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Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 32 Direct Taxes Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 32 Direct Taxes

11th Commerce Guide Direct Taxes Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Income Tax is ………………
a) a business tax
b) a direct tax
c) an indirect tax
d) none of these
Answer:
b) a direct tax

Question 2.
Period of assessment year is …………
a) 1 st April to 31 st March
b) 1st March to 28th Feb
c) 1st July to 30th June
d) 1st Jan. to 31st Dec
Answer:
a) 1 st April to 31 st March

Question 3.
The year in which income is earned is known as …………………
a) Assessment Year
b) Previous Year
c) Light Year
d) Calendar Year
Answer:
b) Previous Year

Question 4.
The aggregate income under five heads is termed as ……………….
(a) Gross Total Income
(b) Total Income
(c) Salary Income
(d) Business Income
Answer:
(b) Total Income

Question 5.
Agricultural income earned in India is ……………
a) Fully Taxable
b) Fully Exempted
c) Not Considered for Income
d) None of the above
Answer:
b) Fully Exempted

II. Very Short Answer Questions

Question 1.
What is Income tax?
Answer:
Income tax is a direct tax under which tax is calculated on the income, gains, or profits earned by a person such as individuals and. other artificial entities (a partnership firm, company, etc.).

Question 2.
What is meant by the previous year?
Answer:
The year in which income is earned is called the previous year. It is also called as financial year.

Question 3.
Define the term person?
Answer:
The term ‘person’ has been defined under the Income-tax Act. It includes individual, Hindu, Undivided Family, Firm, Company, local authority, Association of Person or Body of Individual or any other artificial juridical persons.

Question 4.
Define the term assessed?
Answer:
As per S. 2(7) of the Income Tax Act, 1961, the term “assessee” means a person by whom any tax or any other sum of money is payable under this Act. Assess includes individual, HUF, Firm, Company, Local authority, AOP, BOJ or any other artificial juridical persons.

Question 5.
What is an assessment year?
Answer:
The term has been defined under section 2(9). The year in which tax is paid is called the assessment year. It normally consists of a period of 12 months commencing on 1^st April every year and ending on 31^st March of the following year.

III. Short Answer Questions

Question 1.
What is Gross Total Income?
Answer:
According to section 80 B (5) Income computed under the following heads shall be aggregated after adjusting past and present losses and the total so arrived is known as ‘Gross Total income’.

• Income from Salaries
• Income from House Property
• Income from Business or Profession
• Income from Capital Gain
• Income from Other Sources

Question 2.
List out the five heads of Income.
Answer:
The five heads of income are:

1. Income from‘Salaries’ [Sections 15 – 17];
2. Income from ‘House Property’ [Sections 22 – 27];
3. Income from ‘Profits and Gains of Business or Profession’ [Sections 28 – 44];
4. Income from ‘Capital Gains’ [Sections 45 – 55]; and
5. Income from other Sources’ [Sections 56 – 59].

Question 3.
Write a note on Agricultural Income.
Answer:
According to Section 2(1 A) of the Income Tax Act 1961, Agricultural Income includes, “Any rent or revenue derived from land which is situated in India and is used for agriculture purposes”.

Question 4.
What do you mean by Total income?
Answer:
Out of Gross Total Income, Income Tax Act 1961 allows certain deductions under section 80. After allowing these deductions the figure which we arrive at is called ‘Total Income’ and on this figure tax liability is computed at the prescribed rates.

1. Gross Total Income
2. Less: Deductions (Sec. 80C to 80U)
3. Total Income (T.I.)

Question 5.
Write short notes on:
Answer:
a. Direct Tax:
If a tax levied on the income or wealth of a person and is paid by that person (or his office) directly to the Government, it is called direct tax e.g. Income-Tax, Wealth Tax, Capital Gains Tax, Securities Transaction Tax. Fringe Benefits Tax (from 2005), Banking Cash Transaction Tax (for Rs.50,000 and above -from 2005), etc. In India all direct taxes are levied and administered by Central Board of Direct Taxes.

b. Indirect Tax:
If tax is levied on the goods or services of a person (seller). It is collected from the buyers and is paid by seller to the Government. It is called indirect tax. e.g. GST.

IV. Long Answer Questions

Question 1.
Elucidate any five features of Income Tax.
Answer:
Features of Income Tax in India:
1. Levied as Per the Constitution Income tax is levied in India by virtue of entry No. 82 of List I (Union List) of Seventh Schedule to Article 246 of the Constitution of India.

2. Levied by Central Government Income tax is charged by the Central Government on all incomes other than agricultural income. However, the power to charge income tax on agricultural income has been vested with the State Government as per entry 46 of List II, i.e., State List.

3. Direct Tax Income tax is a direct tax. It is because the liability to deposit and ultimate burden are on the same person. The person earning income is liable to pay income tax out of his own pocket and cannot pass on the burden of tax to another person.

4. Annual Tax Income tax is an annual tax because it is the income of a particular year which is chargeable to tax.

5. Tax on Person It is a tax on income earned by a person. The term ‘person’ has been defined under the Income-tax Act. It includes individual, Hindu Undivided Family, Firm, Company, local authority, Association of Person or Body of Individual or any other artificial juridical persons. The persons who are covered under Income-tax Act are called ‘assessees’.

Question 2.
Define Tax. Explain the term direct tax and indirect tax with an example.
Answer:
A tax is a compulsory financial contribution imposed by a government to raise revenue, levied on the income or property of persons or organizations, on the production costs or sales prices of goods and services etc.

a. Direct Tax:
A direct tax is paid directly by an individual or organization to an imposing entity. A taxpayer, for example pays direct taxes to the government for different purposes, including real property tax, personal property tax, income tax or taxes on assets.

b. Indirect Tax:
If tax is levied on the goods or services of a person(seller), it is known as indirect tax. It is , collected from the buyers and is paid by the seller to the government. It is paid to the government by one entity in the supply chain. Example: GST.

Question 3.
List out any ten kinds of incomes chargeable under the head income tax.
Answer:

1. Profits and gains of business or profession.
2. Dividend
3. Voluntary contribution received by a charitable / religious trust or university/education institution or hospital/electoral trust[ w.e.f. 01.04.2010]
4. Value of perquisite or profit in lieu of salary taxable u/s 17 and social allowance or benefit specifically granted either to meet personal expenses or for performance Of duties of an office or employment of profit.
5. Export incentives, like duty drawback, cash compensatory support, sale of licenses, etc.
6. Interest, salary, bonus, commission, or remuneration earned by a partner of a firm from such firm.
7. Capital gains chargeable u/s 45.
8. Profits and gains from the business of banking carried on by a cooperative society with its members.
9. Winnings from lotteries, crossword puzzles, races including horse races, card games, and other games of any sort or from gambling or betting of any form or nature whatsoever.
10. Deemed income u/s 41 or 59.

Question 4.
Discuss the various kinds of assessments.
Answer:
The following are the different types of assesses:

• Individual
• Partnership firm
• Hindu Undivided Family
• Companies
• Association of Persons
• Body of Individual.

11th Commerce Guide Direct Taxes Additional Important Questions and Answers

I. Choose the Correct Answer:

Question 1.
How many heads of income are there to compute Gross total income?
a. Six
b. Five
c. Four
d. Three
Answer:
b. Five

Question 2.
Income Tax Act came into force on ……………
a.1.4.1932
b. 1.4.1962
c. 1.4.1947
d. 1.4.1954
Answer:
b. 1.4.1962

Question 3.
The compensation received for loss of trading asset is a ……………….
a. Capital receipt
b. Revenue receipt
c. a casual receipt
d. None of the above
Answer:
a. Capital receipt

Question 4.
The legislative powers of the Union Government and the State Governments are given in the …………………….. of the Indian Constitution.
a. Article 246 (VII schedule)
b. Article 246 (VI schedule)
c. Article 264 (VII schedule)
d. Article 446 (VII schedule)
Answer:
a. Article 246 (VII schedule)

Question 5.
Tax charged on Long Term Capital Gain is ……………..
a. 20%
b. 15%
c. 25%
d. 30%
Answer:
a. 20%

II. Very Short Answer Questions:

Question 1.
What do you mean by Tax?
Answer:
Tax is a compulsory contribution to state revenue by the Government. It is levied on the income or profits from the business of individuals and institutions.

Question 2.
What is the reasoñ for collecting tax?
Answer:
The revenue earned through tax is utilized for the expenses of civil ädministration, internal and external security, building infrastructure, etc.

III. Short Answer Questions

Question 1.
Who do income tax is treated as annual tax?
Answer:
Income tax is an annual tax because it is the income of a particular year which is chargéable to tax.

Question 2.
What are all the tax rates prescribed for LTCG, STCG, and lottery income?
Answer:
The following tax rates have been prescribed under Income Tax Act. ‘

• Tax on long term capital gain @ 20% (Section 112);
• Tax on short term capital gain on shares covered under STT @15% (Section 111A).
• Tax on lottery income @ 30% (Section 11 5BB)

Question 3.
What do you mean by the previous year?
Answer:
According to Section (3) of the Income Tax Act 1961, “The year in which income is earned is called the previous year”. It is also normally consisting of a period of 12 months commencing on 1 st April every year and ending on 31 st March of the following year. It is also called as financial year’ immediately following the assessment year.

IV. Long Answer Questions

Question 1.
Write a note on the structure of the Indian Taxation system:
Answer:
The Indian taxation system is one of the largest systems in the world. The authority to levy tax is derived from the Indian constitution and is well-structured. The tax administration has a clear demarcation between Central Government and State Governments and then between state Governments and Local Bodies. Article 246 (Seventh Schedule) of the Indian constitution contains the legislative powers (including taxation) of the Union government and the State Governments.

Question 2.
Write a note on Heads of Income under Income Tax Act:
Answer:
Section 14 of the Income Tax Act 1961 provides for the computation of the total income of an assessee which is divided into five heads of income. Each head of income has its own method of computation. These five heads are;

1. Income from ‘Salaries’ [Sections 15-17]
2. Income from ‘House Property’ [Sections 22-27]
3. Income from ‘Profits and Gains of Business or Profession’ [Sections 28- 44]
4. Income from ‘Capital Gains’ [Sections 45-55] and
5. Income from ‘Other Sources’ [Sections 56-59].

Question 3.
Write a note on slab raite of Income-tax charged on Individual:
Answer:
According to the Assessment year 2018-2019 the following rates will be charged:

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 31 Discharge and Breach of a Contract Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 31 Discharge and Breach of a Contract

11th Commerce Guide Discharge and Breach of a Contract Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
On the valid performance of the contractual obligation by the parties, the contract
a. Is discharged
b. Becomes enforceable
c. Becomes void
d. None of these
Answer:
a. Is discharged

Question 2.
An agreement to do an act impossible in itself under Section.56 is
a. Void
b. Valid
c. Voidable
d. Unenforceable
Answer:
a. Void

Question 3.
Any agreement which becomes impossible to perform under various circumstances
a. Voidable
b. Void
c. Valid
d. None of these
Answer:
b. Void

Question 4.
Discharge by mutual agreement may involve
a. Novation
b. Rescission
c. Alteration
d. All of the above
Answer:
d. All of the above

Question 5.
The compensation given for breach of contract is
a. Damage
b. remuneration
c. Money
d. Cheque
Answer:
a. Damage

II Very Short Answer Questions

Question 1.
What are the kinds of consent?
Answer:
The consent may be of the following types:

1. Express
2. Implied

Question 2.
What are the types of Impossibility of Performance?
Answer:
There are two types of the impossibility of performance such as

1. Impossibility existing at -the time of the agreement.
2. Impossibility arising subsequent to the formation of the contract.

Question 3.
What is Quantum merit?
Answer:
The meaning of the phrase quantum merit is ‘as much as earned’.

III. Short Answer Questions

Question 1.
What are the different modes of discharge by implied consent?
Answer:
The different modes of discharge by implied consent are: .

• Novation
• Alteration
• Recession
• Remission
• Accord and Satisfaction
• Waiver and
• Merger

Question 2.
Define discharge by Performance.
Answer:
Performance implies carrying out the obligation of the contract. Performance must be completed according to the real intentions of the agreement. Performance must be done according to the time and manner prescribed.

Question 3.
What are the reasons for impossibility arising after the formation of a contract?
Answer:
A contract may be discharged if its performance becomes impossible. The rule of the impossibility of performance is based on the following maxims

• The law does not recognize what is impossible and
• What is impossible does not create an obligation

Question 4.
What are the various rules regarding damages?
Answer:
Generally in the following cases, the court grants specific performance:

1. When the act agreed to be done is such that compensation in money for its non – performance is not sufficient.
2. When it is probable that compensation in money cannot be received for the non – performance of the act agreed to be done.
3. When there is no standard for ascertaining the actual damage caused by the non – performance of the act agreed to be done.

IV. Long Answer Questions

Question 1.
Explain the ways of discharge of Contract?
Answer:
Meaning:
Discharge of contract implies termination of the contractual relationship between the parties. A contract is discharged if it ceases to operate and when the rights and obligations created by it come to an end.

Discharge by Performance:
Performance implies carrying out the obligation of the contract. Performance must be completed according to the real intentions of the agreement. Performance must be done according to time and manner prescribed. Performance of contract may be of two types namely (i) Actual . performance (ii)Attempted performance

By Agreement on Consent:
Agreement between the parties comes to an end by mutually agreeing for it. Any contract is created by an agreement, hence in the same way, it can be discharged by an agreement. In this connection, the rule of law is as follows. “Eodemmodoqus and quide constitution, eodemmododestruitur,” the meaning of which is that a thing may be destroyed in the same manner, in which, it is constituted. The consent may be of the following types

• Express
• Implied.

By Impossibility of Performance:
A contract may be discharged if its performance becomes impossible. According to the Section 56 of the Act, all acts to do impossible acts are void. There are two types of impossibility of performance such as

1. Impossibility existing at the time of agreement,
2. Impossibility arising subsequent to the formation of contract.

By Lapse of Time:
According to the Limitation Act, 1963 a contract must be performed within a specified time. If it is not performed within this specified time limit and against which if no action is taken by the promisee in the Court of Law within specified time, then the promisee is deprived of his remedy at law. In such cases, the contract is discharged.

A contract can be discharged by the operation of law:
The operation of law by which contract can be discharged are as follows :

• By Death
• By Merger
• By Insolvency
• The unauthorised alteration of terms of a contract
• Rights and liabilities vesting in the same person

Question 2.
Write about the various remedies for breach of contract:
Answer:
There are various types of remedies for the injured parties listed as follows:

1. Recission of Contract – In case of breach of contract by one party, then the other parties may rescind the contract, and thereby the party is absolved from all obligations under the contract.

2. Claim for Specific Performance – In some specific cases if the damages are not an adequate remedy, then the court can direct the party in breach for the specific performance of the contract. In such a case, the promise is carried out as per the terms and conditions of the contract.

