost analysis concepts.
• Markets, and logistics policies and practices of suppliers of consumer products, being driven by the large retailers.
• Customer service activities continuing to be centralized and consolidated.

Question 10.
Write about the importance of Logistics.
Answer:
Organizations taking proactive managerial attention in coordinating the actors in logistics leads to reduced logistics costs and improved customer service.

Question 11.
What are the types of Logistics Applications?
Answer:

1. Decision – wise
2. Actor – wise
3. Inbound logistics
4. Outbound logistics

Question 12.
What do you mean by E-commerce?
Answer:
E-Commerce is the process of buying and selling goods and services through electronic networks like the internet. It denotes the external transactions.

III. Short Answer Questions

Question 1.
What are the types of franchising?
Answer:
1. Product/ trade name franchising:
In this type, the franchisee exclusively deals with a manufacture’s product. Examples include Kidzee, French loaf outlets, Bharat Petroleum bunks, Patanjali products, etc. Relationships like Maruti Suzuki with ABT Maruti or Hero Honda bike dealerships may be considered as franchises. However, they but should be considered more as exclusive dealerships with more operational freedom for the dealers.

 

2. Business format franchising:
When a franchisor awards rights covering all business aspects as a complete called business format franchising. This package includes training, support, and the corporate name. This enables uniformity of products, services, environment across geographical boundaries with a high degree of standardization. Examples are McDonald’s, Pizza Hut. KFC, Hot bread, Titan, Color plus, Zodiac, Lakme beauty parlour.

Question 2.
List the steps in the factoring process.
Answer:

1. The firm enters into a factoring arrangement with a factor, which is generally a financial institution, for invoice purchasing.
2. Whenever goods are sold on a credit basis, an invoice is raised and a copy of the same is sent to the factor.
3. The debt amount due to the firm is transferred to the factor through the assignment and the same is intimated to the customer.

Question 3.
Describe the benefits of Logistics.
Answer:

• Logistics reduce overall logistics costs
• It avoids the distribution of infrastructure investment.
• It helps in avoiding systems investments.
• It helps in sharing freight costs.
• It helps in reducing liability in freight operations.
• It leads to quick access to new markets.

Question 4.
Explain the points of differences between Logistics and Supply Chain Management.
Answer:
Logistics:
Logistics Management deals with the efficient management of a static gap between demand and supply.

Supply Chain Management:
Supply Chain Management tries to identify the dynamic nature of the value creation itself such as responsiveness, quality, and design. Hence, it aims for an effective management response over the longer run.

Question 5.
What is the impact of e-commerce on buyers?
Answer:

1. Buyers could have global access to information about a variety of products and services available in the market
2. They could buy the products/services round the clock from anywhere in the world.
3. The prices of products bought through e-commerce tend to be relatively lower than those purchased physically in the conventional shops due to offers, discounts, etc.
4. Electronic and software products could be downloaded immediately after purchase through e-commerce mode.
5. Customers could participate in e-auction which is one of the facets of e-commerce and get a contract in a free and fair manner.
6. Individuals could sell their used products through e-commerce mode with relative ease.
7. Buyers can bargain and negotiate better terms and conditions with respect to buying knowledge products.

IV. Long Answer Questions

Question 1.
Enumerate the characteristics of franchising.
Answer:
Meaning: The practice of the right to use a firm’s business model and brand for a prescribed period of time.

•  A franchise relationship is based on an agreement which lays down the terms and conditions of this relationship.
•  The term of the franchise may be for 5 years or more. The franchise agreement may be renewed with the mutual consent of the parties.
• The franchisee gives an undertaking not to carry any other competing business during the term of the franchise, and the franchiser gives an undertaking not to terminate the franchise agreement before its expiry except under situations that may justify the termination of the franchise agreement.
• The franchisee agrees to pay specified royalty to the franchiser, as per the terms of the franchise agreement.
• Franchise means selling the same product and maintaining a similar type of shop decor (i.e. style of interior decoration) for which the franchiser provides assistance to the franchisee in organizing, merchandising, and management. The franchiser virtually sets up the business for the franchisee.
• The franchisee is supposed to follow the parent, company’s policies regarding the mode of business operations, as per clauses in the franchise agreement.
• Franchisers may give training to personnel working in the franchisee’s organization.

Question 2.
Elucidate the features of factoring.
Answer:

1. Maintenance of book – debts: A factor takes the responsibility of maintaining the accounts of debtors of a business institution.
2. Credit coverage: The factor accepts the risk burden of loss of bad debts leaving the seller to concentrate on his core business
3. Cash advances: Around eighty percent of the total amount of accounts receivables is paid, as advance cash to the client.
4. Collection service: Issuing reminders, receiving part payments, collection of cheques from part of the factoring service.
5. Advice to clients: From the past history of debtors, the factor is able to provide advice regarding the creditworthiness of customers, perception of customers about the products of the client, etc.

Question 3.
Describe the benefits of Outsourcing.
Answer:

• Focusing on Core Activities: Companies can focus on their core competence, a few areas where the company has a distinct capability. The rest of the activities (noncore) can be outsourced to outside agencies.
• To Fill up Economic Development Outsourcing stimulates entrepreneurship, encourages employment opportunities, expands exports, enables tremendous growth of the economy.
• Encourages Employment Opportunities: Companies that are outsourcing their noncore activities provide chances for other small business units to take up the activities. This paves way for more job opportunities and new employment avenues.
• Reduction in Investment: Companies through outsourcing avail the services of outsiders which in turn reduces the investment requirements. The amount so available can be utilized productively and this increases the profits.
• Quest for Excellence: Outsourcing enables the firms to pursue excellence in two ways namely excelling themselves in the activities they do and excel outsiders by extending their capabilities through contracting out.

Question 4.
Explain the points of differences between BPO and KPO.
Answer:
BPQ:

• BPO means getting contractual services of external companies or groups of companies to complete the special work or process of a company.
• For example call centres, data entry, etc. This reduces the expenditure by using cheap labour available in developing countries like India, China, etc.
• To focus on key functions.
• The benefit of specialization/efficiency.
• Cost-cutting.

KPO:

• KPO refers to the outsourcing of Knowledge-based Processes. It means obtaining high-end knowledge work from outside the organization in order to run the business successfully and in a cost-effective manner.
• In short KPO firms get knowledge related, information related, work done from the outside firm and it involves high-value work carried highly skilled staff.
• Usage of best skills.
• The ultimate use of knowledge.
• Finding a solution to a complex problem.

Question 5.
Write a note on e-commerce models.
Answer:
Business to Customers (B 2 C):
This is the fastest-growing segment in e-commerce spare. Under this model, business concern sells directly to consumers.

Business to Business (B 2 B):
Under the model, business concerns transact with one another through the internet. For instance, Snapdeal, Flipkart, Alibaba, Indiamart, Trade India. Com etc.

Consumer to Consumer (C 2 C):
Under this model, customers sell directly to other customers through online classified advertisement or through auction or through mobile or through market places. Example. Indian ventures in C 2 C are Kraftly App (buying and selling anythings) which deals in handmade products of a wide range. Once again store. Com is a website that buys pre-owned women’s fashion products. Other players are quikr, olx, eBay etc.

Customer to Business ( C 2 B):
This model is reverse to the auction model. Products like automobiles, electronic items furniture, and similar product are traded by customers through websites. Example Naukri.com and Monster.com are examples of Indian companies operating in this domain

Business to Government ( B 2 G):
This model envisages selling products and services by the business consumers to Government organizations. For instance, TCS operates the passport application process for the Government of India as a part off-line process.

Samacheer Kalvi 12th Commerce Emerging Service Business in India Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
There are …………….. parties to a franchising agreement.
(a) two
(b) Three
(c) Four
(d) Five
Answer:
(a) two

Question 2.
There are …………….. types of franchising primarily.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(b) Two

Question 3.
Factoring means ……………..
(a) to make or do
(b) to work
(c) for credit
(d) for debit
Answer:
(a) to make or do

Question 4.
…………….. focuses on profit maximization rather than cost-minimizing.
(a) SMC
(b) LM
(c) Transportation
(d) GST
Answer:
(a) SMC

Question 5.
Recently a new type of business in the service sector is called ……………..
(a) BPO
(b) core
(c) non – core
(d) gardening
Answer:
(a) BPO

Question 6.
Business to Business (B2B) ……………..
(a) Snapdeal
(b) Monster.com
(c) TCS
(d) ebay
Answer:
(a) Snapdeal

Question 7.
Customer to Business (C2B) ……………..
(a) Flipkart
(b) Indiamart
(c) Olx
(d) Naukri.com
Answer:
(d) Naukri.com

II. Very Short Answer Questions

Question 1.
What is E-Business?
Answer:
E-Business is a broader term which includes an internal and external transaction of an organization across the internet.

