{"id":18592,"date":"2022-05-08T16:13:14","date_gmt":"2022-05-08T10:43:14","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=18592"},"modified":"2025-12-26T13:15:37","modified_gmt":"2025-12-26T07:45:37","slug":"12th-ocm-chapter-4-exercise","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/","title":{"rendered":"12th OCM Chapter 4 Exercise (Business Services) Maharashtra Board &#8211; Free Resource"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dcb82327ed2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dcb82327ed2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#12th_OCM_Chapter_4_Exercise\" >12th OCM Chapter 4 Exercise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Chapter_4_%E2%80%93_Business_Services\" >Chapter 4 &#8211; Business Services<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_A_Select_the_correct_option_and_rewrite_the_sentences\" >Q.1 A) Select the correct option and rewrite the sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_B_Match_the_correct_pairs\" >Q.1 B) Match the correct pairs.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_C_Give_one_wordphraseterm_for_the_following_statements\" >Q.1 C) Give one word\/phrase\/term for the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_D_State_whether_the_following_statements_are_true_or_false\" >Q.1 D) State whether the following statements are true or false.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_E_Find_the_odd_one_out\" >Q.1 E) Find the odd one out.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_F_Complete_the_sentences\" >Q.1 F) Complete the sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_G_Select_the_correct_option\" >Q.1 G) Select the correct option.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_H_Answer_in_one_sentence\" >Q.1 H) Answer in one sentence.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_I_Correct_the_underlined_word_and_rewrite_the_following_sentences\" >Q.1 I) Correct the underlined word and rewrite the following sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q1_J_Arrange_in_proper_order\" >Q.1 J) Arrange in proper order<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q2_Explain_the_following_termsconcepts\" >Q.2 Explain the following terms\/concepts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q3_Study_the_following_casesituation_and_express_your_opinion\" >Q.3 Study the following case\/situation and express your opinion.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q4_Distinguish_between\" >Q.4 Distinguish between.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q5_Answer_in_brief\" >Q.5 Answer in brief.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q6_Justify_the_following_statements\" >Q.6 Justify the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q7_Attempt_the_following\" >Q.7 Attempt the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Q8_Answer_the_following\" >Q.8 Answer the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#12th_Commerce_OCM_Textbook_Solutions\" >12th Commerce OCM Textbook Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Check_out_other_posts_related_to_the_12th_Commerce\" >Check out other posts related to the 12th Commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-4-exercise\/#Online_lectures_of_Class_12_Commerce\" >Online lectures of Class 12 Commerce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"12th_OCM_Chapter_4_Exercise\"><\/span>12th OCM Chapter 4 Exercise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise-1024x576.webp\" alt=\"12th OCM Chapter 4 Exercise\" class=\"wp-image-19158 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/05\/12th-OCM-Chapter-4-Exercise.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">12th OCM Chapter 4 Exercise<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-vivid-green-cyan-background-color has-text-color has-background has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Chapter_4_%E2%80%93_Business_Services\"><\/span><strong>Chapter 4 &#8211; Business Services<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_A_Select_the_correct_option_and_rewrite_the_sentences\"><\/span>Q.1 A) Select the correct option and rewrite the sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) Door-to-door service is provided by _____ transport.<br><\/strong>a) railway <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">b) road <br><\/mark><\/strong>c) air<\/p>\n\n\n\n<p><strong>2) _____ creates time utility.<br><\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>a) Warehouse <br><\/strong><\/mark>b) Transport <br>c) Communication<\/p>\n\n\n\n<p><strong>3) _____ warehouses provide facilities for perishable commodities.<br><\/strong>a) Bonded <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">b) Cold storage<br><\/mark><\/strong>c) Government<\/p>\n\n\n\n<p><strong>4) _____ policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">a) Port risk <br><\/mark><\/strong>b) Voyage <br>c) Floating<\/p>\n\n\n\n<p><strong>5) Principle of _____ is not applicable to life insurance.<br><\/strong>a) insurable interest <br>b) utmost good faith <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">c) indemnity<\/mark><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_B_Match_the_correct_pairs\"><\/span>Q.1 B) Match the correct pairs.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">a) Air Transport&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">1) Time utility<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">b) Warehousing<\/td><td class=\"has-text-align-center\" data-align=\"center\">2) Intangible in nature<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">c) Money remittance<\/td><td class=\"has-text-align-center\" data-align=\"center\">3) Fastest mode of transport<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">d) Pipeline Transport<\/td><td class=\"has-text-align-center\" data-align=\"center\">4) April, 2019<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">e) Business Service<\/td><td class=\"has-text-align-center\" data-align=\"center\">5) Western Union Money Transfer<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">6) Fixed deposit account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">7) Petroleum and gas<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">8) Tangible<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">9) Place utility<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">10) Savings account<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Answers.   <br>a. 3) Fastest mode of transport<br>b. 1) Time utility<br>c. 5) Western Union Money Transfer<br>d. 7) Petroleum and gas<br>e. 2) Intangible in nature<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_C_Give_one_wordphraseterm_for_the_following_statements\"><\/span>Q.1 C) Give one word\/phrase\/term for the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) These warehouses are owned, managed and controlled by central and state governments or&nbsp;public authorities.<br>Answer:<\/strong> Government warehouse&nbsp;<\/p>\n\n\n\n<p><strong>2) An art of exchanging ideas, facts, information etc. from one person or entity to another.<br>Answer:<\/strong> Communication<\/p>\n\n\n\n<p><strong>3) A rail system in which the track consists of a single rail or a beam.<br>Answer:<\/strong> monorail<\/p>\n\n\n\n<p><strong>4) A transport system used to carry petroleum and gases.<br>Answer:<\/strong> Pipeline transport<\/p>\n\n\n\n<p><strong>5) A ministry that looks after the development of surface transport throughout the country.<br>Answer:<\/strong> Ministry of Road Transport and Highways<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_D_State_whether_the_following_statements_are_true_or_false\"><\/span>Q.1 D) State whether the following statements are true or false.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Business services are important for the growth of business. <strong>(True)<\/strong><br>2) Current Account is opened by salaried persons. <strong>(False)<\/strong><br>3) NEFT stands for National Electric Fund Transfer. <strong>(False)<\/strong><br>4) Air transport is cheapest mode of transport. <strong>(False)<\/strong><br>5) The Internet is the global system of interconnected computer networks that use the internet&nbsp;protocol suite to link devices worldwide. <strong>(True)<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_E_Find_the_odd_one_out\"><\/span>Q.1 E) Find the odd one out.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Primary credit co-operative society, state co-operative bank, district co-operative bank, <strong>exchange bank<\/strong>.<br>2) NABARD, <strong>RBI<\/strong>, SIDBI, EXIM.<br>3) Direct mail, Logistics post, Business post, <strong>Parcel<\/strong><br>4) Endowment policy, Whole life policy, Money back policy, <strong>Blanket policy<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_F_Complete_the_sentences\"><\/span>Q.1 F) Complete the sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) The term bank comes from the French word <strong><span style=\"text-decoration: underline;\">Banco<\/span><\/strong>.<br>2) <strong><span style=\"text-decoration: underline;\">Cold storage<\/span><\/strong> warehouses provide facilities for perishable commodities<br>3) In <strong><span style=\"text-decoration: underline;\">fleet<\/span><\/strong> policy, several ships belonging to one owner are insured under the same policy.<br>4) <strong><span style=\"text-decoration: underline;\">Mobile<\/span><\/strong> banking refers to the use of banking services with the help of mobile phones.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_G_Select_the_correct_option\"><\/span>Q.1 G) Select the correct option.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) <strong><span style=\"text-decoration: underline;\">RTGS<\/span><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">fund transfer on real-time and gross basis<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) loans to meet long-term capital&nbsp;<br>requirements<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><span style=\"text-decoration: underline;\">long term loans<\/span><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3) <strong><span style=\"text-decoration: underline;\">recurring deposit<\/span><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Account operated by salaried and&nbsp;businessmen both.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) Central bank<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><span style=\"text-decoration: underline;\">apex financial institution in banking industry of country<\/span><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5) <strong><span style=\"text-decoration: underline;\">SIDBI<\/span><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Principal financial institution for MSMEs<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_H_Answer_in_one_sentence\"><\/span>Q.1 H) Answer in one sentence.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) What is a debit card?<\/mark><\/strong><br><strong>Answer:<\/strong> A&nbsp;<a href=\"https:\/\/www.aubank.in\/personal-banking\/debit-cards\" target=\"_blank\" rel=\"noopener\">Debit Card<\/a>&nbsp;is a plastic currency or plastic money. You can use it to buy things when you don&#8217;t have cash. Typically, the banks issue a Debit Card to Savings Account holders, and it is linked to your account.&nbsp;<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">2) What is &#8216;subject matter&#8217; in insurance?<\/mark><\/strong><br><strong>Answer:<\/strong> It refers to the subject or entity i.e life, property, cargo or ship etc. which is insured against which the policy is taken.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3) What is a <\/mark><\/strong>government warehouse?<br>Answer: These warehouses are owned, managed, and controlled by central and state governments or&nbsp;public authorities.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">4) What is air transport?