3. Claim for Injunction – Injunction is an order passed by a competent Court restraining a person from doing some act. An injunction can be defined as a mode of securing the specific performance of the negative terms of a contract.

4. Claim for Quantum Merit – The claim for quantum merit may arise if a contract performed by one party has become discharged by breach of the other party. The meaning of the phrase quantum merit is as much as earned’.

5. Claim for Damages – The claim for quantum merit may arise if a contract performed by one party has become discharged by breach of the other party. The meaning of the phrase quantum merit is as much as earned.

Question 3.
Discuss the different types of damages awarded to the injured party.
Answer:
Damages are monetary compensation awarded by the court to the injured party for the loss or injury suffered by him. As per the contract, one party can claim damages if the other parties breach the contract. The main purpose of awarding the damages is to make good the loss suffered by him. It is known as the doctrine of restitution.

Section 73 of the Indian Contract Act, 1872 deals with the compensation for loss or damages caused by a party for breach of contract. There are mainly four types of damages, such as

1. Ordinary damages
2. Special damages
3. Vindictive or exemplary damages; and
4. Nominal damages

11th Commerce Guide Discharge and Breach of a Contract Additional Important Questions and Answers

I. Choose the Correct Answer:

Question 1.
In case of breach of contract, which of the following remedies is not available to the aggrieved party?
a. suit for rescission
b.suit for damages
c. suit for specific performance
d. a suit under Indian Penal Code
Answer:
d. suit under Indian Penal Code

Question 2.
The time of limitation for enforcement of contractual rights is ………………..
a. 2 years
b. 3 years
c. 4 years
d. 5 years
Answer:
b. 3 years

Question 3.
If a new contract is replaced in the place of a prevailing contract is called …………………
a. alteration
b. novation
c. waiver
d. remission
Answer:
b. novation

Question 4.
Discharge by mutual agreement involves which of the following?
a. Novation
b. Rescission
c. Alteration
d. All the above
Answer:
d. All the above

Question 5.
Which of the following is the usual law remedy?
a. Injunction
b. Specific Performance
c. Damages
d. Penalty
Answer:
c. Damages

II. Very Short Answer Questions:

Question 1.
What do you mean by the discharge of a contract?
Answer:
Discharge of contract implies termination of the contractual relationship between the parties. A contract is discharged if it ceases to operate and when the rights and obligations created by it come to an end.

Question 2.
What are all the types of performance of a contract?
Answer:
Performance of the contract is under two types namely,

1. Actual Performance and
2. Attempted Performance.

III. Short Answer Questions:

Question 1.
State some cases, in which the court grants specific performance:
Answer:

• When the act agreed to be done is such that compensation in money for its non-performance is not sufficient.
• When it is probable that compensation in money cannot be received for the non-performance of the act agreed to be done.
• When there is no standard for ascertaining the .actual damage caused by the non-performance of the act agreed to be done.

Question 2.
At what circumstances the court may order an injunction at the time of claim?
Answer:
The court may order injunction in the following cases:

• If the contract is voidable
• If the contract becomes void or
• On discovering the contract as void.

IV Long Answer Questions

Question 1.
Explain the ways by which a contract can be discharged by operation of law:
Answer:
The operation of law by which contract can be discharged are as follows:
By Death:
If the contracts depend on the personal skill or ability, then such contract may be discharged on the death of the promisor.

By Merger:
Merger will take place when an inferior right accruing to the same party either under the same or another contract.

By Insolvency:
An insolvent is discharged from all liabilities incurred prior to his adjudication.

Unauthorized Alteration of the Terms of a Contract:
If one party makes any material alteration in the contract without the consent of the other party, then the other party can avoid the contract.

Rights and liabilities vesting in the same person:
Where the right and liability become vested in the same person, the other parties are discharged.

Question 2.
What are all the reasons for not granting the specific performance by the court?
Answer:
The court does not grant specific performance in the following cases:

• Damages are an adequate remedy
• The contract is not certain
• The contract is inequitable to either party
• The contract is of revocable nature
• The contract is made by the trustee in breach of trust
• The contract is of personal nature i.e., contract to marry
• The contract made by a company ultra-vires of its Memorandum of Association
• The court cannot supervise it’s carrying out.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 29 Elements of Contract Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 29 Elements of Contract

11th Commerce Guide Elements of Contract Text Book Back Questions and Answers

I Choose the Correct Answer

Question 1.
An agreement enforceable by law is a ………………..
(a) Enforceable acceptance
(b) Accepted offer
(c) Approved promise
(d) Contract
Answer:
(d) Contract

Question 2.
Every promise and every set of promises, forming the consideration for each other, is an
(a) Agreement
(b) Contract
(c) Offer
(d) Acceptance
Answer:
(a) Agreement

Question 3.
Void agreement signifies ……………….
(a) Agreement illegal in nature
(b) Agreement not enforceable by law
(c) Agreement violating legal procedure
(d) Agreement against public policy
Answer:
(b) Agreement not enforceable by law

Question 4.
Acceptance to be valid must ………………….
(a) Be absolute
(b) Be unqualified
(c) Both be absolute & unqualified
(d) Be conditional
Answer:
(c) Both be absolute & unqualified

Question 5.
A contract with or by a minor is a ……………
(a) Valid contract
(b) Void contract
(c) Voidable contract .
(d) Voidable at the option of either party
Answer:
(d) Voidable at the option of either party

II. Very Short Answer Questions

Question 1.
What is law?
Answer:
Law means a ‘set of rules’ which governs our behaviour and relating in a civilized society.

Question 2.
Why should one know the law?
Answer:
One should know the law to which he/she is subjected to hecausç ignorance of law is no excuse.

Question 3.
Can a minor enter into a Contract?
Answer:
As per the Indian Contract Act 1872, a contract entered by or with a minor is void as well as void-abinitio. Which means it has no legal effect from the very beginning.

Question 4.
Who can enter into a Contract?
Answer:
The Indian Contract Act specifies that every person is competent to contract provided he/she

• Is of the age of majority according to the law which he/she is subject to, and
• Who is of sound mind and
• Is not disqualified from contracting by any law to which he is subject to, an alien enemy, foreign sovereigns and accredited representative of a foreign state, insolvents, and convicts are not competent to contract.

Question 5.
Define Contract
Answer:
Contract 2(h) An agreement enforceable by Law is a Contract.

III Short Answer Questions

Question 1.
Define Offer:
Answer:
According to section 2(a) of Indian Contract Act Offer is defined as “When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal”.

Question 2.
What do you mean by Agreement?
Answer:
An “agreement” means ‘a promise or a set of promises’ forming consideration for each other. A promise arises when a proposal is accepted. By implication, an agreement is an accepted proposal. In other words, an agreement consists of an ‘offer’ and its ‘acceptance’.
Agreement = offer / Proposal + Acceptance

Question 3.
Define a Voidable Contract:
Answer:
According to Section 2 (i) of the Indian Contract Act 1872, a voidable contract is, “An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract”.

Question 4.
What do you mean by Revocation?
Answer:
The Revocation means the withdrawal of an offer power of attorney.

Question 5.
Who is a promisor, promisee?
Answer:
Promisor: The person who has become obliged through a promise is known as a promisor
Promisee: The person to whom the promise has been made is known as the promisee.

IV Long Answer Questions

Question 1.
Explain the essentials of a Valid Contract:
Answer:

1. Offer and Acceptance: There must be two parties to an agreement namely one party making the offer and the other party accepting it.
2. Legal Relationship: The parties must have the intention to create legal relations between them. An agreement of Social or domestic nature is not at all a contract.
3. Lawful Consideration (quid pro quo) : As per Contract Act under Sec.2(d) Consideration means something in return. A contract without consideration becomes invalid.
4. Lawful Object (Section 23) : The object of the agreement should be lawful and legal. It must not be immoral, illegal or opposed to public policy.
5. Free Consent (Section 13 & 14) : Consent of the parties must be free and genuine. Consent means agreeing upon the same thing in the same sense at the same time i.e. there should be a consensus – ad – idem. Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
6. The capacity of Parties (Section 11): The parties to a contract must have the capacity (legal ability) to make a valid contract.
7. The certainty of Terms (Section 29): The agreement should be clear to the parties of the agreement. The agreement must be precise.
8. Possibility of Performance (Section 56) : The terms of the agreement should be capable of performing. An agreement to do an act, impossible in itself cannot be enforced.
9. Not declared Void: The agreement should be such that it should be capable of being enforced by law. Certain agreements have been expressly declared illegal or void by the law.
10. Necessary Legal Formalities: A contract may be oral or in writing. Where a particular type of contract is required by law to be in writing and registered, it must comply with necessary formalities as to writing, registration, and attestation.

Question 2.
Difference between Contract and Agreement.
Answer:

Question 3.
Explain the classification of Contract on the basis of the Validity.
Answer:

1. Valid Contract: An agreement which fulfills all the essentials prescribed by law on the basis of its creation. For example, S offers to sell his car for Rs.2,00,000 to T. T agrees to buy it. It is a Valid Contract.
2. Void Contract 2(j): A contract which ceases to be enforceable by law. A contract which does not satisfy any of the essential elements of a valid contract is said to be Void.
3. Voidable Contract 2(i): An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract.
4. Illegal Contract: It is a contract which is forbidden by law. All illegal agreements are Void but all void agreements or contracts are not necessarily illegal. A contract that is immoral or opposed to public policy is illegal in nature.
5. Unenforceable Contract: Where a contract is unenforceable because of some technical defect i.e. absence in writing barred by imitation etc. If the parties perform the contract it will be valid, but the court will not compel them if they do not.

Question 4.
Explain the classification of Contract on the basis of the Formation.
Answer:
Express Contract:
A contract made by the word spoken or written. According to Section.9, in so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. For example, P says to Q ‘will you buy my bicycle for Rs.l,000?” Q says to P “Yes”.

Implied Contract:
The implied contract is one, which is not expressly written but understood by the conduct of parties. Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied. For example, A gets into a public bus, there is an implied contract that he will pay the bus fare.

Quasi Contract:
It is a contract created by law. Actually, there is no contract. It is based on the principle that “a person shall not be allowed to enrich himself unjustly at the expense of the other”. In other words, it is an obligation of one party to another imposed by law independent of an agreement between the parties.

Tacit Contract:
A contract is said to be tacit when it has to be inferred from the conduct of the parties. For example, obtaining cash through an automatic teller machine, sale by fall of the hammer of an auction sale.

Question 5.
Explain the classification of Contract on the basis of the Performance.
Answer:
1. Executed Contract: A contract in which both the parties have fulfilled their obligations under the contract. For example X contracts to buy a car from Y by paying cash, Y instantly delivers his car.

2. Executory Contract: A contract in which both the parties are yet to fulfill their obligations, is said to be an executory contract. For example, A agrees to buy B’s cycle by promising to pay cash on 15th June. B agrees to deliver the cycle on 20th June.

3. Unilateral Contract: A unilateral contract is a one-sided contract in which only one party has performed his promise or obligation, the other party has to perform his promise or obligation.

For example, X promises to pay Y a sum of Rs. 10,000 for the goods to be delivered by Y. X paid the money and Y is yet to deliver the goods.

4. Bilateral Contract: A contract in which both the parties commit to performing their respective promises is called a bilateral contract. For example, R offers to sell his fiat car to S for Rs. 10,00,000 on acceptance of R’s offer by S, there is a promise by R to Sell the car and there is a promise by S to purchase the car, there are two promises.

11th Commerce Guide Elements of Contract Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1.
Contracts classified on the basis of performance are
a. executed contracts
b. executory contracts
c. partly executed or partly executory contracts
d. all of the above
Answer:
d. all of the above

Question 2.
A contract in which, under the terms of a contract, nothing remains to be done by either party is known as
a. executed contract
b. executory contract
c. unilateral contract
d. none of the above
Answer:
a. executed contract

Question 3.
All illegal agreements are void, but all void agreements are not illegal.
a. True
b. Partly true
c. False
d. None of the above
Answer:
a. True

Question 4.
A appoints B as his agent, by way of a power of attorney. This is an example of
a. express contract
b. implied contract
c. tacit contract
d. unlawful contract
Answer:
a. express contract

Question 5.
A contract creates
a. rights in person
b. rights in parties
c. no obligations
d. only obligations and no rights
Answer:
a. rights in person

Question 6.
The Contract Act came into force
a. from 1 September 1972.
b. before 1 September 1882.
c. from 1 September 1872.
d. after 1 September 1872.
Answer:
c. from 1 September 1872.

II. Very Short Answer Questions:

Question 1.
What is meant by Tacit Contract?
Answer:
A Contract is said to be tacit when it has to be inferred from the conduct of the parties. For example, obtaining cash through an automatic teller machine, sale by fall of the hammer of an auction sale.

Question 2.
What are all the two parts of the Indian Contract Act?
Answer:

1. General Contract
2. Special Contract

Question 3.
What do you mean by Acceptance?
Answer:
According to section 2(b) of the Indian Contract Act 1872, When the person to whom the proposal is made, signifies his assent thereto. the proposal is said to be accepted.

III Short Answer Questions.

Question 1.
Write a short note on Bilateral Contract.
Answer:
A contract in which both the parties commit to performing their respective promises is called a bilateral contract. For example, R offers to sell his fiat car to S for Rs. 10,00,000 on acceptance of R’s offer by S, there is a promise by R to Sell the car and there is a promise by S to purchase the car, there are two promises.

Question 2.
What are all the types of agreements?
Answer:
Agreements are all in the following types: Agreement no enforceable by law – Any essential of a valid contract is not available. An agreement enforceable by law – All essentials of a valid contract are available.

Question 3.
Explain the term Consideration:
Answer:
As per section 2(d) When at the desire of the promisor, the promisee or any other person has done or abstained from doing something or does or abstains from doing something or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise.

IV Long Answer Questions:

Question 1.
Write a note on the Indian Contract Act.
Answer:
The Indian Contract Act occupies the most important place in Commercial Law. Without Contract Act, it would have been difficult to carry on a trade or any other business activity. The main object of the contract action is to assure that the rights and obligations which arise out of the contract are carried out and in case of failure to do so, the remedies are made available to the affected party. The Indian Contract Act is so much infused in the daily lives that it affects all.

Every purchase that one does, or a loan taken from a banker, or a ride one takes in a bus and many other transactions of daily life have its impact by Contract Act. The English common law is the basis for the development of the Indian Contract Act 1872. The Act came into force on 1st September 1872 and applies to the whole of India except the state of Jammu and Kashmir. This Act applies to the usage of trade and lays down the general principles.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Physics Guide Pdf Chapter 7 Properties of Matter Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Physics Solutions Chapter 7 Properties of Matter

11th Physics Guide Properties of Matter Book Back Questions and Answers

I. Multiple choice questions:

Question 1.
Consider two wires X and Y. The radius of wire X is 3 times the radius of Y. If they are stretched by the same load then the stress on Y is:
(a) equal to that on X
(b) thrice that on X
(c) nine times that on X
(d) Half that on X
Answer:
(c) nine times that on X

Hint:

Question 2.
If a wire is stretched to double of its original length, then the strain in the wire is:
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(a) 1

Hint:

Question 3.
The load – elongation graph of three wires of the same material are shown in figure. Which of the following wire is the thickest?

