Category: Important Questions

Students get through the TN Board 12th Commerce Important Questions Chapter 24 Types of Entrepreneurs which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 24 Types of Entrepreneurs

Very short answer questions

Question 1.
What are the dealings are governed by Fabian entrepreneur?
Answer:
Their dealings are governed by customs, religion, tradition, and past practices handed down to them by their ancestors. They would like to follow in the footsteps of their predecessors.

Question 2.
What is innovating entrepreneur?
Answer:
These entrepreneurs do not have any family background or prior exposure to the venture initiated by them. They are self-made entrepreneurs.

Question 3.
What is the strength of technical entrepreneurs?
Answer:
This type of entrepreneur demonstrates their creative talents by producing innovative products. Their strength lies in skill or knowledge of producing specialized products.

Question 4.
Explain state entrepreneurship.
Answer:
Trading/industrial ventures started by Government under various formats like company, corporation, departments, board denotes start entrepreneurship.

Short answer questions

Question 1.
What is the provision given by the Government to start the venture?
Answer:
The Government provides a great deal of support in the form of loan subsidies, the nominal rate of interest, tax breaks, tax holidays training, import of technology from abroad concessions for the export oriented item, allotment of sheds lands at a subsidized price, etc., impel the potential entrepreneur to start the venture.

Question 2.
What is the difference between Fabian and drone entrepreneurs?
Answer:
The main difference between Fabian and drone entrepreneurs lies in the fact that while Fabian entrepreneur adopts to changes eventually as a last resort, drone entrepreneur never adopts himself or herself to change.

Question 3.
Mention a few service entrepreneurs.
Answer:
Hoteliers, airlines, banking insurance, and financial service providers rapid service organization, bus operators, train service, manpower suppliers, advertising firms, etc., came under the service entrepreneurs category.

Question 4.
Who is a pure entrepreneur?
Answer:
Pure entrepreneurs are individuals who are propelled to enter into a venture by psychological and economic motives. They apply their knowledge skill and insight in making the venture a great success in order to earn maximum profit out of the venture. Eg: Dhirubhai Ambani.

Question 5.
Explain about retail entrepreneurs.
Answer:
Retail entrepreneurs are those who enter into the venture of distributing the end product to the final consumer. They used to buy the goods in small quantities from numerous wholesalers and make it available different products of different brands under one roof to end consumers.

Long answer questions

Question 1.
Discuss induced entrepreneurs.
Answer:

1. An induced entrepreneur is one who is inspired to take up entrepreneurial activity thanks to entrepreneurship-friendly policies put in place by the Government.
2. In other words, concessions, incentives, and soaps provided by the Government drive them to enter into a venture.
3. The government provides a great deal of support in the form of loans, subsidies, the nominal rate of interests, tax breaks, tax holidays, training allotment of sheds and lands at a subsidized price, etc., impel the potential entrepreneurs to start the venture.

Question 2.
Explain motivated entrepreneurship.
Answer:

1. Motivated entrepreneurs are those motivated to take up a venture by a desire for self.
2. An innovative entrepreneur is one who is always focused on introducing a new project or introducing something new in the venture already started.
3. They constantly observe the environment around them in order to contribute something new to the venture.
4. Their innovation may take in the form of a brand new product, a new method of production, upgraded products, simplification of complex process adoption of a distinct process and soon.

Question 3.
Give a short note on the trading entrepreneur.
Answer:

1. Trading entrepreneurs are those who restrict themselves to buying and selling finished goods.
2. They may be engaged in domestic and international trade.
3. Their core strength lies in distribution and marketing.
4. They get their income by way of commission and marketing.

Question 4.
Explain first-generation entrepreneurs.
Answer:
A first-generation entrepreneur is one who starts a venture by virtue of his knowledge, skill, talent, and competence fulfillment. They are motivated to produce and market products or services by sheer prospects of making huge profits. They are further motivated to develop the venture to a saleable stage. So that he/she can sell the venture at a super profit to certain entrepreneurs (buyers) who do not like to take risks in setting up a new venture but desire to buy a well-developed venture promising great profit prospects.

Multiple-choice questions

1. Entrepreneurs in business are different according to the type of undertaking by him/her.
(a) Factor
(b) Activity
(c) Project
(d) Product
Answer:
(b) Activity

2. Innovation may take the form of:
(a) Brand new product
(b) Upgraded product
(c) New methods of production
(d) All the above
Answer:
(d) All the above

3. An entrepreneur who would like to follow in the footsteps of predecessors are known as:
(a) Fabian entrepreneur
(b) Drone entrepreneur
(c) Business entrepreneur
(d) None
Answer:
(a) Fabian entrepreneur

4. Those who are totally opposed to change unfolding in the environment:
(a) Initiative entrepreneur
(b) Drone entrepreneur
(c) Trading entrepreneur
(d) Business entrepreneur
Answer:
(b) Drone entrepreneur

5. ……… is also called a solo entrepreneur.
(a) Business entrepreneur
(b) Trading entrepreneur
(c) Initiative entrepreneur
(d) None
Answer:
(a) Business entrepreneur

6. An entrepreneur gets their income by way of commission and marketing:
(a) Innovating entrepreneur
(b) Trading entrepreneur
(c) Corporate entrepreneur
(d) Business entrepreneur
Answer:
(b) Trading entrepreneur

7. Give an example for service entrepreneur:
(a) Banking
(b) Insurance
(c) Airlines
(d) All the above
Answer:
(d) All the above

8. An entrepreneur that pursues their venture in agriculture and allied sector is called as:
(a) Agricultural entrepreneur
(b) Service entrepreneur
(c) Industrial entrepreneur
(d) None
Answer:
(a) Agricultural entrepreneur

9. An entrepreneur who commences his entrepreneurial activity in urban areas is known as:
(a) Rural entrepreneur
(b) Modem entrepreneur
(c) Retail entrepreneur
(d) Urban entrepreneur
Answer:
(d) Urban entrepreneur

10. Venture started by an individual is known as:
(a) Private entrepreneur
(b) Public entrepreneur
(c) Joint entrepreneur
(d) All the above
Answer:
(a) Private entrepreneur

11. One who starts his own ventures as a family business:
(a) Modem entrepreneur
(b) Rural entrepreneur
(c) Classical entrepreneur
(d) Motivated entrepreneur
Answer:
(c) Classical entrepreneur

12. Ventures started and owned by both Government and private individuals denote:
(a) Joint entrepreneur
(b) Urban entrepreneur
(c) First generation entrepreneur
(d) All the above.
Answer:
(a) Joint entrepreneur

13. Agriculture and trading entrepreneurs prefer to set up their ventures in ………… areas.
(a) Rural
(b) Urban
(c) Both (a) and (b)
(d) None
Answer:
(a) Rural

14. Who are self-made entrepreneurs?
(a) First generation entrepreneur
(b) Modem entrepreneur
(c) Classical entrepreneur
(d) Trading entrepreneur
Answer:
(a) First generation entrepreneur

15. Entrepreneur who has natural inclination to start a venture is known as:
(a) Motivated entrepreneur
(b) Pure entrepreneur
(c) Induced entrepreneur
(d) Spontaneous entrepreneur
Answer:
(d) Spontaneous entrepreneur

Students get through the TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Very short answer questions

Question 1.
What do you mean by entrepreneurship?
Answer:

1. Entrepreneurship generates employment opportunities for many people besides providing self-employment to the entrepreneur.
2. The business ventures started triggers a variety of economic activities like purchasing raw material, creating employment opportunities, and so on.
3. Entrepreneurship becomes crucial for the overall economic development of a nation.

Question 2.
State the classification of an entrepreneur.
Answer:
Entrepreneurs are broadly classified into three groups namely

1. Risk bearer,
2. Organizer and
3. Innovator.

Question 3.
Define manager.
Answer:

1. The very motive of a manager is to render service in an entity set up for execution of venture.
2. The manager is a salaried employee.
3. The manager doesn’t bear any risk in the venture.

Question 4.
Explain planning in the function of management.
Answer:
Under planning, the entrepreneur has to lay down the objectives, goals, vision missions, policies, procedures, programs, budget, etc., for enabling the venture to proceed towards established destinations.

Question 5.
Mention a few associations that are promoting women’s entrepreneurship in India.
Answer:

1. Self Help Group (SHG)
2. Federation of Indian Women Entrepreneurs (FIWE)
3. Women India Trust (WIT)
4. Self Employed Women’s Association (SEWA)
5. Women Entrepreneurs Promotion Association (WEPA)

Question 6.
Define the term marketing mix.
Answer:
The term marketing mix denotes the combination of four components namely product, price, promotion, physical distribution, in the case of physical product and three more components are included in the case of service products namely people, process, and physical evidence.

Question 7.
In what way knight describe an entrepreneur?
Answer:
Knight describes an entrepreneur to be an economic functionary who undertakes the risk of uncertainty that cannot be insured or capitalized or salaried. In nutshell, the entrepreneur is described to be a risk-taker.