Question 2.
What do you mean by Business to Customers (B2C)?
Answer:
This is a faster-growing segment in e-commerce spare. Under this model, business concern sells directly to customers.

Question 3.
Mention any two advantages of franchising.
Answer:

1. Reduces risk
2. Business expansion.

III. Short Answer Questions

Question 1.
What is the impact of e-commerce on vendors?
Answer:

1. Vendors could have wider access to customers across the globe.
2. This helps minimize the cost of operating business due to the direct distribution of goods to end consumers thanks to the minimum invention of intermediaries.
3. The vendor could interact with multiple buyers and sellers.

For Future Learning

Question a.
You are a small scale manufacturer of ignition coils for automobiles, located near Ranipet. Explain how will you avail of financial credits through factoring if you get orders from

a. Ford India, Chennai
b. Maruti Suzuki, Gurgaon
c. Kun Hyundai, Seoul

Answer:
a. I can show the sources of business to get credit.

b. Maruti Suzuki, Gurgaon

• To identify the activities involved in the movement of goods – Trade
• To analyze the benefits of Logistics – Transport
• To evaluate the areas which need more focus relating to Logistics – Kinds of transport
• To understand critically and analyze the impact of Logistics on Profitability – To reduce cost and improve customer service.

c. Kun Hyundai, Seoul

• To identify the core activities of any business – Companies can focus on their core competence.
• To analyze the benefits of Outsourcing non – core items – Outsource to outside agents.
• To evaluate the areas which need KPO – KPO firm get knowledge related, information related work done from an outside firm.
• To understand critically and analyze the impact of call centers

Students can Download Commerce Chapter 23 Channels of Distribution Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 23 Channels of Distribution

Samacheer Kalvi 11th Commerce Channels of Distribution Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Trade middleman who acts as a link between wholesaler and customers refers to a ……………..
(a) Producer
(b) Broker
(c) Retailer
(d) Customer
Answer:
(c) Retailer

Question 2.
Who is the first middleman in the channel of distribution?
(a) Wholesaler
(b) Producer
(c) Retailer
(d) Customer
Answer:
(a) Wholesaler

Question 3.
…………….. buy the goods from the producer and sell it to the retailers.
(a) Manufacturer
(b) Wholesaler
(c) Retailer
(d) Consumers
Answer:
(b) Wholesaler

Question 4.
………………. are agents who merely bring the buyer and the seller into contact.
(a) Broker
(b) Commission agent
(c) Selling agent
(d) Stockist
Answer:
(a) Broker

Question 5.
Merchant middlemen can be classified into …………….. categories.
(a) Three
(b) Two
(c) Five
(d) Four
Answer:
(b) Two

Question 6.
Wholesalers deal in …………….. quantity of goods.
(a) Small
(b) Large
(c) Medium
(d) Limited
Answer:
(b) Large

Question 7.
A is a mercantile agent to whom goods are entrusted for sale by a principal and takes physical possession of the goods, but does not obtain ownership.
(a) Broker
(b) Factor
(c) Warehouse – keeper
(d) Commission agent
Answer:
(b) Factor

II. Very Short Answer Questions

Question 1.
Who is a middleman?
Answer:
Middlemen refer to all those who are in the link between the primary producer and the ultimate consumer in the exchange of goods and services.

Question 2.
Define Wholesaler.
Answer:
According to Cundiff and Still “wholesaler buys from the producer and sells merchandise to the retailers and other merchants and not to the consumers.

Question 3.
Define Retailer.
Answer:
According to Cundiff and Still “a retailer is a merchant or occasionally an agent whose main business is selling directly to the ultimate consumers”.

Question 4.
Who is a broker?
Answer:
A Broker is one who bargains for another and receives a commission for his service. He is paid ‘brokerage’ for his services. He brings the buyer and the seller to the negotiating process and arranges for finalising contracts between them.

Question 5.
What are the classifications of the merchant middlemen?
Answer:
Merchant middlemen can be classified into wholesalers and retailers.

Question 6.
Who are the mercantile agents?
Answer:
Mercantile Agents are also called functional middlemen. A businessman appoints a person to buy and sell goods on his behalf and gives him the right to borrow money on the security of goods. He is known as a mercantile agent.

III. Short Answer Questions

Question 1.
What do you understand by channels of distribution?
Answer:
It is the path traced in the direct or indirect transfer of title to a product as it moves from the producer to ultimate consumer.

Question 2.
Who is a factor?
Answer:
A factor is a mercantile agent to whom goods are entrusted for sale by a principal. He takes physical possession of the goods, though he does not obtain ownership of the goods. A factor sells goods in his own name without revealing the name of his principal.

Question 3.
Explain the types of mercantile agents.
Answer:
Brokers, Factors, Commission Agents, Del- credere Agents; Auctioneers, and Warehouse keepers are the types of mercantile middlemen.

Question 4.
Explain any three characteristics of wholesalers.
Answer:

1. Wholesalers buy goods directly from producers or manufacturers.
2. Wholesalers buy goods in large quantities and sell in relatively smaller quantities.
3. Wholesalers sell different varieties of a particular variety of products.

Question 5.
What are the services rendered by the wholesalers to the manufacturers?
Answer:
Services to Producers or Manufacturers
Economies in Large Scale:
A wholesaler buys goods in bulk and, thereby, enables the producers to produce goods on a large scale.

Assistance in Distribution:
Wholesalers collect orders from a large number of retailers scattered over a wide area and buy goods in bulk from producers. He enables producers to reach customers scattered over different parts of the country by distributing goods through retailers located in different areas. Therefore producer can concentrate only on production.

Warehousing Facility:
A wholesaler holds a large stock of goods in his private warehouse or in a rented warehouse. In this way he relieves the manufacturer from the function of warehousing.

Forecasting of Demand:
A wholesaler collects information from retailers about the nature and extent of demand and passes it onto the producers and enables them to produce goods according to the needs, tastes, and fashions prevailing in the market.

Publicity of Goods:
Often wholesalers launch an advertising campaigns to boost the demand for the goods. Producers get the benefit of such publicity and thus enabled to spend less on advertising.

IV. Long Answer Questions

Question 1.
What are the characteristics of retailers?
Answer:
Following are the characteristics of retail traders:

1. The retailer generally involves dealing in a variety of items. A retailer makes purchases from producers or wholesalers in bulk for sale to the end consumers in small quantities.
2. Retail trade is normally carried on in or near the main market area.
3. Generally, retailers involve buying on credit from wholesalers and selling for cash to consumers.
4. A retailer has indirect relation with the manufacturer (through wholesalers) but a direct link with the consumers.

Question 2.
What are the functions of Wholesalers?
Answer:
Following are the functions of wholesalers:

1. Collection of Goods:
Wholesaler collects the goods from manufacturers or producers in bulk.

2. Storage of Goods:
Wholesaler collects and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in a cold storage facility.

3. Distribution:
A wholesaler sells goods to different retailers. Thus he performs the function of the distribution.

4. Financing:
Wholesalers provide financial support to producers and manufacturers by providing money in advance to them. He also sells goods to retailers on credit. Thus, at both ends wholesaler acts as a financier.

5. Risk Taking:
A wholesaler buys finished goods from the producer and keeps them in the warehouses till the time they are sold and assumes the risk arising from price, spoilage of goods, and changes in demand.

6. Grading Packing and Packaging:
Wholesaler classifies the goods into different categories. He grades the goods on the basis of quality, size and weight etc. He also undertakes packaging of goods and also performs the function of branding.

7. Providing Information:
Wholesalers provide valuable information to retailers and producers. The retailers are informed about the quality and type of products available in the market for sale. The producers are informed about the changes in taste and fashions of consumers by wholesalers so that they may produce the goods on the basis of tastes and preferences of customers.

