Mcqs PDF Business Studies x1
Mcqs PDF Business Studies x1
Mcqs PDF Business Studies x1
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12. Which of the following broad categories of industries covers oil refinery and sugar mills ?
a) Primary industries
b) Secondary industries
c) Commercial industries Answer :- B
d) Tertiary industries
13. An industry which is concerned with the extraction of natural resources from the earth .
a). Synthetically industry
b).Assembling Industry
c). Genetic Industry Answer :- D
d). Primary Industry
14. An industry which is concerned with breeding , reproduction and multiplication of species.
a). Analytical Industry
b). Genetic Industry
c). Process Industry Answer :- B
d). Tertiary Industry
15. An industry which is concerned with the nature of various material to form single product
.
a). Analytical Industry
b). Assembling Industry
c). Synthetically industry Answer :- C
d). Primary Industry
16. Commerce is a combination of two types of activities these are
a) industry and trade
b) trade and Commerce
c) Trade and auxiliaries to trade
d) production and consumption of goods
17. This trade refers to purchase of goods from one country for the purpose of selling them to
another country. Identify it.
a) import Trade
b) entrepot trade
c) wholesale trade
d) export trade
18. There is a time gap between production and consumption of goods therefore warehousing
is required which overcomes the problem of..
a) Funds
b) Storage
c) Time
d) place
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19. No business can survive without enough amount of funds.Banks are providing financial
assistance to the businesses to overcome one of the following hindrance of trade.
a) hindrance of place
b) hindrance of time
c) hindrance of finance
d) hindrance of information
20. Which of the following combinations are correct for internal trade?
a) Import and export
b) wholesale trade and entrepot
c) retail trade and import Trade
d) wholesale and retail trade
21. Which among the following is not a characteristic of a business activity:
a) Production or procurement of goods and services.
b) Sale or exchange of goods and services.
c) Donation of a percentage of profit for charity.
d) Uncertainty of returns.
Ans.- (c)
22. Due to which characteristic of business there is always a possibility of losses being
incurred, despite the best efforts put into the business:
a) Uncertainty of returns
b) Production or procurement of goods and services .
c) Economic activity
d) Profit earning.
Ans.-(a)
23. How many types of risk does a business enterprise get exposed to :
a) One.
b) Two
c) Three
d) Four
Ans.-(b)
24. Business Risk generated out of carelessness or negligence of employees would emerge
due to which of the following cause:
a) Natural cause.
b) Human Cause.
c) Economic cause
d) Other cause.
Ans.-(b)
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25. Changes in market conditions, changes in price or changes in fashion and tastes of
customers refers to which type of risk?
a) Pure risk.
b) High Risk.
c) Low Risk.
d) Speculative Risk.
Ans.-(d)
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11.Industry may be divided into broad categories namely analytical synthetical and processing
industry FALSE
13. Manufacturing industries may be further divided in to primary , secondary and tertiary
industry False
14. Secondary industries process such material to produce goods for final consumption by other
industrial units TRUE
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3.
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4.
5. Kaveripatta a. It was an emporium of trade and
people here subsisted on commerce.
2.Surat b. Chinese used to come in foreign ships to
purchase pearls, glass and rare stones and in
return they sold gold and silk.
3.Mathura c. It was the centre of trade for perfumes,
cosmetics, scents,silk,wool,cotton,etc….
4.Kanchi d. It was the emporium of western trade
during the mughal period. Textile was famous
for gold borders (Zari).
Ans. 1-c, 2-d, 3-a, 4-b
5.
Answer
1---- D 3 --- A
2----- C 4 --- B
6.
1. For which economic activity salary is a reward A Profit
2. Position of an enterprise in relation to its B Innovation
competitor are called
3. The excess of revenue over cost C Marketing Standing
4. Introduction of new idea or method in a way D Employment
some thing done or made is called
Answer
1---- D 3 --- A
2----- C 4 --- B
7.
1. Entrepreneur‟s decision & other legal formalities A Business
is needed in
2. In which economic activity no capital I required B Employment
Answer
1 ---- A 2 --- B
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8.
9.
1. Define in concrete term what the business is A Social responsibility
going to do achieve
2. Obligation of business firms to contributed B Objective
resources for solving social problem
Answer
1 ---- A 2 --- B
10.Classified
1 Reproduction and development of living A Secondary
organism, plants
B Extraction
2. Concerned with the extraction and productive C Manufacturing
of natural resources D Genetic
Answer - 1-- C , 2== A
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13.Example of industry
1 Primary A Banking
2 Secondary B Agriculture
C Textile
Answer - 1-- B , 2== C,
14.Example of Industry
1 Analytical industry A Dams
2 Synthetically industry B Car
3 Construction industry C Cement
4 Assembling industry D Oil refinery
Answer - 1-- D , 2== C, 3 == A, 4 = B
15. Join the following services to trade with the hindrances which they remove:
a) Transport i) information
b) Insurance ii)storage
c) warehousing iii)place
d) advertising iv) person
v) risk
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18. Join the following services to trade with the examples given:
19. Relate the following items with the concept written below:
Ans.- (c)
21. Due to which characteristic of business there is always a possibility of losses being
incurred, despite the best efforts put into the business:
e) Uncertainty of returns
f) Production or procurement of goods and services .
g) Economic activity
h) Profit earning.
Ans.-(a)
22. How many types of risk does a business enterprise get exposed to :
e) One.
f) Two
g) Three
h) Four
Ans.-(b)
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23. Business Risk generated out of carelessness or negligence of employees would emerge
due to which of the following cause:
e) Natural cause.
f) Human Cause.
g) Economic cause
h) Other cause.
Ans.-(b)
24. Changes in market conditions, changes in price or changes in fashion and tastes of
customers refers to which type of risk?
e) Pure risk.
f) High Risk.
g) Low Risk.
h) Speculative Risk.
Ans.-(d)
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Complete the following items with appropriate words
1. The maritime routes linked the east and the west by Sea and were used for the trade of
spices is known as SPICE ROUTE.
2. Commercial Cities like Harappa and Mohenjodaro were founded in the year
THIRD MILLENNIUM B.C.
3. Documents such as HUNDI and CHITTI were in use for carrying out the
transactions in ancient times.
4. Pepper was particularly valued in the Roman Empire and was known as BLACK
GOLD.
5. Guild Merchants undertook the task of building temples and made donations by
levying a CORPORATE Tax on their members.
6.. It is generally believed that business activity is carried out for PROFIT
8.Obligation of business firm to contribute resource for solving social problem and work in a
desirable manner is called SOCIAL RESPONSIBILITY.
9.Introduction of new idea or method in the way something is done or made is called
INNOVATION.
11. The term used for activities in which mechanical appliances and technical skills are
involved is Industry
12. The type of industry which is engaged in breeding plants and animals for their use in
further reproduction is Genetic Industry
13. The type of industryehich is concered with providing support services to primary and
secondary industries as well as activities related to trade is Tertiary Industry
14. The type of manufacturing industry which involves successive stages for manufacturing
finished product is Processing industry
15. The type of manufacturing industry which analyses and separate different elements from
the same materials is Analytical Industry
16. Transport, banking, insurance are the services/auxiliary to trade.
17. Auxiliaries to trade are helpful in the removal of hindrance in the process of exchange.
18. Business risks can be covered with the help of insurance service of trade.
19. The auxiliary to trade which provides vital information about goods and services to
customers is called advertising.
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20. The term which is used for buying and selling of goods is called trade.
21. No business can survive for long without Profit.
22. Business may be defined as a(n) economic activity involving the production.
23. Pure risk involve only the possibility of loss or no loss.
24. Business risks refers to the possibility of inadequate profits or even losses due to
uncertainties or unexpected events.
25. The reward for taking risk is profit.
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Pictorial Identification
2
answer :-Harappa
answer :-Hundi
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4 Ans: Profession.
5 Ans: Employment.
6 Ans:Business.
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9. Identify the type of manufacturing industry shown in the image given below:
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13. Which hindrance of trade is removed by the activity shown in image given below:
Ans: Storage
14. Indentify the aid to trade shown in the below given picture:
Ans. Insurance
15. Which type of requirement of the business is met by the organisation shown in the
picture given below:
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16. Give the name of the remaining auxiliary to trade missing in the picture:
Ans. Warehousing
17. Identify the type of Internal trade in the given image:
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18. Identify the causes of Business Risk in each of the following pictures.
18.
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16. The liability of members of a cooperative society is limited to the extent of
their capital contribution. U
17. The membership of a cooperative society is voluntary. R
18. In a cooperative society, the power to take decisions lies in the hands of an
elected managing committee. R
19. The capital of a cooperative society is raised from its members through issue
of shares. U
20. The cooperative society lays emphasis on service motive. U
21. In a Joint Stock Company the board of directors are elected by the
.
22. Joint stock Company enjoys , as members may come
and go, but the co. continues to exist.
23. The company acts through its Board of Directors and enters into an
agreement through a(n) .
24. The liability of a company is limited to the extent of the amount
on the shares held by them.
25. The formation of a company is a time consuming, and a
complicated process.
Answers:-
21. Shareholders 22. Perpetual succession 23. Common seal
24.Unpaid 25. Expensive
26. Private Ltd. Company can start business after completion of
stage.(2nd)
27. The maximum number of shareholders in any Private company is
(200)
28. To start any Private Ltd. company minimum paid up required is
(1lakh)
29. Shareholders of Private Ltd. Company have Liability. (limited)
30. Minimum number of members can start private company. (2)
31.To start a public co.minimum paid up capital is Rs.-------------
(5 lakh)
32. There is ----------- restriction on transfer of share.
(no
33. MOA is also known as ----------- of the co. ( charter)
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34. Object clause defines the ----------- for which the co.is formed.
(purpose)
35. Articles of association are the rules regarding ------- management of a co.
(internal)
- State whether statement is true or false:
1. Sole proprietor bears profit and loss individually. T
2. There is a separate law that governs sole proprietorship. F
3. There is lack of business continuity in sole proprietorship business
organisation. T
4. Sole proprietors have limited liability. F
5. In sole proprietorship business operations are confidential and secret. T
6. . Mitakashara system prevails all over India and allow only male member to be co-
parceners in the business. (TRUE)
7. The HUF business come to an end after the death of the Karta. (False)
8. Before commencing business, it is necessary to receive minimum subscription in Public
Company. (True)
9. Appointment of underwriters is necessary in the capital subscription stage. (False)
10.A company inviting funds from general public must conceal any material information
from potential investors. (False)
11. A nominal partner is one who allows the use his/her name by a firm, but does not contribute
capital.(True)
12. A sleeping partner is having limited liability. (False)
13. General public is having greater confidence in partnership business. (False)
14. On the basis of liability partnership is classified into general partnership and limited
partnership. (True)
15. Registration of a cooperative society is not compulsory.(False) R
16. The cooperative society can be started with a minimum of two members.(False) R
17. In a cooperative society each member is entitled to equal voting rights.(True) R
18. Farmer‟s cooperative society is set up to help people to construct houses at reasonable
cost.(False) U
19. Marketing cooperative society is established to help small producers in selling their
products.(True) U
20. The written agreement made by the partners is called partnership deed. (True)
21. hardly any legal formalities are required for the formation of a company.
22. The common seal is engraved equivalent of an official signature of a company.
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23. The shares of a public ltd. co. can easily be sold and can be converted into cash.
24. In a joint stock professional management is not possible .
25. Communication as well as approval of various proposals in a co. is done very
quickly.
