Category: Important Questions

Students get through the TN Board 11th Commerce Important Questions Chapter 27 Facilitators of International Business which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 27 Facilitators of International Business

Very short answer questions

Question 1.
What is SAARC Council?
Answer:
At the top SAARC is represented by the heads of member nations. It meets once in two years. The headquarter is located in Nepal. SAARC secretariat is headed by the Secretary-General appointed by the members.

Question 2.
Write a note on ICSID?
Answer:
ICSID is an autonomous institution set up in order to provide a forum for conciliation and arbitration of the international dispute, It was set up in 1966. It is located in Washington.

Question 3.
What is a loan for development activities?
Answer:
India got several loan facilities from IMF for its several development projects.

Question 4.
What is export advice?
Answer:
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.

Question 5.
When WTO established?
Answer:
The world trade organisation was established in 1995. In 1999 there were 135 member countries in the WTO.

Short answer questions

Question 1.
Point out the objectives of SAARC.
Answer:
The objectives of SAARC include:

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

Question 2.
Point out the objectives of IMF.
Answer:
” The objective of IMF are:

1. Promoting international monetary cooperation.
2. Ensuring balanced international trade
3. Ensuring exchange rate stability
4. Eliminating or minimizing exchange restrictions by promoting multilateral payments.
5. Providing economic assistance to member countries for correcting the imbalance in the balance of payments of countries
6. Minimizing imbalance in quantum and duration of the balance of payment.

Question 3.
What are the IDA?
Answer:
It was set up in 1960. It provides term loans to member countries at concessional terms and conditions for their economic development. It creates supplementary sources of credit for member countries. It assists in the poverty alleviation programme of least developed countries. It provides support for health, education, infrastructure agriculture, human resources development of developing and least developed countries.

Question 4.
What is the meaning of IMF?
Answer:
International Monetary fund (IMF) is an international organization headquartered in Washington DC. It has a membership of 189 countries. It was established on 27th December 1945 on the recommendation of the Bretton Wood Conference. It provides shorter loan to member countries to their correct balance of payments disequilibrium.

Long answer questions

Question 1.
What is a world trade organisation? Explain functions and merits.
Answer:
Meaning: The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers in the conduct of international trade. Its main aim is to ensure the smooth flow of trade. The World Trade Organization (WTO) was established in 1995. In 1999, there were 135 member countries in the WTO.
Functions: The following are the functions of WTO:

1. It facilitates the operations, implementations and administration of the objectives of Trade agreements.
2. It provides negotiation facilities among member countries for smooth world trades.
3. It helps for the settlement Of disputes between the member countries.
4. It cooperates with International Monetary Fund and the World Bank to get greater coherence in global economic policymaking.

Merits:

1. The system helps to promote peace.
2. Disputes are handled constructively.
3. Rules make life easier for all.
4. Free trade cuts the costs of living.
5. It provides more choice of products and qualities.

For Own Thinking

1. A vital role played in international business by WTO.
Answer:
World Trade Organisation (WTO) is the only global international organisation dealing with the rules of trade between nations.

2. Necessity for the world as a global village through IMF IBRD and SAARC.
Answer:

1. It acts as short term credit institution at the international level.
2. Promoting the welfare of the people of Asia.

For Future Learning

1. WTO- new agreements.
Answer:
Its main aim is to ensure smooth flow of goods trade. World organisation was established on 1st January 1993. The GATT was renamed as WTO with some changes WTO has 164 member countries as of 29th July 2016.

2. IMF World Bank and SAARC major role in international business.
Answer:

1. Monitoring and coordinating the development programme.
2. Dealing with modalities of financing.
3. World Bank: Providing long term loans to developing countries.
4. IMF: It works for faster global growth.