8. Transportation:
A wholesaler arranges for the transport of goods from producers to his warehouse and from the warehouse to retailer. Many wholesalers maintain their own trucks, carry goods in bulk, and add place utility to the goods.

Question 3.
What are the functions of Retailers?
Answer:

1. Buying: A retailer buys a wide variety of goods from different wholesalers after estimating customer’s demand.
2. Storage: A retailer maintains a ready stock of goods and displays them in the shop.
3. Selling: The retailer sells the goods in small quantities according to the demand taste and preference of consumers.
4. Grading and Packing: The retailer grades the goods which are not graded by manufacturers and wholesalers.
5. Risk – bearing: A retailer always keeps stock of goods in anticipation of demand and bears the risk of loss due to fire, theft, spoilage, price fluctuations, etc.
6. Transportation: Retailers often carry goods from manufacturers to their retail outlets.
7. Financing: Some retailers grant credit facilities to their customers and provide the facility of return or exchange of goods.

Question 4.
Explain the services rendered by wholesalers to retailers.
Answer:
The following are the Services rendered by wholesalers to Retailers
Financial Assistance:
Wholesalers provide financial assistance to retailers by selling goods on credit. This is done by allowing credit to retailers purchasing goods from them and makes payments to them after receiving money from their customers. This helps retailers to manage their business with a small amount of working capital.

Meeting the Requirements:
Due to limited capital and lack of space in his facility a retailer cannot hold a large variety of products. The wholesaler removes this difficulty by selling goods as and when the retailer requires them.

Introduction of New Products:
Wholesalers bring new products and their uses to the notice of retailers. Thus retailers get knowledge about innovative products and innovative features.

Price Stability:
Wholesalers reduce price fluctuations by adjusting supply and demand and save the retailers from loss arising from price fluctuations.

Economy in Transport:
A wholesaler often delivers goods at the doorsteps of retailers and save their time and cost of transport.

Regular Supply:
Wholesalers keep a large stock of varieties of goods and provide a regular supply of goods as per the retailer’s need. Retailers can purchase as much as they like, from time to time, and need not maintain a large stock of goods.

Question 5.
What are the services rendered by retailers to wholesalers?
Answer:

1. Help in Distribution Retailers relieves the manufacturers and wholesalers of the burden of collecting and executing a large number of small orders from various consumers.
2. Market Information Retailer supply valuable information to wholesalers about changes in tastes, preferences, fashion, etc. of consumers
3. Large Scale Operation The manufacturers and wholesalers are freed from the trouble of making individual sales to consumers in small quantities.
4. Help in Promotion Retailers participates in the promotional activities carried by manufacturers and wholesalers such as short time offers, coupons, free gifts, sales contests, etc.
5. Personal Attention The retailer is able to provide more personal attention to his customers than the wholesaler is, He gives special services on the spot when the articles require minor repairs.

Question 6.
Explain the services rendered to consumers by Retailers.
Answer:
A retailer provides the following services to consumers.
Regular Supply of Goods:
Retailers maintain ready stock of various products of different manufacturers for sale to consumers. This enables the buyers to buy products as and when needed.

New Products Information:
The retailers provide important information about the new arrival of products through their personal. Selling efforts and effective display of products.

Credit Facilities:
Sometimes retailers provide credit facilities to their customers and enable them to increase their level of consumption.

Wide Selection:
Retailers generally keep stock of a variety of products of different manufacturers. This enables the consumers to make their choice out of a wide selection of goods.

Miscellaneous Services:

1. Retailers provide free door delivery services to the customers.
2. They provide after-sale service to customers.
3. They allow cash discounts on their sales.

Question 7.
What are the factors affecting a channel of distribution?
Answer:
The factors affecting a channel of distribution are as follows:

1. Product Characteristics : Seasonal products are distributed through less layer of middlemen. Non standardized products that are made according to customer specifications may be delivered directly.
2.  Market Characteristics: The size of the market for the goods is a major factor while selecting the route for the distribution of products.
3. Number of Consumers: Large purchases made by few consumers require centralized distribution.
4. Middlemen factor : Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product.
5. The capacity of the Manufacturer: A financially strong producer may select a high technology oriented channel which will reduce cost in the long run.
6. Cost and Time Involved in the Channel of Distribution: The channel cost should go along with the quality of service provided by middlemen.
7. Services Required along with the Product: Machinery or equipment which need to be installed and demonstrated should be sold with the shorter channel.
8. Life Cycle of the Product: An established product can select an ordinary channel. But a new product entering into the market should be carefully promoted by experienced middlemen.

Case Study

A Rama industry was established to manufacturer fashion shoes. Since they were new in the market, they decided to sell their product through wholesalers. They appointed one wholesaler in each district and promised them verbally that they will remain the exclusive wholesalers in the area. After three years during one of the review meetings the sales manager informed that if company sells directly to retailers, they will be able to offer competitive prices, which will increase sales volume and eventually profits. He was directly supporting elimination of wholesalers.
a. Should the company follow the sales manager’s suggestion and start a direct business with retailers?
b. What values would the company ignore if they – pass wholesalers to earn an extra profit?
Answer:
Question a.
No, I don’t think that company should follow the sales manager’s suggestion and start a direct business with retailers, because it is the wholesalers who have put in all the effort to establish a sales network and prepared a market for a new product. The company has though verbally promised wholesalers the exclusivity to sell, so it may not send good signals about the company in the market. The wholesalers may sell the competitors’ products more aggressively, which may affect the company’s sales adversely.

Question b.
Values ignored are:

1. Mutual trust
2. Integrity
3. Importance to relationships

Students can Download Commerce Chapter 22 Types of Trade Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 22 Types of Trade

Samacheer Kalvi 11th Commerce Types of Trade Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The purchase of goods from a foreign country is called ………………
(a) Import
(b) Export
(c) Entrepot
(d) Re – export
Answer:
(a) Import

Question 2.
When goods are imported for the purpose of export it is called as ………………
(a) Foreign Trade
(b) Home Trade
(c) Entrepot
(d) Trade
Answer:
(c) Entrepot

Question 3.
……………… acts as a connective link between the producer and the consumer.
(a) Trade
(b) Industry
(c) Commerce
(d) Business
Answer:
(a) Trade

Question 4.
The aim of home trade is ………………
(a) To raise the standard of living
(b) To provide the essential goods and services economically
(c) To raise the national income
(d) To obtain all types of goods
Answer:
(b) To provide the essential goods and services economically

Question 5.
Internal trade can be classified into ……………… categories
(a) Three
(b) Four
(c) Two
(d) Five
Answer:
(c) Two

II. Very Short Answer Questions

Question 1.
Give the meaning of Trade?
Answer:
The buying and selling of goods and services consist of trade. Trade is conducted in order to earn a profit. Trade acts as an intermediary in the exchange of commodities between the producer and consumer.

Question 2.
What is Internal Trade?
Answer:
Buying and selling of goods and services within the boundaries of a nation are called internal trade. Internal trade is also called domestic trade or home trade.

Question 3.
Mr. Vikram who runs a textile industry regularly procures cotton from Germany. Name the type of trade he is engaged in.
Answer:
This is Import trade because Mr. Vikram procures (purchases) cotton from Germany Import means buying of goods from a foreign country for domestic use.

Question 4.
When Vikram of India sells cotton shirts to Amal of England, what type of trade he is engaged in?
Answer:
Vikram of India sells cotton shirts to Amal of England. So he is engaged in Export trade. Export trade means the sale of domestic goods to foreign countries.

Question 5.
How do you classify Trade?
Answer:
According to the geographical location of buyers and sellers, trade can be classified into internal and external trade.

Question 6.
What are the classifications of internal trade?
Answer:
Type of International trade: Home trade consists of two main subdivisions namely (i) Wholesale trade and (ii) Retail trade.

Question 7.
What is import trade?
Answer:
Import trade means buying goods from a foreign country for domestic use.
Example. India imports petroleum products from Gulf Countries.

Question 8.
Explain the meaning of the Entrepot trade.
Answer:
Entrepot trade means importing goods from one country and exporting the same to foreign countries. It is also known as ‘Re-export trade’.

