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Business Services

Description: Business Studies
Number of Questions: 23
Created by:
Tags: Business Studies Difference Between Services and Goods Types of Services Business Services Banking Functions of Commercial Bank Types of Banks E-Banking Principles of Insurance Types of Insurance Insurance
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Which of the following is/are different types of services?

a. Business services b. Commercial services c. Social services d. Personal services

  1. a, b and c

  2. a, b and d

  3. a, c and d

  4. a and b

  5. a, b, c and d

Show answer
Correct Option: C
Explanation:

 
 

Service sector includes all those economic activities which are required for uninterrupted production and exchange of goods. Which of the following is not a feature of these services?

  1. They do not have physical existence.

  2. They are consumed as soon as they are produced.

  3. A service cannot be separated from its service provider.

  4. Services are homogenous.

  5. The involvement of a customer is necessary for the delivery of service.

Show answer
Correct Option: D
Explanation:

 
 

Which of the following statements is/are incorrect?

a. Business services are required to remove the various hindrances of trade. b. Services cannot be inventoried. c. Involvement of customer is unnecessary for the delivery of a service.

  1. a only

  2. b only

  3. c only

  4. a and b

  5. b and c

Show answer
Correct Option: C
Explanation:

 
 

Which of the following are the different types of business services?

a. Banking b. Insurance c. Communication d. Transportation e. Warehousing

  1. a, b and c

  2. b, c, d and e

  3. a, c, d and e

  4. a, b, c and d

  5. a, b, c, d and e

Show answer
Correct Option: E
Explanation:

This is correct as all are important and different types of business services.  Banking provides finances for running a business. Insurance protects a businessman from risk and loss. Communication is needed to educate the consumer about the product that the business generates. Transportation is required to carry the raw material and finished goods. Warehousing is needed to store the goods from the time of production to purchase.

Which of the following statements is/are correct about banking?

a. The purpose of deposits in banks should be for lending or investing. b. Banks stimulate economic activity by mobilising the savings of the people. c. The bank deposits should be repayable on demand only.

  1. a only

  2. b only

  3. c only

  4. a and b

  5. b and c

Show answer
Correct Option: D
Explanation:

 
 

Which of the following statements is incorrect about a savings account?

  1. It can be opened with a minimum initial deposit.

  2. There is no restriction on the number and amount of deposits and withdrawals.

  3. Nominal rate of interest is payable on a savings account.

  4. It is continuing in nature.

  5. Withdrawals can be made using a withdrawal form; issuing a cheque or by using an ATM card.

Show answer
Correct Option: B
Explanation:

 
 

Which of the following is incorrect about a current account?

a. It is opened by businessmen. b. It is also known as demand deposit. c. No interest is paid on this account.

  1. a only

  2. b only

  3. c only

  4. a and b

  5. None of these

Show answer
Correct Option: E
Explanation:

 
 

____________ account is the account meant for people who wish to save a part of their income to safeguard the future and earn interest on those savings.

  1. Multiple option deposit

  2. Fixed deposit

  3. Reccurring deposit

  4. Current

  5. Savings

Show answer
Correct Option: E
Explanation:

This is the correct answer. Savings account is the account meant for people who wish to save a part of their income to safeguard the future and earn interest on those savings.

 
 

Which of the following is not a commercial bank?

  1. Kotak Mahindra Bank

  2. ICICI

  3. Jammu Kashmir Bank

  4. RBI

  5. PNB

Show answer
Correct Option: D
Explanation:

 
 

___________ are an important source of rural credit and agricultural financing in India.

  1. Public sector banks

  2. Private sector banks

  3. Cooperative banks

  4. Development banks

  5. Central banks

Show answer
Correct Option: C
Explanation:

This is the correct answer. Cooperative Banks are an important source of rural credit and agricultural financing in India. They are governed by the provisions of State Cooperative Societies Act and meant essentially for providing cheap credit to their members.

 
 

Which of the following services is/are offered through net banking?

a. EFT b. ATM c. PoS d. EDI

  1. a, b and c

  2. b and c

  3. a, b and d

  4. a, b, c and d

  5. b and d

Show answer
Correct Option: D
Explanation:

This the correct answer as all the above given services are offered through net banking services by banks. Electronic Funds Transfer or EFT, Automated Teller Machines or ATMs, Point of Sales or PoS and Electronic Data Interchange or EDI.

 
 

Specialised banks provide financial aid to industries, heavy turnkey projects and foreign trade. Which of the following is not a type of specialised bank?

  1. Foreign exchange banks

  2. Industrial banks

  3. Development banks

  4. Export import banks

  5. Cooperative banks

Show answer
Correct Option: E
Explanation:

Cooperative Banks are governed by the provisions of State Cooperative Societies Act and meant essentially for providing cheap credit to their members. This is the correct answer as these are not specialised banks.