(a) wire 1
(b) wire 2
(c) wire 3
(d) all of them have same thickness
Answer:
(a) wire 1

Hint:
For wire stress is less
Stress = \(\frac { Force }{ Area }\)
As stress is less Area will be greater.
∴ Wire 1 is thickest.

Question 4.
For a given material, the rigidity modulus is [ \(\frac { 1 }{ 3 }\) ]³ of Young’s modulus. Its Poisson’s ratio:
(a) 0
(b) 0.25
(c) 0.3
(d) 0.5
Answer:
(d) 0.5

Hint:

Question 5.
A small sphere of radius 2 cm falls from rest in a viscous liquid. Heat is produced due to viscous force. The rate of production of heat when the sphere attains its terminal velocity is proportional to: [NEET model 2018]
(a) 2²
(b) 2³
(c) 2⁴
(d) 2⁵
Answer:
(d) 2⁵

Hint:

Question 6.
Two wires are made of the same material and have the same volume. The area of cross sections of the first and the second wires are A and 2A respectively. If the length of the first wire is increased by Δl on applying a force F, how much force is needed to stretch the second wire by the same amount? [NEET model 2018]
(a) 2
(b) 4
(c) 8
(d) 16
Answer:
(b) 4

Question 7.
With an increase in temperature, the viscosity of liquid and gas, respectively will:
(a) increase and increase
(b) increase and decrease
(c) decrease and increase
(d) decrease and decrease
Answer:
(c) decrease and increase

Question 8.
The Young’s modulus for a perfect rigid body is:
(a) 0
(b) 1
(c) 0.5
(d) infinity
Answer:
(d) infinity

Question 9.
Which of the following is not a scalar?
(a) viscosity
(b) surface tension
(c) pressure
(d) stress
Answer:
(d) stress

Question 10.
If the temperature of the wire is increased, then the Young’s modulus will:
(a) remain the same
(b) decrease
(c) increase rapidly
(d) increase by very a small amount
Answer:
(b) decrease

Question 11.
Copper of fixed volume V is drawn into wire of length l. When this wire is subjected to a constant force F, the extension produce in the wire is ∆l. If Y represents the Young’ modulus, then which of the following graph is a straight line?
(a) ∆l verses V
(b) ∆l verses Y
(c) ∆l verses F
(d) ∆l verses \(\frac { 1 }{ l }\)
Answer:
(c) ∆l verses F

Hint:
Strain ∝ Stress
∴ ∆l ∝ F

Question 12.
A certain number of spherical drops of a liquid of radius R coalesce to form a single drop of radius R and volume V If T is the surface tension of the liquid, then:
(a) energy = 4VT(\(\frac { 1 }{ r }\) – \(\frac { 1 }{ R }\)) is released
(b) energy = 3 VT(\(\frac { 1 }{ r }\) + \(\frac { 1 }{ R }\)) is absorbed
(c) energy = 3VT (\(\frac { 1 }{ r }\) – \(\frac { 1 }{ R }\))is released
(d) energy is neither released nor absorbed
Answer:
(c) energy = 3VT (\(\frac { 1 }{ r }\) – \(\frac { 1 }{ R }\))is released

Question 13.
The following four wires are made of the same material. Which of these will have the largest extension when the same tension is applied?
(a) length = 200 cm, diameter = 0.5 mm
(b) length= 200 cm, diameter = 1 mm
(c) length 200 cm, diameter = 2 mm
(d) length= 200 cm, diameter = 3 m
Answer:
(a) length = 200 cm, diameter = 0.5 mm

Hint:

Hence the value of l must be most and that of d must be least.

Question 14.
The wettability of a surface by a liquid depends primarily on:
(a) viscosity
(b) surface tension
(c) density
(d) angle of contact between the surface and the liquid
Answer:
(d) angle of contact between the surface and the liquid

Question 15.
In a horizontal pipe of non-uniform cross section, water flows with a velocity of 1 ms^-1 at a point where the diameter of the pipe is 20 cm. The velocity of water (ms^-1) at a point where the diameter of the pipe 10 cm is:
(a) .0025 m/s
(b) .25 m/s
(c) 0.025 m
(d) .5 m/s
Answer:
(b) .25 m/s

Hint:

II. Short Answer Questions:

Question 1.
Define stress and strain.
Answer:
Stress: The force per unit area is called as stress.
Stress, σ = \(\frac { Force }{ Area }\) = \(\frac { F }{ A }\)

Strain: Strain is defined as the ratio of change in size to the original size of an object. It measures the degree of deformation.

Question 2.
State Hooke’s law of elasticity.
Answer:
It states that for small deformation, the stress is directly proportional to strain.

Question 3.
Define Poisson’s ratio.
Answer:
It is defined as the ratio of relative contraction (lateral strain) , to relative expansion (longitudinal strain).

Question 4.
Explain elasticity using intermolecular forces.
Answer:
Elastic behaviour of solid. In a solid, atoms and molecules are arranged in such a way that each molecule is acted upon by the forces due to the neighbouring molecules. When deforming force is applied on a body so that its length increases, then the molecules of the body go far apart.

Question 5.
Which one of these is more elastic, steel or rubber? Why?
Answer:
Steel is more elastic than rubber. If equal stress is applied to both steel and rubber, the steel produces less strain. So Young’s modulus is higher for steel than rubber. Hence steel is more elastic than rubber.

Question 6.
A spring balance shows wrong readings after using for a long time. Why?
Answer:
When a spring balance has been used for a long time, it develops elastic fatigue, the spring of such a balance takes a longer time to recover its original configuration and therefore it does not give correct measurement.

Question 7.
What is the effect of temperature on elasticity?
Answer:
As the temperature of the substance increases, its elasticity decreases.

Question 8.
Write down the expression for the elastic potential energy of a stretched wire.
Answer:
W = \(\frac { 1 }{ 2 }\) Fl = Elastic potential energy

Question 9.
State Pascal’s law in fluids.
Answer:
If the pressure in a liquid is changed at a particular point, the change is transmitted to the entire liquid without being diminished in magnitude.

Question 10.
State Archimedes principle.
Answer:
When a body is partially or wholly immersed in a fluid, it experiences an upward thrust equal to the weight of the fluid displaced by it and its upthrust acts through the centre of gravity of the liquid displaced.
Upthrust or buoyant force = weight of liquid displaced.

Question 11.
What do you mean by upthrust or buoyancy?
Answer:
The upward force exerted by a fluid that opposes the weight of an immersed object in a fluid is called upthrust or buoyant force.

Question 12.
State the law of floatation.
Answer:
The law of floatation states that a body will float in a liquid if the weight of the liquid displaced by the immersed part of the body equals the weight of the body.

Question 13.
Define coefficient of viscosity of a liquid.
Answer:
The coefficient of viscosity of a liquid is defined as the viscous force acting tangentially per unit area of a liquid layer having a unit velocity gradient in a direction perpendicular to the direction of flow of the liquid.

Question 14.
Distinguish between streamlined flow and turbulent flow.
Answer:
Streamlined flow:

• When a liquid flows such that each particle of the liquid passing a point moves along the same path and has the same velocity as its predecessor then flow is said to be streamlined flow.
• The velocity of the particles is constant.
• The path taken by the particle in this flow is a curve.

Turbulent flow:

• When the speed of the moving liquid, exceeds the critical speed v_c, the motion becomes turbulent.
• The velocity changes both in magnitude and direction from particle to particle.
• The path taken by the particle in this flow becomes erratic and whirlpool. Like circles.

Question 15.
What is Reynold’s number? Give its significance.
Answer:
Reynold’s number R_c is a critical variable, which decides whether the flow of a fluid through a cylindrical pipe is streamlined or turbulent.
R_c = \(\frac { ρVD }{ η }\)

Question 16.
Define terminal velocity.
Answer:
The maximum constant velocity acquired by a body while falling freely through a viscous medium is called the terminal velocity V_T.

Question 17.
Write down the expression for Stoke’s force and explain the symbols involved in it.
Answer:
F= 6πηrv

• Radius (r ) of the sphere
• Velocity (v) of the sphere and
• Coefficient of viscosity η of the liquid.

Question 18.
State Bernoulli’s theorem.
Answer:
According to Bernoulli’s theorem, the sum of’ pressure energy, kinetic energy, and potential energy per unit mass of an incompressible. Non-viscous fluid in a streamlined flow remains a constant.

Question 19.
What are the energies possessed by a liquid? Write down their equations.
Answer:
A liquid in a steady flow can possess three kinds of energy. They are
(i) Kinetic energy, KE = \(\frac { 1 }{ 2 }\)mv²
(ii) Potential energy, PE = mgh
(iii) Pressure energy, respectively E_p = PV

Question 20.
Two streamlines cannot cross each other. Why?
Answer:
If two streamlines cross each other, there will be two directions of flow at the point of intersection which is impossible.

Question 21.
Define surface tension of a liquid. Mention its S.l unit and dimension.
Answer:
Surface tension is defined as the force acting on a unit length of an imaginary line drawn on the free surface of the liquid, the direction of the force being perpendicular to the line so drawn and acting parallel to the surface. The SI unit and dimensions of surface tension are Nm^-1 and MT^-2, respectively.

Question 22.
How is surface tension related to surface energy?
Answer:
The surface energy per unit area of a surface is numerically equal to the surface tension.

Question 23.
Define the angle of contact for a given pair of solid and liquid.
Answer:
The angle between tangents drawn at the point of contact to the liquid surface and solid surface inside the liquid is called the angle of contact for a pair of solid and liquid. It is denoted by θ.

Question 24.
Distinguish between cohesive and adhesive forces.
Answer:
Cohesive – The force between the like molecules which holds the liquid together is called ‘cohesive force’.

Adhesive – When the liquid is in contact with a solid, the molecules of these solid and liquid will experience an attractive force which is called ‘adhesive force’.

Question 25.
What are the factors affecting the surface tension of a liquid?
Answer:

1. The presence of any contamination or impurities.
2. The presence of dissolved substances.
3. Electrification
4. Temperature

Question 26.
What happens to the pressure inside a soap bubble when air is blown into it?
Answer:
Pressure will slowly increase inside the soap bubble.

Question 27.
What do you mean by capillarity or capillary action?
Answer:
In a liquid whose angle of contact with solid is less than 90°, suffers capillary rise. On the other hand, in a liquid whose angle of contact is greater than 90°, suffers capillary fall. The rise or fall of a liquid in a narrow tube is called capillarity or capillary action.

Question 28.
A drop of oil placed on the surface of water spreads out. But a drop of water place on oil contracts to a spherical shape. Why?
Answer:
When a drop of water is placed on oil, the cohesive force of water molecules dominates the adhesive force between water and oil molecules. Hence drop of water contracts to a spherical shape.

Question 29.
State the principle and usage of Venturimeter.
Answer:
This device is used to measure the rate of flow (or say flow speed) of the incompressible fluid flowing through a pipe. It works on the principle of Bernoulli’s theorem.

III. Long Answer Questions:

Question 1.
State Hooke’s law and verify it with the help of an experiment.
Answer:
Hooke’s law states that for a small deformation when the stress and strain are proportional to each other.

It can be verified in a simple way by stretching a thin straight wire (stretches like spring) of length L and uniform cross-sectional area A spring is suspended from a fixed point O. A pan and a pointer are attached at the free end of the wire as shown in Figure.

Using a vernier scale arrangement the extension produced on the wire is measured. From the experiment, it is known that for a given load, the corresponding stretching force is F and the elongation produced on the wire is ΔL.

It is directly proportional to the original length L and inversely proportional to the area of cross-section A. A graph is plotted using F on the X-axis and AL on the Y-axis. This graph is a straight line passing through the origin as shown in Figure.

Variation of ∆L with F
∴ ∆L = (slope)F
Multiplying and dividing by volume,
V = AL,
F(slope) = \(\frac { AL }{ AL }\) ∆L
Rearranging, we get

i.e., the stress is proportional to the strain in the elastic limit.

Question 2.
Explain the different types of modulus of elasticity.
Answer:
There are three types of modulus of elasticity. They are:

1. Young’s modulus
2. Bulk modulus
3. Rigidity modulus

Young’s modulus: When a wire is stretched or compressed, then the ratio between tensile stress (or compressive stress) and tensile strain (or compressive strain) is defined as Young’s modulus.

SI unit of Young’s modulus is Nm^-2 or pascal.
Bulk modulus: Bulk modulus is defined as the ratio of volume stress to the volume strain.
Bulk modulus,

The negative sign in equation (1) means that when pressure is applied to the body, its volume decreases.
The rigidity modulus or shear modulus:
It is defined as rigidity modulus or Shear modulus,

Question 3.
Derive an expression for the elastic energy stored per unit volume of a wire.
Answer:
When a body is stretched, work is done against the restoring force (internal force). This work done is stored in the body in the form of elastic energy. Let us consider a wire whose un-stretch length is L and the area of cross-section is A. Let a force produce an extension l and it is assumed that the elastic limit of the wire has not been exceeded and there is no loss in energy. Then, the work done by the force F is equal to the energy gained by the wire. The work is done in stretching the wire by dl,
dW = F dl
The total work done in stretching the wire from 0 to l is
W = \(\int_{0}^{l} \mathrm{~F} d l\) … (1)
From Young’s modulus of elasticity,
Y = \(\frac { F }{ A }\) x \(\frac { L }{ l }\) ⇒ F = \(\frac { YAl }{ L }\) … (2)
Substituting equation (2) in equation (1), we get
W = \(\int_{0}^{l} \frac{\mathrm{YAl}}{\mathrm{L}} d l\)
Since l is the dummy variable in the integration, we can change l to l’ (not in limits), therefore

Question 4.
Derive an equation for the total pressure at a depth ‘h’ below the liquid surface.
Answer:
Let us consider a water sample of a cross-sectional area in the form of a cylinder. Let h₁ and h₂ be the depths from the air-water interface to level 1 and level 2 of the cylinder, respectively as shown in Figure (a). Let F₁ be the force acting downwards on level 1 and F₂ be the force acting upwards on level 2, such that, F₁ = P₁ A and F₂ = P₂ A Let the mass of the sample to be m and under equilibrium condition, the total upward force (F₂) is balanced by the total downward force (F₁ + mg), otherwise, the gravitational force will act downward which is being exactly balanced by the difference between the force F₂ – F₁
F₂ – F₁ = mg = F_G … (1)
Where m is the mass of the water available in the sample element. Let p be the density of the water then, the mass of water available in the sample element is
m = ρV = ρA(h₂ – h₁])
V= A (h₂ – h₁)

A sample of water with base area A in a static fluid with its forces in equilibrium
Hence, gravitational force,
F_G = ρA(h₂ – h₁)g
On substituting the value of W in equation (1)
F₂ = F₁ + mg
⇒ P₂A = P₁A + ρA(h₂ – h₁)g
Cancelling out A on both sides,
P₂ = P₁ + ρ (h₂ – h₁)g … (2)

If we choose level 1 at the surface of the liquid (i.e., air-water interface) and level 2 at a depth ‘h ’ below the surface (as shown in Figure), then the value of h₁ becomes zero (h₁ = 0) when P₁ assumes the value of atmospheric pressure (say P_a). In addition, the pressure (P₂) at a depth becomes P. Substituting these values in the equation,
p₂ = p₁ + ρ(h₂ – h₁)g
we get
p = p_a + ρgh
This means, the pressure at a depth h is greater than the pressure on the surface of the liquid, where P_a is the atmospheric pressure = 1.013 x 10⁵ P_a. If the atmospheric pressure is neglected then
p = ρ gh
For a given liquid, p is fixed and g is also constant, then the pressure due to the fluid column is directly proportional to vertical distance or height of the fluid column.