Answers:-
21.F 22. T 23. T 24. F 25. F
26. Members of any Private Ltd. Company cannot transfer his shares without
permission of shareholders.(True)
27.A Private company can raised funds after issuing prospectus.(False)
28.APrivate company should appoint minimum three Board of Directors.(False)
29.Minimum Paid up capital to start any Private company is 1 lakh
rupees.(True)
30.The maximum members of any Private Ltd. Can be two hundred.(True)
31.There is no limit on maximum member in a public co.
true
32.A co.is legally entitled to undertake an activity which is beyond the object
clause. False
33.Articles of association can be altered from time to time as per the act.
True
34.A public co. can commence the business after incorporation.
False
35.Issued capital of A tech ltd.was Rs. 5o cr, co.gets the subscribed capital of
Rs.44 cr. Now co. can allot share to shareholders. false.
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3- Which type of business organisation is easy to form and there is no separate
low for
a) Sole Proprietorship c) Joint Hindu Family
b) Cooperative society d) Partnership (A)
4- Which is not a limitation of Sole proprietorship.
a) Limited resources c) Easy formation
b) Limited life of business d) limited managerial ability (B)
5- Which is not a feature of sole proprietorship.
a) Unlimited liability c) limited managerial ability
b) Ease of formation d) Quick decision making ( C)
6. In which form of business organization, minor can also be members –
(a) Joint Stock Company (b) Cooperative Society
(c) HUF business (d)Sole Proprietorship
7. The prospectus is issued by :-
a) private co. b) public co. c) partnership d) HUF
8. The oldest form of business organization of India
a)HUF business b) partnership c) public co. d)
one person co.
9. Application for approval of name of a company is to be made to-
a)SEBI b)Registrar of Companiesc) Government of India d)
State Government
10. What is the size of minimum subscription as per SEBI?
a)90% b)92% c)85%
d)80%
11. The maximum no. of members in a partnership business is. (d)
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(a). 4 (b). 2 (c). 5 (d). 6
14. A sleeping partner is otherwise known as. (b)
(a). Nominal partner (b). Dormant partner (c). Partner by estoppel
(d). Limited partner
15. The form partnership which was restricted in India is. (d)
(a). Particular Partnership (b). General Partnership
(c). Partnership at will (d). Limited Partnership
16. The minimum number of members required to form a cooperative society is-
a) Five b) Ten
c) Twenty d) Two
Ans-b
17. Which of the following business organisation has service motive?
a) Sole Proprietorship b) Joint Hindu Family
c) Cooperative Society d) Company
Ans- c
18. In a cooperative society, the power to take decisions lies in the hands of-
a) Elected Managing Committee b) Karta
c) Board of directors d) Members
Ans- a
19. This type of cooperative society is set up with the aim of eliminating middlemen
a) Producer‟s Cooperative Society b) Marketing Cooperative Society
c) Consumer‟s Cooperative Society d) Farmer‟s Cooperative Society
Ans- c
20. The cooperative society is required to be registered under the Cooperative Society Act
a) 2013 b) 1932
c) 1956 d) 1912
Ans- d
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21. Name the business organisation which has a legal status independent of its
members.
a) HUF b) Sole proprietorship c) Joint Stock Co. d) Cooperative
Societies
22. Who undertakes the management & control of the affairs of the company on
behalf of its owners?
a) Board of Directors b) Departmental Heads
c) Managing Directors d) Vice president
23. Find out the liability of Kavita in a company. Who is a shareholder, holding 3,000
shares of Rs. 10 each. She has already paid Rs. 6 per share.
a) Rs 10,000 b) Rs. 1,20,000 c) Rs 18,000 d) Rs. 12000
24. The directors take all decisions on behalf of the shareholders, keeping in mind
their own benefit. Identify the demerit stated above.
a) Delay in decision making b) numerous regulations
c) Lack of secrecy d) oligarchic management
25. Which form of organisation is suitable if direct control over operations & absolute
decision making power is required in business?
a) Joint Stock Co. b) cooperative society c) Sole proprietorship d)
HUF
Answers :-
21.c 22. a 23. d 24. d 25. C.
(a) one lakh (b) Two lakhs (c) Five lakhs (d)Ten lakhs Ans.A
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(a) Public Enterprise (b) Public Company (c) Private Company
(d)Public Sector (B)
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d) Partnership 4 Service motive
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b) Cooperative society (2) Separation between ownership & Management
c) Joint Hindu family (3) Elected Representative managing committee takes
decisions
d) Sole Proprietorship (4) Karta takes decisions
(a) 2 (b) 3 (c) 4 (d) 1
6. Match the Column on the basis of features of Hindu Undivided Family-
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Partnership - Minor members allowed
- Limited liabiliy
Ans- 1-b,2-a,3-c
12. Match the following on the basis of registration
Partnership - No need of formalities like registration
Co-operative society - Registration is optional
Sole Proprietorship Business - Compulsory registration
-Separate legal entity
Ans- 1-b, 2-c, 3-a
13. Match the following on the basis of types of partners-
Do not participate in management Active Partner
Only name is available in partnership deed Sleeping Partner
Participates in management Nominal Partner
Ans- 1-b, 2-c, 3-a
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ii) BOD enjoys freedom in exercising b) complexity
Their power.
c) Impersonal work environment
d) Oligarchic management
Ans i. c ii. d
19. Match the following on the basis of choice of form of business organisation.
i) Division of work among members a) sole proprietorship
ii) Inexpensive way of starting a business b) HUF
c) Partnership
Ans. i. a ii. c
20. Match the following on the basis of minimum paid up capital.
i. Public Co. a) Rs. 1 Lakh
ii. Private Co. b) Rs. 3 lakh
c) Rs. 10 lakh
d) Rs. 5 lakh
Ans. i. d ii. a
21. Match the following cooperative societies with their objective-
1 Farmer‟s Cooperative Society a To eliminate middlemen
2 Marketing Cooperative Society b To protect the interest of small producers
3 Consumer‟s Cooperative Society c To help small producers in selling their
products
4 Credit Cooperative Society d To protect the interest of farmers
e To provide loan facility on reasonable
terms
Ans-1-d 2-c 3-a 4-e
22. Match the following forms of business organizations with the minimum number of
members required-
1 Partnership a Five
2 Cooperative Society b Seven
3 Private Company c Two
4 Public Company d Ten
e Fifteen
Ans- 1-c 2-d 3-c 4- b
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23 Match the following forms of business organizations with their suitable examples-
A B
Private company 7
A B
10 Lakhs
A B
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Private company Unlimited
Partnership 50
A B
Promotion
A B
Private company 10
ans 1©2(d)3(B)
32)Match the column with suitable key words:
1)registration of a co. a)promotion
2) capital collection b)incorporation
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3) seeding stage of an idea.
1©3(a)
33) identify with main content of MOA.
1)registered office of the co. a)name clause
2)main object of the co. b)domicile
3)approved name of the co. c)object clause
4)up to unpaid amount of the co. d)liability
Clause
e)authorised
capital of
the co.
Ans. 1. (c) 2(a)3(b)4(d)
34. identify no. of directors require in a co.
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1(b)2(c)3(a)
Pictorial questions:-
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Ch-3
Q1. Fill up the blanks with the appropriate word in the following statements.
1) Huge Industrial organization which extend their industrial operations through a network of their
branches in several countries are known as Global Enterprises.
2) MNC’s are in a position to exercise massive control on the world economy because of their
capital resources.
3) Huge investment which only global enterprises can afford is qualitative research.
4) “ MNC’S have their headquarters in their home country and exercise control over all branches
and subsidiaries”. Name these feature. Centralised control.
5) Global enterprises operate through a network of subsidiaries, branches and affiliates in host
countries.
6) Indian economy is composed of both Privately owned and Government owned business
enterprises so it is known as Mixed Economy.
7) The Public sector consists of various organizations owned and managed by the government.
8) The private sector consists of business owned by individuals.
9) Public sector can be classified into three divisions.
10) Sole proprietorship is an example of private sector.
11) A business agreement in which two or more parties agree to pool their resources for the
purpose of accomplishing a specific task is referred to as
12) If a foreign partner or a Non Resident Indian is involved in a Joint Venture, a government
approval has to be taken which can be obtained from either or
FIPB depending upon circumstances.
13) The agreement in a partnership is referred to as a Partnership Deed while that in a Joint
Venture is referred to as a/an
14) A long term contract between a private party and a government entity for providing a
public asset or service is regarded to as
15) These kinds of businesses are typically found in transport infrastructure such as
highways, airports, railroad, hospital etc. Such businesses are often formed as
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6) Private enterprises are accountable to the public through the parliament. False
7) Indian economy is a mixed economy. True
8) A public company necessarily is a public sector organization. False.
9) The private sector consists of business owned by individuals or a group of individuals. True
10) The main objectives of public sector is to accelerate the rate of economic growth and
industrialization. True
11) Public enterprises are owned by public. False
12) A joint venture may be the result of an agreement between businesses in different
countries.
13) Two private organizations may not come together to form a Joint Venture.
14) The laws for Joint Venture companies are very different from the laws of Domestic
Companies in India.
15) A government approval is required to be able to form a Joint Venture in case a party to
the venture is a foreigner or an NRI.
16) A Public Private Partnership ensures higher quality and timely provision of public
services.
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c) Statutory corporationjs
d) Global enterprises (d)
(6) Partnership is an example of
(a) Joint stock company
(b) Private sector
(c) Statutory corporation
(d) Public sector
(7) Indian economy is a economy
(a) Socialist economy
(b) Capitalist economy
(c) Industrial economy
(d) Mixed economy
(8) Disinvestments of PSE’s implies
(a) Sale of equity shares to public
(b) Investing in new areas
(c) Buying shares of PSE’s
(d) Closing down private sector
(9) The role of private and public sector were clearly defined by the government through
(a) Industrial policy 1991
(b) The parliament
(c) The industrial policy resolution1948
(d) The Indian companies act 1956
(10)Public sector enterprises are organizations owned by
(a) joint Hindu Family business
(b) government
(c) foreign Companies
(d) private entrepreneurs
12. Companies typically pursue Joint Ventures for all of the following main reasons except:
A. To access a new market
B. To gain scale efficiencies
C. To bring out regional development
D. To share risks for major investment
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13. Joint Ventures are formed by making an agreement which is legally termed as:
A. Joint Venture Contract
B. Joint Venture Deed
C. Memorandum of Undertaking
D. Joint Venture Agreement
ANSWERS: 1. D 2. C 3. C 4. C 5. B
Q4. (I) identify the features of MNC on the basis of the following.
A B
1. Investors and banks of the host country a) Product innovation
are willing to invest in them b) Marketing strategies
2. Global enterprise usually enter into c) Advance technology
agreements with Indian companies d) Huge capital resources
pertaining to the sale of e) Foreign collaboration
technology,production of goods etc.
(1-d, 2.-a)
(II) Match the following with the appropriate features.
A B
1. The products produced are able to a) Foreign collaboration
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conform to international standards and b) Advanced Technology
quality specifications . c) Product innovation
2. Qualitative research requires huge d) Huge Capital resources
investment which only global enterprises
can afford.
( 1-b, 2-d)
A B
1. Huge industrial organisations which a) Departmental Undertaking
extend their industrial and marketing b) Global enterprises
operations through a network of their c) Statutory Corporations.
branches in several countries. d) Huge capital resources
2. Even investors and banks of the host
country are willing to invest in Global
enterprises because of this feature.
( 1-b, 2-d)
A B
1. Huge Capital resources a) International Brands
2. Product innovation b) Head quarters in home country
3. Centralised control c) Qualitative research
4. Marketing strategies d) Advertising and sales promotion
techniques
e) International banks and investors
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Q3. (VI)
VIII.
IX.