<\/mark><\/strong><br><strong>Answer:<\/strong> Air transport carries the goods and passengers through airways by using different aircraft&nbsp;like passenger aircraft, cargo aircraft, helicopters, etc. This is the fastest mode of transport.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">5) What is communication?<\/mark><\/strong><br><strong>Answer:<\/strong> The process of passing any information from one person to another with the help of some&nbsp;medium is termed as communication.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_I_Correct_the_underlined_word_and_rewrite_the_following_sentences\"><\/span>Q.1 I) Correct the underlined word and rewrite the following sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Overdraft facility is available for <strong><span style=\"text-decoration: underline;\">savings<\/span><\/strong> bank account holders.<br><strong>Answer:<\/strong> Current<\/p>\n\n\n\n<p>2) Services are <span style=\"text-decoration: underline;\"><strong>tangible<\/strong><\/span> in nature.<br><strong>Answer:<\/strong> intangible<\/p>\n\n\n\n<p>3) Insurance helps to <strong><span style=\"text-decoration: underline;\">maximize<\/span><\/strong> the risks in the business.<br><strong>Answer:<\/strong> minimize<\/p>\n\n\n\n<p>4) The <strong><span style=\"text-decoration: underline;\">foreign<\/span><\/strong> bank is the apex financial institution in banking industry in the country.<br><strong>Answer:<\/strong> central<\/p>\n\n\n\n<p>5) RTGS stands for <strong><span style=\"text-decoration: underline;\">Reasonable<\/span><\/strong> Time Gross Settlement.<br><strong>Answer:<\/strong> Real<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_J_Arrange_in_proper_order\"><\/span>Q.1 J) Arrange in proper order<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Claim, Accident, Taking the policy, Compensation<br><strong>Answer:<\/strong><br>a) Taking the policy<br>b) Accident<br>c) Claim<br>d) Compensation<\/p>\n\n\n\n<p>2) Email, Inland letter, Courier <br><strong>Answer:<\/strong><br>a) Inland letter<br>b) Courier<br>c) Email<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q2_Explain_the_following_termsconcepts\"><\/span>Q.2 Explain the following terms\/concepts.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) Transport<br><\/mark>Answer:<\/strong> Transportation is the movement of people, animals, and goods from one location to another&nbsp;location or it can be defined as a means of carrying goods and people from one place to another&nbsp;place.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Communication<br><\/strong><\/mark><strong>Answer: <\/strong>Communication is the art of exchanging ideas, facts, information, etc. from one person or entity&nbsp;to another. The process of passing any information from one person to another with the help of some&nbsp;medium is termed as communication. Communication is a very simple process where the message is transferred from a sender to the receiver.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3) Banking<br><\/mark>Answer:<\/strong> As per&nbsp;The Indian Banking Regulation Act, 1949&nbsp;banking company means &#8220;any company&nbsp;which transacts the business of banking in India&#8221; and the word banking has been defined as &#8220;accepting&nbsp;for the purpose of lending or investment of deposits of money from the public, repayable on demand or&nbsp;otherwise, and withdrawable by cheque, draft, and order or otherwise. &#8220;<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) Insurance<\/strong><br><\/mark><strong>Answer:<\/strong> Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between&nbsp;the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The&nbsp;insured has to pay a certain fixed sum of money on a timely basis to the insurer.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) Warehousing<\/strong><br><\/mark><strong>Answer:<\/strong> Warehousing refers to storage of goods and consists of all those activities which are connected&nbsp;with storage and preserving of goods. It is a means of storing goods. Warehousing can be defined&nbsp;as a group of activities connected with the storing and preserving of stored goods from the time of&nbsp;production till the time of consumption.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q3_Study_the_following_casesituation_and_express_your_opinion\"><\/span>Q.3 Study the following case\/situation and express your opinion.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) Ms.Harshali started new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amount in her business account. At the same time she used to pay various payments from this account only.<br><\/mark>i) Identify Type of account maintained by Ms. Harshali.<br>ii) Suggest any one modern way of money transfer to Ms.Harshali.<br>iii) What kind of facility does she get on her bank account?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>1) Ms. Harshali maintains current account.<br>2) NEFT stands for National Electronic Fund Transfer is one of the modern ways of transferring money. Ms. Harshali can use this facility.<br>3) MS. Harshali gets overdraft facility on her current account.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">2) Mr. Jagan is a salaried person. He wants to take policy for his two children which assures them protection as well as completes their financial needs once they become major by age.<br><\/mark>i) Suggest to him a policy that can satisfy the requirements of his children.<br>ii) Who are beneficiaries of the policy?<br>iii) In the above case which principle is involved?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>1) Mr. Jagan a salaried person should take a Child insurance policy to satisfy the requirement of his children.<br>2) Mr. Jagan&#8217;s children are the beneficiaries of this policy.<br>3) In the above case Principle of Insurable interest is involved.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3) Mr. Sharan is a successful manufacturer. He is having production units at various locations. He is having multiple production units, he has a large stock of raw material and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He also required to transfer raw material and finished goods from one unit to other but does not have any facility for that. He also requires funds for expansion.<br><\/mark>i) Name the service which will help him to safeguard goods from any damage?.<br>ii) Which service will help him to remove the difficulty of place?<br>iii) From which service sector will he get financial support?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>1) Warehousing is the service that will help him to safeguard goods from any damage.<br>2) Transport service will help him to remove the difficulty of place.<br>3) Mr.Sharan will get financial support from Banking Sector.<\/p>\n\n\n\n<p><br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">4) Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.<br><\/mark>i) Can Mr. Amit take a life insurance policy for his wife and 2 children?<br>ii) Can Mr. Amit take a marine insurance policy for his factories?<br>iii) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>1) Yes, Mr. Amit can take a life insurance policy for his wife and 2 children.<br>2) Mr. Amit cannot take a marine insurance policy for his factories.<br>3) Mr. Amit can take a floating fire insurance policy for protecting his factories from loss due to fire.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q4_Distinguish_between\"><\/span>Q.4 Distinguish between.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) Duty Paid Warehouse and Bonded Warehouse<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Duty Paid Warehouse<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Bonded Warehouse<\/strong><\/span><\/td><\/tr><tr><td>1) Meaning<\/td><td>If an importer faces any problem in the transportation of goods, after making payment of duty,&nbsp;then goods can be stored at a duty-paid warehouse.&nbsp;<\/td><td>Bonded warehouses are licensed by the government to accept imported goods for storage until&nbsp;<br>the payment of custom duty.<\/td><\/tr><tr><td>2) Ownership<\/td><td>These warehouses are owned and managed by public authorities.<\/td><td>These warehouses are owned and managed by public or private authorities.<\/td><\/tr><tr><td>3) Supervision<\/td><td>These warehouses are free from the supervision of customs authorities. However, they are controlled by port authorities.<\/td><td>These warehouses are under the close supervision of customs authorities.<\/td><\/tr><tr><td>4) Market<\/td><td>Goods stored in duty-paid warehouses are meant for the domestic markets.<\/td><td>Goods stored in bonded warehouses are meant for re-export.<\/td><\/tr><tr><td>5) Delivery<\/td><td>Delivery of goods is given only after the payment of rent and service charges of the warehouse.<\/td><td>Goods are held in bond and its delivery is given only after the payment of import duty.<\/td><\/tr><tr><td>6) Location<\/td><td>These are located near port &amp;&nbsp;dock area.<\/td><td>These are located within port &amp;&nbsp;dock area.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>2) Central Bank and Commercial Bank<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Central Bank<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Commercial Bank<\/strong><\/span><\/td><\/tr><tr><td>1) Function<\/td><td>The main function of the central bank (RBI) is to regulate the money supply in the country.<\/td><td>The main function is to accept deposits&nbsp;from public for lending to industry and&nbsp;others.<\/td><\/tr><tr><td>2) Printing of currency<\/td><td>The central bank can print currency notes.<\/td><td>The commercial banks cannot print&nbsp;currency<\/td><\/tr><tr><td>3) Acceptance of deposits<\/td><td>The Central Bank does not accept deposits from public.<\/td><td>The commercial bank accepts deposits&nbsp;from public<\/td><\/tr><tr><td>4) Loans<\/td><td>The Central bank provides loans to bankers and financial&nbsp;institutions<\/td><td>Commercial banks provide loans to&nbsp;industry and commerce.<\/td><\/tr><tr><td>5) Ownership<\/td><td>It is owned and controlled by the government of India<\/td><td>It can be owned by private and \/or by government agencies.<\/td><\/tr><tr><td>6) Number of banks<\/td><td>There is only one Central Bank (RBI) in India.<\/td><td>There are many commercial banks in&nbsp;India.<\/td><\/tr><tr><td>7) Monetary policy<\/td><td>The Central Bank frames the monetary and credit policy.<\/td><td>The commercial banks do not frame any&nbsp;monetary policy<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>3) Road Transport and Air Transport<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Road Transport<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Air Transport<\/strong><\/span><\/td><\/tr><tr><td>1) Speed<\/td><td>Road transport has limited&nbsp;speed due to bad road&nbsp;conditions, accidents, etc.<\/td><td>It is the fastest&nbsp;mode of transport.<\/td><\/tr><tr><td>2) Carrying capacity<\/td><td>It has limited carrying&nbsp;capacity<\/td><td>It has limited&nbsp;carrying capacity<\/td><\/tr><tr><td>3) Cost<\/td><td>It requires limited capital investment in terms of construction of roads,&nbsp;vehicles, and their&nbsp;maintenance.<\/td><td>It uses airways&nbsp;that are natural&nbsp;<br>and hence, there is&nbsp;no cost involved.&nbsp;However huge cost&nbsp;<br>of construction of&nbsp;aircraft involved.&nbsp;These costs are&nbsp;way high compared&nbsp;to other modes of&nbsp;<br>transport.<\/td><\/tr><tr><td>4) Distance<\/td><td>Recommended for a short distance.<\/td><td>Suitable for long&nbsp;distances.<\/td><\/tr><tr><td>5) Charges<\/td><td>Transport charges are not&nbsp;fixed due to increased fuel prices<\/td><td>Transport charges&nbsp;are very high.<\/td><\/tr><tr><td>6) Door-to-door service<\/td><td>It provides door-to-door&nbsp;services.<\/td><td>It does not provide door-to-door&nbsp;services.