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Branches of commerce - class-XI

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_______ is essential for satisfaction of human wants.

  1. Shareholders

  2. Competition

  3. Trade

  4. All of the above


Correct Option: C
Explanation:

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. A system or network that allows trade is called a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services.

An example of trade is the tea trade where tea is imported from China and purchased in the US. An example of trade is when you work in sales. An example of trade is the act of exchanging one item for another or one item for money.

_______ is required to undertake the business activities is provided by banking and financing institutions.

  1. Capital

  2. Investment

  3. Liability

  4. Interest


Correct Option: A
Explanation:

Wealth in the form of money or assets, taken as a sign of the financial strength of an individual, organization, or nation, and assumed to be available for development or investment. 2. Accounting: Money invested in a business to generate income.

They are purchased and used to help your company produce consumer goods or provide services. They are reported as assets on a company's balance sheet and often can be depreciated over time. Examples of capital goods include buildings, machines, equipment, furniture and fixtures.

Among the aids to trade, ________ removes the hindrance of risk.

  1. transport

  2. warehousing

  3. insurance

  4. banking and finance


Correct Option: C
Explanation:

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance or more exotic forms, such as -one insurance is issued by an insurer in the event of unforeseen occurrences.

_______ helps to highlight the distinctive features and utility of different products.

  1. Advertising

  2. Communication

  3. Warehousing

  4. Branding


Correct Option: A
Explanation:
Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services Advertising is the business or act of making something known to the public, usually through some type of paid media. An example of advertising is a company specializing in designing and implementing newsprint ads for other company's products.

Banks also facilitate in international trade by providing long-term financial assistance.

  1. True

  2. False


Correct Option: A
Explanation:

International trade is the exchange of capital, goods, and services across international borders. banks provide financial assistance by providing loans, credit letter etc which encourages importers and exporters to go global 

Customers can be made aware of the availability of goods through ______.

  1. distribution

  2. warehousing

  3. banking

  4. advertisement


Correct Option: D
Explanation:

Advertising is the attempt to influence the buying behavior of customers or clients with a persuasive selling message about products and/or services. 


In business, the goal of advertising is to attract new customers by defining the target market and reaching out to them with an effective ad campaign.

___________ creates time utility by supplying the goods at the right time to the consumer.

  1. Transportation

  2. Communication

  3. Insurance

  4. Warehousing


Correct Option: D

_____ is the agency which facilitate proper flow of goods.

  1. Government

  2. Trade

  3. Banking

  4. Communication


Correct Option: B
Explanation:

The trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. A system or network that allows trade is called a market. 

An early form of trade, barter, saw the direct exchange of goods and services for other goods and services. An example of trade is when you work in sales. An example of trade is the act of exchanging one item for another or one item for the money.

_______ helps in bring about stable and uniform prices indifferent markets as traders are able to equalize the supply of goods at different places according to demand.

  1. Transport

  2. Warehousing

  3. Banking

  4. Insurance


Correct Option: A
Explanation:

Transportation is a major contributor to the economy and a competitive force in business. It is the activity that physically connects the business to its supply chain partners, such as suppliers and customers, and is a major influence on the customer's satisfaction with the company.

The buyers and sellers are intimated through various communicating agencies.

  1. True

  2. False


Correct Option: A
Explanation:

Buyers demand goods and services; sellers supply goods and services. Markets exist when buyers and sellers interact. This interaction determines market prices and thereby allocates goods and services. The price is what people pay when they buy a good or service, and what they receive when they sell a good or service.

Among the aids to trade, _________ widens the market.

  1. Warehousing

  2. Insurance

  3. Banking

  4. Transport


Correct Option: D
Explanation:

Transportation is a major contributor to the economy and a competitive force in business.It is the activity that physically connects the business to its supply chain partners, such as suppliers and customers, and is a major influence on the customer's satisfaction with the company.

A network that allows trade is called a ______.

  1. networking

  2. specialization

  3. internet

  4. market


Correct Option: D
Explanation:

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers.

_______ helps to highlight the distinctive features and utility of different products. 

  1. Communication

  2. Insurance

  3. Warehousing

  4. Advertising


Correct Option: D
Explanation:

Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services.

_______ enhances the social well being of citizens by exposing them to variety of quality products including luxury items.

  1. Warehousing

  2. Transportation

  3. Trade

  4. Insurance


Correct Option: C
Explanation:

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. 

A system or network that allows trade is called a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services.

_______ facilitates large scale and efficient business operations by providing liquidity and security.

  1. Transport

  2. Insurance

  3. Bank

  4. Warehouse


Correct Option: C
Explanation:

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.

Resolution can be amended.
  1. True

  2. False


Correct Option: B
Explanation:

This statement is False because of the following reasons : 

(i) When motion is accepted in a meeting it is called resolution. 
(ii) A resolution is the final decision after full discussion and voting and is not subject to further discussion.
(iii) The business of the meeting is transacted through resolutions. 
(iv) A motion which is finally approved at the meeting is called a resolution.
(v) A resolution cannot be amended as it is a final decision taken in a meeting. (vi) Hence, a resolution cannot be amended. 

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