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(X) Match the following with the appropriate terms:
A B
1. The business organization owned and a) Global enterprises
managed by the government. b) Public sector
2. The business enterprises which operate in c) Joint Venture
more than one country. d) Private sector
(1-b,2-a)
(XI) Math the following with appropriate terms:
A B
1. The organization owned by individuals or a) Departmental undertaking
group of individuals b) SAIL
2. Indian Economy c) Private sector
d) Mixed economy
(1-c, 2-d)
(1-c,2-a)
(XIV) match the following industrial policy with their objectives:
A B
1. Industrial policy resolution 1948 a) Disinvestment
2. Industrial policy 1991 b) Profit
c) Define the role of private and public sector
(1-c, 2-a)
(1-c, 2-d)
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XVI
XVIII
XIX
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Chapter 4 – Business Services
Write True or False
1. E-banking provides communication services through internet . Ans.F
2. Load on branches of the banks can be reduced by e-banking . Ans.T
3. “Kisan Vikas Patra” is a saving scheme provided by Indian Post and Telegraph Department .
Ans.T
4. The Radio paging services are to way communication service . Ans. F
5. Life insurance is not based on the principle of indeminity. Ans.T
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v. DTH reduces the dependency on the services provided by the
service provider. True.
1. The bank which controls and coordinates currency and credit policy of India is Reserve
Bank of India.
2. The commercial banks of India are governed by Indian Banking Regulation Act, 1949.
3. Banking is a type of business service.
4. The bank which acts as a government banker is Central Bank.
5. The banks which are owned, managed and controlled by private promoters are private
sector commercial banks.
6. The principle of insurance that requires full and accurate disclosure of facts
and other important information is called .
7. The principle of insurance that gives right to an insurer to stand in place of
the insured after settlement is called .
8. The type of insurance that gives protection of the life to a person is called
.
9. The insurer in Marine Insurance is known as .
10.Without insurable interest the contract of Life Insurance is .
Ans i-Utmost good faith, ii- subrogation ,iii- Life Insurance,
iv- Underwriter, v-void
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b) Written contract between the insured and the insurer is known as
Policy
c) Small periodic payment for a risk of large possible loss is known as
Insurance Premium
d) Business Service sector to minimize the impact of uncertainties
Insurance
e) John took a health insurance policy. At the time of taking policy,
he was a smoker and he didn't disclose this fact. He got cancer.
Insurance company won't pay anything as John didn't reveal the
important facts. John has violated the insurance principle of utmost
good faith.
ANS . i)c
ii) e
iii) d
iv) a
v)b
2. Match these services to the features or facilities included under each :
i)E- banking a)Mobile telecom services
ii)Postal Services b) Movement of goods and passengers
iii) Telecom services c) Mail and financial facilities
iv) Transportation d)Banking services provided through
internet
Ans.
i)d
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ii) c
iii) a
iv)b
3. Match these types of insurance to their subject matter:
Life insurance a)Physical property or assests
Fire insurance b) Ship , cargo or freight
Marine insurance c)Human life
Ans. i)c
ii)a
iii)b
Ans. i)c
ii)d
iii)b
iv)a
Q1
1. HDFC a) Bearer cheque
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funds
1. - (c)
2. - (f)
3. - (a)
4. - (b)
5. - (d)
Q2.
Answers:
1. - (c)
2. - (a)
3. - (b)
4. - (e)
5. - (d)
Q3.
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1. VSAT services is a type of a) Insurance Company
f) Insurance Services
Answers:
1. - (b)
2. - (c)
3. - (a)
4. - (f)
5. - (e)
Q4.
Answers:
1. - (b)
2. - (d)
3. - (a)
4. - (e)
5. - (d)
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6.
Q5. Match the following on the basis of types of life insurance policies:
1. Policy is taken by person for his/her a) Joint Life Policy
children to meet expenses of their
education/marriage.
2. Policy is taken by two or more persons b) Annuity Policy
Answers:
1. - (e)
2. - (a)
3. - (b)
4. - (c)
5. - (d)
(A) Ramesh is a teacher who wants to open an account in a bank with an aim to
do saving. He approaches the Bank Manager who guides him of various
accounts and their utilities. Assist him to identify the features of various
accounts.
(i) The accounts that encourages savings. (a) Fixed accounts
(ii) Amount is deposited for a fixed period. (b) Current accounts
and carries higher rate of interest .
(iii) Amount is withdrawn regularly, especially (c) Saving accounts
for business.
(iv) A fixed amount is deposited regularly for a (d) Recurring deposit
fixed period.
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Ans i-c, ii-a, iii-b, iv-d
(B) Shyamlal owns a General Insurance company and his friend deals with only
Life Insurance. Assist a customer who wants to understand Life Insurance
and General Insurance.
(i) This insurance helps his family members (a) Fire Insurance
after his death.
(ii) Insurance is for a period of one year and (b) Marine Insurance
then renewed.
(iii) Protection against loss by marine perils. (c) Crop Insurance
(iv) Protection to crops for the loss caused. (d) Life Insurance
Ans: i-d, ii-a, iii-b, iv-c
(C) Radha’s grandfather gave rs 10,000 to her on her birthday which she
deposited in post office in Provident Fund account. The Manager acquainted
her with the other allied facilities given by their department.
(i) A range of attractive greeting cards. (a) Media post
(ii) Indian Corporates advertise through it. (b) Speed post
(iii) Facilitating passport application. (c) Greeting post
(iv) Fastest delivery in 97 countries. (d) Passport facilities
Ans: i-c, ii-a, iii-d, iv-b
(D) Suresh Chand and Sons owns a handicraft business. They want to be
acquainted with online payment mechanism system. Guide them of the
various options.
(i) Payment done using UPI (a) Credit card
(ii) Transfer money electronically from (b) Cash on delivery
Bank account.
(iii) Goods bought on credit. (c) BHIM
(iv) Payment done after receiving the (d) Debit card
commodity.
Ans: i-c, ii-d, iii- a, iv- b
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(E) Following are the four ‘I’s of services. Help Umesh understand in a better
way.
(i) Services cannot be touched. (a) Inseparability
(ii) Services cannot be standardized. (b) Intangibility
(iii) Simultaneous activity of production (c) Involvement
and consumption.
(iv) Participation of customer in service (d) Inconsistency
delivery process.
64
exclusively each time. II) Intangible
c) Simultaneous activities of production
and consumption III) Inventory less
d) Services cannot be used for future IV) Involvement
e) Participation of customer and
delivery process V) inseparability.
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a) Life insurance
b) Fire insurance
c) Marine insurance
d) All of them
ANS. A
1. Kotak Mahindra bank is an example of:
a) Public Sector Bank
b) Private Sector bank
c) Cooperative bank
d) Specialized bank
Answer : (b) Private Sector Bank
2. The premature withdrawal is permissible with a percentage of interest being forfeited in:
a) Savings Account
b) Current Account
c) Fixed Account
d) None of the above
Answer: (c) Fixed Account
a) Specialized Bank
b) Cooperative bank
c) Central bank
d) Commercial bank
Answer: (c) Central Bank
4. Who decides the rate of interest provided by commercial banks on deposits in India?
a) Reserve Bank of India
b) Commercial Bank
c) Foreign Exchange Bank
d) Export- Import bank
Answer: (a) Reserve bank of India
5. Commercial Banks provide the facility of fund transfer from one place to another, on
account of inter-connectivity of branches. Such facility is called as:
a) Acceptance of deposits
b) Allied services
c) Lending of funds
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d) Remittance of funds
Answer: (d) Remittance of funds
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(c) Hull Insurance
(d) Freight Insurance
(v) Crop Insurance is a part of which type of insurance?
(a) Life Insurance
(b) Marine Insurance
(c) Fire Insurance
(d) Other Insurance
69
Chapter 5 – Emerging Modes of Business
Write True or False
3) There is direct contact with the supplier and the customer in traditional business.
(false)
4) High operating cost in traditional business due to fixed charges associated with
investment in procurement and storage production ,marketing and distribution
facilities. ( True)
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3. An old customer has sold his used refrigerator to another customer through
OLX. It is an example of C2C commerce.
T
4. To establish e- business large investment is needed to purchase various
requirements for the business.
F
5. Through B2 B commerce one businessman firm can interacts with another
business firm to make any transaction.
T
6. A captive BPO unit provides services to a wide base of clients, cutting
across industries
7. Knowledge process outsourcing requires competent and highly
skilled professionals.
8. Outsourcing involves contracting out of business services in non-
core activities.
9. Basic education is enough, in case you want a job in BPO sector
10. BPO means contracting out non- core and routine activities to
outside
Agencies with a view to benefiting from their experience,expertise
and efficiency.
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Ans. 1. B 2 C 2. Consumer 3. C 2 C 4. B 2 E 5. e-commerce
1. In e-business there is no need of face to face interaction between the buyer and
.
( Seller)
2. E-business can be easily started sitting at home with the help of computer and
. Facility.
( Internet)
3. “Use of internet has considerably reduced the need of filling up form and
physical documentation, eventually leading towards a society.
( Paperless)
4. “ E- business affords to the buyer a freedom to choice product from almost any
part of the world.” This statement shows one of the benefit of e-business, that is
. (Global Reach)
5. In the variant of e-business, a businessman is purchasing raw material
from another businessman. (B2B
Commerce)
1. It refers to a long-term contracting out generally the non-core and
even some of the core activities to captive or third party specialists
is known as
,
3. Xyz is specialized in consultancy service. The company makes
software for reputed bank of USA. It is specialized in making
accounts of that bank.To carry on this work, XYZ Ltd.hires
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another company which has professionals like engineers CA,s
etc.Identify the concept type of BPO
4. Give the names of 2 services that are covered under BPO.
1. 2
5. under outsoursing of service the services
are (costly/cheap)
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d) Departments of the firm d) B2C
Ans: 1. a-c, b-a 2. a-c, b-a, c-b 3. a-b, b-c 4. a-c, b-a, c-b 5. a-d, b-c, c-a,
d-b
1) On the basis of level of difficulty information of the business, identify the correct answer?
3) hawkers
4) shop
3)shop
4)hawkers
Facts Statement
c)diagonal
d)cross
c) flat command
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d) common command
2)e-business b)simultaneous
c)quee
d)group
1. Given topics given in part A are explained in part B. Identify and match with the
suitable meanings:
A B
(a) Outsourcing (i) Interaction within the departments of any organization
(c) C2C (iii) One firm purchasing raw material from another
firm.
2. Different benefits of e-business are explained here. Find out with suitable headings.
Benefits Concepts
(a) Ease of formation and closure (i) Its very convenient as it offers 24x 7 days a
week.
(b) Convenience (ii) It can be easily accessed with a click of a
mouse.
(c ) Global reach (iii) Low investment is required.
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3. In e-business different business applications are included through which we can
understand the meaning of e-business correctly. Identify the correct meaning
matching with application.
Application Meaning
(a)E- trading (i)It includes publication of online catalogue
displaying images of goods, advertisements through
banner
(b) E-delivery (ii) It involves securities trading, that is online buying
and selling of shares and other financial instruments.
(c ) e-bidding (iii) It includes electronic delivery of computer
software, photographs, videos to the user’s computer.
(c) E-communication (iv) It includes e-tendering whereby one may submit
tender quotations online.
( a-ii, b- iii, c- iv, d- i)
4. Every type of business has certain characteristics. Identify and match the various
characteristics to the type of business:
(a) Departmental Stores (i) There is a personal interaction between
buyer and seller.
(b) Formation of e-business (ii) e-business
(c) Transactional risk is higher (iii) High investment is required.
(d) Personal Touch (iv) Low capital is required.
(a- Iii, b- iv, c- ii, d- i)
Fact Statements
(a) E-commerce (i) Completing the routine jobs from the
outside agencies.
(b) Outsourcing (ii) Performing the various business activities
with the help of internet.
( c) Intra B commerce (iii) Assigning authorities and responsibilities to
employees.
