Chapter business-services: Business Services Short Questions | business studies Class 11 CBSE

ByteNotes

Chapter business-services: Business Services Short Questions | business studies Class 11 CBSE | ByteNotes.in

Short Answer

Easy difficulty • Direct answer format

Easy

Question 1

Quick Recall

Define a service and state its two key attributes.

A service is a separately identifiable, essentially intangible activity that provides satisfaction of wants.
It is not necessarily linked to the sale of a product or another service.
The purchase of a service does not result in the ownership of anything physical — one can only experience it.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 2

Quick Recall

What is meant by the 'inseparability' characteristic of services?

Inseparability means that production and consumption of services occur simultaneously.
Unlike goods, a service cannot be manufactured and stored first and then sold later; it must be consumed as and when it is produced.
The presence and interaction of both the service provider and the customer is a key feature, as seen in ATM transactions where the customer must be present.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 3

Quick Recall

How do social services differ from business services?

Business services are used by enterprises for the conduct of their commercial activities, such as banking and insurance.
Social services are generally provided voluntarily in pursuit of social goals such as improving living standards of weaker sections or providing healthcare in slum areas.
Social services are usually provided by NGOs and government agencies, often for minimal consideration to cover costs, whereas business services are commercially motivated.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 4

Quick Recall

What is a cooperative bank and what is its primary purpose?

Cooperative banks are governed by the provisions of the State Cooperative Societies Act.
Their primary purpose is to provide cheap credit to their members.
They are an important source of rural credit, particularly for agricultural financing in India.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 5

Quick Recall

Distinguish between bearer cheques and crossed cheques.

Bearer cheques are payable to the person who presents them at the bank counter and can be encashed immediately.
Crossed cheques, on the other hand, cannot be encashed at the counter; they can only be deposited into the payee's bank account.
Crossed cheques provide greater security as they reduce the risk of misuse if lost or stolen, unlike bearer cheques which can be encashed by anyone.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 6

Quick Recall

State any three services offered under e-banking.

e-Banking services include Automated Teller Machines (ATM) and Point of Sale (PoS) transactions for cash and payment needs.
Electronic Fund Transfer (EFT) through NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement) enables online money transfers.
e-Banking also provides Electronic Data Interchange (EDI), credit card services, and the ability to manage savings accounts, apply for loans, or pay bills online.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 7

Quick Recall

What is the fundamental principle of insurance?

The basic principle is that an individual or business concern chooses to spend a definitely known small sum (premium) in place of a possible huge loss in the future.
The loss of risk still remains, but it is spread over a large number of policyholders exposed to the same risk through pooling of premiums.
Insurance is therefore a form of risk management used to safeguard against the risk of potential financial loss — it is the equitable transfer of a risk from one entity to another for a reasonable fee.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 8

Quick Recall

Explain the principle of utmost good faith in insurance.

Utmost good faith (uberrimae fidei) requires both the insurer and the insured to display complete good faith towards each other in the insurance contract.
The insured must voluntarily make full and accurate disclosure of all material facts about the subject matter of insurance, even if the insurer does not ask for them.
Failure to disclose material facts makes the insurance contract voidable at the discretion of the insurer.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 9

Quick Recall

What is meant by insurable interest in the context of insurance?

Insurable interest means the insured must have a pecuniary (financial) interest in the subject matter of insurance.
It is not the property or life itself that is insured but the financial interest of the insured in it — the insured must stand to suffer financially if the event occurs.
For example, a creditor has an insurable interest in the life of the debtor, and a trustee holding property on behalf of others has insurable interest in that property.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 10

Quick Recall

Define subrogation as a principle of insurance.

Subrogation refers to the right of the insurer to stand in place of the insured after settling a claim, in respect of any right of recovery from an alternative source.
After the insured is compensated for loss or damage, the right of ownership of such damaged property passes to the insurer.
This prevents the insured from making a profit by both receiving insurance compensation and also selling the damaged property or recovering the lost property.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 11

Quick Recall

What is the principle of contribution in insurance?

Contribution is the right of an insurer who has paid a claim to call upon other liable co-insurers to contribute proportionately to the loss payment.
It applies in cases of double insurance, where the same property is insured with more than one insurer.
The insured cannot recover more than the actual loss; if the full amount is recovered from one insurer, the right to claim further from another ceases.

ByteNotes

Short Answer

Easy difficulty • Direct answer format

Easy

Question 12

Quick Recall

What is the principle of mitigation in insurance?

Mitigation states that it is the duty of the insured to take all reasonable steps to minimise the loss or damage to the insured property.
The insured must behave with great prudence and not act carelessly just because insurance cover exists.
If reasonable care is not taken, the claim from the insurance company may be reduced or lost entirely.

ByteNotes

Short Answer

Medium difficulty • Direct answer format

Medium

Question 13

Quick Recall

Why is the life insurance contract not a contract of indemnity?

Indemnity means restoring the insured to the same financial position as before the loss, which requires measuring loss in monetary terms.
Since human life cannot be compensated in monetary terms, a pre-fixed sum of money is paid on death or maturity, making it impossible to measure actual loss.
Therefore, life insurance is not a contract of indemnity; instead, the sum payable is fixed at the time of entering into the contract.

ByteNotes

Premium Access

Unlock all Short Questions

You are viewing 13 free short questions from this chapter. Upgrade to Premium to unlock the remaining 12 questions.

Upgrade to Premium12 questions locked

Chapter sections

Chapter business-services: Business Services | Short Questions

Define a service and state its two key attributes.

What is meant by the 'inseparability' characteristic of services?

How do social services differ from business services?

What is a cooperative bank and what is its primary purpose?

Distinguish between bearer cheques and crossed cheques.

State any three services offered under e-banking.

What is the fundamental principle of insurance?

Explain the principle of utmost good faith in insurance.

What is meant by insurable interest in the context of insurance?

Define subrogation as a principle of insurance.

What is the principle of contribution in insurance?

What is the principle of mitigation in insurance?

Why is the life insurance contract not a contract of indemnity?

Unlock all Short Questions