Question 8.
What are the training schemes implemented by the Government of India for promoting the self-employment of women?
Answer:

1. Support for Training and Employment Programme of women (STEP)
2. Small Industry Service Institutions
3. National Small industries corporations
4. District Industrial Centers
5. Development of Women and Children in Rural Areas (DWCRA)

Short answer questions

Question 1.
Entrepreneurs as an innovator- explain.
Answer:
Joseph A. Schumpeter in the year 1934 used innovation as a criterion to define an individual as an entrepreneur. According to him, the entrepreneur is one who

1. Introduces a brand new product in the market
2. Institutes new technology to produce a product
3. Discovers new course of supply of raw materials
4. Puts in place a new form of organization by establishing a monopoly.

Question 2.
How to mobilize capital by an entrepreneur?
Answer:

1. The entrepreneur has to estimate the fixed capital and working capital required for running the project.
2. So he has to initiate steps to build funds from various channels like own funds, browsing from close circles, banks, financial institutions, issue of shares and debentures, term loans, and so on to finance his fixed capital requirement.
3. Entrepreneurs have to take steps to mobilize the capital needed to implement the venture.

Question 3.
What are the steps involved in control functions?
Answer:

1. Fixing performance standards.
2. Measuring the actual performance.
3. Comparing actual performance with standards.
4. Finding out causes for deviation if any, undertaking corrective measures – to bring actual performance to standards set.

Long answer questions

Question 1.
Explain briefly the importance of entrepreneurship.
Answer:
Entrepreneurship plays a pivotal role in the economic development of a country.
The following points are the importance of entrepreneurship:

1. Innovation: Entrepreneurship and innovations are closely intertwined with each other. They bring about innovation by building a brand new product or upgrading existing products in a new territory or by inventing new technology.
2. Contribution to gross domestic product(GDP): Promotion of entrepreneurship all across the country would undoubtedly add to the gross domestic product and national income of a country.
3. Balanced regional development: Encouragement of entrepreneurship is underdeveloped and undeveloped regions of a country through various incentives and concessions is more likely to promote balanced regional development across the country.
4. Export promotion: If entrepreneurship is encouraged to produce export-oriented goods, it can significantly add to the foreign exchange reserve of a country.
5. Reduction of concentration of economic power in few hands:
   Promotion of entrepreneurship by encouraging small, medium, and micro enterprises prevents the concentration of economic power in the hands of few large entrepreneurs.
6. Better standard of living: Entrepreneurs provide a lot of well-being measures to their employees besides paying salaries and wages. A higher standard of living brought about by entrepreneurship narrows down the gap between the haves and have nots

Question 2.
Explain non-financial support to the women entrepreneurs.
Answer:
Women entrepreneurs are provided with the following non-financial support.

1. Putting in policies regulations and legal structures suitable to women entrepreneurs.
2. Financial counseling and training
3. Business advisory service
4. Handling legal barriers
5. Establishing commercial linkages
6. Client researches
7. Profitability and efficiency analysis
8. Low rate of interest
9. Collateral free loans
10. Simplified processing system
11. Flexible repayment system based on business nature.
12. Offering and designing the products based on their needs.

Multiple-choice questions

1. The person who establishes business is termed as:
(a) Entrepreneurs
(b) Risk
(c) Hard work
(d) Leadership
Answer:
(a) Entrepreneurs

2. Entrepreneur is described to be an:
(a) Distributor
(b) Purchaser
(c) Organizer
(d) None
Answer:
(c) Organizer

3. In which year, Joseph A. Schumpter used innovation to define an individual as an entrepreneur:
(a) 1935
(b) 1934
(c) 1932
(d) 1937
Answer:
(b) 1934

4. According to J.A. Schumpter, an entrepreneur is one who innovates:
(a) Discover new products
(b) New technology
(c) New enterprise
(d) All the above
Answer:
(d) All the above

5. Entrepreneur should have in order to achieve goals in the business.
(a) Self-confident
(b) Frustrations
(c) Opportunities
(d) Efforts
Answer:
(a) Self-confident

6. ……….. has to take timely and correct decision with regard to business.
(a) Entrepreneur
(b) Planning
(c) Promotion
(d) Coordination
Answer:
(a) Entrepreneur

7. ……….. is an employee.
(a) Entrepreneur
(b) Intrapreneur
(c) Manager
(d) None
Answer:
(b) Intrapreneur

8. ………. narrows down the gap between the haves and have nots.
(a) Resources
(b) Entrepreneurship
(c) Economic power
(d) Risk
Answer:
(b) Entrepreneurship

9. ……….. does not bear any risk in the venture.
(a) Intrapreneur
(b) Entrepreneur
(c) Manager
(d) Enterprise
Answer:
(c) Manager

10. Find out the organization is promoting women’s entrepreneurship in India.
(a) SGH
(b) FIWE
(c) SEWA
(d) All the above
Answer:
(d) All the above

11. In which year Government of India has introduced national skill development policy:
(a) 2000
(b) 2004
(c) 2006
(d) 2009
Answer:
(d) 2009

12. Find out the problem of women entrepreneurs:
(a) Finance
(b) Education
(c) Sensitivity
(d) All the above
Answer:
(d) All the above

13. ………. help entrepreneur to achieve objectives formulated within a period of time.
(a) Business plan
(b) Funds
(c) Materials
(d) Factors
Answer:
(a) Business plan

14. The entrepreneur has to organize the following functions relate to human resource:
(a) Recruitment
(b) Selecting
(c) Training
(d) All the above
Answer:
(d) All the above

15. Which one is the marketing aspect as follows?
(a) Pricing
(b) Funds
(c) Size
(d) None
Answer:
(a) Pricing

Students get through the TN Board 12th Commerce Important Questions Chapter 22 The Negotiable Instruments Act, 1881 which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 22 The Negotiable Instruments Act, 1881

Very short answer questions

Question 1.
List the characteristics of a Negotiable instrument.
Answer:

1. Transferability
2. Title of the holder free from all defects
3. Rights of the transferee to sue

Question 2.
Define assignability.
Answer:

1. Assignability refers to the transferability of personal properties and rights from one person to another as a gift or sale or as security.
2. In short, transferability of ownership of any goods other than negotiable instruments is called assignability.

Question 3.
Explain Promissory note.
Answer:
According to section 4 of the Negotiable instrument Act, “a promissory note is an instrument in writing (not being a banknote or a currency note) containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of, a certain person or to the bearer of the instrument”.

Question 4.
Define the term Negotiable instrument.
Answer:
A Negotiable instrument is a document that entitles a person to a certain sum of money and which is transferable from one person to another by mere delivery or by endorsement and delivery.

Question 5.
Mention the types of cheques (crossing)?
Answer:
The crossing is of two types:
General crossing and special crossing.

Question 6.
State the few presumptions to negotiable instruments.
Answer:

1. A negotiable instrument is presumed to have been accepted.
2. Every negotiable instrument bearing a date is presumed to have been made or drawn on such a date.
3. It is presumed to have been accepted within a reasonable time after the date and before its maturity.
4. The transfer of a negotiable instrument is presumed to have been made before maturity.

Question 7.
State the features of a cheque.
Answer:

1. Instrument in writings
2. Unconditional orders
3. Drawn on a specified banker only
4. A certain sum of money only
5. Payee to be certain
6. Signed by the drawer
7. Payable always on demand.

Question 8.
State any two differences between cheques and promissory notes.
Answer:
Cheque:

1. A cheque contains an order to pay money.
2. There are three parties in the cheque drawer, drawee, and payee.

Promissory Note:

1. A promissory note contains an undertaking to pay money.
2. In a promissory note there are only two parties the maker and the payee.

Short answer questions

Question 1.
Difference between a cheque and promissory note.
Answer:

Basic of Difference	Cheque	Promissory Note
Nature of order	A cheque contains an order to pay money.	A promissory note contains an undertaking to pay money.
Number of parties	There are three parties in a cheque – drawer, drawee and payee.	In a promissory note there are only two parties – the maker and the payee.
Creator of the instrument	The drawer of a cheque is a creditor.	The maker of a note is a debtor.
Identity of the parties to instrument	The drawer and the drawee can be one and same person.	This cannot be so in a promissory note.
Payableness	A cheque is always payable on demand.	A promissory note on the other hand is payable either on demand or after a specified period.
Crossing	A cheque can be crossed.	A pronote cannot be crossed.
Stamping	A cheque need not be stamped.	A promissory note has to be sufficiently stamped.
Discounting	A cheque cannot be discounted.	A promissory note can be discounted with a banker.
Grace period	No days of grace are allowed for payment of a cheque.	Three days of grace are allowed for calculating the due date of promissory note.
Bearer	A cheque is payable to order or to bearer.	A promissory note cannot be made payable to bearer.

Question 2.
What are the characteristics of a promissory note?
Answer:

1. A promissory note must be in writing.
2. It must contain a promise or undertaking to pay a mere acknowledgment of indebtedness will not make it a promissory note.
3. The promise to pay must be unconditional.
4. It must be signed by the maker.
5. The maker of the note must be a certain person.
6. The payee must be certain.
7. A promissory note originally made payable to the bearer is illegal.
8. A banknote or a currency note is not a promissory note.
9. A promissory note must be sufficiently stamped.