76
(a- ii, b- i, c- iv, d- iii)
A. Match the following outsourcing service providers to the services
provided by them
1. Captive service providers a)are the firms which specialized in
one or two industries.
C) Match the columns the factors responsible for the growing importance
of BPO
1. lower prices a. customer support services
77
ANS:1-C.2-c, 3-a
Ans 1 b , 2 a
78
2. The dimension of e-business that allows the customers to stay-in-touch with the
business round the clock is
a) B 2 B
b) C 2 B
c) B 2 E
d) C 2 C
3. The various departments of a firm can constantly interact with each other for achieving
efficiency in operations through the use of one of the following networks,
a) Intranet
b) Internet
c) Cell phones
d) Intercom
4. In this dimension of e-business the different departments of a firm constantly interact
with each other for achieving efficiency in operations,
a) B 2 B
b) C 2 B
c) Intra-B
d) C 2 C
5. The private and secure networks used by firms for efficient management of their
internal functions are known as
a) Internet
b) Intercom connections
c) Closed-user-groups
d) VPN (Intranet)
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a) direct personal contact
b) indirect contact
c) indirect though intermediaries
d) no contact
4) Shape of the organizational structure in e-bussiness?
a)vertical
b)horizontal
c)diagonal
d)cross
5) The degree for interpersonal touch in e-bussiness?
a)less
b)high
c)nill
d)medium
1. Which payment method is not suitable in e-business?
a. Cash on delivery
b. E-cash
c. Cheques
d. Credit or Debit card (e-cash)
2. Intra B commerce includes
a. Interaction between the different departments within the organization.
b. Interaction between two business firms.
c. Interaction between two customers
d. Interaction between business and customers. (a)
3. Outsourcing does not include-
a. Assigning task to the outside agency.
b. Processing work to third party.
c. Assigning non-core activities to third party.
d. Getting things done from the existing employees. (d)
4. Various departments of the organization like production, purchase, marketing
etc. can interact with each other by using
a. B2B commerce
b. B2C commerce
c. C2C commerce
d. Intra B commerce (d)
5. Job work is an example of:
80
a. B2B commerce
b. E- business
c. Outsourcing
d. C2C commerce (c)
2. The term outsourcing has more popularly came to be associated with
(a) job- work
(b) knowledge process outsourcing
(c) business process outsourcing
(d) legal process outsourcing
3. call centre,s working for various tele com. Companies are an example
of
(a) business process outsourcing
(b ) knowledge process outsourcing
(c) legal process outsourcing
(d) industrial process outsourcing
3. which one of the four is not a key segment of outsourcing?
(a) contract manufacturing
(b) contract informatics
(c) contract research
(d) contract registration.
4. Job-work is an example of :
a) Contract manufacturing
b) Contract Research
c) Contract sales
d) Contract informatics.
5.A Ltd outsources several services instead of doing them itself.
Among these services are included advertising services, courier
service,etc. similiarly, B ltd is getting some services done by other firms
such as research and development, business and technical analysis
etc.
Identify the concept of A ltd as well as of B ltd in the above mentioned
Para.
(a) Business process outsourcing and kwowledge process outsourcing.
(b) Knowledge process outsorcing and business process outsourcing
(c) Services being outsourced are same by both these companies.
(d) Horizontal service provider.
.
ANS. 1 C, 2.A, 3.D, 4 A, 5A
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Group 6
Q.2 One of the argument for the social responsibility states that “Social Responsibility helps in
converting problems into Ans: Opportunities
Q.3 Some people have unclear belief that a firm’s only responsibility is towards its
Ans: Owners
Q.5 The social responsibility may respect the aspirations of society along with
interest. Ans: Profit
Q6. Business enterprise should create right kind of working conditions to the workers to win
their cooperation’s.
Q.7. An enterprise must respect the laws of the country.
Q.8. Protecting the natural environment is the example of social responsibility of business
towards community.
Q.9 The enterprise must respect the democratic rights of the workers to form trade unions.
Q.10The workers should be ensured of fair wage and a fair deal from the management.
Q.12 Supply of right quality and quantity of goods & services is the responsibility of business
towards ( consumers)
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Q.13 The company must take about poor quality, adulteration, avoiding practices of misleading
and dishonest advertising is the responsibility of business towards ( consumer)
Q.14 The company provide the regular, accurate, full information related to its future growth is
the company, is it responsibility towards whom ( shareholders)
Q.16 The Socially determined moral principles which should govern business activities refers to
Ans. Business ethics
Q.17 The principles of conduct for the whole organization in the form of written documents is
Ans. Code
Q.18 Top level of management has a crucial role in guiding the entire organization towards
behavior. Ans. Ethical upright
Q.19 Involving at all levels is important to implement ethics policies to make ethical
business a society. Ans. Employees
Q.22 To increase the progress with respect to environment protection the periodic assessment of
pollution control programme in terms of and is done.
[cost,benefit]
Q.24 To generate more employment opportunities is the social responsibility of business towards
[society]
Q.25 To stop polluting the environment can enact the laws to ban hazardous
products. [government]
Ans: (b)
Ans: (b)
Q.3 An organization must behave as a good citizen. This is an example of the responsibility
towards:
Ans: (c)
Ans: (c)
Q.5 Social Responsibility of business refers to its obligation to take those decisions and perform
those actions which are desirable in terms of of our society.
a. Profit and Gain b. Objectives and values c. Losses and harms d. risks and threats
Ans: (b)
Q.6 All social problems can’t be solved by business enterprise because of lack of:
(a) Broad public support (b) Social skills
(c)Resources (d) all of the above (b)
Q.7 An enterprise should avoid bad smoky chimneys is an example of its responsibility towards
84
(a) Workers (b) Government
(c)Community (d) Customers (d)
Q.8 Which of the following refers to the code or system for controlling means to serve human
ends?
(a)Ethics (b) Values
(c)Traditions (d)Policy (a)
Q.9 An enterprise provides right of information about products to the consumers by
(a) Labelling (b) Advertising
(c) Pricing (d) All of the above (a)
Q.10 Maximum good to society can be ensured by following which concept?
(a) Profit Maximisation (b) Ethics
(c) Professional Management (d) Laws and regulations (b)
Q.11 Right to information about the products produced is the responsibility towards which
interest group?
Q.12 An enterprise must behave as good citizens. This is an example of its responsibility
towards.
Q.13 Which the following brings is changes the physical, chemical and biological charactertics
of air, land, and water.
Q. 14 “it is the concept of highest goal as ‘ services to society’ when a firm stand in a long run
and earn maximum profits”. This statement relates to one of the arguments for society
responsibility.
Providing the right quality &quantity of goods & services to people in the society is the
responsibility for which interest group?
Q.16 Ethical behavior is just and fair conduct which goes beyond observing laws and
85
a) government regulation c) company‟s regulation
b) NGO‟s regulation d) Employee‟s views
Ans. (a)
Q.17 The word „ethics‟ has its origin in the Greek word
a) „ethics‟ c) ethnic
b) „ethos‟ d) None
Ans. (a)
Q.18 management has a crucial role in guiding the entire organization towards
ethically upright behavior.
a) Lower c) Top
b) Middle d) None
Ans. (c)
a) Employer c)Managers
b) Employees d) None
Ans. (b)
Q.21 Although it is difficult to measure the end of ethical programmes , the firms can audit to monitor
compliance with ethical standards. Is related to which element of business ethics:
Q.22 The public image of any firm would also be improved when it supports:
86
(c) economic goals
Q.23 It is the responsibility of every business to provide accurate and full information about its working
as well as schemes of future growth.Towards which interested group is this social responsibility related
to :
(a) consumers
(b) employees
(c) investors
(b) Investors
(c) Society
Q.25 It is the moral obligation business to get involved in solving social problems,instead of expecting
other social agencies dealing with them. Is related to which justification of social responsibility:
True or False
Q.1 Better environment for doing the business is one of the basis for the social responsibility.
(True)
Q.3 A firm and its image stands to gain maximum profits in the long run when it has its highest
goal as ‘Service to Society’. (True)
Q.4 Business is to operate in a society which is full of diverse and complicated problems. (True)
87
Q.5 Social responsibility is narrow term than legal responsibility. (False)
Q.6 The principle of caveat venditor has been substituted by caveat emptor (F)
Q.7 Ethics are concerned with establishing linkages between individual good and social good (T)
Q.8 Profit motive is the only justification for the existence of the business(F)
Q.9 Professional managers are interested in satisfying multiplicity of interst groups then profit
goals (T)
Q.10 Ethics is important for the top level management only. (F)
Q.12 The enterprise responsibility towards the shareholders is toprovides a fair return to the
owner. This statement true or false. (T)
Q.13 From the point of business, Government regulations are undesirable because they limit
their freedom. (T)
Q.16 The word ‘ethics’ has its origin from the Latin word ‘ethics’. Ans. False
(Greek)
Q.17 Business ethics refer to the politically determined moral principles which should govern
business activities. Ans. (False) Socially
Q.18 Top level managers need to be openly and strongly committed to ethical conduct. Ans.
True
Q.20 It is very easy to accurately measure the end results of ethics programmes. Ans. False
(difficult)
Q.21 Yearly assessment of pollution control in terms of risk and benefit is done to increase the progress
with respect to environmental protection. [false]
88
Q.22 The only obligation of business towards its employees is to pay them well so that they work to
their maximum capacity. [false]
Q.23 For purpose of pollution control, organisations should develop clear cut policies for purchasing
raw material ,using scientific techniques for disposal and treatment of waste. [true]
Q.24 Complying with the laws and regulations enacted by government for prevention of pollutionis
voluntary. [false]
Q.25 Social responsibility involves an element of compulsory action on the part of business people for
the benefit of the society. [false]
Ans: (1 – a), (2 – c)
Q.2 Match the following on the basis of arguments for the concept of Social Responsibility:
1. An Argument for the Social a. All firms not follow the social responsibility
Responsibility
2. Avoidance of Government b. Long term interest of the firm
Regulation
c. Helps to reduce the need for new laws
Ans: (1 – b), (2 – c)
Q.3 Match the following on the basis of environmental and ethical issue of a business firm:
89
business”.
2. Social responsibility ia an ethical b. “Business system should do something to
issue meet the need before it is confronted with a
situation”.
c. Involves the question of what is morally
right or wrong.
Ans: (1 – a), (2 – c)
Q.4 Match the column on the basis of various services and examples of social responsibility.
Ans: (1 – a), (2 – c)
Q.5 Match the following on the basis of subject matter of social responsibility.
Ans: (1 – b), (2 – c)
90
social interest
2.codes or system or b)legal responsibility
principles governing
business activities
c)social responsibility
1-c, 2-a
Q.8 Match the following example with relevant stakeholders:-
1. right of information a) government and community
about the product
1-b, 2-a
1-b,2-a
Q.10 Match the following arguments for social responsibility with their reasons:-
1. availability of resources a) social problems perpetuated by business
with business
2.maintenance of society b)pool of capital and years of experience
c) laws can’t be passed for all circumstaces
1-c,2-a
Q.11 Match the following stakeholders with expected social responsibility of
enterprise.
91
their regular investment.
( 1-B) (2-A)
Q13 Match the coloumson the basis of social responsibility& their related interest groups.
1 Noise pollution A Dealing with the fair wages & fair dealing
from the management.
92
(1-C) (2-A)
Q.16 Match the followings on the terms with the relevant examples.
A B
i) Caring for environment a) Legal responsibility
ii) To produce goods according to social needs b) Social responsibility
c)Ethics
{Ans. i- (b) , ii- (a) }
Q.17 Match the following on the basis of the meaning of the elements of business ethics
A B
i) Too management commitment a) Involvement of all the employees
ii) Publication of Code b) CEO to be strongly committed to ethical conducts
c)principles of norms of behaviours
{Ans. i-(b), ii – (c) }
Q.18 Match the following stake holders on the basis of their related responsibilities.
