Students get through the TN Board 11th Commerce Important Questions Chapter 1 Historical Background of Commerce in the Sub-Continent which is useful for their exam preparation.
TN State Board 11th Commerce Important Questions Chapter 1 Historical Background of Commerce in the Sub-Continent
Very short answer questions
Question 1.
Hindrance of finance – Explain.
Answer:
Producers and traders may not have the required funds at the time of their need. Banks and other financial institutions provide funds and help in the transfer of funds to enable the functioning of business smoothly.
Question 2.
Name the important Trade Centres in India?
Answer:
The important trade centers were Delhi, Mumbai, Ahmedabad, Sonar, Sonargoon, Lahore, etc.
Question 3.
Name the important Ancient Trade Centres in Tamil Nadu?
Answer:
Ramanathapuram, Mylapore, Puducherry, Kaveripumpattinam, Marakanam, Korkai, Nagapattinam, Kanyakumari.
Question 4.
Name the Ancient Trade centers in the coastal regions of Tamil Nadu.
Answer:
Alambari, Alagankulam, Marakkanam, Pumphar, Vasavasamudram, Mylapore.
Short answer questions
Question 1.
What are the three conditions worked for worked on Barter System?
Answer:
- Each party to barter must have surplus stocks for the trade to take place.
- Both the buyers and sellers should require the goods to each other desperately i.e., double coincidence of wants.
- Buyer and seller should meet personally to affect the exchange.
Question 2.
Explain the Hindrance of the person.
Answer:
Manufacturers do not know the place and ‘face of the consumers. It is the retailer who knows the taste, preference, and location of the consumers. The chain of middlemen consisting of wholesalers, agents, and retailers establishes the link between the producers and consumers.
Question 3.
When the demand for Indian goods decline during the British rule?
Answer:
Textiles and shipbuilding earned name and fame in the 17th and 18th centuries. Britishers gradually abolished Princely order in the Indian territories. Thus the demand for Indian goods declined during the British rule.
Question 4.
Define commerce.
Answer:
J. Stephenson defines Commerce as “the sum total of those processes which are engaged in the removal of hindrances of person, place and time in the exchange of commodities”.
Question 5.
List out what are the hindrances of commerce?
Answer:
- Hindrance of person.
- Hindrance of place.
- Hindrance of time.
- Hindrance of risk.
- Hindrance of knowledge.
- Hindrance of finance.
Question 6.
List out what are the difficulties of the barter system?
Answer:
- Lack of double coincidence of wants.
- Non-existence of common measures of value.
- Lack of direct contact between producer and consumer.
- Lack of surplus stock.
Long answer questions
Question 1.
When did the overseas trade expand in India?
Answer:
During the 16th and 18th centuries, India’s overseas trade expanded due to trading with European companies. The discovery of new all-sea routes from Europe to India via Cape of Good Hope by Vasco da Gama had a far-reaching impact on the civilized world. The arrival of the Portuguese in India was followed by the advent of other European communities. India’s maritime trade was a monopolized one over Europeans and at one stage the global trade share of India was 55 percent which is just 2 percent in the 21st century. The European merchants who came to India were not only individual merchants but also represented their respective governments. They gained a strong foothold in India’s maritime trade by virtue of their strong naval power. In course of time, their commercial motives turned into territorial ambition like the East India Company which became the British Empire here.
Question 2.
When money was used as a Medium of exchange of goods and services?
Answer:
Commerce has been in practice since time immemorial. It is part and parcel of human life, whether it is a king or a common man. It emerged as an economic activity, mainly as a barter system which means the exchange of goods for goods. It was so comfortable for neighboring villages, states, even countries to practice barter in the absence of a medium of exchange in the form of money today. However, the concept of money occupied its predominance when scarce resources were to be either exchanged between parties in need or countries in demand and over a period of time barter economy took the dimension of the monetary economy where money was used as a medium of exchange of goods and services.