Question 9.
TVS is selling motorbikes in Europe. Under which type of trade can this be classified?
Answer:
Selling of motorbikes from India to Europe is classified under Export Trade.

Question 10.
What is the currency used in India in internal trade?
Answer:
INR (Indian Rupee) is used in India in internal trade. Payment of goods and services is made in the currency of the home country.

III. Short Answer Questions

Question 1.
What is the classification of Foreign trade?
Answer:
Foreign Trade can be classified into Import Trade, Export Trade, and Entrepot Trade.

Question 2.
Give two examples of Entrepot trade.
Answer:

1. Indian diamond merchants in Surat import uncut raw diamonds from South Africa.
2. They cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam.
3. Singapore, Dubai, Hongkong are the largest entrepot trade centers in the world.

Question 3.
What do you mean by Export trade?
Answer:
Export trade means the sale of domestic goods to foreign countries. Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment, and to increase Government revenue. E.g Export of Iron ore from India to Japan.

Question 4.
What is Wholesale trade?
Answer:
“Purchase of goods in bulk from the manufacturers and selling them in smaller quantities to other intermediaries” is known as wholesale trade.

Question 5.
State the meaning of Retail trade.
Answer:
The distribution of goods in small quantities directly to the consumers is known as retail trade.

Question 6.
Name any three retail traders in your locality.
Answer:

1. Nilgiris Super Market
2. Reliance Fresh
3. A.N.S. Pandian Stores

Question 7.
State the main aim of trade.
Answer:
The main aim of trade is to make goods and services available to those persons who need them and are able to willing to pay for them.

IV. Long Answer Questions

Question 1.
What are the features of Internal trade?
Answer:
Meaning: Buying and selling of goods and services within the boundaries of a nation are called internal trade. It takes place between buyers and sellers in the same locality, village, town or city or in different states, but definitely within the same country.
The following are the features of internal trade

• The buying and selling of goods take place within the boundaries of the same country.
• Payment for goods and services is made in the currency of the home country.
• It involves transactions between the producers, consumers, and middlemen.
• It consists of a distribution network of middlemen and agencies engaged in an exchange of goods and services.
• In-home trade the risk of transportation is very less when’ compared to foreign trade.
• In-home trade the laws prevailing in that country only have to be followed.
• The aim of home trade is to provide goods and services economically.
• The goods must be a part of domestic production.
• Goods must be purchased from an individual or a firm established within a country.
• Goods can be delivered using locally available modes of transport, k.
• It does not involve any custom/import duty, but buyers need to pay the taxes to the Government.

Question 2.
Explain briefly the different types of Foreign trade?
Answer:
A. Import Trade:
Import trade means buying goods from a foreign country for domestic use. Example. India imports petroleum products from Gulf Countries. India imports machinery, equipment, materials, etc. It is necessary to speed-up industrialization, to meet consumer demands, and improve the standard of living.

B. Export Trade:
Export trade means the sale of domestic goods to foreign countries.
Examples:

1. Export of Iron ore from India to Japan
2. Selling of Tea from India to England.
3. Export of jasmine flowers from Madurai to Singapore

Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment, and to increase Government revenue

C. Entrepot Trade:
Entrepot trade means importing goods from one country and exporting the same to foreign countries. lt is also known as “Re-export trade’.

Example Indian diamond merchants in Surat import uncut raw diamonds from South Africa. They cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam.

Samacheer Kalvi 11th Commerce Types of Trade Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
……………… trade is a trade between a seller and buyer of different countries.
(a) Foreign
(b) Export
(c) Entrepot
(d) Home
Answer:
(a) Foreign

Question 2.
……………… trade deals with the distribution of goods in small quantities to the consumers.
(a) Retail
(b) Wholesale
(c) Home
(d) Foreign
Answer:
(a) Retail

Question 3.
Selling of Tea from India to England – What type of trade is this?
Answer:
(a) Export
(b) Import
(c) Entrepot
(d) Home
Answer:
(a) Export

Question 4.
Re-export trade is otherwise called as ……………… trade.
(a) Entrepot
(b) Export
(c) Import
(d) Foreign
Answer:
(a) Entrepot

Question 5.
Hero pens produced in China and sold in India is an example for ……………… trade.
(a) Foreign
(b) Home
(c) Export
(d) Entrepot
Answer:
(a) Foreign

Case Study

Question 1.
Mr. Kovalan completed his M.Com. degree and proposed to start a business dealing with power loom machines. After a complete analysis, it was found that it is better to buy from foreign countries than to buy from domestic manufacturers. So what is your opinion whether to purchase from foreign countries or from domestic manufacturers?
Answer:
In my opinion, if he purchases from foreign countries, it will be a quality one. It will work for a long time. First of all, he should get the quotation from all countries. He can choose which is the low cost and high-quality machines. A very good brand also can be chosen.

Students can Download Commerce Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Samacheer Kalvi 11th Commerce Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
MSMED Act was enacted in the year ………………
(a) 2004
(b) 2007
(c) 2006
(d) 2008
Answer:
(c) 2006

Question 2.
MSMEs are important for the nation’s economy because they significantly contribute to ………………
(a) industrial production
(b) exports
(c) employment
(d) all the above
Answer:
(d) all the above

Question 3.
Self-help groups convert the savings into a common fund known as ………………
(a) Common fund
(b) Group corpus fund
(c) Group fund
(d) none of the above
Answer:
(b) Group corpus fund

Question 4.
There are ……………… distinct modes of credit to Self Help Groups.
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(c) 3

Question 5.
The investment limit of a micro-enterprise under the manufacturing sector does not exceed ……………… lakhs.
(a) 10
(b) 20
(c) 25
(d) 50
Answer:
(c) 25

II. Very Short Answer Questions

Question 1.
What do you understand by the manufacturing enterprises?
Answer:
The enterprises engaged in the manufacturing or production of goods pertaining to any industry specified in the first schedule to the Industries Development and Regulation Act, 1951 are known as manufacturing enterprises.

Question 2.
Give some examples for micro-enterprises.
Answer:
Micro enterprises are engaged in low scale activities such as clay pot making, fruits and vegetable vendors, transport (three-wheeler tempos and autos), repair shops, cottage industries, small industries, handlooms, handicraft works, etc.

Question 3.
What is the aim of NEEDS?
Answer:
The aim of NEEDS is Lo provide entrepreneurship development training to educated young entrepreneurs, preparing business plans, and helping them to tie up with financial institutions to set up new business ventures.

Question 4.
What is a Self Help Group?
Answer:
Rural development is one of the main pillars of the progress of India. It has lagged behind in many aspects of development even after six decades of the independence of India. Self Help Group has emerged as a new model for combating poverty.

Question 5.
State the investment limit for small enterprises in the manufacturing and service sectors.
Answer:

III. Short Answer Questions

Question 1.
State the investment limit for a medium enterprises engaged in the Manufacturing and service sector.
Answer:

Question 2.
List out the products produced by MSME in Tamil Nadu?
Answer:
In Tamil Nadu, the MSMEs sector produces textile, electronic products, engineering products, auto ancillaries, leather products, chemicals, plastics, garments, jewellery etc.

Question 3.
What is the role and significance of MSMEs in the Indian Economy?
Answer:
Entrepreneurship is the key to the economic development of any country. By empowering entrepreneurs, the MSME sector provides more employment opportunities to the people of India. It helps towards the industrialization of rural and backward areas. This sector reduces regional imbalance. It provides equality distribution of national’ income and wealth.

Question 4.
Explain any three features of the Self Help Group.
Answer:
The following are the main features of Self Help Group:

1. The motto of every group members should be “saving first — credit later”
2. Self Help Group is homogenèous in terms of economic status.
3. The ideal size of a Self Help Group ranges between 10 and 20 members.

Question 5.
What are the different ways in which banks fund Self Help Groups?
Answer:
There are three distinct modes of credit to SHGs. Under the first mode, banks lend directly to the SHGs. In the second mode, banks provide loans to the NGOs for onward lending to the SHGs and ultimately to micro-entrepreneurs. Under the third mode, banks extend credit to the SHGs with the NGOs serving as facilitators. Out of these three methods, the last method of direct lending by bank with NGOs facilitation is widely practised.