<\/td><\/tr><tr><td>7) Means of Transport<\/td><td>It uses animals, animal&nbsp;carts, motorcycles, three&nbsp;and four-wheelers.<\/td><td>It uses aircraft,&nbsp;helicopters, jets,&nbsp;etc.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>4) Life Insurance and Marine Insurance<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Life Insurance<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Marine Insurance<\/strong><\/span><\/td><\/tr><tr><td>1) Meaning<\/td><td>A contract whereby the&nbsp;insurance company undertakes&nbsp;to pay a certain sum of money&nbsp;either on death or maturity&nbsp;(whichever is earlier) for a&nbsp;consideration (premium)<\/td><td>A contract whereby the insurance&nbsp;<br>company undertakes to pay&nbsp;<br>compensation to insured in case&nbsp;<br>of loss to him due to dangers&nbsp;<br>(perils) of the sea.<\/td><\/tr><tr><td>2) Policy taken by<\/td><td>It can be taken by an individual&nbsp;<br>for his own life or for his family&nbsp;<br>members.<\/td><td>It can be taken by exporters,&nbsp;<br>importers and shipping&nbsp;companies etc.<\/td><\/tr><tr><td>3) Subject matter<\/td><td>In life insurance, the life of the&nbsp;<br>insured is a subject matter<\/td><td>In Marine insurance, goods in&nbsp;the ship, cargo, and freight are the&nbsp;subject matter.<\/td><\/tr><tr><td>4) Tenure<\/td><td>The policy can be issued for&nbsp;any number of years, even until&nbsp;the death of the assured.<\/td><td>It is generally for a short period&nbsp;<br>and may range from one month&nbsp;<br>to a year. Normally it does not&nbsp;<br>exceed one year.<\/td><\/tr><tr><td>5) Compensation<\/td><td>It is paid either on death or maturity whichever is earlier.<\/td><td>It is paid only if there is loss causing event during the term of the policy.<\/td><\/tr><tr><td>6) Principle of Indemnity<\/td><td>It is not applicable as human&nbsp;life cannot be valued in terms&nbsp;of money for calculating the&nbsp;actual loss.<\/td><td>It is applicable as insurance&nbsp;<br>company compensates for the&nbsp;<br>financial loss and the insured&nbsp;is brought back to the same financial condition that he was&nbsp;before the event.<\/td><\/tr><tr><td>7) Number of Policies<\/td><td>Insured can take any number&nbsp;of policies on the same life.<br>Compensation is paid on all the&nbsp;<br>policies.<\/td><td>Generally, only one policy can&nbsp;<br>be taken. However, double insurance is possible. However,&nbsp;<br>compensation does not exceed&nbsp;<br>the actual loss.<\/td><\/tr><tr><td>8) Beneficiary<\/td><td>The beneficiary can be insured&nbsp;<br>(if he survives the selected term)&nbsp;<br>or else the nominee or the legal&nbsp;<br>heir on the death of the assured.<\/td><td>The beneficiary is the insured&nbsp;<br>person or company.<\/td><\/tr><tr><td>9) Surrender of policy<\/td><td>The policy can be surrendered&nbsp;<br>before the expiry of the term&nbsp;<br>subject to certain conditions.<\/td><td>It cannot be surrendered.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>5) Savings Account and Current Account<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Savings Account<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Current Account<\/strong><\/span><\/td><\/tr><tr><td>1. Meaning<\/td><td>It is that account that is&nbsp;opened by individuals in order&nbsp;to save a part of their income.<\/td><td>It is that account that is maintained by businessmen&nbsp;and others who have regular&nbsp;bank transactions.<\/td><\/tr><tr><td>2. Withdrawals<\/td><td>Customers can withdraw either&nbsp;by cheques or by withdrawal&nbsp;slips.<\/td><td>Customers can withdraw&nbsp;money by cheques.<\/td><\/tr><tr><td>3. Documents<\/td><td>The bank gives a passbook,&nbsp;cheque book, and pay-in-slip&nbsp;book to the customers.<\/td><td>The bank gives a passbook, checkbook, statement of account, and pay-in-slip book to&nbsp;the customers.<\/td><\/tr><tr><td>4. Who opens it<\/td><td>It is suitable for fixed income groups, wages, or salary earners.<\/td><td>It is suitable for traders, businessmen, firms, or institutions.<\/td><\/tr><tr><td>5. Restrictions<\/td><td>The customer has certain restrictions on withdrawals.<\/td><td>There are no restrictions on the&nbsp;<br>operation of a current account&nbsp;as long as there is a balance in&nbsp;the acount.<\/td><\/tr><tr><td>6. Interest Rate<\/td><td>The interest rate is low.<\/td><td>Normally interest is not given.<\/td><\/tr><tr><td>7. Nature of account<\/td><td>It is of continuous Nature.<\/td><td>It is of continuous Nature.<\/td><\/tr><tr><td>8. Facilities<\/td><td>No overdraft facility is given.&nbsp;<\/td><td>A temporary overdraft facility is given.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>6) Life Insurance and Fire Insurance<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Life Insurance<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Fire Insurance<\/strong><\/span><\/td><\/tr><tr><td>1) Meaning<\/td><td>A contract whereby the&nbsp;insurance company undertakes&nbsp;to pay a certain sum of money&nbsp;either on death or maturity&nbsp;(whichever is earlier) for a&nbsp;consideration (premium)<\/td><td>A contract in which an insurer promises to pay compensation&nbsp;to insured if something happens&nbsp;to the subject matter due to fire&nbsp;or related events.<\/td><\/tr><tr><td>2) Policy taken by<\/td><td>It can be taken by an individual&nbsp;<br>for his own life or for his family&nbsp;<br>members.<\/td><td>It can be taken by individuals&nbsp;<br>for their properties or by&nbsp;<br>businessmen. For their goods,&nbsp;<br>properties business liabilities.<\/td><\/tr><tr><td>3) Subject matter<\/td><td>In life insurance, the life of the&nbsp;<br>insured is a subject matter<\/td><td>In Fire insurance, the goods and&nbsp;<br>assets or property of the insured&nbsp;<br>is the subject matter.<\/td><\/tr><tr><td>4) Tenure<\/td><td>The policy can be issued for&nbsp;any number of years, even until&nbsp;the death of the assured.<\/td><td>It is generally for a short period&nbsp;<br>like one year.<\/td><\/tr><tr><td>5) Compensation<\/td><td>It is paid either on death or maturity whichever is earlier.<\/td><td>It is paid only if there is loss due&nbsp;to fire during the term of policy.<\/td><\/tr><tr><td>6) Principle of Indemnity<\/td><td>It is not applicable as human&nbsp;life cannot be valued in terms&nbsp;of money for calculating the&nbsp;actual loss.<\/td><td>It is applicable as insurance&nbsp;<br>company compensates for the&nbsp;financial loss and the insured&nbsp;is brought back to the same financial condition that he was&nbsp;before the event.<\/td><\/tr><tr><td>7) Number of Policies<\/td><td>Insured can take any number&nbsp;of policies on the same life.<br>Compensation is paid on all the&nbsp;<br>policies.<\/td><td>Generally, only one policy can&nbsp;be taken but double insurance&nbsp;is possible. However, compensation does not exceed the actual loss.<\/td><\/tr><tr><td>8) Beneficiary<\/td><td>The beneficiary can be insured&nbsp;<br>(if he survives the selected term)&nbsp;<br>or else the nominee or the legal&nbsp;<br>heir on the death of the assured.<\/td><td>The beneficiary is the insured&nbsp;who has insured the property or&nbsp;goods.<\/td><\/tr><tr><td>9) Surrender of policy<\/td><td>The policy can be surrendered&nbsp;<br>before the expiry of the term&nbsp;<br>subject to certain conditions.<\/td><td>It cannot be surrendered.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>7) Road Transport and Rail Transport<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Road Transport<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Rail Transport<\/strong><\/span><\/td><\/tr><tr><td>1) Speed<\/td><td>Road transport has limited&nbsp;speed due to bad road&nbsp;conditions, accidents, etc.<\/td><td>It has considerable&nbsp;speed since it runs&nbsp;on tracks that&nbsp;rarely gets disturbed<\/td><\/tr><tr><td>2) Carrying capacity<\/td><td>It has limited carrying&nbsp;capacity<\/td><td>It has a huge carrying&nbsp;capacity.<\/td><\/tr><tr><td>3) Cost<\/td><td>It requires limited capital investment in terms of the construction of roads,&nbsp;vehicles and their&nbsp;maintenance.<\/td><td>The cost of construction of trains,&nbsp;and railway tracks is&nbsp;high. Also the maintenance of trains,&nbsp;tracks and stations&nbsp;is high.<\/td><\/tr><tr><td>4) Distance<\/td><td>Recommended for short&nbsp;distances.<\/td><td>Recommended for&nbsp;both short and long&nbsp;distances.<\/td><\/tr><tr><td>5) Charges<\/td><td>Transport charges are not&nbsp;fixed due to increased fuel prices<\/td><td>Transport charges&nbsp;are relatively&nbsp;<br>low and are fixed&nbsp;according to the&nbsp;<br>distance.&nbsp;<\/td><\/tr><tr><td>6) Door-to-door service<\/td><td>It provides door-to-door&nbsp;services.<\/td><td>It does not provide&nbsp;door-to-door services<\/td><\/tr><tr><td>7) Means of Transport<\/td><td>It uses animals, animal&nbsp;carts, motorcycles, and three&nbsp;and four-wheelers.<\/td><td>It uses passenger&nbsp;trains and goods&nbsp;trains.<\/td><\/tr><tr><td>8) Suitability<\/td><td>It is suitable for transporting goods in relatively&nbsp;smaller quantities for a short distance.<\/td><td>It is suitable for&nbsp;transporting heavy&nbsp;goods in large&nbsp;quantities over long&nbsp;distances.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>8) Rail Transport and Air Transport<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Rail Transport<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Air Transport<\/strong><\/span><\/td><\/tr><tr><td>1) Speed<\/td><td>It has considerable&nbsp;speed since it runs&nbsp;on tracks that&nbsp;rarely get disturbed<\/td><td>It is the fastest&nbsp;mode of transport.<\/td><\/tr><tr><td>2) Carrying capacity<\/td><td>It has a huge carrying&nbsp;capacity.<\/td><td>It has limited&nbsp;carrying capacity<\/td><\/tr><tr><td>3) Cost<\/td><td>The cost of construction of trains,&nbsp;<br>and railway tracks is&nbsp;high. Also the maintenance of trains,&nbsp;tracks and stations&nbsp;is high.<\/td><td>It uses airways&nbsp;that are natural&nbsp;<br>and hence, there is&nbsp;no cost involved.&nbsp;However huge cost&nbsp;<br>of construction of&nbsp;aircraft involved.&nbsp;These costs are&nbsp;way high compared&nbsp;to other modes of&nbsp;<br>transport.<\/td><\/tr><tr><td>4) Distance<\/td><td>Recommended for&nbsp;both short and long&nbsp;distances.<\/td><td>Suitable for long&nbsp;distances.<\/td><\/tr><tr><td>5) Charges<\/td><td>Transport charges&nbsp;are relatively low and are fixed&nbsp;according to the&nbsp;<br>distance.&nbsp;<\/td><td>Transport charges&nbsp;are very high.<\/td><\/tr><tr><td>6) Door-to-door service<\/td><td>It does not provide&nbsp;door-to-door services.<\/td><td>It does not provide door to door&nbsp;<br>services.<\/td><\/tr><tr><td>7) Means of Transport<\/td><td>It uses passenger&nbsp;trains and goods&nbsp;<br>train.<\/td><td>It uses aircraft,&nbsp;helicopters, jets,&nbsp;<br>etc.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>9) Current Account and Fixed Deposit Account<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong>Current Account<\/strong><\/strong><\/td><td><span style=\"font-weight: 600;\"><strong>Fixed Deposit Account<\/strong><\/span><\/td><\/tr><tr><td>1. Meaning<\/td><td>It is that account that is maintained by businessmen&nbsp;and others who have regular&nbsp;bank transactions.<\/td><td>It is that account where a fixed&nbsp;<br>sum of money is deposited for a&nbsp;<br>fixed period.<\/td><\/tr><tr><td>2. Withdrawals<\/td><td>Customers can withdraw&nbsp;money by cheques.<\/td><td>Customers cannot withdraw during the specified period.<\/td><\/tr><tr><td>3. Documents<\/td><td>The bank gives a passbook, cheque book, statement of account and pay-in-slip book to&nbsp;the customers.<\/td><td>The bank gives fixed deposits&nbsp;<br>receipt to the customers.<\/td><\/tr><tr><td>4. Who opens it<\/td><td>It is suitable for traders, businessmen, firms or institutions.<\/td><td>It is suitable for any person&nbsp;with temporarily idle cash.