Multiple-choice questions

1. WTO is promoting international peace and creating a conducive environment for conducting:
(a) home trade
(b) itinerant trade
(c) small scale fixed retailers trade
(d) International trade
Answer:
(d) International trade

2. WTO meets almost once every years:
(a) three
(b) two
(c) one
(d) five
Answer:
(a) three

3. WTO has ………… member countries as of 29th July 2016.
(a) 184
(b) 172
(c) 164
(d) 192
Answer:
(c) 164

4. The WTO trade organisation WTO was established on:
(a) 1.1.1996
(b) 1.7.1998
(c) 1.8.1995
(d) 1.1.1995
Answer:
(d) 1.1.1995

5. World bank it was set up in ……….. order to reconstruct and rehabilitate the first world was affected countries of Europe and assist in the development of developing countries.
(a) 1955
(b) 1944
(c) 1996
(d) 2000
Answer:
(b) 1944

6. IMF has a membership of ……… countries.
(a) 189
(b) 190
(c) 119
(d) 168
Answer:
(a) 189

7. IMF was established on 27th December …………… on the recommendation of the Bretton wood conference.
(a) 1984
(b) 1945
(c) 1845
(d) 1996
Answer:
(b) 1945

8. SAARC number of member countries include:
(a) 12
(b) 10
(c) 8
(d) 9
Answer:
(c) 8

9. SAARC was established on:
(a) 8.12.1985
(b) 8.12.1986
(c) 8.12.1987
(d) 8.12.1988
Answer:
(a) 8.12.1985

10. SAARC the headquarter is located in:
(a) Nepal
(b) Asia
(c) Bengal
(d) London
Answer:
(a) Nepal

11. SAARC it meets once in ………. years.
(a) Five
(b) Two
(c) Three
(d) One
Answer:
(b) Two

Students get through the TN Board 11th Commerce Important Questions Chapter 26 Export and Import Procedures which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 26 Export and Import Procedures

Very short answer questions

Question 1.
What is taking delivery of goods?
Answer:
Importer takes delivery of goods from the Railway/Carrier after producing the Railway Receipt or Lofry Receipt.

Question 2.
What Is a trade enquiry?
Answer:
Having obtained IEC, the intending importer has to make enquiry from the exporter or his agents.

Question 3.
What are import documents?
Answer:

1. Import License,
2. Indent,
3. Letter of Credit,
4. Bill of Entry,
5. Bill of sight,
6. Port Trust Dues Receipt,
7. Bill Of Lading,
8. Bill of Exchange,
9. Advice Note.

Question 4.
Write a short note on the export trading house.
Answer:
Export trade 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 5.
Explain – Forwarding Agent.
Answer:
Forwarding Agent is appointed by the exporter to fulfill the customs and shipping-related formalities and certain logistic functions.

Short answer questions

Question 1.
What is the settlement of the import bill?
Answer:
The importer settles the import bill in the following ways.

1. Importer collects shipping documents after payment.
2. Importer gets shipping documents after payment of bills of exchange in the case of Documents against payments (D/P).
3. Importer gets shipping documents after giving acceptance on bills of exchange in the case of Documents against Acceptance(D/A).

Question 2.
What are the contents of Bill lending?
Answer:

1. Name of the ship,
2. Date of shipment,
3. Place of Bearding,
4. Port of destination,
5. Name address of exporter,
6. Name and address of the importer,
7. Description of Goods,
8. Number of package,
9. Distinctive mark on good,
10. Amount of freight.

Question 3.
What are intermediaries involved in export trade?
Answer:

Question 4.
What 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 an only commission at the end of the deal.

Question 5.
Explain the intermediaries in import trade.
Answer:

1. 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.
2. Clearing Agent: Clearing Agent is specialized 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 commission for their service.

Question 6.
What is the insurance of goods?
Answer:
Exporter has to arrange for getting the goods insured to protect them against the various risks like deterioration, collision, immersion, fire, entry of seawater, etc., as per the instructions of importer if any.

Question 7.
Explain the types of indent?
Answer:

1. Open Indent: It gives complete freedom to the exporter to choose the type of goods, price, quality, method of packing, etc.
2. Closed Indent: It does not give any freedom to the exporter. Importer specifies climates the type of goods, price, quality, packing method, and so on which should be strictly observed by the exporter.
3. Confirmatory Indent: An indent is to be confirmed by the importer/ his agent and the final indent is sent by the importer thereafter.