IV. Long Answer Questions

Question 1.
What is the definition of MSME?
Answer:
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

• Enterprises engaged in the manufacture or production, processing, or preservation of goods as specified below:
• A microenterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
• A small enterprise is an enterprise where the investment in plant and machinery is ‘ more than Rs. 25 lakh but does not exceed Rs. 5 crores;
• A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5crore but does not exceed Rs.10 crore.
• In the case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.0.1722 (E) dated October 5, 2006.

Question 2.
Explain the advantages of MSMEs?
Answer:

1. Employment Potential: MSMEs generate more employment opportunities than large business concerns.
2. Low Production Cost: MSMEs do not require skilled laborers or professionals to run the organization. It employs cheap labour and thus minimizes the overhead.
3. Low Investment: MSMEs do not require huge capital to start the unit. It can employ locally available resources within the reach of the owner.
4. Quick Decision Making: MSMEs need not hire professional managers to run the management on a day to day basis.
5. Supplementary Role: MSMEs play a complementary role to serve as a feeder to large-scale industries.
6. Establishment of Socialistic Pattern of Society: MSME sector contributes towards the establishment of a socialistic, pattern of society by reducing the concentration of income and wealth.
7. Balanced Regional Development: By encouraging MSMEs in industrially backward areas of India, balanced development can be achieved across all regions.
8. Promotion of Self Employment and Self Reliance Spirit: MSMEs help to a great deal in developing a class of entrepreneurs.
9. Higher Contribution to Manufacturing and Export: MSMEs contribute 45% to the total manufacturing output and 40% to the exports from the country. It helps in earning precious foreign exchange in various countries across the world.

Question 3.
What are the objectives of SHGs?
Answer:
The following are the objectives of Self Help Groups:

• Focusing on the empowerment of women.
• Saving people from the clutches of money lenders
• Building capacity of women and enabling them to participate in generating activities.
• Creating the habit of saving in the minds of the people who are economically backward. .
• Promoting entrepreneurship skills among women.
• Creating awareness about the importance of credit circle or revolving credit and the payment of the circle.
• Elevating the economic standard of the member’s families.
• Developing skills and facilitating credit’ linkages for eventual economic empowerment:
• Promoting awareness among the members about finding solutions for their economic problems.
• Identifying the common interest of the group members and carrying out their operations in the most efficient and economical way.
• Enabling the members to overcome all social and economic barriers.
• Promising and ensuring human rights to women at all stages of their life cycle.

Question 4.
Explain the advantages of MSME?
Answer:
The MSME sector contributes about 8% to Gross Domestic Product (GDP) besides 45% to the total manufacturing output and 40% to the exports from the country on the production of more than 6000 products. This Sector consists of 36 million units and provides employment to over 8 crore people.

Samacheer Kalvi 11th Commerce Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
Tamil Nadu Corporation for Development of Women Limited (TNCDW) was established in the year …………….
(a) 1983
(b) 1984
(c) 1985
(d) 1995
Answer:
(a) 1983

Question 2.
“Mahalir Thittam” project was launched during …………….
(a) 1997 – 98
(b)1999 – 99
(c) 1999 – 2000
(d) 2000 – 2001
Answer:
(a) 1997 – 98

II. Very Short Answer Questions

Question 1.
State the investment limit for microenterprise in the manufacturing and service sector.
Answer:

Question 2.
Give examples for Public Sector Banks.
Answer:
State Bank of India, Indian Bank, Indian Overseas Bank, Canara Bank.

For Future Learning

Question a.
World Association of Small & Medium enterprises (WASME)
Answer:
WASME is a global non-profit organization. The headquarters is in Noida.

Question b.
Ministry of MSME and its functions.
Answer:
MSME – Micro, Small, Medium Enterprises.

Ministry: Ministry of MSME, a branch of the Government of India, is the apex body for the formulation and administration of rules, regulations and laws relating to MSME in India.

Functions:
MSME: consequent to the increased globalization of the Indian economy and changed industrial environment. MSME is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to MSME.

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Samacheer Kalvi 11th Commerce Solutions Chapter 29 Elements of Contract

Samacheer Kalvi 11th Commerce Elements of Contract Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
An agreement enforceable by law is a ………………
(a) Enforceable acceptance
(b) Accepted offer
(c) Approved promise
(d) Contract
Answer:
(d) Contract

Question 2.
Every promise and every set of promises, forming the consideration for each other, is an ………………
(a) Agreement
(b) Contract
(c) Offer
(d) Acceptance
Answer:
(a) Agreement

Question 3.
Void agreement signifies ………………
(a) Agreement illegal in nature
(b) Agreement not enforceable by law
(c) Agreement violating legal procedure
(d) Agreement against public policy
Answer:
(b) Agreement not enforceable by law

Question 4.
Acceptance to be valid must ………………
(a) Be absolute
(b) Be unqualified
(c) Both be absolute & unqualified
(d) Be conditional
Answer:
(c) Both be absolute & unqualified

Question 5.
A contract with or by a minor is a ………………
(a) Valid contract
(b) Void contract
(c) Voidable contract
(d) Voidable at the option of either party
Answer:
(b) Void contract

II. Very Short Answer Questions

Question 1.
What is law?
Answer:
Law is a set of rules which governs our behaviour and relating in a civilized society.

Question 2.
Why should one know the law?
Answer:
One to should know the law to which he is subjected because ignorance of the law is no excuse.

Question 3.
Can a minor enter into a Contract?
Answer:
As per the Indian Contract Act 1872, a contract entered by or with a minor is void as well as void-abinitio. Which means it has no legal effect from the very beginning.

Question 4.
Who can enter into a Contract?
Answer:
The Indian Contract Act specifies that every person is competent to contract provided he is of the age of majority according to the Law which he is subject to and who is of sound mind.

Question 5.
Define Contract.
Answer:
As per the Indian Contract Act, 1872, a “contract” is an agreement enforceable by law. The agreements not enforceable by law are not contracts.
Contract = Agreement + Enforceability by law.

III. Short Answer Questions

Question 1.
Define Offer.
Answer:
Offer (i.e. Proposal) [section 2(a)]: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal.

Question 2.
What do you mean by Agreement?
Answer:
According to section 2(e) of the Indian Contract Act, Agreement is every promise and a set of promises forming consideration for each other is an agreement. In short, Agreement = Offer +Acceptance.

Question 3.
Define a Voidable Contract.
Answer:
An agreement which is enforceable by law at the option of one or more parties but not at the option of the other- or others is a voidable contract. This is the result of coercion, undue influence, fraud, and misrepresentation.

Question 4.
What do you mean by Revocation?
Answer:
Revocation refers to the canceling or annulment of something by some authority. When revocation happens, a privilege, title, or status is removed from someone.

Question 5.
Who is a promisor, promisee?
Answer:

1. A promisor – Contract law – a person who makes a promise.
2. A promisee – Contract law – a person to whom a promise is made.

IV. Long Answer Questions

Question 1.
Explain the essentials of a Valid Contract
Answer:
Offer and Acceptance:
There must be two parties to an agreement namely one party making the offer and the other party accepting it.

Legal Relationship:
The parties must have the intention to create legal relations between them. An agreement of Social or domestic nature is not at all a contract.

Lawful Consideration (quid pro quo):
As per Contract Act under Sec.2 (d) Consideration means something in return. A contract without consideration becomes invalid It may be in cash or kind or in any form as specified m the act. Consideration must not be unlawful, immoral or opposed to the public policy.

Lawful Object (Section 23):
The object of the agreement should be lawful and legal. It must not be immoral, illegal or opposed to public policy. Two persons cannot enter into an agreement to do a criminal act.

Free Consent (Section 13 & 14):
Consent of the parties must be free and genuine. Consent means agreeing upon same, thing in the same sense at the same time i.e. there should be a consensus – ad – idem. Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.

Capacity of Parties (Section 11):
The parties to a contract must have the capacity (legal ability) to make valid contract.

Certainty of Terms (Section 29):
The agreement should be clear to the parties of the agreement. The agreement must be precise.
For example, X informs Y “I agree to sell my car’. X has four cars. Here nothing is stated about which car he is going to sell. There is no clarity of terms.