 
 

What is 'Material Fact' in an insurance contract?

  1. The insured must either own a part or whole of the subject matter of insurance.

  2. The insurer will promise to indemnify the loss.

  3. The insurer is not liable for any uninsured causes or perils.

  4. The insured is not allowed to make any profit on the happening of an event.

  5. The information that goes to the root of the insurance contract.

Show answer
Correct Option: E
Explanation:

This is correct. The information that can influence the insurer in accepting or declining the risk or in fixing the conditions of insurance or rate of premium is called the material fact.

Which of the following statements is incorrect about the principles of insurance?

  1. A contract of insurance is a contract of uberrimae fidei.

  2. The pecuniary interest of the insured in the subject matter is insured.

  3. The principle of mitigation states that it is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property.

  4. The right of ownership of insured property passes on to the insurer under the principle of subrogation.

  5. The principle of indemnity is only applicable to life insurance.

Show answer
Correct Option: E
Explanation:

This is incorrect. The principle of indemnity is not applicable to life insurance. According to the principle of indemnity, the insurer undertakes to put the insured, in the event of loss, in the same position that he occupied immediately before the happening of the event insured against.

 
 

Which of the following types of insurances come under the category of general insurance?

a. Life Insurance b. Health Insurance c. Fire Insurance d. Marine insurance

  1. a, b, c and d

  2. a, b and c

  3. b, c and d

  4. c and d

  5. a and b

Show answer
Correct Option: C
Explanation:

 
 

Insurance is needed to minimise the impact of uncertainties that can give rise to losses. Which of the following is not a function of insurance?

  1. Risk sharing

  2. Protection

  3. Providing certainty

  4. Assisting in capital formation

  5. Debt raising

Show answer
Correct Option: E
Explanation:

 
 

Which of the following statements is/are incorrect about Life Insurance?

a. Presence of insurable interest is necessary at the time of maturity of life insurance policy. b. Life insurance is a contract of indemnity. c. Life insurance contract is a contract of utmost good faith.

  1. a only

  2. b only

  3. c only

  4. a and b

  5. a, b and c

Show answer
Correct Option: D
Explanation:

This is the correct answer as both statements are incorrect.

Under the ________ policy, the insurer undertakes to pay the assured a specified sum on the attainment of a particular age or on his death, whichever is earlier.

  1. whole life

  2. endowment life assurance

  3. joint life

  4. annuity

  5. children's endowment

Show answer
Correct Option: B
Explanation:

This is correct. Under the endowment life assurance policy the insurer undertakes to pay the assured a specified sum on the attainment of a particular age or on his death, whichever is earlier.

 
 

A marine insurance contract provides protection against loss by marine perils or perils of the sea. Which of the following are the different types of marine insurance policies?

a. Ship or hull insurance b. Cargo insurance c. Freight insurance d. Floater insurance

  1. a, b, c and d

  2. a, b and c

  3. b, c and d

  4. a and b

  5. b and c

Show answer
Correct Option: B
Explanation:

 
 

Reinsurance is

  1. a contract of insurance that is taken up by the insured from the same insurer after the previous insurance policy lapses

  2. a contract of insurance which is taken to cover several risks on the same property such as fire insurance or burglary insurance by separate insurers on the same property

  3. a contract of insurance in which the insurer enters into a contract with another insurer to insure the whole or part of risk covered by first insurer

  4. a contract of insurance where more than one policy is taken to cover the same risk

  5. None of these

Show answer
Correct Option: C
Explanation:

This is correct as this is reinsurance.

Which of the following statements is/are correct about fire insurance?

a. Fire insurance policies are normally valid for a period of one year. b. The premium for fire insurance policies can be either payed in lump sum or installments. c. Even if property is damaged by heat or smoke without ignition during fire, it is insurable for claim under fire insurance.

  1. a, b and c

  2. a and c

  3. a and b

  4. b and c

  5. c only

Show answer
Correct Option: C
Explanation:

 
 

_____________ is a postal service where a sender can have proof on the payment of a proscribed fee that he has actually posted the letters.

  1. Registered post

  2. Under Postal Certificate

  3. Speed post

  4. Parcel

  5. Courier

Show answer
Correct Option: B
Explanation:

This is correct. Under Postal Certificate is a postal service where a sender can have proof on the payment of a proscribed fee that he has actually posted the letters.

_______________ companies provide DTH services to consumers.

  1. Cellular mobile

  2. Courier

  3. Telecom

  4. Banking

  5. Insurance

Show answer
Correct Option: C
Explanation:

This is the correct answer.

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