Question 3.
Explain the significance of the general crossing cheque.
Answer:

1. A Crossed cheque should not be paid across the counter.
2. Even if the payee of a crossed cheque is well-known the paying banker is directed to make payment only through another bank.
3. If the payee does not have a bank account, he can collect it only through someone who is having a bank account.
4. As a result, even if a crossed cheque has been stolen and collected for the party not entitled to it, the person for whom it has been collected can be easily traced.
5. Crossing ensures safety and prevents payment into the wrong hands.

Question 4.
Expand the explain about MICR.
Answer:
MICR: Magnetic Ink Character Recognition.

1. MICR code is a character-recognition technology used mainly by the banking industry to ease processing and clearance of cheques and other documents.
2. It is found at the bottom of the cheque.
3. It includes bank code, bank account number, cheque number, cheque amount, and a control indicator.
4. The MICR code helps the banker to ensure the legitimacy or originality of paper documents.
5. The special ink used in the MICR code is sensitive to magnetic fields.
6. It prevents the crime of printing counterfeit cheques or documents using technology.
7. The magnetic ink will help discover fake documents.

Long answer questions

Question 1.
Explain the types of negotiable instruments.
Answer:

1. Bearer instrument: Promissory note, bill of exchange, or cheque is payable to bearer is called bearer instrument subject to fulfillment of either of the two conditions.
   (a) It must be expressed to be payable.
   (b) The only or last endorsement should be a blank endorsement.
2. Inland instrument: Promissory note, bill of exchange, or cheque is an inland instrument subject to the following conditions:
   (a) It must be drawn in India.
   (b) It must be payable in India.
   (c) It must be drawn upon any person resident in India.
3. Order instrument: Promissory note, bill of exchange, or cheque is payable to order is called order instrument.
4. Foreign instrument: An instrument that is not an inland instrument is called a foreign instrument.
   (a) Bill drawn outside India.
   (b) Bill payable outside India.
   (c) Bill drawn upon foreign citizens.
5. Ambiguous instrument: An ambiguous instrument means an instrument that can be considered either as a promissory note or bill of exchange.
6. Inchoate instrument: It means an incomplete instrument in some respect.
7. Time instrument: It is defined as an instrument that is payable sometime in the future.
8. Accommodation instrument: Bill which is drawn, accepted without consideration.
9. Clean bill: It means the bill to which no document of title to the goods is attached.

Multiple-choice questions

1. A Negotiable instrument means:
(a) Bill of exchange
(b) A promissory note
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

2. A person taking the instrument in good:
(a) Value
(b) Faith
(c) Price
(d) Cost
Answer:
(b) Faith

3. It refers to the transferability of personal properties and rights from one person to another as gift or sale:
(a) Assignability
(b) Negotiability
(c) Bill of exchange
(d) Promissory note
Answer:
(a) Assignability

4. It contains an unconditional undertaking to pay money is known as:
(a) Bill of exchange
(b) Cheque
(c) Promissory note
(d) All the above
Answer:
(c) Promissory note

5. Mow many parties in a bill of exchange?
(a) Two parties
(b) Three parties
(c) Four parties
(d) None
Answer:
(a) Two parties

6. It contains unconditional orders to pay money is known as:
(a) Promissory note
(b) Cheque
(c) Bill of exchange
(d) Negotiability
Answer:
(c) Bill of exchange

7. A bill of exchange is documented in:
(a) Writing
(b) Oral
(c) Word
(d) Condition
Answer:
(a) Writing

8. ……….. must be an instrument in writing.
(a) A cheque
(b) A bill
(c) A promissory note
(d) All the above
Answer:
(d) All the above

9. The cheque is always drawn on a specified:
(a) Banker
(b) Customer
(c) Parties
(d) All the above
Answer:
(a) Banker

10. It contains an order to pay money is known as:
(a) Promissory note
(b) Bill
(c) Cheque
(d) Document
Answer:
(c) Cheque

11. A cheque or bill must indicate that he is signing in it by using such word:
(a) On behalf of
(b) For
(c) Per pro
(d) All the above
Answer:
(d) All the above

12. The word “Negotiable” means:
(a) The value
(b) To pay money
(c) Notice
(d) Transferable
Answer:
(d) Transferable

13. A written document by which a right is created in favor of certain person is known as:
(a) Instrument
(b) Assumption
(c) Security
(d) Party
Answer:
(a) Instrument

14. A bill can be drawn and payable in any:
(a) Value
(b) Currency
(c) Payment
(d) Discharged
Answer:
(b) Currency

15. ………. is not necessary for a cheque.
(a) Notice
(b) Discount
(c) Stamp
(d) Currency
Answer:
(a) Notice

Students get through the TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930 which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Very short answer questions

Question 1.
What is an agreement to sell?
Answer:
The property “ownership or title” in the goods has to pass at a future time or after the fulfillment of certain conditions specified in the contract.

Question 2.
List down the types of goods.
Answer:
The type of goods covered under the sale of goods act:

1. Existing goods may be either Specific goods, Ascertained goods and Generic or unascertained goods.
2. Future goods
3. Contingent goods.

Question 3.
What is meant by the future goods?
Answer:
These are goods that a seller does not possess at the time of contract of sale but which will be manufactured or produced or acquired by him after entering into a contract of sale agreement.

Question 4.
What do you mean by “condition”?
Answer:
A condition is a stipulation that is essential to the main purpose of the contract. It is core to the contract. The non-fulfillment of the condition cancel every contract.

Question 5.
Explain the term unpaid seller.
Answer:
A seller is deemed to be an unpaid seller, (a) when the whole of the price has not been paid or a bill of exchange or other negotiable instrument given to him has dishonored. It would be obvious that a seller who has received only a part of the price is also an unpaid seller.

Question 6.
Define actionable claim.
Answer:
The term actionable claim means debt secured by a mortgage of immovable property, Fixed Deposit Receipt, Dividend Due on share amount due under LIC policy, claim for rent which falls due in future, etc.

Question 7.
What do you understand by “Transfer of ownership”?
Answer:
Transfer of property (ownership) in goods from the seller to the buyer is the main object of a contract of sale. Property in goods means the ownership of goods.

Question 8.
Mention a few rights of an unpaid seller?
Answer:
Rights of an unpaid seller:

1. Rights of an unpaid seller against the goods. Where the property in the goods has passed to the buyer. Right to lien, Right to stoppage in transit, and Right to resale.
2. Where the property in the goods doesn’t pass to the buyer.
3. Right of an unpaid seller against the buyer personally suit for price, suit for damage for nonacceptance. Suit for cancellation of the contract before the due date and suit for interest.

Question 9.
Explain the passing of property?
Answer:
Transfer of title of a property is called as the passing of property.

Question 10.
When the goods are ascertained?
Answer:
Ascertainment is a process by which the goods to be delivered under the contract of sale are identified and set apart. It is a unilateral act of the seller alone to identify and isolate the goods.

Short answer questions

Question 1.
Explain about “sale of goods”?
Answer:

1. The sale of goods is one of the most important acts coming under special contract.
2. This act was passed in the year 1930.
3. Contracts for the sale of goods are subjected to general legal principles applicable to all contracts.
4. Hence the general provisions of the Indian contract act continue to apply to the contract for the sale of goods.

Question 2.
Explain the transfer of property or ownership with an example?
Answer:
Transfer of property (ownership) in goods from the seller to the buyer is the main object of a contract of sale. For example, “A” possesses the watch he cannot be the owner. He might have borrowed the watch from his friend or stolen the watch from somebody or found it on the highways. In this case, he cannot be called the owner. It is important to know the precise movement of time at which the ownership in goods passes from the seller to buyer.

Question 3.
Discuss warranty in the case of dangerous goods?
Answer:

1. Where the seller knows that the goods he is selling are dangerous or likely to be dangerous to the buyer.
2. The buyer is ignorant of the danger, the seller should warn the buyer of the probable danger, otherwise, he will be liable to compensate the buyer in case of any injury.
3. If a good is liable in damage, as he should warn the person, the probable danger.

Long answer questions

Question 1.
Discuss in detail about “formation of the contract of sale”?
Answer:

1. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property (ownership) of the goods to the buyer for a price.
2. The term “ownership” is of utmost importance in the sale of goods.
3. Mere possession of the goods doesn’t entitle a person to ownership.
4. Similarly, the purchase means buying the ownership of the goods from the seller for a price.
5. The term ownership or property confers on the buyer absolute freedom to dispose of the assets in any way they like.
6. Buyer has unlimited rights of the property purchased against the whole world.
7. In this context, it is essential to leam the essential elements of a contract of sale.