Question 5.
State and prove Pascal’s law in fluids.
Answer:

Pascal’s law states that if the effect of gravity can be neglected then the pressure in a fluid in equilibrium is the same everywhere. Let us consider any two points A and B inside the fluid imagined. A cylinder is such that points A and B lie at the centre of the circular surface at the top and bottom of the cylinder.

Let the fluid inside this cylinder be in equilibrium under the action of forces from outside the fluid. The forces acting on the circular, top, and bottom surfaces are perpendicular to the forces acting on the cylindrical surface. Therefore the forces acting on the faces at A and B are equal and opposite and hence add to zero.

As the areas of these two faces are equal, the pressure at A = pressure at B. This is the proof of Pascal’s law when the effect of gravity is not taken into account.

Question 6.
State and prove Archimedes principle.
Answer:

Archimedes principle states that when a body is partially or wholly immersed in a fluid, it experiences an upward thrust equal to the weight of the fluid displaced by it, and its upthrust acts through the centre of gravity of the liquid displaced.
Proof:
Consider a body of height h lying inside a liquid of density p, at a depth x below the free surface of the liquid. The area of a cross-section of the body is a. The forces on the sides of the body cancel out.

Pressure at the upper face of the body,
P₁ = xρg
Pressure at the lower face of the body,
P₂ = (x + h)pρg
Thrust acting on the upper face of the body is
F₁ = P₁a = xρga
acting vertically downwards.
Thrust acting on the lower face of the body is
F₂ = P₂a = (x+h)ρga
acting vertically upwards.
The resultant force (F₂ – F₁) is acting on the body in the upward direction and is called Upthrust (U).
∴ U = F₂ – F₁ = (x + h)ρg – xρga = ahρg
But, ah = V, the volume of the body = volume of liquid displaced.
U = Vρg = Mg
[∴ M = Vρ = mass of liquid displaced] i.e., upthrust or buoyant force.
= Weight of liquid displaced.
This proves the Archimedes principle.

Question 7.
Derive the expression for the terminal velocity of a sphere moving in a high viscous fluid using stokes force.
Answer:
Let us consider a sphere of radius r which falls freely through a highly viscous liquid of coefficient of viscosity η. Let the density of the material of the sphere be p and the density of the fluid be c.

Gravitational force acting on the sphere,
F_G = mg = \(\frac { 4 }{ 3 }\)πr³pg (downward force)
Upthrust, U= \(\frac { 4 }{ 3 }\)πr³σg (upward force)
viscous force F = 6πηrv_t
At terminal velocity v_t.
downward force = upward force.

Question 8.
Derive Poiseuille’s formula for the volume of a liquid flowing per second through a pipe under streamlined flow.
Answer:
Consider a liquid flowing steadily through a horizontal capillary tube.
Let v = (\(\frac { V }{ t }\)) be the volume of the liquid flowing out per second through a capillary tube.
It depends on
(i) coefficient of viscosity (η) of the liquid
(ii) radius of the tube (r).
(iii) the pressure gradient (yj Then,

So, equating the powers of M, L, and T on both sides, we get
a + c = 0, – a + b – 2c = 3, and – a – 2c = 1 On solving three equations, we get
a = – 1, b = 4, and c = 1
Therefore, equation (1) becomes,
v = kη^-1r(\(\frac { p }{ l }\))¹
Experimentally, the value of k is shown to be \(\frac { π }{ 8 }\), we have
V = \(\frac{\pi r^{4} \mathrm{P}}{8 \eta l}\)
The above equation is known as Poiseuille’s equation for the flow of liquid through a narrow tube or a capillary tube.

Question 9.
Obtain an expression for the excess of pressure inside a
(i) liquid drop
(ii) liquid bubble
(iii) air bubble.
Answer:
(i) Liquid drop: Let us consider a liquid drop of radius R and the surface tension of the liquid is T.

The various forces acting on the liquid drop are,
(a) Force due to surface tension F_T= 2πRT towards the right
(b) Force due to outside pressure, F\(\mathrm{F}_{\mathrm{P}_{1}}\) towards right
(c) Force due to inside pressure,
\(\mathrm{F}_{\mathrm{P}_{2}}\) = P₂ πR² towards left
As the drop is in equilibrium,
\(\mathrm{F}_{\mathrm{P}_{2}}\) = F_T + \(\mathrm{F}_{\mathrm{P}_{1}}\)
P₂2πR² = 2πRT + P₁πR²
⇒ (P₂ – P₁)πR² = 2πRT
Excess pressure is ∆P = P₂ – P₁ = \(\frac { 2T }{ R }\)

(ii) Liquid bubble: A soap bubble of radius R and the surface tension of the soap bubble be T is as shown in Figure. A soap bubble has two liquid surfaces in contact with air, one inside the bubble and the other outside the bubble. Hence, the force on the soap bubble due to surface tension is 2 x 2πRT. The various forces acting on the soap bubble are,

(a) Force due to surface tension
F_T = 4πRT towards right

(b) Force due to outside pressure,
F_P = P₁πR² towards right

(c) Force due to inside pressure,
\(\mathrm{F}_{\mathrm{P}_{2}}\) = P₂πR² towards left
As the bubble is in equilibrium,
\(\mathrm{F}_{\mathrm{P}_{2}}\) = F_T + \(\mathrm{F}_{\mathrm{P}_{1}}\)
P₂πR² = 4πRT + P₁πR²
⇒ (P₂ – P₁)πR² = 4πRT
Excess pressure is ∆P = P₂ – P₁ = \(\frac { 4T }{ R }\)

(iii) Air bubble: Let us consider an air bubble of radius R inside a liquid having surface tension T as shown in Figure. Let P₁ and P₂ be the pressures outside and inside the air bubble, respectively. Now, the excess pressure inside the air bubble is ∆P = P₁ – P₂.

In order to find the excess pressure inside the air bubble, let us consider the forces acting on the air bubble. For the hemispherical portion of the bubble, considering the forces acting on it, we get,
(a) The force due to surface tension acting towards right around the rim of length 2πR is F_T = 2πRT

(b) The force due to outside pressure P₁ is to the right acting across a cross-sectional area of πR² is \(\mathrm{F}_{\mathrm{P}_{1}}\) = P₁πR²

(c) The force due to pressure P₂ inside the bubble, acting to the left is \(\mathrm{F}_{\mathrm{P}_{2}}\) = P₂πR²
As the air bubble is in equilibrium under the action of these forces, \(\mathrm{F}_{\mathrm{P}_{2}}\) = F_T + \(\mathrm{F}_{\mathrm{P}_{1}}\).

Question 10.
What is capillarity? Obtain an expression for the surface tension of a liquid by the capillary rise method.
Answer:
The rise or fall of a liquid in a narrow tube is called capillarity. Let us consider a capillary tube which is held vertically in a beaker containing water; the water rises in the capillary’ tube to a height h due to surface tension.

The surface tension force F_T, acts along the tangent at the point of contact downwards and its reaction force upwards. Surface tension T is resolved into two components.
(i) Horizontal component T sinθ and
(ii) Vertical component T cosθ acting upwards, all along the whole circumference of the meniscus.
Total upward force = (T cosθ) (2πr)
= 2πrT. cosθ
Where θ is the angle of contact, r is the radius of the tube. Let ρ be the density of water and h be the height to which the liquid rises inside the tube. Then,

The upward force supports the weight of the liquid column above the free surface, therefore,

If the capillary is a very fine tube of the radius (i.e., the radius is very small) then \(\frac { r }{ 3 }\) can be neglected when it is compared to the height h. Therefore,
T = \(\frac{r \rho g h}{2 \cos \theta}\)

Question 11.
Obtain an equation of continuity for a flow of fluid on the basis of conservation of mass.
Answer:
Let us consider a pipe AB of varying cross-sectional areas a₁ and a₂ such that a₁ > a₂. A non – viscous and incompressible liquid flows steadily through the pipe, with velocities v₁ and v₂ in areas a₁ and a₂, respectively as shown in Figure.

Let m₁ be the mass of fluid flowing through section A in time ∆t, m₁ = (a₁v₁ ∆t)ρ
Let m₂ be the mass of fluid flowing through section B in time ∆t, m₂ = (a₂v₂ ∆t)ρ
For an incompressible liquid, mass is conserved m₁ = m₂
a₁v₁ ∆tρ = a₂v₂∆tρ
a₁v₁ = a₂v₂ ⇒ av = constant
Which is called the equation of continuity. It is based on the conservation of mass in the flow of fluids. In general, av – constant.

Question 12.
State and prove Bernoulli’s theorem for a flow of incompressible, non-viscous, and streamlined flow of fluid.
Statement:
According to Bernoulli’s theorem, the sum of pressure energy, kinetic energy, and potential energy per unit mass of an incompressible, non-viscous fluid in a streamlined flow remains a constant.

Proof:
Let us consider a flow of liquid through a pipe AB as shown in Figure. Let V be the volume of the liquid when it enters A in a time t which is equal to the volume of the liquid leaving B in the same time. Let a_A, v_A, and P_A. be the area of cross-section of the tube, velocity of the liquid, and pressure exerted by the liquid at A respectively.
Let the force exerted by the liquid at A is
F_A = V_A
Distance travelled by the liquid in time t is
d = v_A t
Therefore, the work done is
W = F_Ad = P_A a_A v_A t
But a_A v_A t = a_A d = V, the volume of the liquid entering at A.
Thus, the work done is the pressure energy (at A),
W = F_A d = P_A V
Pressure energy per unit mass at pressure energy

Since m is the mass of the liquid entering at A in a given time, therefore, pressure energy of the liquid at A is
E_PA = P_AV = P_AV x \(\frac { m }{ m }\) = m \(\frac{P_{A}}{\rho}\)
Potential energy of the liquid at A,
P_A = mg h_A,
Due to the flow of liquid, the kinetic energy of the liquid at A,
KE_A = \(\frac { 1 }{ 2 }\)mv²_A
Therefore, the total energy due to the flow of liquid at A, E_A = EP_A + KE_A + PE_A
E_A = \(m \frac{\mathrm{P}_{\mathrm{A}}}{\rho}+\frac{1}{2} m v_{\mathrm{A}}^{2}+m g h_{\mathrm{A}}\)
Similarly, let a_B, v_B, and P_B be the area of a cross section of the tube, the velocity of the liquid, and pressure exerted by the liquid at B. Calculating the total energy at EB, we get
E_B = \(m \frac{\mathrm{P}_{\mathrm{B}}}{\rho}+\frac{1}{2} m v_{\mathrm{B}}^{2}+m g h_{\mathrm{B}}\)
From the law of conservation of energy,

Thus, the above equation can be written as
\(\frac { p }{ ρg }\) + \(\frac { 1 }{ 2 }\)\(\frac{v^{2}}{g}\) + h = constant

Question 13.
Describe the construction and working of venturimeter and obtain an equation for the volume of liquid flowing per second through a wider entry of the tube.
Answer:
Construction: It consists of two wider tubes A and A’ (with cross-sectional area A) connected by a narrow tube B (with the cross-sectional area a). A manometer in the form of a U-tube is also attached between the wide and narrow tubes as shown in Figure. The manometer contains a liquid of density ‘ρ_m‘.

Theory:
Let P₁ be the pressure of the fluid at the wider region of tube A. Let us assume that the fluid of density ‘ρ’ flows from the pipe with speed ‘v₁’ and into the narrow region, its speed increases to ‘v₁‘.

According to Bernoulli’s equation, this increase in speed is accompanied by a decrease in the fluid pressure P₂ at the narrow region of the tube B. Hence, the pressure difference between tubes A and B is noted by measuring the height difference (∆P = P₁ – P₂) between the surfaces of the manometer liquid.
From the equation of continuity, we can say that Av₁ = av₂ which means that
v₂ = \(\frac { A }{ a }\)v₁
Using Bernoulli’s equation,

IV. Numerical Problems:

Question 1.
A capillary of diameter d mm is dipped in water such that the water rises to a height of 30 mm. If the radius of the capillary is made (\(\frac { 2 }{ 3 }\))of its previous value, then compute the height up to which water will rise in the new capillary?
Answer:
Let diameter of capillary tube = d mm
Let the radius of capillary tube r₁ = r mm
Capillary rise h₁ = 30 mm
Let the radius of another capillary tube r₂ = \(\frac { 2 }{ 3 }\) r
Let the capillary rise of another capillary tube be h₂
We know that

Question 2.
A cylinder of length 1.5 m and diameter 4 cm is fixed at one end. A tangential force of 4 x 10⁵ N is applied at the other end. If the rigidity modulus of the cylinder is 6 x 10⁵ Nm^-2 then, calculate the twist produced in the cylinder.
Answer:
Length of a cylinder l = 1.5 m
Diameter of a cylinder d = 4 x 10^-2 m
Tangential force F_t = 4 x 10⁵ N
Rigidity modulus η_R = 6 x 10¹⁰ Nm^-2
Twist produced θ = ?

Question 3.
A spherical soap bubble A of radius 2 cm is formed inside another bubble B of radius 4 cm. Show that the radius of a single soap bubble which maintains the same pressure difference as inside the smaller and outside the larger soap bubble is lesser than the radius of both soap bubbles A and B.
Answer:
Excess of pressure inside the liquid due to surface tension,
∆P = \(\frac { 2T }{ R }\)
Where T – surface tension
In the case of soap bubbles, the excess pressure inside the soap bubble,
∆P_b = \(\frac { 4T }{ R }\)
Excess of pressure of air inside the bigger bubble
∆P_bigger = \(\frac { 4T }{ 4 }\) = T
Excess of pressure of air inside the smaller bubble
∆P_smaller = \(\frac { 4T }{ 2 }\) = 2T
Air pressure different between the smaller bubble and the atmosphere will be equal to the sum of excess pressure inside the bigger and smaller bubbles.