Possibility of Performance (Section 56):
The terms of the agreement should be capable of performing. An agreement to do an act, impossible in itself cannot be enforced. For example, A agrees to B to discover a new planet. The agreement is void because the act in itself is impossible to be performed from the very beginning.

Not declared Void:
The agreement should be such that it should be capable of being enforced by law. Certain agreements have been expressly declared illegal or void by the law.

Necessary Legal Formalities:
A contract may be oral or in writing. Where a particular type of contract is required by law to be in writing and registered, it must comply with necessary formalities as to writing, registration, and attestation. If legal formalities are not carried out then the contract is not enforceable by law.

Question 2.
Difference between Contract and Agreement.
Answer:

Question 3.
Explain the classification of Contract on the basis of the Validity.
Answer:
1. Valid Contract:
An agreement which fulfills all the essentials prescribed by law on the basis of its creation. For example, S offers to sell his car for Rs.2,00,000to T. T agrees to buy it. It is a Valid Contract.

2. Void Contract (2(j)):
A contract which ceases to be enforceable by law. A contract which does not satisfy any of the essential elements of a valid contract is said to be Void. For example, A contract between drug dealers to buy and sell drugs is a void contract.

3. Voidable Contract 2(i):
An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract. This is the result of coercion, undue influence, fraud, and misrepresentation.

4. Illegal Contract:
It is a contract which is forbidden by law.
All illegal agreements are Void but all void agreements or contracts are not necessarily illegal. A contract that is immoral or opposed to public policy is illegal in nature, i. Unlike illegal agreements, there is no punishment to the parties to avoid agreement, ii. Illegal agreements are void from the very beginning but sometimes valid contracts may subsequently become void.

5. Unenforceable Contract:
Where a contract is unenforceable because of i some technical defect i.e. absence in writing j barred by imitation etc. If the parties perform j the contract it will be valid, but the court will j not compel them if they do not.

Question 4.
Explain the classification of Contract on the basis of the Formation.
Answer:
1. Express Contract: A contract made by word spoken or written. According to Section. 9, in so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. For example, P says to Q ‘will you buy my bicycle for Rs. 1,000?” Q says to P “Yes”.

2. Implied Contract: The implied contract is one, which is not expressly written but understood by the conduct of parties. Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied. For example, A gets into a public bus, there is an implied contract that he will pay the bus fare.

3. Quasi Contract: It is a contract created by law. Actually, there is no contract. It is based on the principle that “a person shall not be allowed to enrich himself unjustly at the expense of the other”. In other words it is an obligation of one party to another imposed by law independent of an agreement between the parties.

4. Tacit Contract: A contract is said to be tacit when it has to be inferred from the conduct of the parties. For example, obtaining cash through an automatic teller machine, sale by fall of the hammer of an auction sale.

Question 5.
Explain the classification of Contract on the basis of the Performance.
Answer:
Executed Contract:
A contract in which both the parties have fulfilled their obligations under the contract. For example X contracts to buy a car from Y by paying cash, Y instantly delivers his car.

Executory Contract:
A contract in which both the parties are yet to fulfill their obligations, it is said to be an executor contract. For example, A agrees to buy B’s cycle by promising to pay cash on 15th June. B agrees to deliver the cycle on 20th June.

Unilateral Contract:
A unilateral contract is a one-sided contract in which only one party has performed his promise or obligation, the other party has to perform his promise or obligation. For example, X promises to pay Y a sum of Rs. 10,000 for the goods to be delivered by Y. X paid the money and Y is yet to deliver the goods.

Bilateral Contract:
A contract in which both the parties commit to performing their respective promises is called a bilateral contract. For example, R offers to sell his fiat car to S for Rs. 10, 00,000 on acceptance of R’s offer by S, there is a promise by R to sell the car and there is a promise by S to purchase the car, there are two promises.

For Future Learning

Question 1.
After studying this chapter anyone can enter into a Valid Contract and can also identify the essentials present in the contract.
Answer:
Anyone can enter into a valid contract but he must attain the age of majority. He should be sound mind.

Question 2.
After understanding this chapter entering into Offer and giving Acceptance becomes easier.
Answer:
Offer – Proposal
Acceptance – Proposal is accepted

Question 3.
After going through this chapter the value of consideration and the requirement for return payment can be understood better.
Answer:
Consideration means something in return.

Question 4.
After reviewing this chapter the parties who are allowed to enter and the parties who are not allowed to enter into a contract can be clearly demarcated.
Answer:
Major can enter into a contract with a sound mind. Minor cannot enter into a contract with an unsound mind.

Question 5.
After analyzing this chapter an obligation imposed by law – Quasi Contracts are better understood and distinguished from other contracts.
Answer:
It is an obligation of one party to another imposed by law independent of an agreement between the parties.

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Tamilnadu Samacheer Kalvi 11th English Grammar Abbreviations

 