Long answer questions

Question 1.
What are the objectives of Export trade?
Answer:
The important objectives of the export include –

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.
6. Generating revenue for the Government in the form of customs and excise duties.
7. Promoting mutual understanding and co-operation among the nations.
8. Achieving optimum utilization of resources by large-scale production of goods.

Question 2.
What are the EXIM bank’s main functions?
Answer:
The main functions of EXIM bank are:

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

Question 3.
What are the procedures relating to import trade?
Answer:

1. Obtaining Import License: The importer has to secure Import and Export Code (IEC) from the Director-General of Foreign Trade or its Regional Authority. The Indian Institute classification (ITC) -Harmonized System (HS) classified the goods into three categories, namely Restricted, Canalised, and Prohibited. Goods not specified in the above categories can be freely imported without any restrictions. An import license is not required to import the goods not mentioned in the above classification. An import license is valid for 24 months for capital goods and 18 months for other goods. The importer has to submit a copy of the IEC to customs authorities at the time of clearance of goods. The second copy of IEC is used to obtain foreign exchange from RBI.
2. Trade Enquiry: Having obtained IEC, the intending importer has to make enquiry from the exporter or his agents. The importer makes the request by e-mail or postal mail to supply the details given below,
   1. Specification of goods like size, design, quality, etc.
   2. Quantity goods available,
   3. Price per unit,
   4. Terms of shipping,
   5. Terms of payments i.e. Letter of credit Documents against Acceptance (D/A) or Documents against Payment (D/P),
   6. Probable delivery time,
   7. Validity of offer period.
      Importer responds to enquiry by sending proforma invoice.
3. Obtaining Foreign Exchange: Since the importer has to settle import bills in foreign j currency, he has to obtain foreign exchange.j Importer has to provide IEC code in the! form supplied by an authorized dealer to get foreign exchange. The importer has to submit an application along with necessary j documents to the Exchange Control I Department of RBI. After scrutinizing the said application, the Reserve Bank of India will sanction the release of foreign exchange.
4. Placing an Indent Order: importer places j an order either directly or through an indenting house. The indent contains the details like type of goods, design of goods, price, quantity, grade, packing instructions, insurance, delivery mode, desired delivery period, mode of the period, mode of shipment, etc.
5. Opening Letter of Credit (L/C): Where foreign exporter does not know Indian; importer, he may like to ensure the! the creditworthiness of the unknown importer. In such a case, the exporter may advise the importer to arrange for a letter of credit in his favour. Letter of credit is a document under which issuing bank undertakes to make payment on behalf of the importer or to the order of the importer in exchange for specified documents from the exporter’s bank. The letter of credit is issued only for the financially sound importers. Exporter’s bank eventually sends the document to issuing bank which releases the payment.

Question 4.
Share of top five commodities in India’s exports.

Answer:
■ Petroleum products
■ Peral precious semi-precious stone
■ Gold and other precious metals jewelry
■ Drug formulations biological
■ RMC cotton including accessories
■ Others

Question 5.
Write a note on (i) Customs clearance. (ii) payment of dock dues.
Answer:
(i) Customs Clearance: The exporter or his agent prepares three copies of the shipping bill in printed form. The Shipping bill contains the details like name and address of exporter, description of goods, value of goods, volume of goods, identification marks on the goods, port of destination, and port of loading. There are three types of shipping bills for three different categories of goods namely, dutiable goods, dutyfree goods, and duty draw-back goods Forwarding agent proceeds to pay export duty calculated by customs officers in the case of dutiable goods.
(ii) Payment of Dock Dues: After the payment of export duty, the forwarding agent arranges for transporting the goods to docks. The agent fills two copies of challan and submits it to the dock authorities along with one copy of the shipping bill. Then the agent pays dock charges. Dock authorities retain one copy of challan and return the second copy to the forwarding agent. This signed copy is called Dock Receipt or Port Trust Receipt.