<\/td><\/tr><tr><td>5. Restrictions<\/td><td>There are no restrictions on the&nbsp;<br>operation of a current account&nbsp;as long as there is balance in&nbsp;the account.<\/td><td>The amount becomes due on the expiry of the fixed period. If&nbsp;<br>withdrawn earlier, then the&nbsp;rate of interest will be less than applicable.<\/td><\/tr><tr><td>6. Interest Rate<\/td><td>Normally interest is not given.<\/td><td>The interest rate is higher, longer the&nbsp;period, higher will be the rate of&nbsp;interest.<\/td><\/tr><tr><td>7. Nature of account<\/td><td>It is of continuous Nature.<\/td><td>It is for a fixed period of time except when the fixed deposit&nbsp;<br>receipt is renewed.<\/td><\/tr><tr><td>8. Facilities<\/td><td>A temporary overdraft facility is given.<\/td><td>90% of the amount of fixed deposit can be given as a loan.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q5_Answer_in_brief\"><\/span>Q.5 Answer in brief.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) State four types of deposits.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>The different types of deposits are explained below.<\/p>\n\n\n\n<p><strong><strong>1) Fixed Deposit<\/strong><\/strong><\/p>\n\n\n\n<p>A fixed deposit account is an account where a fixed amount is kept for a fixed period of time bearing&nbsp;a fixed interest rate. The rate of interest is more as compared to a savings bank account and varies with&nbsp;the deposit period. Normally, withdrawal of the amount is not permitted before maturity date. However, depositors&nbsp;can withdraw amount before the maturity date for which bank will reduce the interest rate.<\/p>\n\n\n\n<p><strong><strong>2) Recurring Deposit<\/strong><\/strong><\/p>\n\n\n\n<p>It is operated by salaried persons and businessmen having a regular income. A certain fixed&nbsp;sum of money is deposited into the account every month. Withdrawal of accumulated amount&nbsp;along with interest is paid after the maturity date. The rate of interest is higher which is similar to&nbsp;a fixed deposit account. A separate passbook is provided to know the position of RD account.<\/p>\n\n\n\n<p><strong><strong>3) Saving Account Deposit<\/strong><\/strong><\/p>\n\n\n\n<p>It is generally operated by those who earn regular or fixed income such as salary or wages.&nbsp;The main aim of this deposit account is to encourage the habit of savings among people. These&nbsp;deposit accounts are meant for the purpose of maximum savings. There are restrictions on&nbsp;withdrawal limits from these accounts. These accounts carry low-interest rates.<\/p>\n\n\n\n<p><strong><strong>4) Current Account<\/strong> Deposit<\/strong><\/p>\n\n\n\n<p>This account is operated by business firms and other commercial organizations such as&nbsp;hospitals, educational institutions, etc. who have regular banking transactions. In this account,&nbsp;there is no restriction on deposits and withdrawals of amounts. No interest is paid by the bank&nbsp;on this account.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) State four modes of transport.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>Generally, transportation is carried through various modes such as railways, roads, waterways,&nbsp;and airways. Modes of transport are as follows:<\/p>\n\n\n\n<p><strong><strong>1) Road Transport<\/strong><\/strong><\/p>\n\n\n\n<p>Roads are means that connect people and places on the surface of the land. It provides all-over&nbsp;connectivity in any terrain as compared to other modes of transport. Various means of transport are used under road transport such as bullock carts, cycles, rickshaws, buses, cars, etc.<\/p>\n\n\n\n<p><strong><strong>2) Rail Transport<\/strong><\/strong><\/p>\n\n\n\n<p>Transportation of goods and passengers on rail lines through trains is called as rail transport.&nbsp;It occupies an important place in land transport system of our country and is a most dependable&nbsp;mode of transport to carry goods and passengers over long distances.&nbsp;<\/p>\n\n\n\n<p><strong><strong>3) Air Transport<\/strong><\/strong><\/p>\n\n\n\n<p>Air transport carries the goods and passengers through airways by using different aircraft&nbsp;like passenger aircraft, cargo aircraft, helicopters, etc. This is the fastest mode of transport&nbsp;but it does not provide door-to-door service.<\/p>\n\n\n\n<p><strong><strong>4) Water Transport<\/strong><\/strong><\/p>\n\n\n\n<p>Water transport refers to the movement of goods and passengers on waterways by using various&nbsp;means like boats, steamers, launches, ships, etc. With the help of these means, goods and passengers are carried to different places, both within as well as outside the country.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>3) State four life insurance policies.<\/strong><\/mark><\/p>\n\n\n\n<p> <strong style=\"color: initial;\">Answer:<\/strong><br>The different types of life insurance policies are explained below.<\/p>\n\n\n\n<p><strong>1) Whole Life Policy<\/strong><\/p>\n\n\n\n<p>Under this policy whole life of a person is insured. The insured cannot receive money from&nbsp;insurance company till he is alive. The rate of premium is normally low. The money becomes&nbsp;payable on the death of insured person to the nominee or the legal heir of the deceased policyholder.<\/p>\n\n\n\n<p><strong>2) Endowment Insurance Policy<\/strong><\/p>\n\n\n\n<p>Insurance is taken for a specific period under this policy. The sum assured along with a bonus is&nbsp;given on the death of the insured to dependents or on the expiry of the specific period, to the&nbsp;insured.<\/p>\n\n\n\n<p><strong>3) Term Insurance Policy<\/strong><\/p>\n\n\n\n<p>A term insurance policy is taken for a specific period. Term insurance policy has the lowest premium among all insurance policies. Premium is fixed and does not change during the term of the&nbsp;policy. In case of untimely death, the dependents will receive the benefit amount specified in&nbsp;the term life insurance agreement.<\/p>\n\n\n\n<p><strong>4) Annuity Policy<\/strong><\/p>\n\n\n\n<p>The insured has to pay the premium in a lump sum or in installments over a certain period of time.&nbsp;The insured will receive back a specific sum periodically from the specified date onwards, either&nbsp;for life or for a fixed number of years. It is like a pension payment scheme.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) State any four features of business services.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>The following are the features of business services.<\/p>\n\n\n\n<p><strong>1) Intangibility<\/strong><\/p>\n\n\n\n<p>Service is not a physical product that can be touched or seen. A service can be experienced&nbsp;by the buyer or the receiver. Services lack material form, and therefore they are intangible. Due&nbsp;to intangibility, services cannot be demonstrated like goods, and therefore service providers must&nbsp;create a good impact on the customers by delivering quality services on time.<\/p>\n\n\n\n<p><strong>2) Inseparability<\/strong><\/p>\n\n\n\n<p>A unique characteristic of services is that the service and the service provider cannot be separated.&nbsp;The presence of service provider is there at the time of delivering services to customers. In case of&nbsp;services production and consumption take place at the same time.<\/p>\n\n\n\n<p><strong>3) Inconsistency<\/strong><\/p>\n\n\n\n<p>Services are heterogeneous. There can be no perfect standardization of services. Even if the&nbsp;service provider remains the same, the quality of the service may differ from time to time. For&nbsp;example, the same restaurant can give different experiences to two different customers.<\/p>\n\n\n\n<p><strong>4) Perishability<\/strong><\/p>\n\n\n\n<p>The production and consumption of services are inseparable because storage of services is not&nbsp;possible. Being an intangible transaction there can never be an inventory of services. Unlike goods,&nbsp;they cannot be stored for future sale. For example, the vacant seats of the morning flight of an airline&nbsp;cannot be utilized in the afternoon flight of the same airline.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) State money remittance services of postal department.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>The following are the <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">money remittance services of postal department.<\/mark><\/p>\n\n\n\n<p><strong>1) Electronic Money Transfer (eMO)<\/strong><\/p>\n\n\n\n<p>A money order is an order issued by the Post Office for the payment of a sum of money to the&nbsp;person whose name is mentioned in the money order. It is sent through the agency of the Post.&nbsp;Office. A &#8216;Payee&#8217; is the person named in money order as the person to whom the money is to&nbsp;be paid. The advantage of sending money to someone through money order is that the money&nbsp;is delivered at the house or his place of stay.<\/p>\n\n\n\n<p><strong>2) Instant Money Order (iMO)<\/strong><\/p>\n\n\n\n<p>India Post presents Instant Money Order (iMO), the instant online money transfer service that&nbsp;is instant, convenient, reliable and affordable. iMO is an instant web-based money transfer&nbsp;service through Post Offices (iMO Centre) in India between two resident individuals in Indian&nbsp;territory. One can transfer money from INR 1,000\/- to INR 50,000\/from designated iMO Post&nbsp;Offices. It is simple to send and receive money.<\/p>\n\n\n\n<p><strong>3) International Money Transfer<\/strong><\/p>\n\n\n\n<p>Money Transfer Service Scheme is a quick and easy way of transferring personal remittances&nbsp;from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state-of-the-art International Money transfer Service is now available through the Post Offices in India,&nbsp;which enables instantaneous remittance of money from around 195 countries and territories to&nbsp;India.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q6_Justify_the_following_statements\"><\/span>Q.6 Justify the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Air transport is fastest mode of transport.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) Air transport carries the goods and passengers through airways by using different aircraft&nbsp;like passenger aircraft, cargo aircraft, helicopters, etc. <br>b) This is the fastest mode of transport&nbsp;but it does not provide door-to-door service. <br>c) In hilly or mountainous areas where other modes&nbsp;of transport is not accessible, air transport is an important and convenient mode. <br>d) Air transport is&nbsp;also suitable mode in case of emergencies like war, medical, natural calamities, rescue operations etc.&nbsp;<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">2) Communication is essential for growth of business.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer: <\/strong><br>a) Communication is the art of exchanging ideas, facts, information, etc. from one person or entity&nbsp;to another. <br>b) The process of passing any information from one person to another with the help of some&nbsp;medium is termed as communication.<br>c) Communication is very simple process where message is being&nbsp;transferred from a sender to the receiver.<br>d) Communication is essential for coordination and coordination helps in the growth of the business. <br>e) It also improving managerial efficiency that induces the employees in an organization to develop a spirit of cooperation.<br>Thus, communication is essential for growth of business.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3) Principle of subrogation is applicable to all contracts of indemnity.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) As per the principle of subrogation, after the insured&nbsp;is compensated for the loss due to damage of the property insured, then the right of ownership&nbsp;of such property passes on to the insurer. <br>b) This principle is applicable only when the damaged&nbsp;property has any value after the event causing the damage.