A B
i) Share holders a) pay taxes regularly
ii) Employees b) Safety of investment
c)safety of employee
{Ans. i- (b), ii- (a)}
Q.19 Match the following on the basis of social responsibilities and stake holders.
A B
i) Responsibility towards the consumer a) pay tax regularly
ii) Responsibility towards the Govt. and community b) supply right kind of goods
c) providing meaningful work
Q.20 Match the following on the basis of concerns with the business ethics.
A B
i) Compliance mechanism a) The firm can audit to monitor compliance with ethical
Standards
ii) Measuring results b) Paying attention to values and ethics in recruiting
and
93
Hiring
c)small group of employees can be formed
(Ans. i- (b) , ii- (a) )
Q.21 Match the following socially irresponsible behavior with the stakeholders:
c) government
Q.22 Match the following statements with the given arguments for social responsibility.
(1) Business can avoid the problem of government regulation a)maintenance of society
(2) Business has a pool of managerial talents and capital resources, b)avoidance of government
Ans:1(b) ,2(c)
(1) To maintain and develop work culture for environmental a) by educational workshop
protection.
(2) Complying with the laws and regulations enacted for pollution b) by top management
Control.
c) by government.
Q.24 Match the statement towards which stakeholder is social responsibility followed:
94
Prices.
c)investors
1) this covers areas such as honesty and adherence to laws a) Involving employees at all
2) they must give continuous leadership for developing and b)top management comit-
c) Publication of code.
Pictorial Questions
Q.1
Ans. Legal
Q.2
95
Towards which interest group the responsibility of a business firm is shown in the above
picture?
Ans. Government
Q.3
Q.4
96
2021/07/21
Which argument for the social responsibility is described through the above picture out of the
following?
Ans. D
Q.5 identify the element of business ethics from the picture below.
Q.6Towards which interest group the social responsibility is shown in the given picture?
97
2021/07/21
Ans: Shareholders
Q.7 Identify the element of the business ethics depicted in the picture below.
Q.8
Write the social responsibility of an enterprise to be assumed in the above given case.
98
Ans. No Over Pricing of the products.
Q.9 One of the argument for the social responsibility is expressed in the given picture. Identify that.
(TOWARDS EMPLOYEES)
?
Towards
community
Toward
Responsibility consumer
towards s
various
Towards
Shareholder 99
Towards
governm
Q.12 This picture is related to which concept of business enterprise where the interest of society,
employees, consumers and community are considered? (SOCIAL RESPONSIBILITY)
Q.13This picture shows one of the environmental pollution. Name it. (AIR POLLUTION)
Q.14 Business enterprise have added these principles create a core value of the business for future
growth. Identify the core value with the help of given below picture. (BUSINESS ETHICS)
Q.15 What concept of business social responsibility is shown in this picture? (ETHICS)
100
2021/07/21
Ans. Workers
Q.18 Identify the argument for social responsibility based on the given picture.
101
Ans. Maintenance of society
Q.19 Identify of the element of business ethics which is violated here?
Q.20 Give one of the measures to be taken by a business enterprise to control the type of pollution
shown in the picture.
Q 21. Identify the role of business in environmental protection depicted in the above picture.
102
Ans: use of eco friendly technique of production
Q.22. Identify towards which stakeholder is the business enterprise not showing a socially responsible
behavior?
Q.23.The picture depict the responsibility towards which stakeholder by the business enterprise
103
2021/07/21
Q.24 Identify the step taken by business enterprise in environmental protection depicting the above
picture?
Q.25Identify the concept which is depicted in the picture related to social responsibility?
104
Ans: business ethics
105
CH: 7 Sources of Finance
TOPICS: Commercial Banks; Public Deposits, Trade Credit and ICD
NAME: HARSH SHARMA, RATTAN SINGH, PRADEEPNARUKA, ANJUMAN KHAN
Fill in the Blanks:
1. Bank Credit is not a source of funds. (PERMANENT)
2. The borrower is required to provide before a loan is sanctioned by the bank.
(SECURITY)
3. Loan from bank is a source of finance. (Flexible)
4. Trade credit is used as a source of finance. (Short-Term)
5. The rate of interest on the Inter Corporate Deposits is than, that of banks.
(HIGHER)
6. Debentures are an important instrument for raising ----------- term debt capital. (long)
7. Debentures bear a--------- rate of interest. (Fixed)
8. Debenture issued by a company is a written -----------of debt taken from public.
(Acknowledgment)
9. Each company has certain-------------- capacity to take the debts. (Borrowing)
10. The loan is repaid either in or in installments. (lump sum)
11. Equity shareholders are also known as residual owners ,since they receive what is left after all the
other claims of the company‟s income and assets have been settled.
12. Retain earning does not involve explicit cost in the form of interest, dividend or floatation cost.
13. Equity capital serves a permanent capital as it is to be repaid only at the time of liquidation of the
company.
14. Payment of dividend to the shareholders is not compulsory.
15. Preference shareholders have a preferential right of repayment over equity shareholders in the
event of liquidation of a company.
16. Funds required to purchased fixed assets is called fixed capital requirement.
17. Internal sources of funds are those that are generated from within the business.
18. Funds needed for the day to day operations is called working capital.
19. External sources of funds include those sources that lie outside an organization.
20. Short term funds are those which are required for a period not exceeding one year.
106
15. Preference shareholders generally do not enjoy any voting rights. (True)
16. Funds required for purchasing current assets is an example of lease financing. (False)
17. ADR‟S are issued only to American citizens. (True)
18. Standard Chartered PLC was the first company that issued Indian Depository Receipt in India
securities market in June 2010. (True)
19. The medium term sources of funds fulfill the financial requirements of an enterprise for a period
exceeding five years. (False)
20. A GDR holder can at any time convert his holdings into the number of shares it represents. (True)
MCQ:
1. Public deposits are the deposits that are raised directly from (a)
(a) The public (b) The directors (c) The auditors (d) The owners
2. The Financial Institutions are established by: (a)
a) Both State and Central Govt. b) State Govt. c) Central Govt. d)
Municipal Corporation
3. Trade Credit is granted to those customers who have reasonable amount of: (c)
a)Funds in their Bank A/c b) Financial standing and goodwill c) Weakness d) Zero
Balance in their A/c
4. Companies generally invite public deposits for a period upto: (c)
a) 5years b) 4years c) 3years d) 10 years
5. Internal sources of capital are those that are: (d)
(a) generated through outsiders (b) generated through loans such as suppliers from commercial
banks
(c) generated through issue (d) generated within of shares the business
6. Which source of finance is preferred by investors who want fixed income at lesser risk
(a)Debentures (b) Equity shares
(c)Preference shares (d) Bank loan (a)
7. W hich of the following is an external source of finance?
(a) Retained earnings (b) Equity shares
(c)Preference shares (d) Debentures (d)
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(d) Guardians of the company
Ans: (b)
12. The term redeemable is used for :
(a) Commercial papers
(b) Equity shares
(c) Preference shares
(d) Public deposits
Ans: (c)
13. Retained earnings is also known as:
(a) Residual owners of the company
(b) Loan capital of the company
(c) Short term capital of the company
(d) Ploughing back of profits
Ans: (d)
14. Which one of the following is not the feature of preference shares:
(a) Provides fixed rate of return
(b) Provides voting rights
(c) Get Preference over equity shares
(d) Part of owner‟s capital
Ans: (b)
15. Retained earnings is a :
(a) Permanent source of funds
(b) Temporary source of funds
(c) Fixed source of funds
(d) Expensive source source of funds
Ans: (a)
108
(a) Two parts
(b) Three parts
(c) Four parts
(d) Five parts
Ans: (b)
20. Which of the following denotes the feature of Indian Depository Receipt :
(a) It is issued only to American citizens
(b) It is purchased and sold only by NRI‟s
(c) It is traded in American Stock Exchange
(d) It is issued to Indian citizens only
Ans: (d)
109
1-b, 2-c
7. Match the following terms on the basis of their features:
1.Interest a) FCCB’s
2.foreign stock exchange b)Debentures
c)Legal compulsory payment for debt taken by the
company
d) It is not a Legal compulsory payment for debt
taken by the company
1-c, 2-a
8. Match the following financial instruments on the basis of concept:-
1. Debentures a) These are issued in a foreign currency
110
SIDE A SIDE B
a. External sources of funds include a. Working capital
those funds that lie outside the
business
b. The capital which is required for day b. Fixed capital
to day operations of the business
c. Issue of shares
16. Match the following statements on the basis of concept of International financing:
SIDE A SIDE B
a. It is an negotiable instrument and can a. IDR
be traded freely like any other security
b. An Depository Receipt that is denoted b. ADR
in Indian rupees
c. GDR
111
Ans: a-b, b-c
19. Match the following sources of finance on the basis of their nature:
SIDE A SIDE B
a. Shares and Debentures a. Short term financing
b. Trade credit b. Medium term financing
c. Long term financing
Pictorial Questions:
1. Which of the following business require higher amount of working capital? (B)
a) b)
2. Identify the different sources of finance traded in the oraganisation shown in the picture?
(Shares/ Debentures)
3. Identify the primary function of the institution shown in the picture? (Accepting/ Lending of
money)
112
2021/07/21
4. Identify the one of the method of providing credit by the commercial banks with the help of given
picture: (Short Term Loans)
5. Identify the banking services offered by the commercial banks in the given pictures: (ATM & E-
Banking)
6. Identify the type of security traded in the given market: (Foreign Currency Convertible
Bonds)
7. Which of the following business require higher amount of fixed capital? (A)
113
a) b)
8. Identify the mode of payment other than, shown in the picture: (Credit)
9. Name the kind of return on investment given to the investors shown in the given picture:
(Dividend)
10. Write the nature of return on investment given to the debenture holders in the business
situation shown in the picture: (Fixed rate of Interest)
11. Identify the capital which is required for day to day operations of the business?
Ans : Working Capital
114
2021/07/21
13. Identify the financial instruments used by the business from the organizations depicted in the
given picture?
Ans : (a) Bank Loan
(b) Shares
(c) Debentures
(d) Public Deposits
115
14. Identify the internal source of finance when the company plough in excess profits in the
business?
Ans : Retained earnings
15. Identify the source of finance by opening up the economy and operations of the business
becoming global?
Ans : International Finance
16. Identify the source of finance on the basis of ownership provided by the institution
given in the picture?
Ans: Borrowed Funds
116
2021/07/21
18. Identify the name of the organisation and source of finance traded by the organization
shown in the given picture?
Ans : BSE and Shares & Debentures
19. Identify the international financial instrument that can be issued –traded in the given stock
exchange?
Ans : ADR’s
20. Write fullform of the abbreviation shown below along with its status ?
117
Ans : Securities Exchange Board Of India
Status : Regulatory Authority
118
Ch-8
Small business
Team 7
Fill ups
1) A registered word , name or symbol that lets us identify the goods made by an
individual, or organization……………………
(trademark)
2) The limit for investment in plant & machinery for micro enterprises in service
sector is upto ………….rs. (10 lakh)
7) Intellectual property rights related with creativity of mind is being given for
……………….. (legal protection)
9) Promoting credit rating and maintaining good financial record is the objective of
………………. Institution. (NSIC)
119
12) In service sector , medium enter prise is one where the investment in
equipments is more than rs ……………….. but does not exceeed rs five crores.