Question 6.
Explain the objectives of import trade.
Answer:

1. Achieving Rapid Industrialization: Developing countries can achieve rapid industrialization by importing advanced technology scarce raw materials, capital goods like machinery equipment, etc., and talents from other countries.
2. 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.
3. 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.
4. Meeting Shortage Situation: During famine, earthquake, flood drought, tsunami, 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.
5. Lengthening 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.

For Future Learning

1. Import Trade Procedures.
Answer:

1. Trade enquiry.
2. Obtain import license
3. Obtaining foreign exchange.
4. Placing the indent.
5. Arranging letter of credit.
6. Obtaining shipping documents.

2. Agencies involved in Import Trade.
Answer:

1. Indent houses.
2. Clearing agents.

For Own Thinking

1. You should be able to think to simplify Import Trade Procedures.
Answer:

1. Trade enquiry,
2. Arranging letter of credit.
3. Receiving payments.

2. Create interest in International Business for yourself.
Answer:

1. Take interest in International business.
2. To get more profit.
3. To give employment opportunities to the public.

Multiple-choice questions

1. Which of the following documents are not required for obtaining an export license?
(a) IEC number
(b) Letter of credit
(c) Registration cum membership certificate
(d) Bank account number
Answer:
(b) Letter of credit

2. Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading
(b) Shipping bill
(c) Certificate of origin
(d) Shipment advice
Answer:
(a) Bill of lading

3. Which of the following do not form part of the duty drawback scheme?
(a) Refund of excise duties
(b) Refund of customs duties
(c) Refund of export duties
(d) Refund of income dock charges at the port of shipment
Answer:
(d) Refund of income dock charges at the port of shipment

4. Which one of the following is not a document related to fulfilling the customs formalities?
(a) Shipping bill
(b) Export license
(c) Letter of insurance
(d) Proforma invoice
Answer:
(d) Proforma invoice

5. Which one of the following is not a part of – export documents?
(a) Commercial invoice
(b) Certificate of origin
(c) Bill of entry
(d) Mate’s receipt
Answer:
(c) Bill of entry

6. A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as:
(a) shipping receipt
(b) mate receipt
(c) cargo receipt
(d) charter receipt
Answer:
(b) mate receipt

7. Which of the following document is prepared by the exporter and includes details- of the cargo in terms of the shippers name the number of packages the shipping bill. Port of destination name of the vehicle carrying the cargo?
(a) Shipping bill
(b) Packaging list
(c) Mate’s receipt
(d) Bill of exchange
Answer:
(a) Shipping bill

8. The document containing the guarantee of a bank to honour drafts draw on it by an exporter is:
(a) letter of hypothecation
(b) letter of credit
(c) bill of lading
(d) bill of exchange
Answer:
(b) letter of credit

9. Which of the following does not belong to the world bank group?
(a) IBRD
(b) IDA
(c) MIGA
(d) IMF
Answer:
(d) IMF

10. TRIP is one of the WTO agreements that deal with:
(a) trade in agriculture
(b) trade in services
(c) trade-related investments measures
(d) none of these
Answer:
(d) none of these

Students get through the TN Board 11th Commerce Important Questions Chapter 25 International Business which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 25 International Business

Very short answer questions

Question 1.
What is the share of India’s exports in world exports?
Answer:
0.8%

Question 2.
Which service has got a dominating share in foreign trade in services?
Answer:
Software and miscellaneous.

Question 3.
India is ……… largest economy in the world.
Answer:
10th

Question 4.
Name of the country whose shares in largest in India’s exports and imports.
Answer:
The United States of America.

Question 5.
Reebok orders footballs to local manufacturers of Ludhiana and then sells it all over the world it is an example of what?
Answer:
Contract manufacturing.

Question 6.
The license of franchisee pays a fee licensor .or franchisor. What is it called?
Answer:
Royalty.

Question 7.
Give one point of difference between licensing and franchising.
Answer:
Licensing is used for goods and franchising is used for services.

Short answer questions

Question 1.
List major items of India’s import?
Answer:
India’s major items of imports include crude oil and petroleum products, capital goods, electronic goods, pearls, precious and semi-precious stones gold, silver, and chemicals.