<\/p>\n\n\n\n<p>c) Indemnity means a guarantee or assurance to put the insured in the same financial position in which he was prior to the happening of the uncertain incident.<br>d) Principle of indemnity is applicable to fire, marine, and general insurance. It is not applicable to life&nbsp;insurance as loss of life can never be measured in monetary terms.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Thus, the principle of subrogation is applicable to all contracts of indemnity.<\/mark><\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">4) Warehousing is important.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Warehousing refers to storage of goods and consists of all those activities which are connected&nbsp;with storage and preserving of goods. <br>b) It is a means of storing the goods.<br>c) Warehousing helps in timely delivery and proper distribution resulting in increased labour productivity and increased customer satisfaction.<br>d) It performs wide range of functions such as price stabilization, risk bearing, financing, transportation etc.<br>e) Warehouses create time utility by preserving the goods till they are demanded.<br>Thus, warehousing is important. <\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">5) Cash can be withdrawn from ATMs at any time.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) ATM is the abbreviation of Automated Teller Machine. It is popularly known as All Time Money or Any Time Money. <br>b) There is no specific time limit for withdrawals of cash from ATMs. <br>c) To avail of this facility, bank installs ATM terminals at places of a public utility such as railway stations, shopping malls, airports, post offices, busy streets, etc. <br>d) ATM also provides other information like cash deposits, withdrawals, balance in the account, etc. <br>e) ATM avails twenty-four hours service. Hence, the accountholder can withdraw cash at any time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q7_Attempt_the_following\"><\/span>Q.7 Attempt the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Explain money remittance services of the post department.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> Refer to question number <strong>5 (5)<\/strong>.<\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Explain marine insurance policies.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-black-color\"><span style=\"font-weight: 600;\"><strong>Types of marine insurance Policies<\/strong>:<\/span><\/mark><\/p>\n\n\n\n<p><strong>1) Voyage Policy<\/strong><\/p>\n\n\n\n<p>It is a policy in which the subject matter is insured for a specific voyage irrespective of time&nbsp;involved in it. In this case, risk begins only when the ship starts on voyage.<\/p>\n\n\n\n<p><strong>2) Time Policy<\/strong><\/p>\n\n\n\n<p>In this policy the subject matter is insured for a definite period of time. A time policy cannot&nbsp;be for a period exceeding one year, but it may contain continuation clause. The continuation&nbsp;clause means that if the voyage is not completed within the specified time, the risk shall be&nbsp;covered until the voyage is completed.<\/p>\n\n\n\n<p><strong>3) Mixed Policy<\/strong><\/p>\n\n\n\n<p>This policy is the combination of voyage and time policy. It, therefore, covers the risk of both,&nbsp;particular voyage and for a specified period of time.<\/p>\n\n\n\n<p><strong>4) Valued Policy<\/strong><\/p>\n\n\n\n<p>Under this policy, goods are insured for an agreed value between the insurer and insured at the&nbsp;time of taking policy. This facilitates easy settlements of claims in case of such items where it&nbsp;is difficult to assess the real market value.<\/p>\n\n\n\n<p><strong>5) Blanket Policy<\/strong><\/p>\n\n\n\n<p>This policy is taken for a maximum limit of the required amount of protection and the full amount&nbsp;of premium is paid at the beginning of the policy. This policy describes the nature of goods&nbsp;insured, specific routes, ports, and places of voyage. It covers multiple risks on one property or&nbsp;it covers many properties under the policy.<\/p>\n\n\n\n<p><strong>6) Port Risk Policy<\/strong><\/p>\n\n\n\n<p>Port risk policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time. This policy is applicable till the departure of the vessel from the port.<\/p>\n\n\n\n<p><strong>7) Composite Policy<\/strong><\/p>\n\n\n\n<p>This type of policy is purchased from more than one insurer. The liability of each insurer is&nbsp;separate and distinct. This policy is taken when the amount of insurance is very high.<\/p>\n\n\n\n<p><strong>8) Single Vessel Policy<\/strong><\/p>\n\n\n\n<p>This policy is suitable for small ship owner having only one ship or having one ship in different&nbsp;fleets. It covers the risk of one vessel of the insured.<\/p>\n\n\n\n<p><strong>9) Fleet Policy and Block Policy<\/strong><\/p>\n\n\n\n<p>In fleet policy, several ships belonging to one owner are insured under the same policy. In&nbsp;block Policy, the cargo owner is protected against damage or loss of cargo in all modes of&nbsp;transport through which his\/her cargo is carried i.e. covering all the risks of rail, road, and sea&nbsp;transport etc.<\/p>\n\n\n\n<p><strong>Note: Write any 5-6 points for 5 marks question.<\/strong><\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>3) Explain types of warehouses.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>1<\/strong>)&nbsp;<strong>Private Warehouses<\/strong><\/p>\n\n\n\n<p>The private warehouses are owned and operated by big manufacturers and merchants to fulfill&nbsp;their own storage needs. Big business firms which need large storage capacity on a regular&nbsp;basis and who can afford money, to construct and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the&nbsp;country.<\/p>\n\n\n\n<p><strong>2<\/strong>)&nbsp;<strong>Public Warehouses<\/strong><\/p>\n\n\n\n<p>A public warehouse is a specialized business establishment that provides storage facilities&nbsp;to the general public for a certain charge. It may be owned and operated by an individual or&nbsp;a cooperative society. It works under a license from the government in accordance with the&nbsp;prescribed rules and regulations. Public warehouses provide storage facilities to small manufacturers and traders at a low cost.<\/p>\n\n\n\n<p><strong>3<\/strong>)&nbsp;<strong>Bonded Warehouses<\/strong><\/p>\n\n\n\n<p>Bonded warehouses are licensed by the government to accept imported goods for storage until&nbsp;the payment of custom duty. These warehouses work under the control of custom authorities. The warehouse keeper is required to give an undertaking or &#8216;Bond&#8217; that it will not allow the&nbsp;goods to be removed without the consent of the custom authorities. The goods are held in&nbsp;bond and cannot be withdrawn without paying the custom duty.<\/p>\n\n\n\n<p><strong>4<\/strong>)&nbsp;<strong>Duty-paid Warehouses<\/strong><\/p>\n\n\n\n<p>If an importer faces any problem in the transportation of goods, after making payment of duty,&nbsp;then goods can be stored at a duty-paid warehouse. All duty-paid warehouses are public&nbsp;warehouses that are available to all importers. Duty-paid warehouses help the importer as&nbsp;proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.<\/p>\n\n\n\n<p><strong>5<\/strong>)&nbsp;<strong>Government Warehouses<\/strong><\/p>\n\n\n\n<p>These warehouses are owned, managed, and controlled by central and state governments or&nbsp;public authorities. It is difficult for small farmers, businessmen, traders to own a warehouse,&nbsp;so these government warehouses assist them in storing their goods at a nominal charge.<\/p>\n\n\n\n<p><strong>6<\/strong>)&nbsp;<strong>Co-operative Warehouses<\/strong><\/p>\n\n\n\n<p>These warehouses are owned, managed, and controlled by cooperative societies. They mainly&nbsp;provide warehousing facilities at the most economical rates. These types of warehouses are very&nbsp;useful for farmers and traders and the general public.<\/p>\n\n\n\n<p><strong>7<\/strong>)&nbsp;<strong>Cold storage Warehouses<\/strong><\/p>\n\n\n\n<p>Cold storage warehouses provide facilities for perishable commodities like fruits, flowers,&nbsp;vegetables, dairy products, etc. In cold storage warehouses, goods are stored and refrigerated&nbsp;at very low temperatures so as to preserve them and use them in the future. International trade has&nbsp;become possible due to these warehouses.<\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) Explain the utility function of banks.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>A commercial bank performs utility functions for the benefit of its clients. It provides certain&nbsp;facilities or products to its clients as follows:<\/p>\n\n\n\n<p><strong>1) Issue of Drafts and Cheques<\/strong><\/p>\n\n\n\n<p>A draft \/cheque is an order to pay money from one branch of bank to another branch of the&nbsp;same bank or other banks. A bank issues drafts to its account holders as well as non-account&nbsp;holders whereas cheques are issued only to the account holders. Bank charges commission for&nbsp;issuing a bank draft.<\/p>\n\n\n\n<p><strong>2) Locker Facility<\/strong><\/p>\n\n\n\n<p>This is a common utility function of any commercial bank. The bank provides locker facility for&nbsp;the safe custody of valuables, documents, gold ornaments, etc.<\/p>\n\n\n\n<p><strong>3) Project Reports<\/strong><\/p>\n\n\n\n<p>A bank may prepare project reports and feasibility studies on behalf of the clients. Project&nbsp;reports enable the business firm to obtain funds from the market and to obtain clearance from&nbsp;government authorities.<\/p>\n\n\n\n<p><strong>4) Gift Cheques<\/strong><\/p>\n\n\n\n<p>Banks issue gift cheques and gold coins to account holders as well as to non-account holders.&nbsp;The gift cheques\/ coins can be used by the clients for the purpose of gifting on occasions like&nbsp;weddings, birthdays, etc.<\/p>\n\n\n\n<p><strong>5) Underwriting Services<\/strong><\/p>\n\n\n\n<p>A commercial bank may underwrite the issue of securities issued by companies. If the shares&nbsp;are not fully subscribed, the underwriting bank agrees to take up the unsubscribed portion of&nbsp;the securities.<\/p>\n\n\n\n<p><strong>6) Gold-related Services<\/strong><\/p>\n\n\n\n<p>Nowadays many banks are providing gold services to its customers. Banks are commercially&nbsp;buying and selling gold or gold ornaments from customers on large-scale basis. Some banks&nbsp;also provide advisory services to its customers in terms of gold funds, gold ETF, etc.<\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) Explain modes of traditional communication.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>Modes of Traditional Communication are as follows:<\/strong> <\/p>\n\n\n\n<p><strong>a. Inland Letter:<br><\/strong>Communication is contained on a sheet of paper with a prescribed size &amp; folding. Inland letter&nbsp;card is used for transmission within India only. The written portion of the inland letter is folded and sealed. Only the name and address of the receiver is visible from the outside. Therefore,&nbsp;an inland letter ensures the confidentiality of the message.<\/p>\n\n\n\n<p><strong>b. Envelope:<br><\/strong>It enables to send confidential messages as well as enclosures like cheques, photos, resumes,&nbsp;etc. Envelope ensures the safety of documents and confidentiality of messages.<\/p>\n\n\n\n<p><strong>c. Parcel:<br><\/strong>Under parcel post services, parcels of a specified size and weight can be sent across the country&nbsp;as well as outside the country. Anything can be sent in a parcel except those items which are&nbsp;prohibited. Parcels can be insured. An extra charge is to be paid for insurance. If the insured&nbsp;parcel is lost in transit, the post office pays the insured amount.<\/p>\n\n\n\n<p><strong>d. Book-Post:<br><\/strong>Printed books, magazines, journals, etc. can be sent through book posts. Packets containing&nbsp;books and other printed matter can be inserted in the packets. For each book post parcel\/packet, it is necessary to mention &#8220;Book Post&#8221; on the face of the packet or parcel.