Question 2.
Explain briefly about existing goods?
Answer:

1. Existing goods: Existing goods are those owned or possessed by the seller at the time of contract of sale. Goods possessed even refer to sale by agents or by pledgers. Existing goods may be either specific goods, ascertained goods, and generic or unascertained goods.
2. Specific goods: Specific goods identified and agreed upon at the time of contract of sale. Eg: If a buyer selects a particular variety of saree after examining several other sarees, the selected one denotes specific goods.
3. Ascertained goods: The term “ascertained goods” is also used as similar in meaning to specific goods. But this term may even refer to goods that became ascertained subsequent to the formation of the contract.
4. Unascertained or Generic goods: These are goods that are not identified and agreed upon at the time of contract of sale. For example, “A” wants to buy a car from a showroom, where different models at different prices have been displayed. All these displayed models represent unascertained goods.

Multiple-choice questions

1. A contract of sale involves:
(a) One party
(b) Two parties
(c) Three parties
(d) None
Answer:
(b) Two parties

2. Find out the goods:
(a) Stock
(b) Shares
(c) Growing crops
(d) All the above
Answer:
(d) All the above

3. The monetary consideration for the goods sold is called:
(a) Price
(b) Cost
(c) Factor
(d) Demand
Answer:
(a) Price

4. The term contract of sale includes:
(a) Sale
(b) Agreement to sell
(c) Both (a) and (b)
(d) Transfer
Answer:
(c) Both (a) and (b)

5. Those goods owned or possessed by the seller at the time of contract of sale known as:
(a) Contingent goods
(b) Existing goods
(c) Future goods
(d) All the above
Answer:
(b) Existing goods

6. Contingency goods are a part of:
(a) Future goods
(b) Existing goods
(c) Generic goods
(d) None
Answer:
(a) Future goods

7. Possession of goods refer the ……… goods.
(a) Custody
(b) Ownership
(c) Transfer
(d) None
Answer:
(a) Custody

8. Every kind of movable property other than actionable claim and money:
(a) Contract
(b) Ownership
(c) Goods
(d) Possessions
Answer:
(c) Goods

9. Goods identified and agreed upon at the time of contract of sale:
(a) Future goods
(b) Specific goods
(c) Contingent goods
(d) Existing goods
Answer:
(b) Specific goods

10. It is a stipulation that is collateral to the main purpose of the contract.
(a) Warranty
(b) Condition
(c) Ownership
(d) Possession
Answer:
(a) Warranty

11. Goods are owned or possessed by the seller at the time of contract of sale:
(a) Contingent goods
(b) Existing goods
(c) Future goods
(d) None
Answer:
(b) Existing goods

12. Where goods are sold by showing ………. by the seller.
(a) Conditions
(b) Samples
(c) Descriptions
(d) Weight
Answer:
(b) Samples

13. A seller is deemed to be an unpaid seller:
(a) Price is not paid fully
(b) A bill of exchange
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

14. An unpaid seller has a right to retain the goods till he receives the:
(a) Factor
(b) Price
(c) Warranty
(d) Delivery
Answer:
(b) Price

15. When will the buyer cancel the contract?
(a) Damage
(b) Before the date of delivery
(c) Defective
(d) Weight
Answer:
(b) Before the date of delivery

Students get through the TN Board 12th Commerce Important Questions Chapter 20 Liberalization, Privatization and Globalization which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 20 Liberalization, Privatization and Globalization

Very short answer questions

Question 1.
What is Globalization?
Answer:

1. Globalization results from the removal of barriers between national economies to encourage the flow of goods, services, capital, and labor.
2. Removal of tariffs and quotas that restrict free and open trade among nations has helped globalize the world economy.

Question 2.
Mention any three disadvantages of globalization.
Answer:

1. Loss of domestic industries.
2. Increase in inequalities.
3. The dominance of foreign Institutions.

Question 3.
State the measures of Liberalization adopted by the Government of India.
Answer:

1. Liberalization for Industrial licensing.
2. Freedom for expansion and production.
3. Increase in the investment limit of the small industries.
4. Foreign exchange reforms.
5. Liberalization of export and import transaction.

Question 4.
List out the advantages of Privatization.
Answer:

1. Increase in efficiency.
2. Professional Management.
3. Increase in competition.
4. Reduction in the economic burden of Government.

Question 5.
What is a Memorandum of Understanding?
Answer:

1. Memorandum of the Understanding system was introduced in 1991 to raise the productivity and performances of PSUs.
2. It strengthens the relationship between PSUs and administrative departments.

Question 6.
Explain the reason for Privatization.
Answer:

1. PSUs were running in losses due to mismanagement and political interference.
2. The managers could not work independently.
3. The production capacity remained under-utilized.

Question 7.
Define Disinvestment.
Answer:
Disinvestment means selling of Government securities of Public Sector Undertakings (PSUs) to other PSUs or Private sectors or banks.

Question 8.
Explain disinvestment in PSUs.
Answer:
The Government has started the process of disinvestment in those PSUs which had been running into loss. It means that Government has been selling out these industries to the private sector. So disinvestment is a system of privatizing Government enterprises.

Short answer questions

Question 1.
State any three impacts on Privatization.
Answer:

1. Privatization has a positive impact on financial growth by decreasing deficits and debts.
2. Increase in the efficiency of Government undertakings.
3. Provide better goods and services to the consumers.
4. Making way for Foreign Direct Investment (FDI).

Question 2.
Discuss Forms of Globalization.
Answer:

1. Foreign trade policy: India has signed a number of agreements in order to expand Indian trade worldwide. Some of the agreements include TRIPs, GATs.
2. Export promotion: It promotes export by reducing quotas and tariffs by eliminating trade restrictions and by simplifying trade procedures.
3. Reduction in tariffs: Custom duties and tariffs imposed on imports and exports are reduced gradually to make the Indian economy attractive to global investors.
4. Encouraging open competition: Domestic companies start their operations at the international level and there is an open competition.

Question 3.
What are the disadvantages of globalization?
Answer:

1. Loss of domestic industries: It causes a decline in the demand for domestic products which in turn vanishes the domestic business.
2. Increase in inequalities: Globalization widens the gap between rich and poor. Also, developed countries exploit the resources of developing countries.
3. The dominance of foreign Institutions: Economic power shifts from independent industries to international organizations which is a threat to national sovereignty.

Question 4.
Explain the reasons for implementing LPG.
Answer:

1. Excess of consumption and expenditure over revenue resulting in heavy Government borrowings.
2. Growing inefficiency in the use of resources.
3. Mismanagement of the firm and the economy.
4. Increases in losses for Public Sector enterprises.
5. Low foreign exchange reserves.
6. Inflation.

Long answer questions

Question 1.
Explain the impact of Liberalization on the Indian Economy.
Answer:

1. The phenomenal growth by contributing $1.3 Trillion to the world GDR So the Indian economy because of the Seventh Largest among the world-leading economies.
2. Liberalization has opened up new business opportunities abroad and increased foreign direct investment.
3. Newmarket for various goods came into existence and resulted not only in urban but also in rural development.
4. It became very easy to obtain loans from banks for business expansion.
5. “Foreign Collaboration” is the latest outcome of Liberalization.
6. A number of multinational companies started operating worldwide including India.

Question 2.
Globalization and Liberalization are concepts closely related to one another. Explain.
Answer:

1. Both globalization and liberalization refer to relaxing social and economic policies which results in better integration with an economy and between nations.
2. Both occur as a result of modernization.
3. Globalization is the greater integration among countries and economies for trade-economic social and political benefits.
4. Liberalization generally refers to the removal of restrictions, usually Government rules and regulations imposed on socio, economic or political matters.

Question 3.
Explain the disadvantages of Privatization.
Answer:

1. Lack of welfare: The majority of private companies whose main aim or motive is profit-making, do not indulge in public interest or welfare services like free education to the poor, free medical treatment, etc.
2. Political pressure: When private companies fail to deliver, the public has no power to intervene and Government does not always have time or expertise to force them to keep their promises.
3. Ignores the weaker sections: Privatization often goes hand in hand with encouraging rich people to pay more and opt for the best quality services. This leads to division, making it harder to provide excellent public services for weaker sections.