(2crore)
13) A trademark helps in distinguishing similar products in the market from its
………………. (competitors)
19) The MSMED act 2006 came into force in …………….. (oct06)
22) Start up is an entity which annual turnover does not exceeed …………………
crore in preceeding year. (Rs 25)
25) Industries in which investment in fixed assests does not exceed rs one crore
are……………….. (small business)
120
27) The total contribution of raw material and machinery is rs 2 crore
is………………… (medium enterprises)
121
[Chapter 8] [ Small businesses and enterprises ]
[ Team7]
MCQs
[b]small enterprise
[c]Medium enterprise
[a ]1956
[b] 1955
[c] 1953
[a]copy right
[b]Patent
[c]trade mark
122
[d]Institutional property rights [c]
[a]Handloom
[b]Power loom
[c]sericulture
[d]Handicrafts [b]
8.As per government of India size of small scale industry can be decided on the
basis of
[b]Volume of output
123
9. as per MSMED act which of the following issue is not addressed by it
[a]credit
[b]Technology up gradation
[c]Marketing products
[a]October2007
[b]October2006
[c]October1991
[d]October2013 [b]
11. Mr.X is individual with surplus cash and interested to invest in upcoming start
ups. Which method is suitable him
[a]Crowd funding
[b]Venture capital
[c]boot strapping
[a] Design
[b]copy right
[c]patent
124
[a]RWE
[b]SFURTI
[c]RSBDC
[d]DIC [c]
[a]Finance
[b]Technology
[c]Sickness
15. The limit for investment in plant and machinery in manufacturing unit Which
does not exceed Rs.5 lakh? Company falls under which category
[a]micro enterprise
[b]small enterprise
[c]medium enterprise
[a]Aptitude
[b]employee
[c]Entrepreneur
[d]Entrepreneurship [c]
[a]individual
[b]company
125
[c]producers
[d]consumers [c]
[a]Literary work
[b]Music work
[c]Artistic work
[d]Assembling [d]
19. The total contribution of raw material and machinery is Rs.10 lakh
[b]small enterprise
[c]medium enterprise
20.Small scale industries owned and managed by women entrepreneurs have share
capital of not less than
[a] 0%
[b] 0%
[c] 5%
[d]51% [d]
[a] 40%
[b] 45%
[c] 47%
126
22. How much is the service investment limit for small scale industries
24. Which of the nodal agency works for the Co ordination and development of
village and Khadi Industries?
[d]NABARD [a]
127
[b] 1 May 1978
27. Issue related to credit, Marketing of medium, small , micro enterprises come
under
[a ]NABARD
[b]DIC
[c]MSMED
[d]NSIC [c]
[b]manufacturing
[c]Providing credit
[d]Servicing [a]
[a]capital investment
[b]self employment
[c]administration
[d]marketing [b]
30. Type if IPR helps in distinguishing similar products in the market from its
compititors
[a] copyright
[b]trademarks
128
[c]patent
[d]Design [b]
******************************************************************
******
CLASS XI 2019-2020
Small Business and Enterprises (Chapter – 8)
Team No- 7
True or False
Q.1 The SFURTI was set up by the state government as well as Central
Government ( )
Q.2 entrepreneurship is not a mysterious Gift or Charm and something that
happens by chance ( )
Q.3 START UP means is annual turnover does not exceed Rs.25 cr. In any
preceding year ( )
Q.4 Ministry of commerce and industry notification the start up On 17 February
2017 ( )
Q.5 Entrepreneurship is creative because it includes various factors of production ,
produce goods and services that meet the needs and wants of the society ( )
Answer: 1. F 2. F 3. T 4.T 5.T
129
Q.6 Copy right is granted for scientific inventions ( )
Q.7 Trademark is a part of Intellectual property right ( )
Q.8 Manufacturing Micro enterprise is one, where investment is Plant And
machinery is rupees . Thirty lakhs ( )
Q.9 There is no risk in entrepreneurship in comparison to business ( )
Q.10 the purpose of geographical Indications is to encourage innovation in the
scientific field ( )
Answer:6. F 7.T 8.F 9.F 10.F 11.F
Q.11 Purpose of Entrepreneurship is Creation of value for Personal profit and
Social gain ( )
Q.12The limit for investment in Plant and machinery in Manufacturing sectors for
small enterprises does not exceed 7 cr. is ( )
Q.13 the unique features of copy right is that the protection of work arises
automatically as soon as work comes in to existence ( )
Q.14Patent can only be files tpo get rights over an invention and not discovery ( )
Q.15 Boot strapping is the pooling of resources by group of people for a common
goal ( )
Answer: 11.T 12.F 13.T 14.t 15.F
Q.16 Cottage and rural industries provide employment to traditional artisans .
hence encourage migration of rural artisans.( )
Q.17 accelerated Industrial growth and creating employment in rural areas are their
objectives of government for small scale industries ( )
Q.18. small enterprises are those whose investment in plant and machinery is less
than twenty five lakh rupees ( )
Q.19 Trade mark helps in distinguishing similar products from its competitors ( )
Q.20 Copy rights is the right to not copy an original ideas ( )
Answer: 16. F 17. T 18. F 19 T 20. T
Q.21Trade secrets in India Is protected under the Indian Contract act ,1872 ( )
Q.22 Is patent is the exclusive right ( )
Q.23 Certification mark can be registered in certification Board( )
Q.24 Certification mark indicates Quality ( )
Q.25 Protection of a design is valid for 5 Years ( )
Answer:21.T 22.F 23.F 24.T 25.F
Q.26 The rural Small business Development centre is Sponsored by RWED ( )
130
Q.27 the district Industries centre was launched On 1 May 1978. ( )
Q.28 Medium Enterprises is one in which investment more than 5 crore rupess not
exceeding 10 cr. rupees ( )
Q.29 Copy right is the right to copy original idea . ( )
Q.30 Trade Secrets in India are Protected under the intellectual property rights act (
)
Answer: 26.F 27. T 28. T 29. F 30 T
Q1. Some rights protect the innovation and creation of entrepreneurs as per
Intellectual
Property Rights. Match these rights with their apllied area:
Column A Column B
(i) Copyright (a) differentiation of one good of a co. from
another
131
(ii) Trademark (b) protection of eye catching feature of an
Article
Ans- (i)-c,(ii)-a,(iii)-d,(iv)-b
Q2. Various programmes are available for small enterprises by the government.
Match the following programmes as per their launch year:
Column A Column B
(i) SFURTI (a) 1978
(ii) NABARD (b) 2005
(iii) NSIC (c) 1982
(iv) DIC (d) 1955
Ans- (i)-b,(ii)-c,(iii)-d,(iv)-a
Q3. Following key terms are associated with small business. Match the following
as per their
Correct meaning:
Column A Column B
(i) Entrepreneurship (a) scheme for nurturing innovation
and self
employment
(ii) Startup (b) investment does not exceed 25
lakh rupees
(iii) Cottage industries (c) process of setting one‟s business
Ans- (i)-c,(ii)-a,(iii)-d,(iv)-b
132
Seeking some guidance to start with her new business. So as a student of class
th
11
commerce help her by suggesting „‟ India Initiative Action Plan‟‟.Match the
terminology of
India Initiative Action Plan with its process:
Column A Column B
(i) Simplification (a) winding up in case of failure and
reallocation
(ii) Start Up India Hub (b) facilitate protection of patents and
trademark (iii) Legal support (c) objective to create
exchange and access to
Funding
(iv) Easy exit (d) friendly and flexible method
Ans- (i)-d,(ii)-c,(iii)-b,(iv)-a
Q5. Anuj is the simple rural folk. He believed in power of hardwork and
dedication. He dreams big and wants to engage in rendering services enterprises or
manufacturing enterprises. Guide Anuj as per MSMED Act, the options available
from government. Match the enterprises with capital investment limit in plant and
machinery:
Column A Column B
(i) Micro Manufacturing enterprises (a) investment between 25 lakh to 5 crore
Ans- (i)-d,(ii)-c,(iii)-b,(iv)-a
133
others intellectual property rights not only on the ethical grounds but also legal.
Match the type of intellectual property with its terminology:
Column A Column B
(i) Geographical indication (a)brand given legal protection
(ii) Patent (b) conferred upon the creator of
literary,artist.music
(iii) Trademark (c) agricultural and natural products
(iv) Copyright (d)protection of scientific inventions
Ans- (i)-c,(ii)-d,(iii)-a,(iv)-b
Column A Column B
(i) Boot strapping (a) incubator who nurtures the businesslike
child
(ii) Crowd funding (b) act as a litmus test
(iii) Angel investment (c) individual with surplus cash and mentoring
(iv) Venture capital (d) pooling of resources by group of people
Column A Column B
(i) village and small scale industries (a) institution at district level providing
support to
134
Small business
(ii) Cottage and rural industries (b) performance and credit rating of small
business (iii) National Small Industries corporations (c) providind opportunities
to traditional
artisans and weaker sections
(iv) District industries centr (d) integral part of industrial strategies and
development in villages after 2nd five
year plan
Ans- (i)-d,(ii)-c,(iii)-b,(iv)-a
Q9. In India there are various institutions which help small scale business.Match
the institutions with their objective:
Column A Column B
(i) NABARD (a) provides imported machinery to business is easy
and
Low hire terms
(ii) NSIC (b) institution at district level which provides all
services
And support facilities to entrepreneurs for
setting up
small and village industries
(iii) DICs (c) provides aids to small scale cottage and village
industries
rural artisans using both credit and non credit
approach
Ans- (i)-c,(ii)-a,(iii)-b,(iv)-d
135
Q10. Match the following examples as per their areas covered under Copyright:
Column A Column B
(i) Literary work (a) musical work
(ii) Artistic work (b) manufacturing
(iii) Dramatic work (c) poems
(iv) Assembling work (d) drawing
Ans- (i)-c,(ii)-d,(iii)-a,(iv)-b
Column A Column B
(i) Copyright (a) 20 years
(ii) Trademark (b) author‟s life plus 70 more years
(iii) Patent (c) for as long as the mark is used in
commerce
Ans- (i)-b,(ii)-c,(iii)-a
Column A Column B
(i) Copyright (a) crocin
(ii) Trademark (b) CDs
(iii) Patent (c) Adidas
Ans- (i)-b,(ii)-a(iii)-c
136
Q.14 .Institution Objectives
137
1. large enterprise (a) 25 lacs
Q.18 Mr Rajesh started his business and wanted to know the acts and year related
to various things applicable to his business. Help him in identification.
Column A Column B
2.DIC (b)1978
3. Patent (c)2005
138
Q.19 Mr Sohan wanted to know the product comes under various IPR.Help him in
identification of IPR.
Column A Column B
Q.20 Rahul wanted to know the full form of various abbreviations related to his
business. Help him in identifying full forms.
Q.21 Mitali wants to start a small enterprise, but she don‟t know the investment
criteria involved in MSMED Act,2006. Help her so she can start her enterprise.
Column A Column B
139
4. small manufacturing enterprise (d)more than 10 lacs but not
more than 2 cr
(c) 1955
(d) 1956
23) MR X wanted to know the different IPR related to his business help
him in identifying different IPR‟s
1) It gives the creator of an a) Design
original work exclusive rights
for a limited time.
2) It is a recognizable sign, b) Patent
design or expression which
distinguish products from
another one.
3) It is a form of right granted by c) Copyright
the govt. to an inventor.
4) It includes shape, pattern and d) trademark
arrangements of lines or
colours combinations that
applied on any article
140
Answer- 1) c 2)d 3)b 4)a
141
142
CHAPTER-INTERNAL TRADE
Fill in the blanks:
1. When buying and selling of goods and services is done with the objective of
earning profit, it is called as .
2. Trade taking place within the boundaries of a nation is referred to as
trade.
3. The traders who purchase in large quantities and sell in small lots to
retailers are called .
4. The act as an important link between producers and final
consumers in the distribution of products and services.
5. Internal trade is classified into two categories and
trade.