<\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>6) Explain the disadvantages of air transport.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>Air transport carries the goods and passengers through airways by using different aircraft&nbsp;like passenger aircraft, cargo aircraft, helicopters etc. This is the fastest mode of transport&nbsp;but it does not provide door-to-door service.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\"><strong>Following are the disadvantages of air transport<\/strong><\/mark><\/p>\n\n\n\n<p>1) It is a relatively expensive mode of transport.<br>2) It is affected by adverse weather conditions.<br>3) It is not suitable for short distances.<br>4) It requires huge investment costs such as the construction of airports, runways, air traffic control&nbsp;towers, etc.<br>5) Air transport is subject to international restrictions as airplanes of some nations are not&nbsp;allowed to fly over other countries.<\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>7) Describe the role of transport.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><\/p>\n\n\n\n<p><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-vivid-purple-color\"><strong>8) What are the functions of warehouses?<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><mark style=\"background-color: rgba(0, 0, 0, 0);\" class=\"has-inline-color has-black-color\"><span style=\"font-weight: 600;\">Following are the functions of warehouses:<\/span><\/mark><\/p>\n\n\n\n<p><strong>1<\/strong>)&nbsp;<strong>Storage<\/strong><\/p>\n\n\n\n<p>This is the basic function of warehousing. Surplus commodities which are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.<\/p>\n\n\n\n<p><strong>2<\/strong>)&nbsp;<strong>Price Stabilization<\/strong><\/p>\n\n\n\n<p>Warehouses play an important role in the process of price stabilization. It is achieved by the&nbsp;creation of time utility by warehousing. In warehouses, usually large stock of goods is kept.&nbsp;Whenever there is a shortage in the market, goods can be immediately supplied through warehouses, which helps in price stabilization to avoid rise in price due to demand and supply&nbsp;differences.<\/p>\n\n\n\n<p><strong>3<\/strong>)&nbsp;<strong>Risk bearing<\/strong><\/p>\n\n\n\n<p>When the goods are stored in warehouses they are exposed to many risks in the form of theft,&nbsp;deterioration, fire, etc. Warehouses are constructed in such a way that they minimize these&nbsp;risks. A warehouse keeper has to take reasonable care of the goods and safeguard them&nbsp;against various risks. For any loss or damage sustained by goods, warehouse keeper shall be&nbsp;liable to the owner of the goods.<\/p>\n\n\n\n<p><strong>4<\/strong>)&nbsp;<strong>Financing<\/strong><\/p>\n\n\n\n<p>Loans can be raised from the warehouse keeper or from financial institutions against the goods&nbsp;stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting&nbsp;business operations.<\/p>\n\n\n\n<p><strong>5<\/strong>)&nbsp;<strong>Grading and Packing<\/strong><\/p>\n\n\n\n<p>Warehouses nowadays provide the facilities of packing, processing, and grading of goods.&nbsp;Goods can be packed in convenient sizes as per the instructions of the owner.<\/p>\n\n\n\n<p><strong>6<\/strong>)&nbsp;<strong>Transportation<\/strong><\/p>\n\n\n\n<p>Warehouses can provide transportation facilities to bulk depositors. It collects goods from the&nbsp;place of production and also sends goods to the place of delivery at the request of the owner.<\/p>\n\n\n\n<p><strong>7<\/strong>)&nbsp;<strong>Time and Place Utility<\/strong><\/p>\n\n\n\n<p>Warehouses create time utility by preserving the goods till they are demanded. It also creates&nbsp;place utility by providing the goods at the place, where they are required.<\/p>\n\n\n\n<p><strong>8<\/strong>)&nbsp;<strong>Processing<\/strong><\/p>\n\n\n\n<p>Certain commodities are not consumed in the form they are produced. Processing is required to&nbsp;make them consumable. e.g. Paddy is polished, fruits are ripened, etc. Sometimes warehouses&nbsp;undertake such activities on behalf of the owners.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q8_Answer_the_following\"><\/span>Q.8 Answer the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) What is insurance? Explain principles of insurance.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between&nbsp;the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The&nbsp;insured has to pay a certain fixed sum of money on timely basis to the insurer.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\"><strong><strong>Principles of Insurance:<\/strong><\/strong><\/mark><\/strong><\/p>\n\n\n\n<p><strong>1) Principle of Utmost good faith<\/strong><\/p>\n\n\n\n<p>In all types of insurance contracts both the parties must have utmost good faith towards each&nbsp;other. The insurer and insured must disclose all material facts clearly, completely and correctly. The insured must provide complete, clear and correct information of the subject matter of&nbsp;insurance to the insurer. Similarly, the insurer must provide relevant information regarding&nbsp;terms and conditions of the contract. Failure to provide complete, correct and clear information&nbsp;may lead to non-settlement of claim.&nbsp;<\/p>\n\n\n\n<p>For example, Mr. Shantanu has not provided information regarding his heart surgery at the&nbsp;time of taking policy. After his death, insurance company comes to know about this fact. As&nbsp;Mr. Shatanu has not provided correct and complete information at the time of taking policy,&nbsp;insurance company can refuse to give compensation to his family members.<\/p>\n\n\n\n<p><strong>2) Principle of Insurable interest<\/strong><\/p>\n\n\n\n<p>Insurable interest means some financial interest in the subject matter. The insured must have&nbsp;an insurable interest in the subject matter of insurance. Insurable interest is applicable to all insurance contracts. It is said to have an insurable interest in subject matter, when the existence of that&nbsp;subject matter puts the insured in financial benefit. Whereas nonexistence of subject matter put&nbsp;him into financial loss.<\/p>\n\n\n\n<p>For example,<br>i) a person has an insurable interest in his own life and property.<br>ii) a businessman has an insurable interest in the goods he deals and in the property of business.<\/p>\n\n\n\n<p><strong>3) Principle of Indemnity<\/strong><\/p>\n\n\n\n<p>Indemnity means a guarantee or assurance to put the insured in the same financial position in&nbsp;which he was immediately prior to the happening of the uncertain event. This principle is applicable to fire, marine, and general insurance. It is not applicable to life&nbsp;insurance as loss of life can never be measured in monetary terms. In case of death of the insured, the actual sum assured is paid to the nominee of the insured. Under this principle, the insurer agrees to compensate the insured for the actual loss suffered.<\/p>\n\n\n\n<p>For example,&nbsp;If a property is insured for Rs. two lacs and if the loss by fire is Rs.one lac, then the&nbsp;insured can claim compensation of Rs.one lac only.<\/p>\n\n\n\n<p><strong>4) Principle of Subrogation<\/strong><\/p>\n\n\n\n<p>This principle is applicable to all contracts of indemnity. As per this principle, after the insured&nbsp;is compensated for the loss due to damage of the property insured, then the right of ownership&nbsp;of such property passes on to the insurer. This principle is applicable only when the damaged&nbsp;property has any value after the event causing the damage.<\/p>\n\n\n\n<p>For example,&nbsp;Mr. A owns a two-wheeler. The vehicle was stolen and subsequently, Mr.A filed&nbsp;a complaint in local police station. Upon receiving report from police,. the insurance company&nbsp;compensated fully Mr.A for the loss of the vehicle. Later on the stolen vehicle was recovered by&nbsp;police. In this situation, the owner of the vehicle does not have any claim over the vehicle as he has&nbsp;already subrogated i.e. transferred the ownership rights of the vehicle to the insurer. The insurer gets&nbsp;every right to sell or to scrap the said vehicle.<\/p>\n\n\n\n<p><strong>5) Principle of Contribution<\/strong><\/p>\n\n\n\n<p>This principle is applicable to all contracts of indemnity where the insured has taken out more&nbsp;than one policy for the same risk or subject matter. Under this principle, the insured can claim&nbsp;the compensation only to the extent of actual loss either from one insurer or all the insurers. If&nbsp;the one insurer pays full compensation then that insurer can claim a proportionate amount from&nbsp;other insurers from whom insured has taken policy.<\/p>\n\n\n\n<p>For example,&nbsp;Ms. Sayali insures her property of Rs. Two Lac Fifty Thousand with two insurers,&nbsp;with T Insurance Co. for Rs.One Lac(2\/5th of the property value) and R Insurance Co. for Rs.One&nbsp;Lac Fifty Thousand (3\/5th of the property value). If Ms. Sayali &#8216;s property is destroyed and the loss is&nbsp;worth Rs. One Lac Twenty Thousand, then both insurance companies will contribute towards actual&nbsp;loss i.e.Rs.One Lac Twenty Thousand. Thus company T will pay RS.48000\/- (2\/5th of the loss) and&nbsp;company R will pay Rs. 72000\/-(3\/5th of the loss).<\/p>\n\n\n\n<p><strong>6) Principle of Mitigation of loss<\/strong><\/p>\n\n\n\n<p>Insured must always try to minimize the loss of the property, in case of uncertain events. The&nbsp;insured must take all possible measures and necessary steps to control and reduce losses.&nbsp;Hence, it is the responsibility of the insured to protect the property and avoid loss. <\/p>\n\n\n\n<p>For example, A house of Mr. Jayant is on fire due to an electric short circuit. In this case, Mr. Jayant cannot&nbsp;remain passive and must try his best to save his house from fire. Mr. Jayant must be active and&nbsp;cannot watch his house burn, just because house is insured.<\/p>\n\n\n\n<p><strong>7) Principle of Causa-Proxima<\/strong><\/p>\n\n\n\n<p>The principle of causa Proxima means, when a loss is caused by more than one causes, then the proximate cause of loss should be taken into consideration to decide the liability of the insurer. The&nbsp;property is insured against some causes and not against all causes, in such a case, the proximate cause of loss is to be found. If the proximate cause is the one which is insured against,&nbsp;the insurance company is bound to pay compensation and vice versa.<\/p>\n\n\n\n<p>For example, a house was insured against the risk of theft.&nbsp;There was a theft in the house and&nbsp;before leaving, the house was set on fire by thieves. Now, there are two causes of loss, theft and fire,&nbsp;and the nearest cause of loss was fire. As the house was insured against theft and not by fire, the&nbsp;insured will not get any compensation from insurance company for loss by fire. But, he will get compensation for the property lost by theft.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Define bank. Explain. Different types of banks.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>The term Bank comes from the French word &#8216;Banco&#8217; which means a &#8216;bench&#8217;. In earlier days,&nbsp;money-lenders used to display coins of different currencies in big heaps or benches or tables for the&nbsp;purpose of lending or exchanging.<\/p>\n\n\n\n<p>A bank is a financial institution that deals with deposits and advances and other related&nbsp;services. Bank provides various services related to money or financial requirements of consumers.<\/p>\n\n\n\n<p><strong>There are several types of banks as follows:<\/strong><\/p>\n\n\n\n<p><strong>1) Central Bank<\/strong><\/p>\n\n\n\n<p>The central bank is the apex financial institution in banking industry in the country. Every&nbsp;country has their own central bank. In India, The Reserve Bank of India (RBI) is the central&nbsp;bank. The RBI was established in 1935 under the Reserve Bank of India Act, 1934.