Question 2.
What are the major items that are exported from India?
Answer:
India’s major items of exports include textiles garments, gems and jewelry, engineering products and chemicals, agriculture, and allied products.

Question 3.
List the major countries with whom India trade:
Answer:
India’s major trading partners are the USA, UK, Germany, Japan, Belgium, Hongkong, UAE, China, Switzerland, Singapore, and Malaysia.

Question 4.
Define International business.
Answer:
According to Michael R.Q. Zinkota “International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of the individuals.” Companies and organizations these transactions take on various forms.

Question 5.
Mention methods of conducting International Business.
Answer:

1. Exporting and Importing.
2. Contract manufacturing.
3. Licensing and Franchising.
4. Joint venture.
5. Foreign direct investment.

For Future learning

1. Scope of international business.
Answer:
Involvement of countries. International business can take place only when transactions occur across different countries.

2. Wide range of international business.
Answer:
Geographical specialization optimum use of Natural resources, Economic development.

For Own Thinking

Take interest in export or import trade Try to become an exporter.
Answer:
In export – take interest in exporting all types of dress materials. Like Sarees, Chudithars.
First I select Importer: To follow export trade procedure.

1. Receiving inquiries.
2. Receipt of order or indent.
3. Obtaining a letter of credit.
4. Obtaining export license.
5. Obtaining shipping order.
6. Packing, marking, and forwarding.
7. Preparation of Invoice.
8. Obtaining customs clearance.
9. Paying dock dues.
10. Verification of goods to be shipped.
11. Bill of lading.
12. Certificate of origin.
13. Receiving payments.

Multiple-choice questions

1. In which of the following modes of entry does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee:
(a) licensing
(b) contract manufacturing
(c) joint venture
(d) none of these
Answer:
(a) licensing

2. Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as:
(a) licensing
(b) franchising
(c) contract manufacturing
(d) joint venture
Answer:
(c) contract manufacturing

3. When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as:
(a) contract manufacturing
(b) franchising
(c) joint ventures
(d) licensing
Answer:
(c) joint ventures

4. Which of the following is not an advantage of exporting?
(a) Easier way to enter into international markets
(b) Comparatively lower risks
(c) Limited presence in foreign markets
(d) Fewer investment requirements
Answer:
(a) Easier way to enter into international markets

5. Which one of the following modes of entry requires a higher level of risk?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
Answer:
(c) Contract manufacturing

6. Which one of the following modes of entry permits a greater degree of control over overseas operations?
(a) Licensing/franchising
(b) Wholly owned subsidiary
(c) Contract manufacturing
(d) Joint venture
Answer:
(b) Wholly owned subsidiary

7. Which one of the following modes of entry brings the firm closer to international markets.
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
Answer:
(c) Contract manufacturing

8. Which one of the following is not amongst India’s major export items?
(a) Textiles and Garments
(b) Germs and Jewellery
(c) Basmati rice
(d) Oil and Petroleum products
Answer:
(c) Basmati rice

9. Which one of the following is not amongst india’s major import items?
(a) Ayurvedic medicines
(b) Oil and petroleum products
(c) Pearls and Precious stones
(d) Machinery
Answer:
(b) Oil and petroleum products

10. Which one of the following is not amongst India’s major trading partners?
(a) USA
(b) UK
(c) Germany
(d) Newzealand
Answer:
(d) Newzealand

Students get through the TN Board 11th Commerce Important Questions Chapter 24 Retailing which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 24 Retailing

Very short answer questions

Question 1.
What are the types of Itinerant traders?
Answer:

1. Peddlers and hawkers
2. Street traders,
3. Market traders,
4. Cheap jacks traders.

Question 2.
What are the types of small-scale fixed retailer shops?
Answer:

1. Street stalls
2. General stores
3. Single line stores
4. Specialty stores
5. Second shops

Question 3.
What is street vendors?
Answer:
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.

Question 4.
What are Departmental stores?
Answer:
A departmental Store is a large retail establishment offering a wide variety of products, classified into well-defined departments.