Multiple-choice questions

1. International Bank for Reconstruction and Development (IBRD) popularly known as:
(a) World Bank
(b) IMF
(c) WTO
(d) None
Answer:
(a) World Bank

2. ……….. is the result of a new industrial policy that abolished the “License System”.
(a) Liberalization
(b) Privatization
(c) Globalization
(d) Foreign Direct Investment
Answer:
(a) Liberalization

3. ………. making way for Foreign Direct Investment (FDI).
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All the above
Answer:
(b) Privatization

4. ………. has opened up new business opportunity and increase Foreign Direct Investment.
(a) Liberalization
(b) Globalization
(c) Privatization
(d) None
Answer:
(a) Liberalization

5. ……….. promotes export by reducing Quotas and Tariffs.
(a) GAT’s
(b) TRIPs
(c) Globalization
(d) PSUs
Answer:
(c) Globalization

6. Find out the modes of foreign collaboration:
(a) Joint Venture
(b) Merger
(c) Franchise
(d) All the above
Answer:
(d) All the above

7. ………. paves way for a company to enter a foreign market.
(a) Migration
(b) Technological advancement
(c) Tariff
(d) Agreements (Trade)
Answer:
(b) Technological advancement

8. ………. has led to a boom in the consumer products market.
(a) Privatization
(b) Liberalization
(c) Globalization
(d) TRIPs
Answer:
(c) Globalization

9. In which barriers can lead to lower prices for consumers:
(a) Tariff
(b) Surcharges
(c) Competition
(d) None
Answer:
(a) Tariff

10. ……….. paves way for an employment opportunity in the home country.
(a) Globalization
(b) Privatization
(c) Liberalization
(d) GATS
Answer:
(a) Globalization

11. By eliminating trade restriction and by simplifying trade procedure:
(a) WTO
(b) TRIPs
(c) IMF
(d) Globalization
Answer:
(d) Globalization

12. Globalization of technology is done by:
(a) Royalty
(b) Purchase of technology
(c) Technology Collaborations
(d) All the above
Answer:
(d) All the above

13. By attracting more foreign investment through:
(a) Liberalization
(b) WTO
(c) TRIPs
(d) GATS
Answer:
(a) Liberalization

14. Give an example for Public Sector Undertakings (PSUs):
(a) Railway
(b) Defence
(c) Atomic Energy
(d) All the above
Answer:
(d) All the above

15. ………….. widens the gap between rich and poor.
(a) Privatization
(b) Globalization
(c) Trade
(d) Deregulation
Answer:
(b) Globalization

Students get through the TN Board 12th Commerce Important Questions Chapter 19 Environmental Factors which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 19 Environmental Factors

Very short answer questions

Question 1.
Mention the types of the business environment.
Answer:
The business environment can be classified as follows:
(i) Internal environment
(ii) External environment
(iii) Micro environment
(iv) Macro environment

Question 2.
What is the external environment?
Answer:
Factors outside the business which have a bearing on the working of a business can be termed as the external environment.

Question 3.
Mention the international environmental factors which affect a business.
Answer:

1. Differences in language and cultural
2. Differences in currencies
3. Differences in norms and practices
4. Differences in tastes and preferences of people
5. The tax structure relating to import and export
6. Differences in the degree of adoption of technology

Question 4.
In what way management structure will function?
Answer:
The structure of management/board and their style of functioning the level of professionalism of management the composition of the board are the various factors that affect the decision making. The board is the highest decision-making authority and it plays a very critical role in the growth and development of an organization.

Question 5.
The image of an organization plays an important role – explain.
Answer:

1. Introducing a new product.
2. Select agents and dealers for distribution.
3. Forgiving alliances with suppliers.
4. Expanding and entering new markets both domestic and international.
5. Raising finance.

Question 6.
Explain the types of taxes under GST.
Answer:
There are three taxes applicable under their system CGST – collected by the Central Government on an intra-state sale SGST – collected by the State Government on an intra-state sale IGST – collected by the Central Government for inter-state sale.

Question 7.
What is the value system practiced by an organization?
Answer:
External business associates like suppliers and distributors consider the value system practiced by an organization with a strong culture of ethical standards and values.

Question 8.
What is environmental scanning?
Answer:
It helps the firms to identify threats that may affect the business measures that can be taken by the firm to overcome the threats. Environmental scanning is the gathering of information from an organization’s Internal and External environments and careful monitoring of this environment to identify future threats and opportunities.

Short answer questions

Question 1.
Write about the Geophysical environment.
Answer:
The natural, geographical and ecological factors have bearing on the business.
These are as follows.

1. The availability of natural resources like mineral oil etc. Since setting up of industries requires the availability of raw materials.
2. The weather and climatic conditions and availability of water and other natural resources are essential for the agricultural sector.
3. Topographical factors like the terrain impact type of business since the demand and consumption pattern may vary in these regions.
4. Ecological factors are now gaining momentum since Governments across the globe are farming stringent policies for ecological conservation and prevention of pollution.
5. The location of certain industries is influenced by geographical conditions.

Question 2.
Discuss global environment.
Answer:
With the rapid growth of technology, the physical boundaries are fast disappearing and the new global market is emerging. The international environmental factors which affect a business are as follows:

1. Differences in language and culture.
2. Differences in currencies.
3. Differences in norms and practices.
4. The tax structure relating to Import and Export.
5. Differences in the degree of adoption of technology.
6. Differences in taste and preferences of people.

Long answer questions

Question 1.
Explain the channel members of marketing.
Answer:

1. The marketing intermediaries serve as a connecting link between the business and its customers.
2. The middlemen like dealers, wholesalers, and retailers ensure the transfer of products to customers.
3. Physical distribution is facilitated by transporters and warehouses help in storing goods.
4. Marketing research agencies help the firm to understand the needs of the customers while advertising agencies help in promoting the products and services. The insurance firm is another marketing intermediary which provides coverage for risk in business.

Question 2.
Explain the recommendation to the union and state under the goods and service tax council.
Answer:

1. The taxes, cesses, and surcharges levied by the union, the states, and local bodies may be subsumed in the goods and service tax.
2. The goods and service tax that may be subjected to or exempted from the goods and service tax.
3. Model goods and service tax laws, principles of levy, apportionment of goods and services tax levied on supplies in the course of inter-state trade or commerce under article 269A, and the principles that govern the place of supply.
4. The rates including floor rates with bands of goods and service tax.
5. Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.
6. Any other matter relating to the goods and services tax as the council may decide.
7. Special provision with the respect to states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarkhand.

Multiple-choice questions

1. ……….. is an integral part of the social system.
(a) Business
(b) Environment
(c) Technology
(d) Factors
Answer:
(a) Business

2. ………. is essential for taking important decisions and ensuring success.
(a) Business environment
(b) Organization
(c) Business aid
(d) None
Answer:
(a) Business environment

3. It is quickly responding to the changing environment and needs of people:
(a) Business aid
(b) Scanning
(c) Public image
(d) Plan
Answer:
(c) Public image

4. Mention the internal factors affecting the business environment.
(a) Value system
(b) Marketing
(c) Financiers
(d) Competitions
Answer:
(a) Value system

5. ……….. agencies help the firm to understand the needs of the customer.
(a) Market research
(b) Customers
(c) Competitors
(d) None
Answer:
(a) Market research

6. Find out the macro-environmental factor:
(a) Technological environment
(b) Goods and services tax
(c) Company image
(d) Value system
Answer:
(a) Technological environment

7. The success of a business is dependent on its ability to adopt:
(a) Microenvironment
(b) Macro environment
(c) Goods and service tax
(d) None
Answer:
(b) Macro environment

8. ……… is a free enterprise market where individual ownership of wealth.
(a) Socialist
(b) Mixed
(c) Capitalist
(d) Political
Answer:
(c) Capitalist

9. …….. refers to the sum total of factors of the society in which the business is located.
(a) Business environment
(b) Legal
(c) Political environment
(d) Social environment
Answer:
(d) Social environment

10. Find out the Demographic factors.
(a) literacy level
(b) composition
(c) size
(d) all the above
Answer:
(d) all the above

11. The natural geographical and ecological factors that have a bearing on the business is known as:
(a) Political environment
(b) Legal environment
(c) Economic environment
(d) Geophysical environment
Answer:
(d) Geophysical environment

12. …….. has created a global market:
(a) Information
(b) Telecommunication
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

13. Which is used in managing inventory, storing goods in a warehouse?
(a) Technology
(b) Competitors
(c) Location
(d) All the above
Answer:
(a) Technology

14. It is a set of rules and policies which governs a company:
(a) Corporate governance
(b) Tax structure
(c) Geographical
(d) Research
Answer:
(a) Corporate governance

15. ……… is the indirect tax levied on goods and services across the country.
(a) Policies
(b) VUCA
(c) Incentives
(d) Goods and services tax
Answer:
(d) Goods and services tax

Students get through the TN Board 12th Commerce Important Questions Chapter 18 Grievance Redressal Mechanism which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 18 Grievance Redressal Mechanism

Very short answer questions

Question 1.
What is Consumer Council?
Answer:
The Consumer Protection Act postulates the establishment of the Consumer Protection Council at the District, State, and Central levels for the purpose of spreading consumer awareness. The objects of the councils as per the Act shall be to promote and protect the rights of the consumers.

Question 2.
Who are the members of the State Commission?
Answer:

1. A person who is or has been a Judge of High Court appointed by the State Government as its president.
2. Two other members shall be persons of ability, integrity, and standing and have adequate knowledge in dealing with problems relating to law, commerce, industry, public affairs, etc.

Question 3.
How to filing suit on behalf of consumers?
Answer:

1. Whenever a consumer fails to raise his voice of protest regarding his complaints.
2. Consumer’s organization come to rescue and file in court on behalf of a consumer.
3. By giving this service to consumers they feel that they are not alone in their struggle.

Question 4.
What is the role of the consumer organization?
Answer:

1. To provide prior: information to consumers about the authenticity of the product and protect them.
2. Eliminating the evil of adulteration, hoarding, black marketing, and underweight selling.
3. Consumer organizations keep informing the Government agencies about inferior quality produce, adulteration, etc., to help the Government.