Excess pressure inside a single soap bubble
= \(\frac { 4T }{ R }\) = 4T = T
∴ Pressure different of single soap bubble less than the radius of both T < 3T.

Question 4.
A block of Ag of mass x kg hanging from a string is immersed in a liquid of relative density 0.72. If the relative density of Ag is 10 and tension in the string is 37.12 N then compute the mass of the Ag block.
Answer:
Let the mass of Ag block be x kg,
Tension in the string T = 37.12 N.
Relative density of liquid R_liq = 0.72
Relative density of silver R_Ag = 10
According to the principle of flotation
V_pg = mg
∴ Vp=m … (1)
Weight of Ag block = mg = Vρg = R_AgV_g
Weight of Ag block W = 10 Vρg [ ∵ m = Vρ]
Force of buoyancy F_B = R_liq (Vρ)g = 0.72 V_ρg
Apparent weight W_app = 10 V_ρg – 0.72 Vρg
= 9.78 Vρg
= 9.78 mg
Tension in the string = Apparent weight
37.12= 9.78 mg
Mass m = \(\frac { 37.12 }{ 9.28 }\) = 4 kg

Question 5.
The reading of the pressure meter attached with a closed pipe is 5 x 10⁵ Nm^-2. On opening the valve of the pipe, the reading of the pressure meter is 4.5 x 10⁵ Nm^-2. Calculate the speed of the water flowing in the pipe.
Answer:
Initial pressure P₂ = 5 x 10⁵ Nm^-2
Final pressure P₁ = 4. 5 x 10⁵ Nm^-2
Initial velocity V₁ = 0
Final velocity v₂ = v₂
Density of water ρ = 10³ kg/m³
Using Bernoulli’s theorem, we can write,

V. Conceptual Questions:

Question 1.
Why coffee runs up into a sugar lump (a small cube of sugar) when one corner of the sugar lump is held in the liquid?
Answer:
Dip the comer of a sugar cube in coffee, and get the whole cube coffee-flavoured due to “capillary action”.

Question 2.
Why two holes are made to empty an oil tin?
Answer:
When oil comes out of one hole with high velocity, the pressure in the tin decreases. To have a continuous flow of oil proper pressure is to be maintained inside the tin. To achieve this, atmospheric air has to be entered inside the tin. For this purpose, only another hole is made out. Hence two holes are made to empty an oil tin.

Question 3.
We can cut vegetables easily with a sharp knife as compared to a blunt knife. Why?
Answer:
The area of a sharp edge is much less than the area of a blunt edge. For the same total force, the effective force per unit area is more for the sharp edge than the blunt edge. Hence, a sharp knife cuts easily than a blunt knife.

Question 4.
Why the passengers are advised to remove the ink from their pens while going up in an aeroplane?
Answer:
While going up in an aeroplane the atmospheric pressure decreases with height. When aeroplane is going up, the ink in the pen tends to ooze out to equalise the pressure. This may spoil the clothes of the passengers. So they are advised to remove ink from the pen.

Question 5.
We use a straw to suck soft drinks, why?
Answer:
When we suck through the straw, the pressure inside the straw becomes less than the atmospheric pressure. Due to the pressure difference, the soft drink rises in the straw and we are able to take the soft drink easily.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 28 Balance of Trade and Balance of Payments Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 28 Balance of Trade and Balance of Payments

11th Commerce Guide Balance of Trade and Balance of Payments Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
The Statement which discloses a record of transactions between the residents of one country and residents of foreign country.
(a) Balance of Payment
(b) Balance of Trade
(c) Statement of Receipts and Payments
(d) Accounting Statement
Answer:
(a) Balance of Payment

Question 2.
The Balance of Payments councils consists of
(a) Current Account
(b) Capital Account
(c) Receipts and Payments Account
(d) Both Current Account and Capital Account
Answer:
(d) Both Current Account and Capital Account

Question 3.
Foreign capital long- term loan and foreign currency reserve are recorded under
(a) Official Capital
(b) Private Capital
(c) Banking Capital
(d) Both Private and Official Capital
Answer:
(b) Private Capital

Question 4.
The term official capital includes
(a) RBI holdings of foreign currencies
(b) Special Drawing Rights held by the Government
(c) Both A and B
(d) Foreign Investment
Answer:
(c) Both A and B

Question 5.
Balance of payments surplus indicates
(a) Exports are more than the Imports
(b) Imports are more than Exports
(c) Exports and Imports are at Equilibrium
(d) Exports and Imports are above Equilibrium
Answer:
(a) Exports are more than the Imports

II. Very Short Answer Questions

Question 1.
What do you mean by Balance of payments?
Answer:
Balance of payment refers to a systematic record of all economic transactions between the residents of one country and the residents of foreign countries during a particular period of time.

Question 2.
What do you mean by Balance of trade?
Answer:
during a year. If the export of a country exceeds its imports, it shows favourable balance of trade. If the import exceeds the exports, it shows unfavorable balance of trade.

Question 3.
Define Balance of payments
Answer:
According to International Monetary Fund, “The balance of payments for a given period is a systematic record of all economic transactions taken place during the period between residents of the reporting countries.”

Question 4.
What is the composition of private capital?
Answer:
Private capital consists of foreign investments, long-term loan,s and foreign currency deposits.

Question 5.
Mention the components of banking capital.
Answer:
Banking capital includes movement into external financial assets and liabilities commercial and cooperative banks authorized to dealing in foreign exchange.

Question 6.
Mention the components of official capital.
Answer:
It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.

III. Short Answer Questions

Question 1.
Why is the Balance of payment prepared?
Answer:
Balance of payment helps in framing monetary, fiscal, and trade policies of the country. Government keenly observes the balance of payment position of its important trade partners in making policy decisions. It reveals whether a country produces enough economic output to pay for its growth.

Question 2.
What does the Balance of payment disclose?
Answer:
The balance of payments consists of three components namely, financial account, current account and Capital account.

Question 3.
What are the credit items shown in currents accounts?
Answer:
A. Goods Export(visible)
B. Invisible-Exports

1. Transport service sold abroad
2. Banking service sold abroad
3. Insurance service sold abroad
4. Income received on loan and investment made in foreign countries
5. Expenses incurred by foreign tourists in India

Question 4.
State the components of the capital account.
Answer:
Capital account consists of three components

1. Private Capital: Private capital consists of foreign investments, long term loan and foreign currency deposits
2. Banking Capital: Banking capital includes movement into external financial asset and liabilities commercial and co operative banks authorized to dealing in foreign exchange.
3. Official Capital: It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government

IV. Long Answer Questions

Question 1.
Write down the structure of the capital account
Answer:
The capital account consists of three components

1. Private Capital: Private capital consists of foreign investments, long-term loans, and foreign currency deposits.
2. Banking Capital: Banking capital includes movement into external financial assets and liabilities commercial and cooperative banks authorized to dealing in foreign exchange.
3. Official Capital: It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.

Question 2.
Distinguish balance of payment and balance of trade
Answer:

Question 3.
Highlight the features of the balance of trade.
Answer:

1. Balance of trade is a statement showing the net effect of export and import of a country.
2. It records only transactions, relating to merchandise, i.e. goods transactions.
3. It does not record capital transactions.
4. It is part of the current account of the BOP.
5. It may be favorable or unfavourable or in an equilibrium state.
6. It is not a true indicator of economic prosperity or economic relations of a country.
7. Unfavourable balance of trade can be converted into a favorable balance of payment.

11th Commerce Guide Balance of Trade and Balance of Payments Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1.
Balance of payment of a country includes:
a. Current account
b. Monetary account
c. Capital account
d. All of the above
Answer:
d. All of the above

Question 2.
The final balance of payments of a country is ………………..
a. Always balanced
b. Always deficit
c. Always surplus
d. Fluctuates
Answer:
b. Always deficit

Question 3.
Balance of payments of a country has …………… parts.
a. 2
b. 3
c. 4
d. 5
Answer:
b. 3

Question 4.
If the balance of payments of a country is in deficit, then …………………….
a. Current Account will be in deficit
b. Money supply can be increased to meet deficit
c. Country can borrow from abroad
d. (a) and (c) of the above
Answer:
d. (a) and (c) of the above

II. Very Short Answer Questions:

Question 1.
What are all the contents of the Balance of Payments?
Answer:
Balance of payments contains a classified record of all receipts and payments arising from goods exported, services rendered, and capital received by residents in a country and payment made by them in the account of goods imported.

III. Short Answer Questions

Question 1.
What are all the elements of the current account balance?
Answer:
The current account balance includes two items

1. Visible trade – Import and export of goods
2. Invisible trade – Invisible service items like banking, shipping,. insurance, travel, and transportation.

Question 2.
What are all the debit items shown in the current account?
Answer:
The following are the debit items shown in the current account:

• Goods Import
• Invisible Import
• Transport services purchased from foreign countries
• Banking services purchased from foreign countries
• Insurance services purchased from foreign countries
• Visit of our tourists to foreign countries
• Other services purchased from foreign countries
• Interest paid on loan in the home country

IV. Long Answer Questions:

Question 1.
What is the result revealed by the Balance of Payment?
Answer:
A Balance of Payment surplus indicates that country’s exports are more than its imports and its government and residents are savers. The country can even lend to other countries which in turn buy its products. As a result, it boosts economic growth in the short term. The country achieves higher economic growth due to higher exports in the long run. It builds a strong domestic market. This protects the economy from exchange rate fluctuations.

A Balance of Payment deficit points to the fact that the country’s import is more than the export. This situation forces the country to borrow from other countries to pay for its imports. It creates economic development in the short term.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 27 Facilitators of International Business Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 27 Facilitators of International Business

11th Commerce Guide Facilitators of International Business Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
General Agreement on Tariff and Trade was signed on …………………….
a. 30-October-1947
b.29-October-1947
c. 28-October-1947
d. 26-October-1947
Answer:
a. 30-October-1947

Question 2.
WTO was established on ……………………
a. 1-1-1996
b.1-1-1997
c. 1-1-1995
d.1-1-1994
Answer:
c. 1-1-1995

Question 3.
The headquarter of WTO is located at ………………..
a. New York
b.London
c. Geneva
d.Brazil
Answer:
c. Geneva

Question 4.
The day to day administration of WTO is entrusted with
a. Executive Council
b. General Council
c. Administrative Council
d. General Body
Answer:
b. General Council

Question 5.
World bank is located at …………………
a. Washington DC
b. New York
c. Tokyo
d. Hongkong
Answer:
a. Washington DC

II. Very Short Answer Questions

Question 1.
What is WTO?
Answer:
The World Trade Organisation (WTO) was established on 1st January 1995. The GATT was renamed as WTO with some changes.

Question 2.
What do you mean by World Bank?
Answer:
International Bank for Reconstruction and Development is commonly known as World Bank. It was set up in 1944 in order to reconstruct and rehabilitate the first world war-affected countries of Europe and assist in the development of developing countries. It is located in Washington DC. It has offices all over the world.

Question 3.
What are Special Drawing Rights?
Answer:
Special Drawing Rights (SDR) was created by the IMF in the year 1969 as a supplementary international reserve asset. It is described as paper gold.

Question 4.
What is SAARC?
Answer:
South Asian Association for Regional Cooperation is the regional inter-governmental organization and geopolitical union of nations in South Asia. The member countries include Afghanistan, Bangladesh, Bhutan, India, Nepal, Sri lanka, Pakistan and Maldives. It was established on 8th December 1985. It was founded at Dhaka in Bangladesh.

Question 5.
What is GATT?
Answer:
The General Agreement on Tariffs and Trade. (GATT) was signed at Geneva on 30th October 1947 by 23 countries. It came into effect on 1st January 1948.

III. Short Answer Questions

Question 1.
What is the primary motive for the establishment of WTO?
Answer:
The primary motive of WTO is to ensure global trade commences smoothly, freely and predictably. It concentrates on governing trade, settling trade disputes among countries, stimulating economic growth, and creating overall peace and stability in economic transactions.

Question 2.
Name the affiliate of World Bank:
Answer:

1. International Development Association (IDA)
2. International Financial Corporation (IFC)
3. Multinational Investment Guarantee Agency (MIGA)
4. International Centre for Settlement of Investment Disputes (ICSID)

Question 3.
What are the criticisms of the World Bank?
Answer:
The main critics of the world bank is the conditionality imposed in the borrower countries.

• It fails to resolve the economic problems of the countries
• The undemocratic governance structure, which is dominated by industrialized countries affects the working nature of the world bank.

Question 4.
How is the value of SDR determined currently?
Answer:
From 1st October 2016 SDR basket consists of the US dollar, Euro, the Chinese Renminbi, Japanese Yen, and British Pound sterling. The value of SDR is regularly posted daily in the IMF website. IMF members can exchange SDR for freely usable currencies by voluntary exchange or as per IMF instructions. Besides members can borrow from IMF at a favorable rate of interest to correct the imbalance in the balance of payments.

Question 5.
Mention the functions of SAARC.
Answer:
Functions of SAARC are highlighted

• Monitoring and coordinating the development programme
•  Determining inter-sectorial priorities
• Mobilizing cooperation within and outside the region.
• Dealing with modalities of financing

IV. Long Answer Questions.

Question 1.
Point out the objectives of WTO:
Answer:

1. Improving the standard of living of people in member countries
2. Making optimum utilization of the world’s resources for sustainable development of member countries.
3. Promoting an integrated more viable and durable trading system in the sphere of international business
4. Expansion of trade in goods and services.
5. Ensuring full employment and large steady growth volume of real income and effective demand.
6. Protecting the environment.

Question 2.
Write down the functions of WTO.
Answer:
Meaning:
The World Trade Organisation (WTO) was established on 1st January 1995. The GATT was renamed as WTO with some changes. WTO has 164 member countries as on 29th July 2016. The ministerial conference consisting of the representatives of all the member countries is the highest decision-making authority of WTO.
WTO performs the following functions

• It is a forum for negotiation and formalization of a trade agreement among the member countries.
• It settles disputes and grievances relating to trade among the member countries.
• It frames a commonly acceptable code of conduct in order to reduce trade barriers.
• It holds consultations with IMF and World Bank(IBRD) and its affiliates to bring about a greater understanding and co-operation in global economic policymaking.
• It supervises the operations of the agreement relating to the General Agreement on Tariffs and Trade (GATT) and Trade-Related Intellectual Properties Rights (TRIPS)
• It regulates trade between participating countries.