Short answer questions

Question 1.
Who is an Itinerant trader?
Answer:
The traders who have no fixed place of the sale are called Itinerants. They move from one place to another place in search of customers. They are also known as Mobile traders. Mobile traders deal in low price, daily usable items such as fruits, vegetables, fish, clothing, books, etc.

Question 2.
What are the types of large-scale fixed retailers shop?
Answer:
Large scale fixed retailers:

1. Departmental stores.
2. Chain stores.
3. Consumer co-operative stores.
4. Supermarkets.
5. Hire purchase and installment.
6. Mail order houses.
7. Shopping malls.
8. Automatic vending machines.
9. Telemarketing.
10. Online shopping.

Question 3.
What are market traders?
Answer:
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. eg: Pollachi, Manapparai, Ranipet, etc.

Question 4.
What are cheap jacks?
Answer:
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 5.
What are the limitations of chain stores?
Answer:

1. Limited variety: Multiple shops deal only in a 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 staffs do not take a personal interest in each and every customer.
4. Inflexibility: All the branches centrally controlled and uniform policies are adopted for all the shops.

Question 6.
What is a supermarket?
Answer:
A Supermarket 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. The goods traded are generally food products and other low-priced, branded and widely used consumer products such as grocery, utensils, clothes, household goods, electronic appliances, and medicines, eg: The Nilgiris.

Question 7.
What is 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 loans, financing, insurance services, credit card, etc. No middlemen in this marketing and cost reduced accordingly.

Question 8.
What is Television marketing?
Answer:
In this method, customers are attracted by providing full information of product or service through TV demonstrations. Customers are given either a phone number or the name of the website to place the order. Payments for these products are made through two methods.

1. Advance payment by debit/credit card and
2. Payment in cash at the tithe of delivery, eg: Tablemate and other home appliances.

Question 9.
Examples of supermarkets?
Answer:

1. Ponni Supermarket – Salem.
2. Karpagam Super market – Vellore.
3. Kamathenu Supermarket – Chennai.
4. Chinthamani Supermarket – Coimbatore.

Long answer questions

Question 1.
What is the advantage of the departmental store?
Answer:

1. 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.
2. Attractive services: It aims at providing maximum services and facilities to the customers such as home delivery of goods, execution of telephone orders, restrooms, restaurants, salons, children’s game centers, etc.
3. Central location: These stores are usually located at central places so that more people can approach easily.
4. 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.
5. Economies of Large Scale Operations:
   The Departmental stores are organized at a large scale i.e., buy goods in bulk, therefore they enjoy the benefit of a special discount. In turn, the customers get their goods in quality and lower price.

Question 2.
What are the limitations of the departmental store?
Answer:

1. High cost of operations: A departmental store requires a large building with ample parking at a central place. It has to incur heavy expenditure on salaries, maintenance of the building, customer services, advertising, etc. As a result, the establishment and overhead costs of operations is very high.
2. Higher prices: Due to high operating costs, prices of goods in a departmental store are comparatively high. Only rich persons can afford to buy goods at a departmental store.
3. Distance: It is located at a central place of a city, away from people living in suburban areas who have to travel a long distance to reach the store.
4. Lack of personal touch: The management of a store finds it very difficult to maintain personal contact with the customers. The salaried staff may not take interest in securing the satisfaction and goodwill of the customers.
5. Difficult to establish: A large amount of capital investment and a large number of specialized persons are required to establish a departmental store.
6. High risk: Due to a central location and large-scale operations, the risk of loss is very high. Changes in tastes and fashion and market fluctuations may lead to heavy loss.

Question 3.
What are the features of a Chain store?
Answer:

1. Location: These shops are located in fairly populous localities where a sufficient number of customers can be approached.
2. Nature of product: These shops deal in a particular product line and specialize in the same product i.e, standardized and branded consumer products.
3. Centralized management: The manufactur¬ing or procurement of goods for all the retail units is centralized at the head office, from where the goods are despatched to each of these shops.
4. Fixed price: The prices of goods are fixed and all sales are made on a cash basis.
5. Role of Sales personnel: The salespersons 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 4.
What are the advantages of a Chain store?
Answer:

1. Economies of large scale: Multiple shops are owned and operated by manufacturers or intermediaries. Centralized and bulk buying, results in lower costs.
2. 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.
3. 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 capital.
4. Convenience in shopping; Shops are located in all important areas. Therefore, customers are not required to travel long distances for making purchases.
5. Public confidence: Multiple shops enjoy public confidence due to fixed prices, standard quality, uniform appearance, and selection of goods with the help of salesmen.