AAA	Amateur Athletic Association
AAFI	Amateur Athletic Federation of India
ACR	Annual Confidential Report
ADC	Aide-de-camp (Assistant)
AFI	Athletics Federation of India
AFMC	Armed Forces Medical College
AICTE	All India Council for Technical Education
AIFF	All India Football Federation
AITUC	All India Trade Union Congress
ANC	African National Congress
AOC	Air Officer Commanding
ASAP	As Soon As Possible
ASEAN	Association of South East Asian Nations
ASLV	Augmented Satellite Launch Vehicle
ATC	Air Traffic Control
ATM	Automated Teller Machine
ATR	Action Taken Report
ATS	Anti Tetenus Serum
AWACS	Airborne Warning and Control Systems
AMIE	Associate Member of the Institute of Engineers
AIR	All India Radio
AIDS	Acquired Immuno Deficiency Syndrome
AIIMS	All India Institute of Medical Sciences
BARC	Bhabha Atomic Research Centre
BBC	British Broadcasting Corporation
BHEL	Bharat Heavy Electricals Limited
BIOS	Basic Input Output System
BMA	British Medical Association
B.Ed.,	Bachelor of Education
BSNL	Bharat Sanchar Nigam Limited
BPCL	Bharat Petroleum Corporation Limited
CID	Criminal Investigation Department
CBI	Central Bureau of Investigation
CIA	Central Intelligence Agency
CAT	Common Aptitude Test
CAG	Comptroller and Auditor General of India
CDAC	Centre for the Development of Advanced Computing
CAD	Computer-Aided Design
CEO	(a) Chief Educational Officer (b ) Chief Executive Officer
CFC	Chlorofluorocarbon
CFL	Compact Fluorescent Lamps
CIS	Commonwealth of Independent States
CNN	Cable News Network
COD	Cash On Delivery
COPRA	Consumer Protection Act
CPI	Communist Party of India
CPWD	Central Public Works Department
CRY	Child Relief and You
CSIR	Council of Scientific and Industrial Research
CTBT	Comprehensive Test Ban Treaty
CVC	Central Vigilance Commission
CLRI	Central Leather Research Institute
CSO	Central Statistical Organisation
CPU	Central Processing Unit
CRPF	Central Reserve Police Force
CISF	Central Industrial Security Force
DIG	Deputy Inspector General
DNA	Deoxyribose Nucleic Acid
DPEP	District Primary Education Programme
DTH	Direct-to-Home
DTP	Desk Top Publishing
DVD	Digital Video Disc
EPABX	Electronic Private Automatic Branch Exchange
ELISA	Enzyme-Linked ImmunoSorbent Assay
EMI	Equated Monthly Installment
ESA	European Space Agency
ESMA	Essential Services Maintenance Act
FIFA	Federation International de Football Association
FRS	Fellow of the Royal Society
FAO	Food and Agricultural Organisation
FBI	Federal Bureau of Investigation
FDI	Foreign Direct Investment
FERA	Foreign Exchange Regulation Act
FIR	First Information Report
FRCS	Fellow of the Royal College of Surgeons
GPO	General Post Office
GMT	Greenwich Mean Time
GATE	Graduate Aptitude Test in Engineering
GPS	Global Positioning System
GRE	Graduate Record Examination
GSI	Geological Survey of India
GSLV	Geo-Synchronous Satellite Launch Vehicle
HIV	Human Immuno deficiency Virus
HTML	Hyper Text Mark-up Language
HTTP	Hyper Text Transfer Protocol
ICS	Indian Civil Service
IAS	Indian Administrative Service
IPS	Indian Police Sendee
IRS	Indian Revenue Sendee
IFS	Indian Forest Sendee
IN A.	Indian National Army
ICBM	Inter Continental Ballistic Missile
IMF	International Monetary Fund
1ST	Indian Standard Time
ISP	Internet Service Provider
ISRO	Indian Space Research Organisation
JRF	Junior Research Fellowship
ICMR	Indian Council of Medical Research
ICSE	Indian Certificate of Secondary Education
INSAT	Indian National Satellite
IAEA	International Atomic Energy Agency
IAAI	International Airport Authority of India
ICAR	Indian Council for Agricultural Research
ICT	Information and Communication Technology
IDBI	Industrial Development Bank of India
IPL	Indian Premier League
IELTS	International English Language Testing System
LBW	Leg Before Wicket
LCM	Lowest Common Multiple
LPG	Liquefied Petroleum Gas
MLA	Member of the Legislative Assembly
MLC	Member of the Legislative Council
MCA	Master of Computer Applications
MRTS	Mass Rapid Transit System
MTC	Metro Transport Corporation
NATO	North Atlantic Treaty Organization
NCO	Non-Commissioned Officer
NIFT	National Institute of Fashion Technology
NOC	No Objection Certificate
NGO	Non-Governmental Organisation
NCTE	National Council for Teacher Education
NBT	National Book Trust
NASA	National Aeronautics and Space Administration
NSE	National Stock Exchange
NCERT	National Council of Educational Research and Training
NLC	Neyveli Lignite Corporation
NPCIL	Nuclear Power Corporation of India Limited
NPT	Nuclear Non-Proliferation Treaty
NTSE	National Talent Search Examination
NTPC	National Thermal Power Corporation
OPAC	Online Public Access Catalogue
OPEC	Organisation of Petroleum Exporting Countries
ONGC	Oil and Natural Gas Corporation
ODI	One Day International / Open Datalink Interface
OIGS	On India Government Service
PERT	Project Evaluation and Review Technique
PRO	Public Relations Officer
PSU	Public Sector Units
PSLV	Polar Satellite Launch Vehicle
PAC	Public Accounts Committee
PAN	Permanent Account Number
PDA	Personal Digital Assistant
PETA	People for Ethical Treatment of Animals
PIL	Public Interest Litigation
PIN	Postal Index Number
POTA	Prevention of Terrorism Act
POW	Prisoner of War
PTO	Please Turn Over
PWD	Public Works Department
RTO	Regional Transport Officer
RTE	Right To Education
RTI	Right To Information
RAM	Random Access Memory
SPCA	Society for the Prevention of Cruelty to Animals
SSC	Staff Selection Commission
SBI	State Bank of India
SASE	Self Addressed Stamped Envelope
SAIL	Steel Authority of India Limited
SAM	Surface to Air Missile
SARS	Severe Acute Respiratory Syndrome
SEZ	Special Economic Zone
SMS	Short Message Service
START	Strategic Arms Reduction Treaty
SWOT	Strength, Weakness, Opportunity, and Threat
TT(E)I	Travelling Ticket Examiner/ Inspector
TTTI	Technical Teachers Training Institute
TESMA	Tamilnadu Essential Services Maintenance Act
TNEB	Tamil Nadu Electricity Board
TADA	Terrorist and Disruptive Activities
TAPS	Tarapur Atomic Power Station
TELCO	Tata Engineering and Locomotive Company
TISCO	Tata Iron and Steel Company
TLC	Total Literacy Campaign
TNPSC	Tamil Nadu Public Service Commission
TOEFL	Test of English as a Foreign Language
TQM	Total Quality Management
UDC	Upper Division Clerk
UFO	Unidentified Flying Objects
UGC	University Grants Commission (India)
ULFA	United Liberation Front of Asom/Assam
UNESCO	United Nations Educational, Scientific and Cultural Organisation
UNICEF	United Nations International Children’s Emergency Fund
UNO	United Nations Organisation
UPSC	Union Public Service Commission
VAO	Village Administrative Officer
VAT	Value Added Tax
VHF	Very High Frequency
VHS	Video Home System / Voluntary Health Services
VIP	Very Important Person
VPP	Value Payable Post
VSNL	Videsh Sanchar Nigam Limited
WTO	World Trade Organisation
WHO	World Health Organisation
WWW	World Wide Web
YMCA	Young Men’s Christian Association
YWCA	Young Women’s Christian Association
ZIP	Zone Improvement Plan

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Tamilnadu Samacheer Kalvi 11th English Grammar Homographs

Homographs are words (usually a pair) that are spelled alike but differ in meaning. They may or may not be pronounced the same way.

Homo­graphs	Meaning 1	Meaning 2
affect	to change	a person’s emotions
alternate	to switch back and forth	the second choice
attribute	a characteristic	to give regard to
bass	a type of a fish/the low tones of music or a stringed instrument which plays low tones bow	a device to shoot an arrow/to bend one’s head down or the front of a ship
buffet	a blow or be affected by blows	a large sideboard or a self-served meal of various dishes
close	to be near	to shut
combine	a farming machine which threshes	to put together
conduct	one’s behavior	to lead (oops there is another one) such as a symphony
content	to be satisfied	that which is contained within
contest	to compete in a match of skills	make an argument against something
convert	to change one’s belief system	one whose belief system has been changed
converse	to talk	the opposite
convict	a prisoner	to find one guilty of a charge
deliberate	to carefully consider	to purposely do
desert	to abandon	an arid or barren area
digest	to convert food to simpler compounds	to condense a written work
do	the first tone of the diatonic scale	to accomplish
dove	a bird	to have jumped off
drawer	one who draws	a boxlike compartment that pushes in and pulls out
entrance	an entryway	to put into a trance
excuse	to pardon or forgive	an explanation offered to justify or obtain forgiveness
gyro	short for gyroscope	a type of sandwich with roasted lamb
house	a dwelling	to provide living quarters
intimate	personal	to hint
laminate	to make in layers	a composite made of layers
lead	to guide	a soft dense metal
live	verb meaning to have life	adjective meaning to have life or being on
minute	small	sixty seconds
moderate	of medium or average quality	to preside or direct
number	a mathematical integer like 1, 2, 3,…	to deprive of further feeling
object	something perceptible	to dissent
pasty	medium consistency	a meat pie
perfect	to make correct	that which is correct
permit	to allow something to be done	a document giving permission
present	a gift or that which is happening now	to give a talk or demonstration
produce	vegetables	to bring forth
project	to thrust outward	a plan or housing development
putting	to hit a golf ball on a green	to place in a specific location
rebel	to resist	one who resists
record	to write down	a list or phonograph disk
recreation	a leisurely pastime	to remake
reside	to live in a place	to change a side
resign	to quit	to sign again
row	a series of objects in a straight line	a fight
sake	purpose	a Japanese rice drink
secrete	to generate	to conceal
separate	to divide into groups	disunited or a garment
sewer	one who sews	a conduit for transporting sewage
slough	a swamp	to shed
sow	to scatter seeds	an adult female hog
subject	the theme or topic	to force one’s will onto another
tear	liquid drops secreted by the eye	to pull apart
wind	to encircle	moving air
wound	to have been wrapped in a circular manner	an injury

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Samacheer Kalvi 11th Commerce Solutions Chapter 12 Functions of Commercial Banks

Samacheer Kalvi 11th Commerce Functions of Commercial Banks Textbook Exercise Questions and Answers

I. Choose the Correct Answer
Question 1.
Electronic banking can be done through ………………
(a) Computers
(b) Mobile phones
(c) ATM
(d) All of the above
Answer:
(d) All of the above

Question 2.
Minimum how much amount can be transferred through RTGS?
(a) Any amount
(b) 50,000
(c) 2 lakh
(d) 5 lakh
Answer:
(c) 2 lakh

Question 3.
The largest commercial bank of India is ………………
(a) ICICI
(b) SBI
(c) PNB
(d) RBI
Answer:
(b) SBI

Question 4.
In which kind of account, it is compulsory to deposit a certain amount at a certain time?
(a) Saving deposit
(b) Fixed deposit
(c) Current deposit
(d) Recurring deposit
Answer:
(d) Recurring deposit

Question 5.
Which of the following is not a type of advance provided by a commercial bank?
(a) Collecting and supplying business information
(b) Overdraft
(c) Cash credit
(d) Discounting of bills
Answer:
(a) Collecting and supplying business information

II. Very Short Answer Questions

Question 1.
What is Mobile Banking?
Answer:
Most of the commercial banks have designed computer programs called apps with this app in the smartphone a customer can operate his account transactions from anywhere. This service is known as mobile banking.