Question 3.
Describe the benefits of WTO:
Answer:

1. WTO is promoting international peace and creating a conducive environment for conducting international trade.
2. It settles the trade disputes amicably among the member countries.
3. It promotes the standard of living of people by increasing their income level from free trades.
4. WTO has removed quantitative restrictions and non – tariff barriers. It has facilitated free flow of foreign trade among the member countries. The countries can impose import restrictions only to correct balance of payments difficulties and not otherwise.
5. It stimulates economic growth of developing countries by providing them with much needed capital and giving them preferential treatment in trade-related matters.
6. WTO organizes periodical regional and international conference. Thus developing countries get opportunity to learn the technicalities, rules and regulations governing world, trade, technical assistance available globally, trade potentials in member countries and so on.
7. WTO gives people across the world a wider choice of goods and broader range of qualities of goods to choose from by promoting free trade among the member countries.
8. WTO has lowered trade barriers and thereby allowed trade to flourish across the world. The increase in trade contributes to increase in national income and personal income of people
9. WTO provides a platform for member countries to establish trade links with one another. In the absence of WTO member countries may have to enter many multilateral agreement with so many countries across the world. It provides a greater access to all nations under one roof.
10. WTO is committed to protecting free trade. It has framed rules on subsidies and dumping.

Question 4.
Highlights the functions of IBRD :
Answer:
Meaning:
International Bank for Reconstruction and Development is commonly known as World Bank. It was set up in 1944 in order to reconstruct and rehabilitate first world war-affected countries of Europe and assist in the development of developing countries. It is located at Washington DC. It has its offices all over the world.
Functions Of IBRD The main functions of the world bank are stated below

• Assisting reconstruction of war-affected countries
• Promoting economic growth and balanced growth of the international business
• Promoting infrastructural facilities like energy and transportation, road development, etc. in member countries.
• Encouraging  agricultural and industrial development in developing countries by providing adequate resources
• Providing resources for promoting sanitation, education, health care, and small scale enterprises in member countries
• Improving the standard of living of people of member countries by providing assistance by removing poverty, raising productivity, providing technical support, and conducting research and development

Question 5.
Write down the functions of IMF Meaning:
Answer:

1. It acts as short term credit institution at the international level.
2. It provides machinery for ordinary adjustments of exchange rates.
3. It has a reservoir of currencies of the member countries from which a borrower can borrow currencies of other nations.
4. It promotes economic stability and global growth by encouraging countries to adopt sound economic and financial policies.
5. It offers technical assistance and training to help member countries strengthen and implement effective policies. Technical assistance is offered in formulating banking, fiscal, monetary, and exchange policies.
6. It helps member countries correct their imbalance in the balance of payment.

Question 6.
Explain how far India has benefited from IMF
Answer:
Free Convertibility of Indian Rupee Indian rupee has become independent after the establishment of IMF. Earlier it was linked with the pound sterling. Its value is now determined in terms of Gold. Hence it is freely convertible.
Loan For Development Activities:
India got several loan facilities from IMF for its several development projects

Ability To Purchase Foreign Currency:
The government of India is able to purchase foreign currencies from time to time to meet the ever-growing requirement of development activities.

Expert Advice:
India used to get expert advice from IMF for solving the economic problems. It has given valuable advice to India with regard to financing -its 5-year plan.

Timely Help:
India has received timely help from IMF many a time to eliminate the deficit in its balance of payments. India got help from IMF during 1966 in the aftermath of the war with Pakistan. It received assistance from IMF for combating oil shock. Between 1980 and 1983 India got assistance from IMF to manage the global economic recession.

Financial Assistance during Natural Calamity:
India has got a lot of financial assistance from IMF to solve the economic crises arising from natural calamities like floods, famine, earthquakes, aggressions of Chinese and Pakistan, etc. It gets technical assistance fro/n IMF.

Membership in World Bank:
By virtue of its membership in IMF India could become a member of the World Bank.

Help during 1991 Economic Crisis:
During 1990, India faced a serious economic j crisis. Indian Government was almost nearing bankruptcy. It got assistance from IMF by pledging its gold reserve with it to solve its balance of payments crisis.

11th Commerce Guide Facilitators of International Business Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1.
The main function of the World Trade Organisation (WTO) is ……………….
a. Enforcing of Uruguay Round agreements
b. Administering trade dispute settlement procedures
c. Facilitating multi-lateral trade relations of member countries and reviewing trade policies.
d. None of the above
Answer:
c. Facilitating multi-lateral trade relations of member countries and reviewing trade policies.

Question 2.
Which Indian City has been chosen by the World Bank for setting up its back-office operations?
a.Bangalore
b.Chennai
c.Kolkata
d. New Delhi
Answer:
b.Chennai

Question 3.
Regarding the International Monetary Fund, which one of the following statements is correct?
a. It can grant loans to any country
b. It can grant loans to only developed countries
c. It grants loans to only member countries
d. It can grant loans to the central bank of a country
Answer:
d. It can grant loans to the central bank of a country

Question 4.
The headquarters of IMF and World Bank are located at ………………
a. Geneva & Montreal
b. Geneva & Vienna
c.  New York & Geneva
d.  Washington
Answer:
d.  Washington

Question 5.
Special Drawing Rights (SDR) facility is available at …………….
a. World Bank (IBRD)
b. International Monetary Fund (IMF)
c. International Development Association (IDA)
d. Organisation of Economic Cooperation and Development
Answer:
b. International Monetary Fund (IMF)

Question 6.
SAARC was established on ………………
a.1985
b. 1895
c. 1858
d. 1958
Answer:
a.1985

Question 7.
International Centre for Settlement of Investment Disputes was set up in the year ………..
a. 1956
b. 1986
c. 1966
d. 1933
Answer:
c. 1966

Question 8.
The headquarters of International Finance Corporation was situated in ……………..
a. Europe
b.Washington
c.Chennai
d.Florida
Answer:
b.Washington

Question 9.
The number of countries as members in IFC are ……………
a. 164
b.148
c.185
d. 184
Answer:
d. 184

Question 10.
SAARC has been established for promoting the welfare of people of …………………
a. America
b. Africa
c. Asia
d. Europe
Answer:
c. Asia

II. Very Short Answer Questions:

Question 1.
Write the meaning Agreement of Agriculture: (AOA)
Answer:
This agreement was made to ensure free and fair trade in agriculture. This agreement made the developed countries reduce customs duties on their imports and subsidies on the export of agricultural products. But developing countries were exempted from making reciprocal offers keeping in view of the high dependence of these countries on agriculture.

Question 2.
What is IFC?
Answer:
International Financial Corporation (IFC) is an international financial institution that offers advisory services to build up the private sector in developing countries. It is headquartered at Washington DC. It was established in the year 1956. There are 184 countries on the membership list.

It aims at lifting the standard of people of developing and least developed countries by removing poverty, improving education and healthcare, investing in infrastructure development and sustainable agricultural opportunities therein.

III. Short Answer Questions:

Question 1.
Explain TRIPS.
Answer:
This agreement sets out seven minimum standards of protection to be accepted by parties in respect of seven intellectual properties namely, copyright, trademark, geographical indication, industrial design, patent, layout design of integrated circuits, and undisclosed information.

Question 2.
Write a short note on MIGA:
Answer:
This is one of the International Financial Institutions offering political risk insurance and credit enhancement guarantees. The guarantee provided by this institution protects foreign direct investments against the political and non-commercial risks in developing countries. It is headquartered in Washington. It promotes the flow of foreign direct investment (FDI) into developing countries.

Question 3.
What are the objectives of IMF?
Answer:

• Promoting international monetary cooperation
• Ensuring balanced international trade
• Ensuring exchange rate stability

IV. Long Answer Questions:

Question 1.
Write any five criticisms on WTO:
Answer:
The following are the criticisms on World Trade Organisation:
Free Trade Benefits:
Developed Countries more than Developing Countries need some sort of trade protection to develop their new industries. Many developed countries had once used this protection to nurture their infant industries in their development stage. In this context prevention of developing countries from defending their infant industries altogether through restriction is unfair. It is suspected to be a conspiracy to indirectly favor MNC’s.

Most Favoured Nation Principles:
This is the core of WTO rules. Under this rule member countries are advised not to discriminate among the home enterprises, multi-nationals and foreign enterprises. In other words WTO prevents developing countries from favouring their emerging companies. This move is supposed to give unfair advantage to multinational companies.

Failure to Reduce Tariffs on Agriculture:
WTO failed to convince the USA and European Unions to eliminate the high tariffs on agriculture. In other words, it defends high tariff on agriculture in USA and EU. This would undoubtedly hurt the farmers in developing countries.

Neglect of Farmers Interest in Developing Countries:
Developing Countries specialize in producing primary products, i.e. agricultural products. They need some sort of protection to diversify into other sectors of the economy at least in the short term. Many developed nations used this tariff protection in the process of their development. In this context, WTO is criticized for being unfair and neglecting the interest of farmers in developing countries.

Neglect Environmental Considerations:
WTO encourages imports from certain countries that produce the product on a larger scale at the cost of the environment. WTO pushes for achieving an increase in GDP without any regard for the environment. In the current environment of global warming and ever-increasing environmental disaster, utmost priority given by WTO on maximizing GDP at the cost of the environment is misplaced.

Question 2.
Explain the objectives of SAARC:
Answer:
The following are the main objectives of SAARC:

• Promoting the welfare of the people of Asia
• Achieving economic growth, social programme, and cultural development in member countries.
• Strengthening self-reliance among the members
• Strengthening co-operation among the members as well as with other developing countries and international and regional organizations.
• Maintaining peace among the member nations in the region.

Question 3.
Explain LERMS:
Answer:
Liberalized Exchange Rate Management System (LERMS) was introduced in the budget 1992-93. Under the LERMS, Exporters of goods and services and those who are recipients of remittances from abroad could sell the bulk of their foreign exchange receipts at market-determined rates.

Similarly, those who need to import goods and services or undertake travel abroad could buy foreign exchange to meet such needs, at market-determined rates from the authorized dealers, subject to their transactions being eligible under the liberalized exchange control system. However, in respect of certain specified priority imports and transactions, provisions were made in the scheme for making an available foreign exchange at the official rate by the Reserve Bank of India.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 26 Export and Import Procedures Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 26 Export and Import Procedures

11th Commerce Guide Export and Import Procedures Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
EPC stands for ……………….
a) Export processing commission
b) Export Promotion Council
c) Export Carriage council
d) Export Promotion Congress
Answer:
b) Export Promotion Council

Question 2.
STC is expansion for ……..
a) State Training Centre
b) State Training Council
c) State Trading Centre
d) State Trading Corporation
Answer:
d) State Trading Corporation

Question 3.
An ……………. is document prepared by importer an sent to the exporter to buy the goods
a) Invoice
b) Indent
c) Enquiry
d) Charter Party
Answer:
b) Indent

Question 4.
The ………………… receipt is an acknowledgement of receipt of goods on the ship issued by the Captain
a) Shipping Bill
b) Bill of Lading
c) Mate’s Receipt
d) Consular Invoice
Answer:
b) Bill of Lading

Question 5.
The Exporters appoint the …………… agent to fulfil the customs formalities
a) Clearing Agent
b) Forwarding Agent
c) Commission Agent
d) Factor
Answer:
b) Forwarding Agent

II. Very Short Answer Questions:

Question 1.
What is meant by Indent?
Answer:
An indent actually points to an order received from abroad for export of goods, i.e. sale of goods. The indent contains the details in the box.

Question 2.
Write any two export promotion institutions.
Answer:

1. Export Promotion Council (EPC)
2. Export and Credit Guarantee Corporation (ECGC).

Question 3.
What is meant Charter Party?
Answer:

1. Open Indent
2. Closed Indent
3. Confirmatory Indent

Question 4.
Write a short note on Mate’s receipt?
Answer:
Letter of Credit (LC) is an undertaking by its issuer (importer’s bank) that bills of exchange drawn by the foreign dealer on the importer will be honoured upon its presentation by the exporter’s bank up to a specified amount.

Question 5.
What is Bill of Lading?
Answer:
Bill of Lading, refers to a document signed by the shipowner or to his agent mentioning that goods specified have been received and it would be delivered to the importer or his agent at the port of destination if good condition subject to terms and conditions mentioned therein.

IV. Long Answer Questions

Question 1.
What are the procedures relating to Export trade?
Answer:

1. Receiving Trade Enquiry : Exporter receives trade enquiry (written request) from the importer / his agent who intends fir buy the product.

2. Receiving Indent and Sending Confirmation : After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter. The latter may either receive the order directly from the importer or through an agent who acts as an intermediary between the exporter and the importer.

3. Arranging Letter of Credit : Under this stage exporter intends to satisfy himself/herself about the trust worthiness of the importer. In this case the exporter is requested to arrange a letter of credit in his favour.

4. Obtaining Importer Exporter Code (IEC) and RBI Code Number : Exporter has to apply in Ayaat Niryatt Form 2 A (ANF2A) to the Regional Authority of the Director General of Foreign Trade (DGFT) in the region where the registered office of the company is located. Exporter has to mention the number in all the shipping documents.

5. Obtaining Registration cum Membership Certificate (RCMC) from Export Promotion Council/Commodity Board : An Exporter is required to obtain RCMC from Export Promotion Councils/Commodity Board/Development Authority in order to avail himself/herself of export incentives, concessions, and other facilities offered by Government.

6. Manufacturing/Procuring Goods and Packing items : Exporters steps into manufacturing and procuring of goods required by the importer.

7. Export Inspection Certificate : After the goods have been packed as per the specifications of importer, the exporter has to apply to the Export Inspection Agency (EIA).

8. Insurance of Goods : Exporter has to arrange for getting the goods insured to protect them against the various risks like deterioration.

9. Certificate of Origin : Import regulation of foreign countries may require that all this import consignments must accompany a certificate of origin.

10. Consular Invoice : Where the customs duties are charged on the basis of value of goods at import’s port (ad – valorem basis), the customs officers are empowered to open the consignment to calculate duties.

Question 2.
Distinguish between Bill of Lading and Charter Party:
Answer:

Question 3.
What are the documents used in Export Trade?
Answer:
1. Documents Related to Goods

• Indent
• Certificate of Origin
• Certificate of Inspection

2. Documents Related to Shipment

• Mate’s receipt
• Shipping Bill
• Shipping Order
• Bill of Lading
• Marine Insurance Policy
• Consular Invoice
• Railway receipt/Lorry receipt

3. Documents Related to Payment

• Letter of Credit
• Commercial Invoice
• Bills of Exchange
• Bank Certificate Payment

Question 4.
Explain the various functions of Export Trading Houses.
Answer:
The functions of the export house are mentioned below

• Identifying a potential market for a product
• Finding buyers and their agents and eliciting then the response for export proposal.
• Establish product specifications in the light of market’-heeds, standards, and regulations in accordance with supplier’s capabilities.
• Determining appropriate mode of transportation and routing keeping in mind the cost, quality of service and security.
• Preparing the goods for delivery at destination
• Determining buyer’s creditworthiness
• Negotiating the transactions
• Arranging proper insurance coverage against maritime risks and currency fluctuations
•  Financing the transactions and paying for goods and services received.
• Preparing document for international trade
• Settling claim.