Question 5.
Who can make a complaint?
Answer:

1. A consumer is defined under Consumer Protection Act 1986.
2. A registered Voluntary Consumer Association.
3. Central Government.
4. State Government and Union Territory.

Question 6.
When the complaints can be made?
Answer:
A complaint may be made in writing under the following circumstances:

1. Loss or damage is caused to the consumer due to the unfair trade practice of a trader.
2. If the article purchased by a consumer is defective.
3. If the services availed of by a consumer suffer from any deficiency.

Question 7.
Mention a few particulars that should be furnished along with the complaint.
Answer:

1. The name and complete address of the complaint.
2. The name and complete address of the opposite party/parties.
3. Date of purchase of goods or services availed.
4. Bills/receipts and copies of related correspondence if any.

Question 8.
Why grievance redressal mechanism is very important?
Answer:

1. Business is expected to provide maximum possible satisfaction to consumers. But in reality, consumers are often exploited.
2. They are not aware of the products and services available.
3. A large majority of the people (Consumers) are ignorant and illiterate and do not know their rights.
4. Indus context grievance redressal mechanism is very important.

Short answer questions

Question 1.
Who are the members of the District Forum?
Answer:

1. A person who is or who has been or is qualified to be, a District Judge as its President.
2. Two other members shall be persons of ability, integrity, and standing and have adequate knowledge dealing with problems relating to economics, law, administration, etc.
3. It is insisted in the Act that out of such two other members one shall be a woman.

Question 2.
Explain the Powers of State Commission.
Answer:

1. The power to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the state.
2. To produce before and allow to be examined by an officer of any of these agencies.
3. To furnish such information that may be required for the purposes of the Act to any officer so specified.

Question 3.
What are the steps involved in filing complaints in consumer court?
Answer:

1. The first step in filing a consumer complaint is to send a legal notice to the seller or company.
2. Legal notice must be drafted with the help of a consumer court lawyer and include the following.
3. Details of the consumer like name, address, product or service purchase details of the company, etc.
4. Necessary details of the problem faced and describe the deficiency in service.
5. The action was taken by the company in response to the consumer complaint.
6. Action expected from the company.
7. A time period is given to the company to take action.

Long answer questions

Question 1.
Discuss the Relief to the consumers.
Answer:

1. The District Forum and state commission can order the following reliefs to the consumers.
2. To remove the defects in the goods pointed out.
3. To replace the goods.
4. To return to the complaint the price of the goods.
5. To pay such an amount of compensation for the loss or injury suffered by the consumer.
6. To discontinue the unfair trade practices or not to repeat them.
7. To withdraw the hazardous goods from being offered for sale.
8. To provide the most of expenditure incurred by the complaint.

Question 2.
What is the appeal Provision? Explain.
Answer:

1. Aggrieved by the orders issued by the District Consumer Redressal Forum appeal; a petition can be filed before the state consumer Dispute Redressal Commission within 30 days from the date of receipt of orders.
2. Aggrieved by orders issued by the State Consumer Dispute Redressal Commission appeal petition can be filed before National Consumer Redressal Commission within 30 days from the date of receipt of orders.
3. Aggrieved by the orders issued by the National Consumer Dispute Redressal Commission appeal petition can be filed before the Supreme Court of India within 30 days from the date of receipt of orders.
4. No fee is charged for registering an appeal petition before State and National Consumer Dispute Redressal Commissions.
5. The appeal petition has to be filed with the grounds for appeal with copies of orders of the lower redressal agencies and registering procedures are the same as is being done in the case of registering a complaint.

Question 3.
Explain National Commission and its Jurisdiction.
Answer:
National Commission:

1. It is a Quasi-Judicial Commission in India which was set in 1988 under the Consumer Protection Act of 1986.
2. Its head office is in New Delhi.
3. The commission is headed by a serving or retired Judge of the Supreme Court of India.

Jurisdiction:

1. Section 21 of The Consumer Protection Act, 1986 describes, the National Commission shall have jurisdiction.
2. To entertain a complaint valued more than “1” Crore.
3. Revised the orders of the state commission.
4. To call for the records and pass appropriate orders from the State Commission and District Forum.

Question 4.
Explain the term the International Organisation of Consumers Unions (IOCU).
Answer:

1. The International Organisation of Consumers Unions was first established in 1960.
2. To create cross-border campaigns and share knowledge.
3. It has over 250 member organizations in 120 Countries.
4. Its head office is based in London, England, with regional officers in Latin America, Asia, Pacific, Middle East, and Africa.

Multiple-choice questions

1. ………… are a vital part of the business.
(a) Producer
(b) Consumer
(c) Distributor
(d) Retailer
Answer:
(b) Consumer

2. ………. can entertain complaints within the territory.
(a) District Forum
(b) State Forum
(c) National Commission
(d) None
Answer:
(a) District Forum

3. The State Consumer Protection Council is also called:
(a) National Commission
(b) State Commission
(c) Both (a) and (b)
(d) None
Answer:
(b) State Commission

4. The Jurisdiction may be original appellate or revision.
(a) State Commission
(b) National Commission
(c) District Forum
(d) All the above
Answer:
(a) State Commission

5. How many days the state commission may prefer an appeal to the National Commission?
(a) 60 days
(b) 90 days
(c) 30 days
(d) 120 days
Answer:
(c) 30 days

6. The National Consumer Disputes Redressal Commission (NCDRC) is also called as:
(a) National Commission
(b) State Commission
(c) Voluntary Consumer Organisation
(d) None
Answer:
(a) National Commission

7 is expected to provide maximum possible satisfaction to consumers.
(a) Business
(b) Organisation
(c) Privileges
(d) Commission
Answer:
(a) Business

8. Consumers are often exploited through:
(a) Poor quality goods
(b) Overcharging
(c) Fractional weights
(d) All the above
Answer:
(d) All the above

9. ……… to promote and to protect the rights of the consumers.
(a) District
(b) State
(c) Central
(d) All the above
Answer:
(d) All the above

10. How many Tier Courts or Quasi Judiciary?
(a) 6
(b) 4
(c) 2
(d) 3
Answer:
(d) 3

11. If the value of the complaint exceeds this limit of 120 lakhs, the>complaint should be made direct to:
(a) State Commission
(b) District Forum
(c) Village Council
(d) Consumer Council
Answer:
(a) State Commission

12. National Consumer Disputes Redressal Commission’s head office is in:
(a) Chennai
(b) Calcutta
(c) Mumbai
(d) New Delhi
Answer:
(d) New Delhi

13. Who can make a complaint?
(a) Central Government
(b) State Government
(c) Union Territory
(d) All the above
Answer:
(d) All the above

14. When the complaints can be made?
(a) Loss or damage
(b) Notice
(c) Action
(d) Declaration
Answer:
(a) Loss or damage

15. A complaint can be filed by a complaint against the:
(a) Seller
(b) Buyer
(c) Distributor
(d) None
Answer:
(a) Seller

Students get through the TN Board 12th Commerce Important Questions Chapter 17 Rights, Duties & Responsibilities of Consumers which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 17 Rights, Duties & Responsibilities of Consumers

Very short answer questions

Question 1.
Mention the few rights of consumers.
Answer:

1. Right to protection of health and right of safety.
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to seek redressal

Question 2.
What are the shops the consumer purchase the goods?
Answer:
The consumer to make a purchase from the reputed shops or Government shops like a super bazaar, co-operative store, etc.

Question 3.
What are the steps taken by consumers while cheated by a seller?
Answer:
If a consumer is cheated by a seller, then he should immediately lodge a complaint with the authorities designated for consumer grievance redressal than remaining a silent spectator.

Question 4.
Write a short note on rights to quality of life.
Answer:
Quality of life refers to the perceived well-being of people in groups and individually and well being of the environment in which these people live. Consumerism has been defined as “an improved quality of life”

Question 5.
What is the duty of the consumer to purchase a product?
Answer:

1. To know about the price, quality and other terms and conditions
2. To collect cash and receipts
3. Warranty card.
4. Delivery of the goods in time
5. Observe the instructions and precautions while using that product.

Short answer questions

Question 1.
What do you understand by right to basic needs?
Answer:
Every consumer has a right to get basic necessities of life such as food, clothing, and water and the right to a pure and healthy environment. Community life should be free from various modes of pollution. This will enhance the quality of human life.

Question 2.
How to protect the consumer from unfair trade practices?
Answer:

1. The consumer has a right to be aware of his rights and remedies available to him.
2. The consumer has a right to be protected against goods and services which are hazardous to life and health.
3. Consumers need to be educated.

Question 3.
How to educate the consumer?
Answer:

1. The consumer has a right to acquire knowledge and stay well informed all through his life.
2. Many consumer organizations and some enlightened businesses are taking a proactive part in educating consumers in this respect.
3. He should be aware of his rights and the reliefs granted to him where a product or service falls short of his expectations.