Multiple choice questions
1. The barter envisages mutual exchange of goods without as a medium of exchange.
(a) capital goods
(b) luxury goods
(c) consumer goods
(d) money
Answer:
(d) money
2. Hindrance of place is to overcome with the help of:
(a) time
(b) risk
(c) person
(d) transport
Answer:
(d) transport
3. Business activities can be classified into and commerce.
(a) industry
(b) insurance
(c) profit
(d) trade
Answer:
(a) industry
4. Warehouse facilities create …… utility.
(a) risk
(b) person
(c) time
(d) finance
Answer:
(c) time
5. Hindrance of knowledge is to overcome the help of:
(a) trade
(b) transport
(c) advertisement
(d) insurance
Answer:
(c) advertisement
6. A carpenter who makes furniture creates:
(a) time utility
(b) form utility
(c) place utility
(d) profit utility
Answer:
(b) form utility
7. Fishery and poultry are classified under:
(a) genetic industries
(b) extractive industries
(c) construction industries
(d) manufacturing industries
Answer:
(a) genetic industries
8. Trade removes the hindrance of:
(a) time
(b) person
(c) risk
(d) finance
Answer:
(b) person
9. The primary object of business is:
(a) to earn profit
(b) to help list employees
(c) to help society
(d) to help traders
Answer:
(a) to earn profit
10. Commerce is related to:
(a) production of goods
(b) exchange of goods
(c) providing occupation
(d) providing services
Answer:
(b) exchange of goods
11. Which of the following does not characterize business activity?
(a) Production of goods and services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary or wages
Answer:
(d) Salary or wages
12. Which of the broad categories of industries covers, oil refinery, and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of them
Answer:
(a) Primary
13. Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport
Answer:
(a) Mining
14. The occupation in which people work for others and get remunerations in return is known as:
(a) business
(b) employment
(c) profession
(d) none of them
Answer:
(b) employment
15. The industries which provide support services to other industries are known as:
(a) primary industries
(b) secondary industries
(c) commercial industries
(d) tertiary industries
Answer:
(d) tertiary industries
16. Business risk is not likely to arise due to:
(a) changes in government
(b) good management
(c) employee dishonesty
(d) power failure
Answer:
(b) good management
17. Which of the following cannot be classified as an objective of a business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning
Answer:
(a) Investment
18. Choose the odd one out;
(a) Insurance
(b) warehousing
(c) mining
(d) banking
Answer:
(c) mining
19. Profits are necessary for:
(a) expansion
(b) survival
(c) innovation
(d) all the above
Answer:
(d) all the above
20. Small scale fixed retailer includes:
(a) General stores
(b) Pedlers
(c) Cheap Jacks
(d) Hawkers
Answer:
(d) Hawkers
21. Trade acts as a connecting link between the producer and:
(a) wholesaler
(b) retailer
(c) broker
(d) consumer
Answer:
(d) consumer
22. Domestic trade is otherwise called as:
(a) home trade
(b) foreign trade
(c) entrepot trade
(d) internal trade
Answer:
(d) internal trade
23. A Retailer deals in ……… varieties of goods.
(a) single-line
(b) different
(c) general stores
(d) hawkers
Answer:
(b) different
24. Sale of domestic goods to Foreign countries:
(a) Import trade
(b) Export trade
(c) Entrepot trade
(d) Retail trade
Answer:
(b) Export trade
25. Wholesaler’s deals in the quantity of goods.
(a) small
(b) large
(c) medium
(d) limited
Answer:
(b) large
26. A warehouse keeper accepts goods for the purpose of:
(a) storage
(b) export
(c) selling
(d) packaging
Answer:
(a) storage
27. Genetic industries are an example for ……. industries.
(a) fisheries
(b) mining
(c) computer
(d) oil refinery
Answer:
(a) fisheries
28. Remuneration given to a broker is called:
(a) commission
(b) salary
(c) dividend
(d) brokerage
Answer:
(d) brokerage
29. International trade leads to:
(a) specialization
(b) equalisation of prices
(c) patent right
(d) surplus balance of trade
Answer:
(a) specialization