<\/p>\n\n\n\n<p><strong>2) Commercial Bank<\/strong><\/p>\n\n\n\n<p>Commercial banks play an important role in economic and social development of a country.&nbsp;Commercial banks perform important functions such as: Primary Functions i.e. accepting deposits and lending of money and Secondary Functions&nbsp;i.e. agency functions and utility functions. <br>In India, commercial banks are divided into three&nbsp;groups:<br>a) Public sector banks<br>b) Private sector banks <br>c) Foreign banks <\/p>\n\n\n\n<p><strong>3) Co-operative Bank<\/strong><\/p>\n\n\n\n<p>In India, co-operative banks are registered under Indian Co-operatives Societies Act and&nbsp;regulated under Banking Regulation Act. Co-operative banks are popular in semi-urban and&nbsp;rural areas. The main aim of a cooperative bank is to provide credit to economically backward&nbsp;people, farmers, and small-scale units. <br>Generally, the co-operative bank works at three different&nbsp;levels:<br><strong>a)<\/strong> <strong>Primary Credit Societies:<\/strong> Primary Credit Co-operative society work at village level.<br><strong>b) District Central Co-operative Bank:<\/strong> These banks operate at district level.<br><strong>c) State Co-operative Bank:<\/strong> This bank operates at state level.<\/p>\n\n\n\n<p><strong>4) Industrial Development Banks<\/strong><\/p>\n\n\n\n<p>These are financial institutions that provide medium and long-term funds to business&nbsp;firms Examples of development banks are Industrial Finance Corporation of India (IFCI),&nbsp;State Finance Corporation (SFC), Maharashtra State Finance Corporation(MSFC), etc. <br>Some&nbsp;functions of a development bank are as follows:<br>i) Provision of medium and long-term funds to business units for the purpose of expansion and&nbsp;modernization.<br>ii) Underwriting of shares issued by public limited companies.<br>iii) Purchase of debentures and bonds.<\/p>\n\n\n\n<p><strong>5) Exchange Banks<\/strong><\/p>\n\n\n\n<p>The exchange banks as well as large commercial banks facilitate foreign exchange transactions. Examples of exchange banks are Barclays Bank, Bank of Tokyo, etc. <br>Some functions of&nbsp;an exchange bank are as follows:<br>i) Financing foreign trade transactions.<br>ii) Issue of letter of credit (LC)<br>iii) Discounting of bills of exchange.<br>iv) Remittances of dividends, interests, profits, etc.<\/p>\n\n\n\n<p><strong>6) Regional Rural Bank<\/strong><\/p>\n\n\n\n<p>Regional Rural Banks (RRBs) were established in 1975. These banks are sponsored by&nbsp;large public sector banks. The capital of RRB is contributed by Central Government 50%, State&nbsp;Government 15%, and Sponsored Banks 35%.RRBs mobilize deposits primarily from rural and semi-urban areas and provide loans and&nbsp;advances mostly to small and marginal farmers, agricultural laborers, and rural artisans.<\/p>\n\n\n\n<p><strong>7) Savings Bank<\/strong><\/p>\n\n\n\n<p>The main objective of savings bank is to encourage savings of the people, especially in rural&nbsp;areas. Examples of such banks include postal saving bank, commercial banks, and cooperatives banks.<\/p>\n\n\n\n<p><strong>8) Investment Bank<\/strong><\/p>\n\n\n\n<p>These banks provide financial and advisory assistance to their customers. Their clients generally include business firms and government organizations. Investment banks facilitate mergers&nbsp;and acquisitions by undertaking research and providing advice on investment decisions. Generally, investment banks do not directly deal with general public.<\/p>\n\n\n\n<p><strong>9) Specialised Banks<\/strong><\/p>\n\n\n\n<p>These banks cater to the requirements and provide overall support for setting up business in&nbsp;specific areas.<br><strong>i) Export and Import Bank (EXIM):<\/strong> This bank provides financial assistance to exporters and importers <br><strong>ii) Small Industries Development Bank of India (SIDBI):<\/strong> Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act&nbsp;of Indian Parliament, acts as the principal financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector as&nbsp;well as for coordination of functions of institutions engaged in similar activities.<br><strong>iii) National Bank for Agriculture and Rural Development (NABARD):<\/strong> It is an apex institution for financing agricultural and rural sectors. NABARD provides both&nbsp;short-term and long-term credit through regional rural banks.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>3) What is a warehouse? Explain its different functions.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Warehousing refers to storage of goods and consists of all those activities which are connected&nbsp;with storage and preserving of goods. It is a means of storing goods. Warehousing can be defined&nbsp;as a group of activities connected with the storing and preserving of stored goods from the time of&nbsp;production till the time of consumption.<\/p>\n\n\n\n<p><strong>Following are the functions of Warehouses:<\/strong><\/p>\n\n\n\n<p><strong>1<\/strong>)&nbsp;<strong>Storage<\/strong><\/p>\n\n\n\n<p>This is the basic function of warehousing. Surplus commodities which are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.<\/p>\n\n\n\n<p><strong>2<\/strong>)&nbsp;<strong>Price Stabilization<\/strong><\/p>\n\n\n\n<p>Warehouses play an important role in the process of price stabilization. It is achieved by the&nbsp;creation of time utility by warehousing. In warehouses, usually large stock of goods is kept.&nbsp;Whenever there is a shortage in the market, goods can be immediately supplied through warehouses, which helps in price stabilization to avoid rise in price due to demand and supply&nbsp;differences.<\/p>\n\n\n\n<p><strong>3<\/strong>)&nbsp;<strong>Risk bearing<\/strong><\/p>\n\n\n\n<p>When the goods are stored in warehouses they are exposed to many risks in the form of theft,&nbsp;deterioration, fire, etc. Warehouses are constructed in such a way that they minimize these&nbsp;risks. A warehouse keeper has to take reasonable care of the goods and safeguard them&nbsp;against various risks. For any loss or damage sustained by goods, warehouse keeper shall be&nbsp;liable to the owner of the goods.<\/p>\n\n\n\n<p><strong>4<\/strong>)&nbsp;<strong>Financing<\/strong><\/p>\n\n\n\n<p>Loans can be raised from the warehouse keeper or from financial institutions against the goods&nbsp;stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting&nbsp;business operations.<\/p>\n\n\n\n<p><strong>5<\/strong>)&nbsp;<strong>Grading and Packing<\/strong><\/p>\n\n\n\n<p>Warehouses nowadays provide the facilities of packing, processing, and grading of goods.&nbsp;Goods can be packed in convenient sizes as per the instructions of the owner.<\/p>\n\n\n\n<p><strong>6<\/strong>)&nbsp;<strong>Transportation<\/strong><\/p>\n\n\n\n<p>Warehouses can provide transportation facilities to bulk depositors. It collects goods from the&nbsp;place of production and also sends goods to the place of delivery on the request of the owner.<\/p>\n\n\n\n<p><strong>7<\/strong>)&nbsp;<strong>Time and Place Utility<\/strong><\/p>\n\n\n\n<p>Warehouses create time utility by preserving the goods till they are demanded. It also creates&nbsp;place utility by providing the goods at the place, where they are required.<\/p>\n\n\n\n<p><strong>8<\/strong>)&nbsp;<strong>Processing<\/strong><\/p>\n\n\n\n<p>Certain commodities are not consumed in the form they are produced. Processing is required to&nbsp;make them consumable. e.g. Paddy is polished, fruits are ripened etc. Sometimes warehouses&nbsp;undertake such activities on behalf of the owners.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) What are Services? Explain in detail different business services.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Services are intangible in nature; they are neither manufactured, transported nor stocked.&nbsp;Services cannot be stored for future use hence they are produced and consumed simultaneously. Business services are those services that help in successful running of business. They are&nbsp;intangible in nature, heterogeneous, inseparable, inconsistent, perishable in nature, and require&nbsp;consumer participation.<\/p>\n\n\n\n<p>&#8220;Activities, benefits, or satisfactions which are offered for sale, or provided in connection with&nbsp;the sale of goods&#8221;.-&nbsp;<strong>American Marketing Association<\/strong><\/p>\n\n\n\n<p><strong>Following are the different business services.<\/strong><\/p>\n\n\n\n<p><strong>1) Banking<\/strong><\/p>\n\n\n\n<p>The term Bank comes from the French word &#8216;Banco&#8217; which means a &#8216;bench&#8217;. In earlier days,&nbsp;money-lenders used to display coins of different currencies in big heaps or benches or tables for the&nbsp;purpose of lending or exchanging.<\/p>\n\n\n\n<p>A bank is a financial institution that deals with deposits and advances and other related&nbsp;services. Bank provides various services related to money or financial requirements of consumers.<\/p>\n\n\n\n<p><strong>2) Insurance<\/strong><\/p>\n\n\n\n<p>Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between&nbsp;the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The&nbsp;insured has to pay a certain fixed sum of money on timely basis to the insurer.<\/p>\n\n\n\n<p>There are many types of insurance some of them are:<br>a) Life insurance<br>b) Marine Insurance<br>c) Fire Insurance<\/p>\n\n\n\n<p><strong>3) Transport<\/strong><\/p>\n\n\n\n<p>In India, transport plays an important role in nation&#8217;s economy. Since 1991, the development of&nbsp;infrastructure within the country has progressed at a rapid pace and today there are different modes&nbsp;of transport used such as land, water, air etc.<\/p>\n\n\n\n<p>Transportation is the movement of people, animals and goods from one location to another&nbsp;location or it can be defined as a means of carrying goods and people from one place to another&nbsp;place.<\/p>\n\n\n\n<p><strong>Modes of transport:<\/strong><\/p>\n\n\n\n<p>a) Road Transport<br>b) Rail Transport<br>c) Air Transport<br>d) Water Transport<br>e) Mono rail and Metro<br>f) Ropeways<br>g) Pipeline<\/p>\n\n\n\n<p><strong>4) Warehousing<\/strong><\/p>\n\n\n\n<p>Warehousing refers to storage of goods and consists of all those activities which are connected&nbsp;with storage and preserving of goods. It is a means of storing goods. Warehousing can be defined&nbsp;as a group of activities connected with the storing and preserving of stored goods from the time of&nbsp;production till the time of consumption.<\/p>\n\n\n\n<p><strong>Some types of warehouses are:<br><\/strong>a)&nbsp;Private Warehouses<br>b)&nbsp;Public Warehouses<br>c)&nbsp;Bonded Warehouses<br>d)&nbsp;Duty paid Warehouses<br>e)&nbsp;Government Warehouses<br>f)&nbsp;Co-operative Warehouses<br>g)&nbsp;Cold storage Warehouses<\/p>\n\n\n\n<p><strong>5) Communication<\/strong><\/p>\n\n\n\n<p>Communication is the art of exchanging ideas, facts, information, etc. from one person or entity&nbsp;to another. The process of passing any information from one person to another with the help of some&nbsp;medium is termed as communication. Communication is a very simple process where the message is transferred from the sender to the receiver. The receiver after receiving the message understands it in&nbsp;the desired form and then acts accordingly.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) What is communication? Explain in detail various types of communication.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Communication is the art of exchanging ideas, facts, information, etc. from one person or entity&nbsp;to another. The process of passing any information from one person to another with the help of some&nbsp;medium is termed communication. Communication is very simple process where a message is transferred from a sender to the receiver. The receiver after receiving the message understands it in&nbsp;the desired form and then acts accordingly.