Long answer questions

Question 1.
Consumerism – improved quality of life. Explain.
Answer:

1. It means that environmental problems that affect the very life of consumers and the environment in which people live.
2. In other words, air pollution, water pollution, noise pollution, and legacies of ongoing industrialization take a heavy toll on the quality of life of people.
3. The social cost of these pollutions far exceeds their social benefits.
4. Each kind of pollution is eating away the social benefits resulting from society.
5. It is where the social responsibilities of business enterprises arise, there is nothing wrong with producing the product/output for mankind.

Question 2.
Rights and responsibilities are two sides of the same coin. Explain.
Answer:

1. The consumer should be conscious of his duties. He should make purchases judiciously and should not misuse his rights.
2. Consumer protection can in effect be achieved only when the consumers also understand their responsibilities.
3. Consumers should keep in mind their responsibilities while purchasing, using, and consuming goods and services.
4. Just as a consumer, enjoy certain rights, they owe certain responsibilities.
5. The consumer should discharge his duties as responsible citizens.
6. It is the responsibility of a consumer to purchase a product after gaining a thorough knowledge of its price, quality, and other terms and conditions.

Multiple-choice questions

1. Which is the supreme objective of a business?
(a) To satisfy consumer want
(b) To satisfy consumer need
(c) Both (a) and (b)
(d) Quality and quantity
Answer:
(c) Both (a) and (b)

2. …….. is to be protected against any unfair practice of trade.
(a) Producer
(b) Consumer
(c) Distributor
(d) None
Answer:
(b) Consumer

3. ………. that is causing more physical danger to consumers health and
property.
(a) Price
(b) Cost
(c) Product
(d) Demand
Answer:
(c) Product

4. Give the best example of the production of health and safety:
(a) Food additives
(b) Electrical appliances
(c) Durable goods
(d) All the above
Answer:
(a) Food additives

5. Offering the widest range of products in quality and brand varieties at a reasonable price.
(a) Scarcity
(b) Choice
(c) Price
(d) Education
Answer:
(b) Choice

6. Which is the most attractive and appealing to the senses?
(a) Packing
(b) Advertisement
(c) Gift
(d) Warranty card
Answer:
(b) Advertisement

7. What are the offers for every product in the market?
(a) Discount
(b) Gift
(c) Free Product
(d) All the above
Answer:
(d) All the above

8 will help consumers in seeking redressal for their grievances.
(a) Bill
(b) Warranty card
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

9. Which mark is available for consumers to buy products?
(a) Packing
(b) Standardization
(c) Information
(d) Price
Answer:
(b) Standardization

10. If the consumer is cheated by the seller, what steps he/she should be taken first?
(a) Complaint
(b) Return of goods
(c) Instruction
(d) Information
Answer:
(a) Complaint

11. The consumer must know and collect complete information about?
(a) Quality
(b) Quantity
(c) Price
(d) All the above
Answer:
(d) All the above

12. …………. should never compromise on the quality of goods.
(a) Producer
(b) Distributor
(c) Consumer
(d) None
Answer:
(c) Consumer

13. Mention the standard quality certification marks:
(a) ISI
(b) Agmark
(c) Both (a) and (b)
(d) Advertisement
Answer:
(c) Both (a) and (b)

14. Every consumer has a right to get ………. and right to a pure and healthy environment.
(a) Basic needs
(b) Education
(c) Quality
(d) Expectation
Answer:
(a) Basic needs

15. Community life should be free from various modes of:
(a) Pollution
(b) Society
(c) Mankind
(d) Human life
Answer:
(a) Pollution

Students get through the TN Board 12th Commerce Important Questions Chapter 16 Consumerism which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 16 Consumerism

Very short answer questions

Question 1.
What are the factors leading to consumer exploitations?
Answer:

1. Selling at a higher price
2. Adulteration
3. Duplicate goods
4. Artificial scarcity
5. Substandard
6. Product risk
7. Warranty and services
8. False advertisements

Question 2.
What is consumerism?
Answer:

1. It is the social force protecting the consumer and aiding the consumer.
2. In other words, it is an organized effort to fight against unfair marketing practices with a view to secure consumer protection.

Question 3.
How many parties involved in the sphere of a business transaction? What are they?
Answer:
There are three parties involved in the sphere of business transactions. They are

1. Role of business
2. Role of Government
3. Role of consumer

Question 4.
Explain consumer action councils.
Answer:

1. Consumer action councils established at village levels should educate consumers of the right.
2. Consumer protection agencies should take the necessary steps to investigate consumer complaint grievances and arrange to forward them to the correct forum.
3. Consumer cooperatives need to be strengthened.

Question 5.
Define hoarding.
Answer:

1. Hoarding is the purchase of large quantities of a commodity by a spectator with the intent of pushing up the price.
2. Hoarding is the practice of obtaining and holding resources in quantities greater than needed for one’s immediate use.

Question 6.
What are consumer grievances?
Answer:
Where the business enterprise has a customer care department it should handle the grievances of consumers immediately or within a definite time frame.

Question 7.
How to protect the consumer from hazards?
Answer:

1. Business enterprises should not market a product that is potentially hazardous and harmful.
2. It should test the safety of the product before they are marketed.
3. Regarding food items business enterprises should withdraw spoiled and contaminated food items.

Question 8.
What is the main aim of consumerism?
Answer:

1. It intends to shield the consumers from commercial terrorism and exploitative practices.
2. Its aim is to safeguard their interests by establishing their rights and powers in relation to products and sellers.

Question 9.
What are the major causes of consumerism in India?
Answer:
The major causes of consumerism in India have been identified as rising prices, poor product performance, service quality, product shortages, deceptive advertising, and inflation.

Short answer questions

Question 1.
Explain adulteration.
Answer:

1. It refers to mixing or substituting undesirable material in food. This causes heavy loss to the consumer.
2. This will lead to monitory loss and spoil the health.
3. Adulteration is quite common in food articles.
4. It is a crime that cannot be pardoned as it spoils the very health of consumers.

Question 2.
What is the main purpose of advertisement?
Answer:

1. The main purpose of advertisement is to educate the consuming public and customers of various aspects of the products and services.
2. Its reality advertisements convey very little information about the products.
3. Consumers who buy the products on the faith of claims made in advertisements.

Question 3.
Write the importance of consumer protection.
Answer:

1. Consumer protection has a wide agenda.
2. It is not only purported to educate consumers about their rights and responsibilities but also helps in getting their grievances redressed.
3. It provides judicial machinery for protecting the interest of consumers to come together and organize themselves into consumer associations for protection and promotion of their interest.
4. Consumer protection has a special significance for business too.

Long answer questions

Question 1.
Explain briefly the growth of consumerism.
Answer:

1. Consumerism or consumer movement is an outcome of the sufferings and exploitations of consumers.
2. It intends to shield the consumers from commercial terrorism and exploitative practices.
3. Its aim is to safeguard their interests by establishing their rights and powers in relation to products and sellers.
4. Mr. Ralph Nader pioneered the fight against monopoly and unethical trade practices of large companies in the United States.
5. He is considered to be the father of the consumer movement.
6. He initially fought against the automobile industry for violating safety. Standards and pollution control norms.
7. Countries like Britain, Sweden, Denmark, Netherlands, and even Kenya have stringent laws against consumer exploitation in their respective countries.
8. The United Nations General Assembly has adopted a set of general guidelines for consumer protection.

Question 2.
How to practice caveat emptor?
Answer:

1. Under the principle of caveat emptor, a consumer purchases a coffee mug and later discovers that it has a leak he has no choice other than to keep with him.
2. According to their principle, the buyer should have been cautious and should have thoroughly examined the product to check the defect if any.
3. A more common example is a used car transaction between two private parties, (as opposed to a dealership in which sale is subject to an implied warranty)
4. The buyer must assume the responsibility of thoroughly reaching and inspecting the car by taking it to a mechanic for a closer look before finalizing the sale.
5. But the “caveat emptor” principle cannot be applied where the car is bought fresh as a brand new car from the showroom as the deal in governed by a warranty of certain years.

Question 3.
Write briefly about caveat venditor.
Answer:

1. Caveat emptor was the rule for most purchases and land sales prior to the industrial revolution although sellers assume much more responsibilities for the integrity of their goods in the present day.
2. Today most sales in U.S fall under the principle of caveat venditor which means “let the seller beware, by which goods are covered by an implied warranty of merchantability.
3. Unless otherwise advertised (for example, “sold as is”) or negotiated with the buyer, nearly all consumer products are guaranteed to work if used for their intended purpose.