11th Commerce Guide Export and Import Procedures Additional Important Questions and Answers

I. Choose the Correct Answer:

Question 1.
The EXIM Bank was set up in the year ………………..
a. 1981
b.1982
c.1886
d.1892
Answer:
b.1982

Question 2.
The Indent which gives complete freedom to the exporter is known as …………………
a. Open Indent
b.Closed Indent
c.Confirmatory Indent
d. None
Answer:
a. Open Indent

Question 3.
Expand RCMC …………………
a. Registration cum Membership Council
b.Registration cum Manufacturing council
c. Registration cum Membership Certificate
d. Registration commodity manufacturing council
Answer:
c. Registration cum Membership Certificate

Question 4.
The hiring of the entire ship for a specific time period is called ……………..
a.Shipping order
b.Voyage Charter
c.Charter Party
d.Time Charter
Answer:
d.Time Charter

Question 5.
Dock Receipt is also called as ……………..
a. Port Trust Receipt
b. Shipping Bill Receipt
c. Bill of Lading
d. None of the above
Answer:
a. Port Trust Receipt

II. Very Short Answer Questions:

Question 1.
What.do you mean by EXIM bank?
Answer:
Export and Import Bank is one the specialized financial institutions wholly owned by the Government of India was set up in the year 1982 for financing, facilitating, and promoting foreign trade of India.

Question 2.
What is the main objective of EXIM Bank?
Answer:
The main objective of EXIM Bank is to co-ordinate the various activities of institutions and banks engaged in financing foreign trade.

Question 3.
Who is a forwarding agent?
Answer:
A forwarding agent is appointed by the exporter to fulfill the customs and shipping related formalities and certain logistic functions.

III. Short Answer Questions:

Question 1.
Write a short note on Consular Invoice:
Answer:
It is a document certifying a shipment of goods and shows information such as the consignor, consignee, and the value of the shipment. A consular invoice can be obtained through a consular representative of the country in which the shipping is done.

Question 2.
Who is a Commission Agent?
Answer:
Commission Agent is an international agent who is paid a certain percentage of commission for the order booked by him abroad. He offers products to potential customers in the territory allotted to him in accordance with the terms and conditions specified by the principal. However, there is no employment relationship between the agent and the principal and the relationship is purely temporary. The agents get commission only at the end of the deal.

Question 3.
What is the purpose of the establishment of the export trading house?
Answer:
Export Trading House has been established to increase the export, strengthen the global market, capacity and get necessary facilities for increasing the export performance of our country.

Question 4.
Who are all the parties involved in Export Trading House?
Answer:
It consists of merchants, exporters, trading companies, export-oriented units, units located in export processing zones, electronic hardware technology park, etc.

Question 5.
What are all the documents used in import trade?
Answer:

• Import License
• Indent
• Letter of Credit
• Bill of Entry
• Bill of sight
• Port Trust Dues Receipt
• Bill of Lading
• Bill of Exchange
• Advice Note

IV. Long Answer Questions

Question 1.
What are all the main functions of EXIM bank?
Answer:
The main Functions of EXIM Bank are listed below:

• It provides direct financial assistance to exporters of plant, machinery, and related services.
• It underwrites the shares, debentures, and bonds of the companies engaged in exports
• It provides a re-discount facility in respect of export bills for a period not exceeding 90 days against short-term export bills discounted by a commercial bank.
• It gives overseas buyer credit to foreign exporters for the import of Indian capital goods which are used for manufacturing export products.
• It finances export-oriented industries.
• It collects and provides market and credit information about foreign trade to those engaged in international business.

Question 2.
Briefly explain the financial assistance provided by commercial banks:
Answer:
Commercial Banks provide financial assistance in the following two ways:

1. Pre-Shipment Financial Assistance: This is the type of assistance given to enable exporters to purchase raw materials process them and create finished goods for the purpose of export. This credit is given on the basis of export orders and letters of credit opened in favour of the overseas buyers.

2. Post-Shipment Financial Assistance: Post-shipment financial assistance is assistance granted in the form of advances on the basis of bills of exchange and shipping documents drawn under letters of credit. This type of export finance is granted right from the date of shipment of the goods to the date of realization collection of export proceeds for the purpose of meeting a capital need, paying insurance charges. ECGC premium commission and brokerage to agent export promotion expenses and so on and so forth.

Question 3.
Briefly explain the objectives of Export Trade: (Any five):
Answer:
The important objectives of the export include the following:

1. Facilitating selling of goods to countries which desperately need such goods
2. Expanding the market for goods by producing them on a large scale.
3. Earning foreign exchange through exports
4. Helping a country increase the national income
5. Creating employment opportunities in a country by promoting export-oriented and export-related enterprises.

Question 4.
Briefly explain the objectives of Import Trade:
Answer:
Achieving Rapid:
Industrialization Developing countries can achieve rapid industrialisation by importing advanced technology scarce raw materials, capital goods like machinery equipment, etc., and talents from other countries.

Meeting Consumer Demand:
Certain goods are either not available or cannot be manufactured/produced adequately to meet the growing demand in the home country. Hence import is necessary to meet the short supply of those goods.

Upgrading Standard of Living of the People:
Consumers are able to use a wide variety of goods like cell phones, car laptops, television audio systems, washing machines, perfume, soaps, etc., manufactured in foreign countries and enhance their standard of living through import trade.

Meeting Shortage Situation:
During famine, earthquake, flood drought, tsunami, and abnormal price-increase situations, and so on food grains, vegetables, and other essential commodities are imported from foreign countries and the bad situation arising from the above situations are thus overcome.

Strengthening Defence:
Many countries around the world import defense equipment for their armed force. Such imports enable the country to ensure its sovereignty and territorial integrity.

Question 5.
Explain the intermediaries in Import Trade:
Answer:
Indent Houses/ Import Agent: This intermediary is specialized in a particular trade. He charges fees for his service. The importer has to enter into a contract with the indent house to avail himself of his service.

Clearing Agent: Clearing Agent is specialised in clearing the goods from the port of discharge destination and transport them over to the importer. They fulfill the various custom formalities on behalf of the importer and get the goods cleared from the port. They charge a commission for their service.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 25 International Business Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 25 International Business

11th Commerce Guide International Business Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Movement of goods, services, intellectual property, human assets, technology and so on among the countries.
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(a) International Trade

Question 2.
Goods are imported for purpose of re-export to another country is termed as ………………………
(a) Import Trade
(b) Export Trade
(c) Entrepot Trade
(d) International trade
Answer:
(c) Entrepot Trade

Question 3.
Movement of goods, services among the countries.
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(b) International business

Question 4.
Selling of goods from home country to a foreign country is called
(a) Home Trade
(b) Entrepot Trade
(c) Foreign Trade
(d) Joint Venture
Answer:
(c) Foreign Trade

II. Very Short Answer Questions

Question 1.
What do you mean by international business?
Answer:
International business denotes all those business activities which take place beyond the geographical limits of the country.

Question 2.
What is meant by Export Trade?
Answer:
When the firm of a country sells goods and services to a firm of another country it is called export trade. Export trade indicates the selling of goods and services from the home country to a foreign country. Example: the sale of handicrafts, leather products, etc.

Question 3.
What is meant by Import Trade?
Answer:
When the business firm of a country purchases goods from the firm of another country it is called import trade. Importing means the purchase of foreign products and bringing them into one’s home country.

Question 4.
What is meant by Entrepot Trade?
Answer:
When the firm of country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade. For example. If an Indian company imports crude oil from Iran and exports it as petroleum after refining it in India; Nepal, it is called Entrepot trade.

Question 5.
Give any two reasons for International Business.
Answer:

1. Unequal Distribution of Natural Resources.
2. Uneven Availability of Factors of Production.

III. Short Answer Questions

Question 1.
Describe the importance of external trade to an economy;
Answer:
The economic environment of countries involved in international business differs significantly in terms of legal framework, institutional set – up, monetary fiscal and commercial policy, resources availability, production techniques, etc.

Question 2.
What is the necessity for entrepot trade?
Answer:
A country cannot import goods directly from others because of the following reasons:

• The country may not have any accessible trade routes connecting the importing country, The good imported may require further processing or finishing before exporting, and these facilities may be lacking in the exporting or importing country.
• There may not have any bilateral trade agreement between both the country.
• Importer and exporter may not share good economic relations with each other. So it is necessary for the nation to enter into entrepot trade.

Question 3.
What are the limitations of international business?
Answer:

1. Economic Dependence: International trade is more likely to make the country too much dependent on imports from foreign countries.
2. Inhibition of Growth of Home Industries: International business may discourage the growth of the indigenous industry.
3. Import of Harmful Goods: International business may lead to the import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well-being of people.

IV. Long Answer Questions

Question 1.
List out the advantages of international trade.
Answer:

1. Geographical Specialization: Countries across the world differ significantly in terms of natural resources, capital equipment, manpower, technology and land, and so on.
2. Optimum use of Natural Resources: International business operates on a simple principle that a country which can produce more efficiently and trade the surplus production with other countries has to procure what it cannot produce more efficiently.
3. Economic Development: International business helps the developing countries greatly in achieving rapid economic development by importing machinery, equipment, technology, talent, and so on.
4. Generation of Employment: International business generates employment opportunities by assisting the expansion and growth of agricultural and industrial activities.
5. Higher Standard of Living: On account of international business, the citizens of the country can buy more varieties of goods and services which cannot be produced cost-effectively within the home country.
6. Price Equalisation: International business helps to stabilize the prices of various commodities which are fluctuating on a daily basis in the world market.
7. Prospects for Higher Profit: International business helps the firms which produce goods in excess to sell them at a relatively higher price to various countries in the international market.
8. Capacity Utilisation: International business enables firms across the country to sell their goods and services on a large scale in the international market.
9. International Peace: International business makes countries across the world become inter-dependent while these countries are independent in their functioning.

Question 2.
Enumerate the disadvantages of international trade:
Answer:
Economic Dependence:
International trade is more likely to make the country too much dependent on imports from foreign countries. The former may not take any efforts to produce goods and services indigenously to substitute imported goods and thus becoming self-sufficient. As a result, the importing country may become economically slave to exporting country and end up becoming a colony of the exporting country.

Inhibition of Growth of Home Industries:
International business may discourage the growth of the indigenous industry. Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether.

Import of Harmful Goods:
International business may lead to the import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well-being of people.

Shortage of Essential Goods in Home Country:
Moreover, the export of essential commodities out of the greed of earning more foreign exchange may result in an absolute shortage of these goods at the home country and people may have to buy these commodities at an exorbitant prices in the local market.

Misuse of Natural Resources:
Excessive export of scarce natural resources to various countries across the world may lead to faster depletion of the resources in the exporting countries. This in turn may bring about ecological disaster in the country from which it is exported.

Political Exploitation:
International business may create economic dependence among the countries which may threaten their political independence. The MNCs may influence the policy decision of the government to their favour. In due course of time, they may dictate terms to administrators of the nation by the sheer strength of their money power. For example, Britishers came to many countries as mere traders and ultimately colonized those countries and ruled them for centuries.

Rivalry among the Nations:
Acute competition for exports may lead to rivalry among the nations. This may lead to a conflict of interest among the countries and end up in wars among them.

Invasion of Culture:
International business may result in an invasion of a country’s culture. The younger generation is more likely to imitate foreign culture and buy goods and services beyond their means to gain acceptance in the affluent section of society. This will ruin the conventional lifestyle of the society.

Question 3.
Distinguish between internal and international trade:
Answer:

11th Commerce Guide International Business Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1.
IBRD is also known as ……………….
a. EXIM Bank
b.World Bank
c. International Monetary Fund
d. International Bank
Answer:
b.World Bank

Question 2.
In due course ………………. was replaced by on 1st January 1995.
a. GATO, WTO
b. WTO, GATT
c. GATT, WTO
d. IMF, GATT
Answer:
c. GATT, WTO

Question 3.
Which of the following is not an Indian Multinational Company?
a.Unilever
b.Asian Paints
c. Wipro
d. Piramal
Answer:
a.Unilever

Question 4.
The first step in the internationalization process is …………….
a. License
b. Foreign Investment
c. Sales
d.Export
Answer:
a. License

Question 5.
WTO stands for ……………..
a. World Technology Association
b.World Time Organisation
c. World Trade Organisation
d. World Tourism organization
Answer:
c. World Trade Organisation

II. Very Short Answer Questions

Question 1.
What do you mean by Contract Manufacturing (or) Outsourcing?
Answer:
It connotes a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries in order to get certain components of goods produced according to its specifications. It is also called as outsourcing or contract manufacturing.

Question 2.
What is a Joint Venture?
Answer:
A Joint venture is a business agreement wherein parties agree to develop a new entity and assets subscribing to equity shares and thereby exercising control over the enterprise and consequently sharing revenues, expenses, and assets.

Question 3.
What is FDI?
Answer:
FDI means investment made by a company or individual in one country’ in the business interest in another country m the form of either establishing new business operations or acquiring business assets in the other country.

Question 4.
What do you mean by Licensing?
Answer:
Licensing is a contractual agreement wherein one firm grants access to its plants, trade secrets or technology to another firm in a foreign country, for a fee called royalty, e.g. McDonald. Pisa Hut, etc.. The firm which grants such permission is called Licensor or Franchisor and another firm to whom the license is granted is called Licensee or Franchisee.

III. Short Answer Questions:

Question 1.
What are all the routes of International Business before the 18th century?
Answer:
1. Salt Route – India to Egypt
2. Silk Route – China so India
3. Spice Route India to Europe

Question 2.
Define International Business:
Answer:
According to John D. Daniels and Fee IF Rade Baugh, “International business is all business transactions-private and. governmental- that involve two or more countries’’

Question 3.
What are all the three ways under which a joint venture can take place?
Answer:
It can be established in three different ways namely,

1. Foreign Investors buying an interest in a local company
2. Local firm acquiring an interest in the existing foreign firm
3. Both the foreign and local firms jointly forming a new enterprise

Question 4.
What are all the features of Entrepot Trade?
Answer:
The following are the special features of Entrepot trade

• Import duty is not levied on such goods
• These goods are reprocessed and repacked for re-export
• Such goods are kept in the Bonded warehouse till they are re-exported.

IV. Long Answer Questions:

Question 1.
What are all the features of International Business?
Answer:
The following are the features of international business
Involvement of Countries:
International business can take place only when transactions occur across different countries.

Use of Foreign Exchange:
Where countries trade with one another, it has to exchange the goods and services on the basis of foreign currency.