Question 2.
Briefly explain the need for a Debit card.
Answer:
An ATM card is also called a debit card. This card is more useful in the purchase of goods and services anywhere in India if the shop maintains a swiping machine facility.

Question 3.
Briefly explain the term – Credit card.
Answer:
Banks issue credit cards to customers and other eligible persons. With this card, the holder can purchase goods and services on credit at any shop in India. If the dues are paid within the stipulated time no interest is charged. The credit limit is fixed by the issuing bank based on the income of the cardholder.

Question 4.
What do you mean by ATM?
Answer:
The Auto Mated Teller Machine is a machine built into the wall of a bank or other building which allows people to take out money from their bank account by using the ATM card given by their bank. Nowadays debit cards are used as ATM cards.

Question 5.
Write a note on – ECS.
Answer:
Electronic Clearing Service (ECS) was launched by the RBI in 1995. It is an electronic method of fund transfer from a bank to another bank.

III. Short Answer Questions

Question 1.
What is E-Banking?
Answer:
Using electronic means funds can be transferred directly from one account to another, rather than by cheque or cash. It helps to have easy and safe access to the bank account. The main advantage of e-banking is using our own computer and personal finance software to coordinate the total personal financial management process leads to prompt financial analysis and decision-making process.

Question 2.
Write a short note on – RTGS.
Answer:
Real-Time Gross Settlement Systems (RTGS) was launched by the RBI in 2013. The transactions are settled on real time basis. Gross settlement means the transaction is settled between one bank and another bank without adding any other transactions.

Question 3.
Briefly explain the Diversified banking services of commercial banks.
Answer:
The diversified financial services rendered by commercial banks are purely other than banking services. It is also called universal banking.
It includes the following services:

• Bank Assurance: It refers to the offering of insurance policies by a bank in association with another insurance company.
• Merchant banking: It may offer services like project counseling, underwriting, etc. required for starting a company.
• Retail Banking (Personal Banking): It refers to mass-market banking which reaches out to a large number of individual end customers.
• Housing Finance: It is provided against the security of the immovable property of land and buildings.
• Mutual Fund: Helps the investors to invest in diversified portfolio securities.
• Venture Capital Fund Provides start-up share capital to new ventures of private business.
• Factoring: It is a continuing arrangement between the financial intermediary(factor) and a business concern(client).

Question 4.
Explain NEFT.
Answer:
National Electronic Fund Transfer (NEFT) was launched by the RBI in 2005. Under this electronic funds transfer system, the bulk transfer of transactions is settled in batches during specific timings across India. Individuals and institutions which maintain accounts with an NEFT enabled bank branch are eligible for using NEFT.

Question 5.
What do you mean by Core Banking Solutions?
Answer:
‘CORE’ stands for ‘Centralized Online Real-time Exchange’. In the centralized server of the bank, all the details of all the accounts of all the branches of the bank are available. A customer can withdraw money through a cheque at any branch of that bank throughout the similarly anyone can deposit money into the account.

The entry of the transactions is recorded in the centralized server of the bank in real-time and can be seen in all the branches of the bank. This facility is called core banking solutions.

IV. Long Answer Questions

Question 1.
Discuss the various primary functions performed by the commercial banks.
Answer:
The primary functions of a commercial bank are of three types. They are:

1. Accepting Deposits
2. Granting Loans and Advances
3. Creation of Credit

1. Accepting Deposits: The basic deposit accounts offered by commercial banks are listed below. Broadly deposit accounts can be classified into demand deposits and time deposits.

A. Demand Deposits: These deposits are repayable on demand on any day. This consists of savings deposits and current deposits.

a. Savings Deposits: General public deposits their savings into this account. This account can be opened in one individual’s name or more than one name.
b. Current Deposits: This account is suitable for business institutions. Individuals too can open this account. A higher minimum balance should be kept in this account.

B. Time Deposits: These include fixed deposits and recurring deposits which are repayable after a period.

a. Fixed Deposits (FD): Certain amount is deposited for a fixed period for a fixed rate of interest.
b. Recurring Deposits (RD): Certain sum is deposited into the account every month for one year or five years or the agreed period. Interest rate is more than savings deposits and almost equal to fixed deposits.

Granting Loans and Advances: The second primary function of commercial banks is lending money in order to earn interest income.

A. Advances
a. Overdraft: It is a credit facility extended mostly to the current account holding business community customers.
b. Cash Credit: It is a secured credit facility given mostly to business institutions. Stock in hand, raw materials, other tangible assets, etc. are provided as collateral.
c. Discounting of Bills: Business customers approach banks to discount the commercial bills of exchanges and provide money.

B. Loans:
Short-term and medium-term loans are provided by commercial banks against eligible collateral to business concerns.

• Housing Loan
• Consumer Loans
• Vehicle Loans
• Educational Loan
• Jewel Loan

3. Creation of Credit: Apart from the currency money issued by the RBI, the credit money in circulation created by commercial banks influence the economic activities of a country to a large extent. Credit money of commercial banks is far greater in volume than the currency money.

Question 2.
Explain the various secondary functions of commercial banks.
Answer:
Apart from the basic function, the commercial banks render various other services. These services can be broadly classified into agency services and general utility services. They are:
Agency functions:
Banks act as agents of customers and provide certain services. They are called agency functions which are as follows:
Transfer of funds

• Periodic payment of premiums, rent, etc.
• Collection and payment of cheques
• Acting as Executors, trustees, and Attorneys
• Conduct share market transactions
• Preparation of Income Tax Return
• Dealing in Foreign Exchange
• Acting as correspondent

General Utility Function:
In addition to the various functions, the commercial banks offer some services for the general welfare of the customers. They are as follows:

• Issue of demand drafts and banker’s cheques
• Accepting bills of exchange on behalf of the customers
• Safety locker
• Letters of credit
• Traveler’s cheques
• Gift cheques
• Reference services.

Samacheer Kalvi 11th Commerce Cooperative Organisation Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
The primary functions of a commercial bank are of ……………. types.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(c) Three

Question 2.
FD is also called ……………. deposit.
(a) RD
(b) Savings
(c) Term
(d) Current
Answer:
(c) Term

Question 3.
Overdraft facility is given ……………. account holders.
(a) Savings
(b) Current
(c) Fixed
(d) Recurring
Answer:
(b) Current

Question 4.
Electronic Clearing Services (ECS) was launched by the RBI in …………….
(a) 1995
(b) 1998
(c) 1990
(d) 1991
Answer:
(a) 1995

Question 5.
National Electronic Funds Transfer (NEFT) was launched by the RBI in …………….
(a) 1995
(b) 2000
(c) 2005
(d) 2010
Answer:
(c) 2005

II. Very Short Answer Questions

Question 1.
Give the features of Smart card.
Answer:
Nowadays smart card is used for day to day purposes.

1. Strong device security.
2. Biometrics

Question 2.
What is Internet Banking?
Answer:
Internet banking refers to performing banking operations through the internet, using computers and mobile phones.

Question 3.
What is Capital Formation?
Answer:
Banks encourage savings habit among people and accumulate their small dormant savings. These funds can be fruitfully channelized for the productive purposes of the economy.

Case Study

Question 1.
A person forgot his password or Debit card, How to get a password? Give guidelines to him.
Answer:
The first step we ask for his registered phone number in the bank. If he has given a phone number, we can get a one-time password through the registered phone number and get a new password easily.

The second step, he can get the password with the mobile in the ATM also. He has to insert the debit card into the ATM machine. It will ask for the password. If he has forgotten the password, it will ask for the phone number. If he types the phone number, he can get a new password from the bank through his mobile number.

Third step: He can ask the branch manager, who will guide him properly and help him get the new password.