<\/p>\n\n\n\n<p>Following are various types of communication:<br>I) Postal Services<br>II) Modern means of communication<\/p>\n\n\n\n<p><strong>I) Postal Services<\/strong><\/p>\n\n\n\n<p>The postal services in India come under the Department of Post and Telegraph which is the&nbsp;part of Ministry of Communication and Information Technology.<\/p>\n\n\n\n<p><strong>Types of postal services:<\/strong><\/p>\n\n\n\n<p>1. Mail Services<br>2. Specialised Postal Services<br>3. Money Remittance Services<br>4. Retail Services<\/p>\n\n\n\n<p><strong>1. Mail Services:<\/strong><br><strong>a. Inland Letter:<\/strong><br>The written portion of the inland letter is folded and sealed. Only the name and address of the receiver is visible from outside. Therefore,&nbsp;inland letter ensures confidentiality of the message.<\/p>\n\n\n\n<p><strong>b. Envelope:<\/strong><br>It enables to send confidential messages as well as enclosures like cheques, photos, resumes&nbsp;etc. Envelope ensures safety of documents and confidentiality of messages.<\/p>\n\n\n\n<p><strong>c. Parcel:<\/strong><br>Under parcel post services, parcels of specified size and weight can be sent across the country&nbsp;as well as outside the country.<\/p>\n\n\n\n<p><strong>d. Book-Post:<\/strong><br>Printed books, magazines, journals, etc. can be sent through book posts. Packets containing&nbsp;books and other printed matter can be inserted in the packets.<\/p>\n\n\n\n<p><strong>2. Specialised Postal Services:<br>a. Business Post:<br><\/strong>Business Post provides complete mailing solutions right from mail preparation to mail delivery,&nbsp;ideal for small businesses as well as large companies.<br><strong>b. Logistics Post:<br><\/strong>Logistics Post provides business customers a cost-effective and efficient solution, which&nbsp;manages the entire value chain from collection to storage to transmission to distribution across&nbsp;the country.&nbsp;<br><strong>c. Bill Mail Service:<br><\/strong>Communications in the nature of financial statements, bills, monthly account bills or any such&nbsp;other items of similar nature may be posted by a service provider to customers at least once&nbsp;in 90 days under this service.<\/p>\n\n\n\n<p><strong>3. Money Remittance Services:<br>a. Electronic Money Transfer (eMO):<br><\/strong>A money order is an order issued by the Post Office for the payment of a sum of money to the&nbsp;person whose name is mentioned in the money order. It is sent through the agency of the Post.<br><strong>b. Instant Money Order (iMO):<br><\/strong>India Post presents Instant Money Order (iMO), the instant online money transfer service that&nbsp;is instant, convenient, reliable and affordable. One can transfer money from INR 1,000\/- to INR 50,000\/from designated iMO Post&nbsp;Offices.<br><strong>c. International Money Transfer:<br><\/strong>Money Transfer Service Scheme is a quick and easy way of transferring personal remittances&nbsp;from abroad to beneficiaries in India. Only inward personal remittances are permissible.<\/p>\n\n\n\n<p><strong>4. Retail Services:<\/strong><br><strong>a. Retail Post:<\/strong><br>Through &#8216;Retail Post&#8217; the department offers convenience to the general public by making third-party products and services available in their vicinity through selected Post Offices.<br><strong>b. e-Post:<\/strong><br>Department of Posts has introduced ePOST service. Through ePOST, customers can send their&nbsp;messages to any address in India with a combination of electronic transmission and physical&nbsp;delivery through a network of more than 1,55,000 Post Offices.<\/p>\n\n\n\n<p><strong>II) Modern means of communication:<\/strong><\/p>\n\n\n\n<p><strong>a. Courier Service:<\/strong><br>An individual or a company responsible for the exchange of items between two or more&nbsp;parties is known as a courier service. As a premium service, courier service is usually more expensive than usual&nbsp;mail services. Some examples of courier services are DHL, DTDC, UPS etc. &#8216;<\/p>\n\n\n\n<p><strong>b. Internet:<\/strong><br>The Internet (interconnected network) is the global system of interconnected computer networks&nbsp;that use the Internet protocol suite (TCP\/IP) to link devices worldwide.<\/p>\n\n\n\n<p><strong>c. Email:<br><\/strong>Electronic mail (email or e-mail) is a method of exchanging mail between people using&nbsp;electronic devices. Today&#8217;s email systems are based on a store-and-forward model. Email&nbsp;servers accept, forward, deliver, and store messages.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">6) What is road transport? Explain its advantages and disadvantages.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Roads are means that connect people and places on the surface of the land. It provides all-over&nbsp;connectivity in any terrain as compared to other modes of transport. Various means of transport are used under road transport such as bullock cart, cycles, rickshaws, buses, cars etc.<\/p>\n\n\n\n<p>Bus Rapid Transit (BRT) systems have been introduced in many states to improve public&nbsp;transport system in India. India has a network of village roads, district roads, state highways&nbsp;and national highways which form the economic backbone of the country.<\/p>\n\n\n\n<p>In India, Ministry of Road Transport and Highways (MoRTH) looks after development of&nbsp;surface transport throughout the country.<\/p>\n\n\n\n<p><strong>Advantages:<\/strong><br>1) It is a cheap mode of transport as compared to other modes of transport.<br>2) Perishable goods can be transported at a faster speed by road carriers over a short distance.<br>3) It is a flexible mode of transport as loading and unloading is possible at any destination.<br>4) It provides door-to-door service. Also, it functions as feeder transport to other modes of transport.<br>5) It helps people to travel and carry goods from one place to another place where any other mode&nbsp;of transport is not available.<\/p>\n\n\n\n<p><strong>Disadvantages:<\/strong><br>1) Due to limited carrying capacity road transport is not economical for long-distance transportation.<br>2) Transportation of heavy and bulky goods through road transport involves high cost.<br>3) Road transport is affected by adverse weather conditions such as floods, rain, landslides etc.<br>4) There is a possibility of common road accidents.<br>5) It causes pollution due to emission of gases which affect the health of people.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"12th_Commerce_OCM_Textbook_Solutions\"><\/span>12th Commerce OCM Textbook Solutions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Chapter Name<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-1st-chapter-notes\/\">1) Principles of Management<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-2nd-chapter-exercise\/\">2) Functions of Management<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-3-exercise-solutions\/\">3) Entrepreneurship\u00a0Development<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-5-exercise-2-2\/\">5) Emerging Modes of Business<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-6-exercise\/\">6) Social Responsibilities of Business<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-7-exercise-2-2\/\">7) Consumer Protection<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-ocm-chapter-8-exercise-2\/\">8) Marketing<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Check_out_other_posts_related_to_the_12th_Commerce\"><\/span>Check out other posts related to the 12th Commerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.youtube.com\/@Scholarszilla\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/@Scholarszilla\" target=\"_blank\" rel=\"noopener\">12th Commerce Video Lectures<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\">12th Commerce IT MCQ Preparation (Online Test)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\">Sample Paper of 12th Commerce for Practice PDF<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\">PDF of Solved Sample papers of 12th Commerce to improve Paper Presentation<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\">Old Question Papers of 12th Commerce with solution (All Subjects)<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-contrast-color has-text-color\"><span class=\"ez-toc-section\" id=\"Online_lectures_of_Class_12_Commerce\"><\/span>Online lectures of Class 12 Commerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\ud83d\udd17 Share our videos and channel with your friends, and help us grow this channel.<br>Learn the Chapters of Accounts from our playlist.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/rb.gy\/c9pmbq\" data-type=\"link\" data-id=\"https:\/\/rb.gy\/c9pmbq\" target=\"_blank\" rel=\"noopener\">Issue of Shares<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/rb.gy\/3f7zhl\" data-type=\"link\" data-id=\"https:\/\/rb.gy\/3f7zhl\" target=\"_blank\" rel=\"noopener\">Bills of Exchange<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/rb.gy\/v5flhj\" target=\"_blank\" rel=\"noopener\">Dissolution of Partnership Firm<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/rb.gy\/jpjgd8\" data-type=\"link\" data-id=\"https:\/\/rb.gy\/jpjgd8\" target=\"_blank\" rel=\"noopener\">NPO<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/rb.gy\/nhy2xy\" data-type=\"link\" data-id=\"https:\/\/rb.gy\/nhy2xy\" target=\"_blank\" rel=\"noopener\">Analysis of Financial Statement<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/rb.gy\/nhy2xy\" data-type=\"link\" data-id=\"https:\/\/rb.gy\/nhy2xy\" target=\"_blank\" rel=\"noopener\">Admission of Partner<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLGiOLU46prNe6tQIJakepd3uGvatQyBUe\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLGiOLU46prNe6tQIJakepd3uGvatQyBUe\" target=\"_blank\" rel=\"noopener\">Information Technology Lectures.<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2021\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2021\/\">12th Commerce March 2021 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-july-2022\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-july-2022\/\">12th Commerce July 2022 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2022\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2022\/\">12th Commerce March 2022 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2023\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-2023\/\">12th Commerce March 2023 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-july-2023\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-question-paper-july-2023\/\">12th Commerce July 2023 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-commerce-question-paper-2024\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-commerce-question-paper-2024\/\">12th Commerce Feb 2024 Question Papers<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-commerce-question-paper-2025\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-commerce-question-paper-2025\/\">12th Commerce Feb 2025 Question Papers<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":19158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[4889],"class_list":["post-18592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsc-maharashtra-board","tag-12th-ocm-chapter-4-exercise"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/18592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=18592"}],"version-history":[{"count":16,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/18592\/revisions"}],"predecessor-version":[{"id":41652,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/18592\/revisions\/41652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/19158"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=18592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=18592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=18592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}