Multiple-choice questions

1. ………. is said to be the king.
(a) Producer
(b) Consumer
(c) Distribution
(d) None
Answer:
(b) Consumer

2. It refers to mixing or substituting undesirable material in food:
(a) Adulteration
(b) Higher price
(c) Duplicate goods
(d) Scarcity
Answer:
(a) Adulteration

3. ………… products of popular products are illegally produced and sold.
(a) Artificial
(b) Duplicate
(c) Sub-standard
(d) All the above
Answer:
(b) Duplicate

4. ……… is quite common in food articles.
(a) Scarcity
(b) Adulteration
(c) Both (a) and (b)
(d) None
Answer:
(b) Adulteration

5. ……… is to educate the consuming public and customers of various aspects of products.
(a) Warranty
(b) Service
(c) Advertisement
(d) Consumerism
Answer:
(c) Advertisement

6. ………. Protecting against exploitation.
(a) Consumerism
(b) Consumer
(c) Producer
(d) None
Answer:
(a) Consumerism

7. Who alone can put an end to all their unethical trade practices?
(a) Consumer
(b) Producer
(c) Both (a) and (b)
(d) Organization
Answer:
(a) Consumer

8. Which act prevents the use of fraudulent marks on the product?
(a) Trademark act
(b) Competition act
(c) Sale of goods act
(d) Legal metrology act
Answer:
(a) Trademark act

9. Which year a comprehensive law called the consumer protection act by the central Government?
(a) 1989
(b) 1986
(c) 1980
(d) 1983
Answer:
(b) 1986

10. Give examples of durable goods.
(a) Washing machines
(b) Refrigerators
(c) Car
(d) All the above
Answer:
(d) All the above

11 is the most exploited constituent in the business world.
(a) Producer
(b) Distributor
(c) Consumer
(d) All the above
Answer:
(c) Consumer

12. In which market consumers are forced to buy the short supply goods at higher prices:
(a) Money market
(b) Black market
(c) Capital market
(d) None
Answer:
(b) Black market

13. Consumerism was coined by the business community in the western world particularly in:
(a) London
(b) America
(c) Russia
(d) Europe
Answer:
(b) America

14. The term consumerism was first coined by business ih the mid:
(a) 1950
(b) 1960
(c) 1965
(d) 1963
Answer:
(b) 1960

15. In which century industrial economy reached a boom state:
(a) 20th
(b) 19th
(c) 15th
(d) 17th
Answer:
(a) 20th

Students get through the TN Board 12th Commerce Important Questions Chapter 15 Recent Trends in Marketing which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 15 Recent Trends in Marketing

Very short answer questions

Question 1.
What is e-Commerce?
Answer:
If all activities which directly or indirectly facilitate that exchange of goods done through internet and other online environment is known as Electronic Commerce or simply as e-Commerce.

Question 2.
What are the tools used to carry out the business transaction?
Answer:
They use a variety of tools like computers, laptops, tablet,s and smartphone (android) devices to access different websites. Social media networks have opened new avenues of interacting with customers.

Question 3.
What is the aim of social marketing?
Answer:

1. The primary aim of social marketing is “social good” such as anti¬tobacco, anti-drug, anti-pollution, anti-dowry, road safety, protection of girl child against the use of plastic bags.
2. It develops health consciousness.
3. It helps to eradicate social evils that affect society.

Question 4.
What are other names for green marketing?
Answer:

1. Environment marketing
2. Ecological marketing
3. Eco-friendly marketing and
4. Sustainable marketing

Question 5.
How to create awareness about green marketing?
Answer:
The growing awareness about the. implications of global warming, the non-biodegradable, solid waste harmful impact of pollutants, etc.

Question 6.
What are the activities handling in e-Marketing?
Answer:
e-Marketing includes the use of the internet for all the activities of advertising, promotion, publicity, the channel of distribution, marketing research to find out customer’s needs and wants.

Question 7.
How many ways in Rural Market? What are they?
Answer:
Rural marketing is now a two-way marketing process. There are

1. The inflow of products into rural markets to urban areas.
2. The outflow of products – The urban to the rural flow of goods.

Question 8.
What is Niche Marketing?
Answer:

1. It is found by the company by identifying the need of customers who are not served or underserved by the competitors.
2. A niche market involves a specific target audience with a specialized offering.

Short answer questions

Question 1.
Explain “Rural Marketing”.
Answer:

1. Rural marketing is a process of developing pricing promoting and distributing rural specific goods and services leading to a derived exchange with rural customers to satisfy their needs and wants.
2. Rural marketing is now a two-way marketing process. There is an inflow of products into rural markets for production or consumption and there is also an outflow of products to urban areas.
3. The rural to urban flow consists of agricultural products such as rice, wheat, sugar, and cotton.

Question 2.
Write a short note Commodity Exchange.
Answer:

1. A commodity exchange is an organized and regulated market that facilitates the purchase and sale of contracts whose values are tried to the price of commodities. Eg: Crude oil, natural gas, copper, and gold.
2. Typically the buyers of these contracts agree to accept delivery of the commodity and the sellers agree to deliver the commodity.

Question 3.
Discuss Multi level Marketing.
Answer:

1. Multi-level Marketing is the marketing strategy where the direct sales company encourages its existing distributors to recruit new distributors to facilitate the sale of goods and services.
2. Multi-level marketing is a type of direct selling wherein the distributor sells the product via relationship referrals and word-of-mouth marketing.
3. The sale persons or distributor not only sells die products but also encourages others to join the company. The recruits are called the Participants “Downline” or “distributors Downline”.
4. Multi-level marketing is also called network marketing, referral marketing, or Pyramid Selling.

Question 4.
Explain in detail Referral Marketing.
Answer:

1. Referral marketing is the method of promoting products or services to new customers through referrals.
2. Referral marketing is referred to spreading the word about a product or service through existing customers of business enterprises rather than through traditional advertising.
3. Word-of-mouth marketing which occurs when others tell each other about a business is also considered to be a form of referral marketing.

Long answer questions

1. Explain briefly about Guerrilla Marketing.
Answer:

1. The concept of Guerrilla Marketing was invented as an unconventional system of promotions that relies on time, energy, and imagination rather than a big marketing budget.
2. Guerrilla marketing represents an advertisement strategy to promote products or services on streets or other public places with monkey-like shopping malls, park benches, etc.
3. Consumers/customers are taken by surprise to make a big impression about the brand which in turn creates buzz about the brand on shirts it creates a memorable experience in the mind of the target audience which triggers good responses to sales.

2. Explain in detail Viral Marketing.
Answer:

1. Viral Marketing is a marketing technique that impels the users to pass on a marketing message to other users, creating potentially exponential growth in the message’s visibility and effect.
2. Viral marketing is able to generate interest and the potential sale of a brand or product through messages that spread quickly like a virus from person to person.
3. The most widespread example in recent times is the creation of moving surprising or spectacular videos on YouTube, which are then shared on Facebook, Twitter, and other channels.
4. Messenger messages and the environment are vital elements indispensable in spreading messages widely across various distances Hotmail companies owned by Microsoft promote the services.

Multiple-choice questions

1. ………. are global and exhibit international characteristics.
(a) Producers
(b) Customers
(c) Retailers
(d) None
Answer:
(b) Customers

2. Find out the tools to carry out business transactions.
(a) Laptops
(b) Computer
(c) Internet
(d) All the above
Answer:
(d) All the above

3. Exchange of goods done through internet is known as:
(a) e-Commerce
(b) e-Business
(c) e-Marketing
(d) none
Answer:
(a) e-Commerce

4 Marketing needs more manpower.
(a) e-Marketing
(b) Traditional
(c) e-Tailing
(d) All the above
Answer:
(b) Traditional

5. It is very economical and faster way to promote the products:
(a) e-Tailing
(b) e-Marketing
(c) e-Commerce
(d) Traditional Marketing
Answer:
(b) e-Marketing

6. In which type of Marketing helps to eradicate social evils that affects the society?
(a) Service Marketing
(b) Viral Marketing
(c) Rural Marketing
(d) Social Marketing
Answer:
(d) Social Marketing

7. e-Tailing is also called:
(a) Online retailing
(b) Database
(c) Website
(d) Media
Answer:
(a) Online retailing

8. Green Marketing is also known as:
(a) Eco-friendly
(b) Ecological
(c) Environmental
(d) All the above
Answer:
(d) All the above

9. In which market to achieve the specific behavioral goal which ensures social good?
(a) Rural Marketing
(b) Social Marketing
(c) Service Marketing
(d) Viral Marketing
Answer:
(b) Social Marketing

10. Technique that impels the users to pass on a marketing message to other users that spread quickly like a virus.
(a) Niche Marketing
(b) Viral Marketing
(c) Both (a) and (b)
(d) None
Answer:
(b) Viral Marketing

11. Multilevel marketing is also called:
(a) Network Marketing
(b) Referral Marketing
(c) Both (a) and (b)
(d) Content Marketing
Answer:
(c) Both (a) and (b)

12. The art of communicating with customers and prospects without selling is
known as:
(a) Referral Marketing
(b) Commodity Exchange
(c) Content Marketing
(d) All the above
Answer:
(c) Content Marketing

13. The business transaction carried out through internet and other online tool is called:
(a) e-Business
(b) e-Tailing
(c) e-Marketing
(d) none
Answer:
(a) e-Business

14. The processing of selling service goods is called:
(a) Service Marketing
(b) Social Marketing
(c) Rural Marketing
(d) Commodity Exchange
Answer:
(a) Service Marketing

15. Find out the service goods:
(a) Banking
(b) Tele Communication
(c) Insurance
(d) All the above
Answer:
(d) All the above