Question 5.
Difference between Departmental store and Multiple shops.
Answer:

Departmental store	Multiple shops
A Departmental store is organized by adding a number of departments in the same premises.	They are established by setting up branches in different, localities.
Location: These stores are located in the central places of cities. Therefore they try to attract customers from far-off places.	These shops are generally located near the customer’s residences. So the choice of site for locating multiple shops does not present a serious problem.
Variety of Goods: These stores keep a wide assortment of goods in their shops. They satisfy the needs of the consumers at one place for different goods.	These shops do not offer a variety of goods for their customers. But they satisfy only one particular type of need of the consumers.
Flexibility: A departmental store when started initially faces a lot of problems such as finance, location, availability of experts etc., Even their closure will be a difficult one.	A multiple shops can very easily open new branches. It is also very easy to close down a losing branch.
Change of location: A shifting of departmental Store to another location entails enormous difficulties in view of its huge establishment.	If sales are downward, a multiple shop can change easily the location of its branch to a better locality in the same city as each branch is a small-sized unit.

Question 6.
What are the types of retailer?
Answer:
Itinerant Traders
(a) peddlers and hawkers
(b) street traders
(c) market traders
(d) cheap jacks traders

Fixed shop small retailers
(a) street stalls
(b) chain stores
(c) single-line stores
(d) specialty stores
(e) second shops

For Future learning

There are about two lakh retailers in Tamil Nadu. About one lakh in Chennai city. There was an abortive move in 2012 to invite FDI in the retail sector by the central government. What is your opinion?
Answer:
My opinion is not in favor of the central government because it affects domestic products.

For Own Thinking

1. Many products are available near the residence of people. How do these products reach the shops from the manufacturers?
Answer:
Dealers take the goods from manufactures to retail stores.

2. Identify various fixed shop retailers in your locality and classify them according to the different types you have studied.
Answer:
Street stalls – Vegetable shop and old book shop.
Single line products: Bata shop.

3. Do you know any retailers selling second-hand goods in your area? Find out the category of the product that they deal in? Which products are suitable for resale? List out some of your findings. What conclusions do you draw?
Answer:
Dress materials: Sarees, shirts.
Consumer durable goods: Refrigerator washing machine.

4. From your own experience, compare the features of two retail stores selling the same type of products.
Answer:
Textile shop: Departmental store.
Features: Same quality, Same price.

Multiple-choice questions

1. The day-to-day administration of a departmental store is looked after by the:
(a) managing director
(b) board of directors
(c) head clerk
(d) owner himself
Answer:
(a) managing director

2. Multiple shops are called chain stores in:
(a) England
(b) China
(c) America
(d) Japan
Answer:
(c) America

3. Distributive Co-operatives owe their origin to the pioneering efforts of 28 weavers in:
(a) America
(b) Germany
(c) France
(d) England
Answer:
(d) England

4. Though the buyer gets possession of goods immediately on signing the contract the ownership does not pass on to him. This system is called:
(a) installment system
(b) hire purchase system
(c) mail order business
(d) departmental store system
Answer:
(b) hire purchase system

5. The paperless exchange of business information using network-based technologies is called:
(a) electronic business
(b) e-commerce
(c) Internet
(d) electronic data interchange
Answer:
(b) e-commerce

6. Departmental stores are of:
(a) French origin
(b) American origin
(c) Latin origin
(d) none of these
Answer:
(a) French origin