6. The traders who do not have fixed place of business and they keep on
moving with their waves are called retailers.
7. Small retailers who are commonly found at places where huge floating
population gathers like bus stand etc. are called traders.
8. On the basis of geographical location of buyers and sellers, trade can be
classified into two categories and trade.
9. The traders dealing in retail trade are called .
10. Small producers or petty traders carrying their products on bicycle or on
their heads are referred to as .
11. Trade between two and more countries is called trade.
12.The type of business enterprise engaged in sale of goods and services
directly to ultimate consumers is called .
13. The traders dealing in bulk merchandised are called as .
14. Time utility is being provided by intermediary.
15.Stores which are found in a local market and residential areas are called
General Stores .
16.The specialty shops are generally located in a central place.
17.Street stall holders get their suppliers from local suppliers as well as
wholesalers.
143
18. Secondhand goods shops sell their goods at lower prices.
19. Speciality shops are specialize in the sale of a specific line of products.
20.Depatmental stores are generally located at a Central place
21.A departmental store is a combination of both types of retailing as well as
Warehousing.
22. In departmental stores Sale are decentralized according to different
departments.
23. Due to its big size the departmental stores enjoy Joint form Company form
of Pvt. Sector enterprise.
24. The stores which offers a wide variety under one roof are known as
departmental store
25. All the branches of chain stores are controlled by the .
Headoffice
26. Selling the merchandise without involving the middlemen and through the
online process is termed as . Mail order house
27. In chain stores, the Manager sends daily reports to the head office.
Branch
28. The fast food retail outlet of Nirula’s is an example of shops. Chain
29.There is absence of after sales services in case of retail
outlets. Mail order house
30. The government of India implemented the Goods and Service Tax(GST)
from the year 2017 following the credo of ‘ One Nation One ’.
(Tax)
31. GST has replaced number of indirect taxes. (17)
32.GST payable on all interstate supply of goods and services is .
(IGST)
33. Tax liability arises when the taxable income of person crosses exemption
limit of Rs. lakh. (20)
34. Export and supplies to SEZ are rated.
(zero)
ANSWERS:
144
1. Trade 2. Internal trade 3. Wholesalers 4. Retailers
5. Internal and external 6. Itinerant 7. Street/pavement vendors 8. Internal
and external 9. Retailers 10. Itinerant
11. External 12. Retail trade 13. Wholesaler 14. Wholesaler
145
15. Speciality shops is type of retail store which is becoming very popular,
particularly in rural areas. (F)
16. Secondhand goods shop may also stock rare objects of historical value
and antique items. (T)
17. The departmental stores are located at the remote areas. F
18.The departmental stores attract a large number of customers. T
19.Departmental stores provides maximum service to higher class of
customers for whom price is secondary. T
20.In departmental stores both sale & purchase is centralized. F
21.Departmental stores provides all facilities under one roof. T
22.The Inspector supervise the products of chain stores. (T)
23. The losses incurred by one shop in chain stores may not be covered by
profits in other shops. (F)
24. Cash on delivery is the only option available for receiving payments in
mail order house. (F)
25. Shopping through mail order house is suitable for all types of customers.
(F)
26. The multiple shops organisation is able to eliminate unnecessary
middlemen. (T)
27. There are three tax slabs applicable in GST.
F
28. The government of India implemented GST from the year 2017.
T
29. The territorial spread of GST is the whole country, Excluding Jammu &
Kashmir. F
30. One of the tax rate from the slabs of GST is 26 Percent.
F
31. The CGST/SGST is payable on all intra- state supply of goods and
services. F
ANSWERS:
1. False 2. False 3.True 4.True 5. True 6. False
146
7.False 8. True 9.False 10.True 11. True
d. Marketing support
3. Maintain adequate stock of
commodities to offer variety to
customers
147
floating population gathers like b. Cheap jacks
railway station, bus stand etc.
148
goods between two or
more countries b) Entreport
2. Trading taking place
with in the boundary
of a country c) External trade
Ans. 1(c ), 2(a)
150
2. Shops are generally located (b) Street stall holders
In a central place.
3. Small vendors are commonly © General stores
Found at street crossings.
4. Shops located at street (d) Speciality shops
Crossing or in busy streets
In the form of a stall.
Ans. 1 ©, 2 (d), 3 (b), 4 (a).
12. On the basis of types of goods sold by fixed shop small retailers.
151
2. Vendors deal in goods like hosiery (b) General store
3. Some shops deals in antique goods © Speciality shops
Of historical value.
4. Some shops selling children’s (d) Secondhand goods
Garments, men’s wear, ladies shops
Shoes, toys and gifts.
Ans. 1 (b), 2 (a), 3 (d), 4 (c).
Ans. 1 ( c ), 2 (a).
153
facilities.
4)Wide reach d)Do not extend credit
facilities to customers
Ans( 1-c,2-d,3-b,4-a)
19.On the basis of features of mail order house
1 No direct contact a) Goods may be sent through VPP
2. No risk of bad debts b) Goodsare handed over to the
buyers only after full payment.
c) Contact through mail
ans(1-c,2-b)
20.On the basis of disadvantages of Large fixed shop retailers.
(i) Lack of personal (a) Chain Stores
Attention
(ii) Limited selection of goods (b) Departmental Stores
154
i. Managed by board (a) Departmental Store
Of directors (b)General Store
ii. Direct Supervision of a branch
manager (c) Chain stores
Ans: (i)—(a)
(ii)—(c)
23. On the basis of the features of large stores do the appropriate matching
(i) large establishments offering (a) mail order house
a wide variety of products under (b) departmental store
one roof
(ii) Networks of retail shops (c) chain store
Having identical merchandising
Ans i(b),ii(c)
155
(ii) Variety of goods of all kinds (b) Chain stores
(c) mail order house
Ans: (i)—(c)
(ii)—(a)
26.Match from the following options only, the supply of goods to their GST
applicability:
Supply of goods GST applicability
1. From Delhi to Delhi
2. From Delhi to Kolkata a. CGST/SGST
3. From Delhi to Dubai b. IGST
4. From wholesaler of Delhi
to Retailer of Delhi
Ans. (1,4-a);(2,3-b)
157
b) Ladies shoes
c) Toys and gifts
d) Used books
Ans. (d)
2. Small retailers who are commonly found at places with huge population are
called
a) Market traders
b) Second hand goods shop
c) Peddlers and hawkers
d) Street retailers
Ans. (d)
159
Ans. ( c )
11. Which one of the following is the fixed shop small retailers?
(a) Departmental stores (b) Speciality shops.
(c ) Itinerant retailers (d) Market traders.
Ans. (b).
12. These vendors are found at street crossing where flow of traffic is heavy?
(a) Market traders (b) Street stall holders
(c ) General Stores (d Speciality shops
Ans. (b).
Ans. (a).
14. Stores which is not coming under the category of fixed shops.
(a) General stores (b) Street stall holders
(c ) Secondhand goods shops (d) Mail Order House
Ans. (d).
15. Identify from the below which is not the characteristics of Fixed shop
retailers?
(a) Dealing in different products (b) Have greater resources
(c ) Independent shops of (d) Mostly provides credit
Temporary nature facilities
Ans. ( c ).
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16. The type of retail business acts as a supplier of a wide variety of products
under one roof:
a) Departmental store
b) Chain-store
c) Mail-order house
d) Multiple-shop
Answer- (a)
17. Which of the following is not a feature of departmental store
a)24x 7 shopping
b) Wide range of products
c) Large in size
d) Located at a central place
ans-(a)
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d) Mail order house
Ans- (d)
21. All the branches of chain stores are controlled by
a. Branches themselves
b. Head office
c. Government
d. General manager of each branch
Ans: (b)
22. Chain stores usually sells the products.
a. Produced by themselves
b. Produced by producers
c. Produced by others
d. Supplied by others
Ans: (a)
23. The personnel in chain stores have to obey the instructions received from
a. Branch supervisor
b. General Manager
c. Head office
d. Board of Directors
Ans: (c)
24. For day to day supervision of chain stores , the head office normally
appoints.
a. Inspectors
b. Supervisors
c. Managers
d. Branch officer
Ans. (a)
25. Lack of initiative in the employees while dealing with customers in chain
stores results in
a. Lack of personal touch
b. Low sales
c. Conflicts
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d. Loose the customers
Ans: (a)
26. Which one is not the tax slab of GST?
a. 5% b. 14%
c. 18% d. 28%
Ans. (b)
27. What is the exemption limit for a person to pay GST?
a. 10 Lakh b. 30 Lakh
d. 40 Lakh
Ans. (c)
28. Which one is not the part of GST?
a. IGST b. SGST
c. CGST d. RTGS
Ans. (d)
29. GST is a type of tax.
a. Indirect b. Foreign
c. Direct d. Central
Ans. (a)
30. Which type of GST is payable on all interstate supply of goods and services?
a. CGST b. IGST
c. SGST d. FGST
Ans. (b)
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Pictorial questions
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165
166
167
168
16 16.) Identify the type of fixed shop large scale retailer.
Retailers
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18.) With the help of given picture identify any one feature of GST
Ans- Indirect taxes of the centre & states are integrated under the GSt.
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20. Identify the form of business in which this type of document is used.
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172
Q22. Identify the type of fixed shop retailer.
173
Q24. State two advantages of such type of retailers.
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25.
Ans. GST
28.
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.
29. What is the territorial applicability of GST according to the given picture?
30. Give the year in which the identified tax has been applicable.
Ans. 2017
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OBJECTIVE TYPE QUESTIONS
(1) The Registration cum membership certificate is a document certifying that the exporter
is a member of the export promotion council. (True)
(2) The exporter Rahul appointed a C&F agent of XYZ Ltd. to help him in export procedure,
as he had no time for the same and the same is permitted in the export procedure. (True)
(3) One of the pre-requistes for an exporter to obtain an export licence is to have an account
in any bank authorised by the RBI.(True)
(4) After the receipt of the freight the shipping company issues a bill of landing. (True)
(5) Registration with the ECGC is necessary to protect overseas payment from political and
commercial issues. (True)
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1) The information provided in the shipment advice includes details such as invoice number,
bill of lading, name of the vessel, etc. (True)
2) Placing order or indents is a step of import procedure which succeeds that of obtaining
letter of credit. (False)
3) The exporter has to pay dock dues to obtain port trust dues receipt. (False)
4) Every importer is required to secure the sanction of foreign exchange from a bank
authorised by RBI. (True)
5) After loading the goods on the vessel, the overseas supplier dispatches the shipment
advice to the importer. (True)
1. Mate’s receipt is given to exporter by the commanding officer of the ship after the cargo is
loaded. (T)
2. Cart ticket is also known as vehicle pass. (T)
3. Certificate of Origin is a document related to shipment in connection with Export Transactions.
(F)
4. It is not compulsory to insure the goods before export. (F)
5. Packing list is a statement containing the name and place of the port at which goods are to be
discharged.(F)
Topic : Documents involved in Import Trade
2. World Trade Organization has a global status similar to that of International Monetary Fund
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and World Bank. ------------------- Ans: True)
3.To facilitate the maximum use of the world’s resources for sustainable development is the
major objective of World Trade Organization. ------------------ (Ans: False)
5. The basic objective of World Trade Organization and General Agreement on Tariffs and Trade
1. Business transactions taking place within the geographical boundaries of a nation is known as ---
----------------------.( Domestic trade)
2. Manufacturing and trade beyond the boundaries if one’s own country is known as ----------------
.(Internationnal business)
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3. The fundamental reason behind International business is that the countries cannot produce ---
--------------------or -------------------------- all that they need.(equally well and cheaply)
4. In -------------------------- business both buyers and sellers are from the same country.(domestic)
5. In ---------------------- business buyers and sellers can be from different countries.(Internal trade)
6. Goods that are tangible are called-------------------- --.(merchandise)
7. Intangible aspect of service is also known as ------------------.(Invisible trade)
8. Giving permission to produce and sell goods in another country under a specific trademark is
known as ----------------- --.( licensing)
9. Giving permission for distribution of services in another country under a specific copyright is
known as ---------------------------- --.(Franchising)
10. Foreign investment are of ----------------and ------------------------ types.( direct and portfolio)
(1) The document certifying that the export transaction is over and the payment has been
received is Certificate of payment.