Legal Obligations:
Foreign trade is to be conducted strictly in accordance with the export and import policy of the country concerned. The consent of the government is to be mandatorily obtained with reference to export and import of certain goods and services.

Exposure to Risk:
International business imposes huge risks on the parties thereto due to long distances, fluctuation of the value of currency, obsolescence, sanctioned, war, etc.,

Heavy Documentation Work
International business necessitates the fulfillment of a lot of formalities. Parties to international business have to execute a number of documents in the matters of conducting International business.

The difference in Economic Environment:
The economic environment of countries involved in international business differs significantly in terms of legal framework, institutional setup, monetary fiscal and commercial policy, resources availability, production techniques, etc.,

Question 2.
Explain the Types of International Business?
Answer:
On the basis of sale and purchase of goods and services, international trade can be divided into three kinds. They are export trade, import trade and entrepot trade.

Export Trade:
When the firm of country sells goods and services to a firm of another country it is called export trade. Export trade indicates selling of goods and services from the home country to a foreign country. For Example; the sale of handicraft, leather products, electronic goods, herbal products, etc., by Indian companies to other countries is known as export trade.

Import Trade:
When the business firm of a country purchases goods from the firm of another country it is called import trade. Importing means the purchase of foreign products and bringing them into one’s home country. For example when Indian enterprise purchases petroleum products, electrical goods, machinery, and medical equipment’s etc., from other countries, it is termed as Import Trade

Entrepot Trade:
When the firm of country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade For example, If an Indian company imports crude oil from Iran and exports it as petroleum after refining it in India, to Nepal it is called Entrepot trade. In this context crude is converted into petrol and exporter as petrol to Nepal.

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 24 Retailing Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 24 Retailing

11th Commerce Guide Retailing Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Retailers deal in ……………. quantity of goods
a) Small
b) Large
c) Medium
d) Limited
Answer:
a) Small

Question 2.
Small scale Fixed retailers include …………….
a) General stores
b) Pedlars
c) Cheap Jacks
d) Hãwkers
Answer:
a) General stores

Question 3.
Small shops which deal in a particular line of products are called as ……………
a) Market traders
b) Single line stores
c) Sugar market
d) Street stalls
Answer:
b) Single line stores

Question 4.
………………. are mobile traders who deal in low priced articles with no fixed place of business.
a) Shopping malls
b) Super markets
c) Street stalls
d) Itinerant traders
Answer:
d) Itinerant traders

II. Very Short Answer Questions

Question 1.
What is retailing?
Answer:
Retailing is the process of selling goods and services directly to the ultimate consumers in small quantities.

Question 2.
State the meaning of multiple shops.
Answer:
A number of identical retail shops with similar appearance normally deal in standardized and branded consumer products established in different localities owned and operated by manufacturers or intermediaries are called as Chain stores or Multiple shops.

Question 3.
Mention any two benefits of Vending machines.
Answer:
An automatic vending machine is a new form of direct selling. It is a machine operated by coins or tokens.

Question 4.
What are specialty stores?
Answer:
Speciality Stores deal in a particular type of product under one product line only. For example, Sweets shop specialized in Tirunelveli Halwa, Bengali Sweets, etc.

III. Short Answer Questions

Question 1.
Explain the features of general stores.
Answer:
General Stores sell a wide variety of products under one roof, most commonly found in a local market and residential areas to satisfy the day – to – day needs of the customers residing in nearby localities. They remain open for long hours at convenient timings and often provide credit facilities to their regular customers.

Question 2.
Give any four points of distinction between hire purchase system and instalment system of selling.
Answer:

Question 3.
Explain the characteristics of super markets.
Answer:

1. Supermarkets are generally situated at the main shopping centres.
2. The goods kept on racks with the clearly labeled price and quality tags in such stores.
3. The customers move into the store to pickup goods of their requirements, bring them to the cash counter, make payments and take home delivery.

Question 4.
What is meant by email order retailing’?
Answer:
Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

IV. Long Answer Questions

Question 1.
State the features of Departmental stores.
Answer:

1. Large Size: A department is a large scale retail showroom requiring a large capital investment by forming a joint-stock company managed by a board of directors.
2. Wide Choice: It acts as a universal provider of a wide range of products from low priced to very expensive goods (Pinto Car) to satisfy all the expected human needs under one roof.
3. Departmentajly organised: Goods offered for sale are classified into various departments.
4. Facilities provided: It provides a number of facilities and services to the customers such as restaurants, restrooms, recreation, packing, free home delivery, parking, etc.
5. Centralised purchasing: All the purchases are made centrally and directly from the manufacturers and operate separate warehouses whereas sales are decentralised in different departments.

Question 2.
What is meant by Consumer Cooperative Store? Explain its merits in brief.
Answer:
A consumers cooperative store is a retail organisation owned, managed and controlled by the consumers themselves to obtain products of daily use at reasonable low prices. Its objective is to eliminate profits to middlemen by establishing a direct contact with the manufacturers. People belonging to middle and low income groups , at least 25 persons have to come together to form a voluntary association and get it registered under the Cooperative Societies Act.

The capital of a cooperative store is raised by issuing shares to members. The management of the store is democratic and entrusted to an elected managing committee, where one man ‘ one vote is the rule. The cooperative stores are very famous in Tamilnadu. For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.

Question 3.
Describe the ‘role of chambers of commerce in promotion of internal trade.
Answer:

1. Transportation or interstate movement of goods: The Chambers facilitate registration of vehicles, surface transport policies, construction of highways and roads in promoting the interstate movement of goods.
2. Harmonisation of CGST and SGST structure.
3. Marketing of agro products and related issues: The associations of agriculturists and other federations interact with farming cooperatives to streamline local subsidies and formulate marketing policies for selling agro products.
4. Weights and measures and prevention of duplication of brands: They help the Government in the formulation and implementation of uniform policies in weights and measures and prevention of duplication of brands.
5. Promoting sound infrastructure: They interact with Government to construct roads, ports, electricity, railways, etc.
6. Labour legislation: They interact with the Government on regular basis and the issues related to labour laws, retrenchments, compensation, etc., so that the industry can run efficiently, generate employment, and achieve maximum productivity.

11th Commerce Guide Retailing Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1.
The other name for Itinerant trader Is ………………
a. Mobile Trader
c. Hawkers
b.Peddlers
d.Market Traders
Answer:
a. Mobile Trader

Question 2.
The retailers who have indèpendent shops 0f temporary nature is known as ……………….
a. Mobile Trader
b.Peddlers
c. Cheap Jacks
d.Market Traders
Answer:
c. Cheap Jacks

Question 3.
The process of paying the price amount of product not on initially but in installments is known as …………..
a. Loan
b. Hire Purchase
c. deferred payment system
d. Credit system
Answer:
c. deferred payment system

Question 4.
In retailing there is a direct interaction with ………………….
a. Producer
b. Wholesaler
c. Consumer
d. All of these
Answer:
d. All of these

Question 5.
Retailing creates ………………..
a. Ownership Utility
b. Place Utility
c. Time Utility
d. All the above
Answer:
d. All the above

Question 6.
…………………. is a key task of large and small retailers.
a. Risk management
b. Stock management
c. Crisis management
d. All the above
Answer:
d. All the above

Question 7.
Retailing is a marketing function which ……………….
a. sells products to other sellers
b. sells products to a company that resells them
c. sells products to final consumers
d. sells products for one’s own use.
Answer:
c. sells products to final consumers

Question 8.
Retailer is a person who sells the goods in a …………………..
a. Large quantities
b.Small quantities
c. both (a) & (b)
d. None of the above
Answer:
c. both (a) & (b)

II. Very Short Answer Questions:

Question 1.
Who are called as Itinerant traders?
Answer:
The traders who have no fixed place of sale are called Itinerants.

Question 2.
Write any two Associations or Chambers in Tamil Nadu.
Answer:
Madras Chamber of Commerce, Chennai. Tamil Nadu Traders Associations.

Question 3.
What do you mean by super market?
Answer:
A Super market is a large retail store selling a wide variety of consumer goods on the basis of low price appeal, wide variety and assortment, self-service and heavy emphasis on merchandising appeal.

Question 4.
Who are Fixed shop Retailers?
Answer:
The retailers who maintain permanent establishment to sell their goods are called Fixed Shop Retailers. They do not move from place to place to serve their customers.

III. Short Answer Questions :

Question 1.
Discuss any three limitation of Multiple shops:
Answer:

1. Limited variety: Multiple shops deal only in limited range of products.
2. Absence of services: Customers do not get credit, home delivery and other facilities.
3. Lack of personal touch: The owner loses direct personal contact with the customers. The paid staff do not take a personal interest in each and every customer.

Question 2.
Write a short note on Mail-order Houses.
Answer:
Mail order houses are the retail outlets that sell their merchandise through the mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading. The customers may be asked to make full payment in advance or at the time of receiving the goods In this arrangement, there is no risk of bad debt. Perishable goods like milk are not suitable for sale by mail order. Suitable goods are books, watches, etc.
Procedure for Mail order houses:

• Advertisements provide information about the products to consumers.
• Order receiving and processing On receiving the orders, the goods are sent to the customers through the post office, by Value Payable Post (VPP).
• Receiving Payments

Question 3.
What do you mean by telephonic marketing?
Answer:
Potential Customers are contacted through telephone or mobile to provide information about the products. Willing customers visit the office and place the orders. This method is useful for loan, financing, insurance services, credit card, etc. No middlemen in this marketing and cost reduced accordingly.

Question 4.
How do business done through Internet Marketing?
Answer:
The manufacturers or the intermediaries place the advertisement of their products on different media of internet like e-mail, portal and browser. Sometimes, they have their own website like Flipkart, Amazon, Snapdeal. etc. The customers compare the products competitors by observing such advertisements and select the product through internet and make the payment through online or cash on delivery. Because of the absence of middlemen, showroom expenses, etc. products are available at cheaper price in comparison to local market. Customers also get after-sales services.

Question 5.
What are all the functions of Chamber of Commerce?
Answer:

• hey act as national guardians of trade, commerce and industry.
• They act as a catalyst in strengthening the internal trade of the country.
• Interact with Government with regard to formulation and implementation of related policies.

IV. Long Answer Questions:

Question 1.
Explain the -types of Mobil traders:
Answer:
The types of Itinerants are as follows:
a. Peddlers and Hawkers:
Peddlers are individuals who sell their goods by carrying on their head or shoulders moving from place to place on foot. Hawkers are petty retailers who sell their goods at various places such as bus stop, railway station, Public Park and gardens, residential areas and other public places using a convenient vehicle to carry goods from place to place.

b. Street Vendors:
The traders sit on the footpath of the road or at the end of the road (pavement) and sell their goods such as fruits, vegetables, books, etc. are called Street vendors.

c. Market Traders:
Small traders open their shops at different places on fixed days or dates such as every Sunday or alternative Wednesdays and so on ( Varasandhai – weekly market). They deal in one particular line of merchandise and in low priced consumer items of daily use. Examples Pollachi, Manapparai, Ranipet, etc.

d. Cheap Jacks:
Those retailers who have independent shops of temporary nature in a business locality are depending upon the potentiality of the area. They deal in consumer goods and services such as shoes and chappals, plastic items, repair of watches, etc.

Question 2.
Explain the types of Fixed Shop small retailers:
Answer:
Street Stalls:
These small shop-keepers are commonly found at street crossings or other busy street comers attract floating customers and deal in cheap variety of goods like hosiery products, toys, soft drinks, etc. They get their supplies from local suppliers and wholesalers.

General Stores:
General Stores sell a wide variety of products under one roof, most commonly found in a local market and residential areas to satisfy the day-to-day needs of the customers residing in nearby localities. They remain open for long hours at convenient timings and often provide credit facilities to their regular customers. For example, a provision store deals in grocery, bread, butter, toothpaste, soaps, washing powder, soft drinks, confectionery, stationery, cosmetics, etc

Single-line Stores:
Single-line Stores are small shops which deal in a particular line of products such as garments, stationery, textiles, medicines, shoes, etc. They are generally situated in market places and deal in a variety of goods in that line of product.

Specialty Stores:
Specialty Stores deal in a particular type of product under one product line only. For example, Sweets shop specialised in TirunelveliHalwa, Bengali Sweets, etc.

Seconds Shops:
These shops deal with second-hand goods or used articles in a low price, such as books, furniture, utensils, clothes, automobiles, etc. mid also new defective goods.

Question 3.
Explain the advantages of Departmental Stores:
Answer:
Convenience in buying:
The departmental stores provide great convenience to all the members in a family in buying almost all goods of their requirements at one place. A large variety of goods available in all the departments enable customers to save time and no need to run from one place to another to complete their shopping.

Attractive services:
It aims at providing maximum services and facilities to the customers such as home delivery of goods, execution of telephone orders, rest rooms, restaurants, salons, children game centres, etc.

Central location:
These stores are usually located in central places so that more people can approach easily.

Elimination of Middleman:
A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses. It helps in eliminating undesirable middlemen between the producers and the consumers.

Economies of Large Scale Operations:
The Departmental stores are organised at a large scale i.e., buy goods in bulk, therefore they enjoy the benefit of special discount. In turn, the customers get their goods in quality and lower price.

Question 4.
Explain the features of chain stores:
Answer:
Location:
shopping i.e., in the selection and choice of their goods as per the tastes.

Nature of product:
These shops deal in a particular product – line and specialise in the same product i.e, standardised and branded consumer products.

Centralised management:
The manufacturing or procurement of goods for all the retail units is centralised at the head office, from where the goods are despatched to each of these shops.

Fixed price:
The prices of goods are fixed and all sales are made on a cash basis.

Role of Sales personnel:
The sales persons play an active role in helping the consumers to complete their shopping i.e., in the selection and choice of their goods as per the tastes.

Question 5.
What are all the advantages of chain stores?
Answer:

• Economies of large scale: Multiple shops are owned and operated by manufacturers or intermediaries. Centralised and bulk buying, results in lower costs. These shops are located in fairly populous localities where sufficient number of customers can be approached.
• Nature of product: These shops deal in a particular product ‘line and specialise in the same product i.e, standardised and branded consumer products.
• Centralised management: The manufacturing or procurement of goods for all the retail units is centralised at the head office, from where the goods are despatched to each of these shops.
• Fixed price: The prices of goods are fixed and all sales are made on cash basis.
• Role of Sales personnel: The sales persons play an active role in helping the consumers to complete their
• Elimination of middlemen: Goods are sold in multiple shops at relatively low prices. By selling directly to the consumers, it is able to eliminate unnecessary middlemen.
• No bad debts: All the sales are made in these shops on a cash basis only. So, no bad debts will arise and no reduction of working capitals.
• Convenience in shopping: Shops are located in all important areas. Therefore, customers are not required to travel long distances for making purchases.
• Public confidence: Multiple shops enjoy public confidence due to fixed prices, standard quality, uniform appearance and selection of goods with the help of salesmen.