(2) The certificate which specifies the country in which the goods are being produced is
known as Certificate of origin.
(3) The most appropriate and secure method of payment adopted to settle international
transactions is letter of Credit.
(4) On the basis of mate‟s receipt ,document imported goods are unloaded from the carrier.
(5) The order placed by an importers firm , after being satisfied with all export terms and
conditions is also known as intent.
Topic : Import Trade – Meaning and Procedure
1) The Trade which refers to purchase of goods from a foreign country is called Import trade.
2) Import procedure depends upon the country‟s Import and customs policies.
3) A proforma invoice is a document that contains details as to the quality , design and price of
the export product.
4) Importers appoint C&F agents who are well versed with the formalities of customs clearance.
5) The most appropriate and secured method of payment adopted to settle international
transactions is through Letter of credit.
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4. General agreement for Tariffs & Trade was transformed into on January 1,
1995. (World Trade Organisation)
5. For ensuring quality of goods, the government has made it compulsory for certain products to
obtain a Certificate of before exporting them. (Inspection)
2. The body which governs trade not only in goods, services and intellectual property rights
between different countries ------------------ (ans: World trade organization)
3. The organization that has a global status similar to that of International Monetary Fund and
World Bank is---------------------- (ans: World trade organization)
4. In India World Trade Organization was founded in the -------------year. (Ans: 2005)
5. To facilitate the optimal use of the world’s resources for sustainable development was the
major objective of the ---------------------------------- organization. (ans: World trade )
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CATEGORY C : MULTIPLE CHOICE QUESTIONS
1. Labour productivity and production cost differ among nations due to --------- --
a) Geographical reason
b) Agricultural reason
c) Personal reason
d) Government policies
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b) Licensing
c) Franchising
d) Marketing
8. Manufacturing and trade beyond the boundaries if one’s own country is :-
a) Foreign trade
b) Local trade
c) Retail trade
d) Internal trade
9. Currency used in International business is –
a) Domestic currency
b) International currency
c) cryotocurrency
d)visual currency
10. The International business as it exists today is to a great extent the result of----
a) Language specialization
b) Geographical specialization
c) Cultural differences
d) Custom practices
1-a,2-c,3-b,4-c,5-c,6-c,7-c,8-a,9-b,10-b
Topic: Export Trade – Meaning and Procedure
(1) “Rajiv an exporter sent complete information about the quality ,grade, size, weight, type
of packing about the product on his enquiry” .Such an above quotation prepared is known as -
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(c) intent (d) production of goods
(5) Performa Invoice is issued by the-
(a) Shipping company of importer (b) Exporter to importer
(c) Importer to exporter (d) Exporter to the shipping
company
1) Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading.
(b) Shipping bill.
(c) Certificate of origin.
(d) Shipment advice.
Ans. (d)
2) Which of the following is not the objectives of import trade?
(a) To meet consumer demand.
(b) To improve the standard of living.
(c) To speed up industrialisation.
(d) To earn foreign exchange.
Ans. (c)
3) Which of the following indicates the right procedure of import trade?
(a) Procurement of import license, Placing order or indent, Trade Enquiry, Customs
clearance and release of goods.
(b) Trade enquiry, Procurement of import license, Obtaining letter of credit, arrival of goods.
(c) Arrival of goods, Retirement of import documents, Obtaining foreign exchange,
Obtaining letter of credit.
(d) Receipt of shipment advice, Trade enquiry, Arranging for finance, Customs clearance and
release of goods.
Ans. (b)
4) Which of the following document is required in connection with an import transaction?
(a) Certificate of origin.
(b) Shipping Bill
(c) Letter of credit.
(d) Mate's receipt.
Ans. (c)
5) Having identified the countries and firms that export the product, the importing firm
approaches the export firms with the help of?
(a) Trade enquiry.
(b) Proforma invoice.
(c) Mate's receipt.
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(d) Sight draft.
Ans. (a)
1. Which of the following was formed for looking after the promotion of free and fair trade among
nations?
a. International Monetary Fund
b. World Bank
c. World Trade Organisation
d. General Agreement for Tariffs and Trade
2. Which of the following is not a document related to export transaction?
a. Shipping Bill
b. Airway Bill
c. Mate’s Receipt
d. Bill of Entry
3. Which of the following is a document related to payment in connection with export
transactions?
a. Export Invoice
b. Shipping Bill
c. Cart Ticket
d. Letter of Credit
4. The document which contain the information regarding the country where the goods have been
produced in connection to export-
a. Shipping Bill
b. Export Invoice
c. Airway Bill
d. Certificate of Origin
5. Certificate of inspection related to export trade is issued by-
a. Government
b. Inspector
c. Exporter
d. Importer
(ans:B)
2. Identify the alternative which is not the objective of World Trade Organization.
(a) to ensure reduction of tariffs and other trade barriers imposed by different countries.
(b) To facilitate the optimal use of the world’s resources for sustainable development.
©To promote an integrated and more viable and durable trading system.
3. One amongst the following in not the main objective of World Trade Organization
(d)To disintegrate more viable and durable trading system in world economy.
(ans:D)
4. The principal international body concerned with solving trade problems between countries
and providing a forum for multilateral trade negotiations.
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(a) World Health Organisation.
©World Bank
(a)United States (b) United Kingdom (c) Geneva, Switzerland (d) India
A B
1 Infrastructure a) Global village
2 World b) Business development
3 Business c) No boundaries
4 WTO d) Transportation
(1-d, 2-a , 3-c ,4-b)
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3. International business c)outside the boundaries
4. National Economies d) Land/ Labour
(1-b,2-d,3-c,4-a)
A B
(1-d,2-c,3-a,4-b)
6. Match the following concepts of business
A B
business
(1-a,2-c,3-b,4-d)
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7. Match the following concepts of International Business:
A B
1. International business a) Between two regions
2. Business stakeholders b) Specialises in jute products
3. Domestic business c) Shareholders
4. West Bengal d) Trade and production of goods and
Services.
(1-d,2-c,3-a,4-b)
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Topic: Export Trade – Meaning and Procedure
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(b) Letter of credit (ii) Receipt of order
(c) Procurement of goods (iii)Inspection certificate
(d) Certificate of origin (iv)Shipping order
(a (ii)),(b(i)),(c(iii)),(d(iv))
1) Match the documents given below with the authorities issuing the same.
1. Trade enquiry. (a) Regional import Export Licensing
Authorities.
2. Quotation. (b) Importing firms.
3. Import Export Code (IEC) number (c) Exporting Firm.
4. Shipment advice. (d) Overseas supplier.
Ans. 1-b, 2-c, 3-a, 4-d
2) Match the documents provided in column A with its importance in column B below
Documents(A) Importance(B)
1. Bill of lading. (a) Required to be mentioned on most of
the import documents.
2. Proforma invoice (b) Unloading of cargo takes place.
3. Import Export Code (IEC) number (c) Contains details as to the quality,
grade, size of the products.
4. Import general manifest. (d) Contains terms and conditions on
which the goods are to be taken to
the port of destination.
Ans. 1-d, 2-c, 3-a, 4-b.
3) Match the procedural steps with the activity.
1. Import procedure. (a) Loading the goods on the
vessel-Information about invoice
number, bill of lading, port of
export-receiving permission
dispatch to the importer.
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4. Customs clearance and release goods. (d) Receipt of enquiry-Indent-
obtaining pre-shipment
finance-customs clearance.
Ans. 1-c, 2-d, 3-a, 4-b.
5)Match the documents needed in the international trade with its synonyms given below:
1. Receipt of order (a) Export Order
2. Export Contract (b) Endorsement for delivery
3. Delivery Order (c) Documentary bill of exchange
against acceptance.
4.Usance Draft (d) Indent
Ans. 1- d , 2- a, 3- b, 4- c
Topic: Documents involved in International Trade
1. Match the following documents related to International Trade with their issuing authority-
2. Match the documents given below with the type of information they carry.
I. Packing List a. Quality of goods
II. Mate’ b. Registration number of vehicle
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III. Cart Chit c. Nature of goods
IV. Certificate of Inspection d. Condition of the Cargo
Ans: I-c, II-d, III-b, IV-a
(1) World Trade Organization (a)to provide orderly international monetary system
(2) General Agreement on Tariffs (b) to provide finance to the private sector
and Trade
(4)International Monetary Fund (d) to liberalize the world from high customs tariffs
(Ans1-D, 2-B,3-A,4-C)
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(2) 1944 (b) International Monetary Fund
(Ans1-C, 2-D,3-A,4-B)
1. To solve problems between two countries (a) inception of the World Trade Org.
2. Helps fostering growth of developing countries (b) Objectives World Trade Org.
4. General Agreement on Tariffs and Trade (d) Benefits of World Trade Org
(Ans1-B, 2-D,3-A,4-C)
1.Has a global status similar to that of (a)Is the successor of General Agreement
International Monetary Fund and World on Tariffs and Trade
Bank
(Ans1-B, 2-C)
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1.To ensure reduction of tariff and other barriers (a)objectives of world Trade Organization
imposed by different countries
2.To engage in such activities which improve the (b)objectives of General Agreement on
standard of living ,create employment,increase
income and effective demand and facilitate higher Tariffs and Trade.
production and trade
(Ans1-C, 2-B)
2021/07/21
(1) Which document is prepared by the exporter to get the goods cleared from the
customs before being loaded on the ship?
Shipping Bill
(2)To obtain an export licence the exporter needs to have which number issued by the
following organization-
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Inspection Certificate
(4)Name the document to be issued by the authorities in the picture, which serves as a proof for
the title of the goods.
Railway Receipt
(5) Which is the order that allows the port staff to unload the cargo to be moved to the port area?
Carting Order
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7. Identify the forign trade depicted in the business cycle given below.
Ans: Importer
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(shipping bill)
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(coffe)
13. Which one is the main source of import the good from another country
(ship)
(Petrol)
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(a) (b)
(c) (d)
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17. List the next 2 steps involved after the one mentioned below of one of the type of trade.
Trade Enquiry => Procurement of import license => ?(1) => ?(2) .
18. The following chart depicts the process of a trade transaction and identify the type of trade.
Purchase order
================⏭
Importer Exporter
⤊ ⏭================
|| Shipment of goods
||
|| (Shipping
|| Document)
||
|| Letter of Credit
BANK ===============⏭ BANK
Ans. Import trade procedure.
19. Identify the step of the import procedure highlighted below.
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||
||
||
V
( ? )
(This is required to be mentioned on most of the documents)
20. The exporter prepares the shipping bill and submits it with certain other documents
during the export procedure. Name the four more documents other than the ones
given in the diagram below.
( 1) ?
(4) ?
CUSTOM CLEARANCE
(3) ?
Commercial
Invoice
(2) ?
21. Identify the International currency which is commonly used in International business
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Ans D
22. Identify the factors of production:
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Ans.
25. Identify the apex bank responsible to give permission to open bank account for international
business:
Ans.RBI
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Tariffif Reduction ?
Objective
?
?
28. Identify Internatioanal bank which is responsible for Reconstruction and Development.
Ans SWITZERLAND
30 Identify the logo-,
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(ans:WTO)
32. Select the correct number of member countries registered with theWorld TradeOrganisation.
200 83
149 165
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208