7. The minimum number of Co-operative society is:
(a) 10
(b) 25
(c) 30
(d) 5
Answer:
(b) 25

8. Teleshopping is used by the:
(a) wholesales
(b) retailers
(c) customers
(d) owners
Answer:
(c) customers

9. ……….. is an easy way of shopping for the aged and the disabled people:
(a) Hire purchase system
(b) Installment system
(c) Teleshopping
(d) None of these
Answer:
(c) Teleshopping

10. ……….. are actively encouraged by the government.
(a) Co-operative societies
(b) Departmental stores
(c) Multiple shops
(d) all the above
Answer:
(a) Co-operative societies

11. The weavers Formed “Rochdale Pioneers Equitable Society in the year:
(a) 1844
(b) 1845
(c) 1944
(d) 1996
Answer:
(a) 1844

12. ……….. Provide free home delivery service to the customers.
(a) Wholesaler
(b) Retailers
(c) Manufacturer
(d) Owner
Answer:
(b) Retailers

13. A businessman who is appointed by a:
(a) broker
(b) factor
(c) mercantile agent
(d) retailer
Answer:
(c) mercantile agent

14. ………. is a link between manufacturer and retailer.
(a) Commission agent
(b) Auctioneers
(c) Factors
(d) Wholesaler
Answer:
(d) Wholesaler

15. The retailers are the connecting link between the producer and:
(a) consumer
(b) wholesaler
(c) retailer
(d) brokers
Answer:
(a) consumer

Students get through the TN Board 11th Commerce Important Questions Chapter 23 Channels of Distribution which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 23 Channels of Distribution

Very short answer questions

Question 1.
Explain -The channel of distribution?
Answer:
A channel is a route through which the goods are passed on to the ultimate consumer. There are direct channels or routes of distribution without middlemen.

Question 2.
Define channels of distribution.
Answer:
According to Cundiff. W and Still, a channel of distribution may be defined as “a path traced in the direct or indirect transfer of title to a product as it moves from the producer to ultimate consumers”.

Question 3.
What is e-commerce?
Answer:
This is also a direct channel where there is no middleman. A website is created by the producer and through the internet, the product order is received and delivery of goods is made from the nearest godown of the producer.

Question 4.
What is the middlemen factor?
Answer:
Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product. The number of layers of middlemen should be kept to a minimum.

Question 5.
Who is a merchant middleman?
Answer:
Merchant Middlemen are the intermediaries who buy and sell the goods in their own name, and in return earn a profit out of it. They take ownership as well as possession of the goods they sell

Question 6.
Define Wholesaler.
Answer:
According to Evelyn Thomas “, a true wholesaler is himself neither a manufacturer nor a retailer but act as a link between the two”.

Question 7.
Define Retailer.
Answer:
According to Cundiff and Still “a retailer is a merchant or occasionally an agent whose main business is selling directly to the ultimate consumers”.

Short answer questions

Question 1.
What are the types of channels based on goods and services?
Answer:

1. Consumer Goods Distribution Channels: Fast-moving consumer goods (FMCG) like provision items, clothes, etc. every customer buys to utilize and exhaust them. Next day or week or month fresh purchases need to be made. There are durable goods used by consumers like refrigerators, television, LED bulbs, fans, laptops, etc. They are used continuously for years together.
   The next purchase is made after some years. Further, they need to be installed, serviced, and spare parts for replacement. The retail stores for FMCG goods are far more in number than durable goods retailers. But the distribution channels are the same for both of them.
2. Industrial Goods Distribution Channels: Industrial machinery and equipment need a shorter channel of distribution. The industries that use the products are less in number. Technical support from the producer or dealer is required for the installation, operation, and maintenance of the machinery. The producer sells the machinery through his salesmen or authorized dealers. MRI – Magnetic Resonance Imaging Scanner used in hospitals to produce images of body structures are sold through authorized dealers or wholesalers to customers.

Question 2.
Write a note on – (i) del-credere agent (ii) Auctioneers.
Answer:
(i) Del-credere Agents: The agent who guarantees to the principal the collection of cash from credit sales is called del- credere agent’. If they do not pay, the agent would bear the loss himself. He is given an additional commission known as del- credere commission for bearing the risk. He carefully selects the buyers to whom credit can be extended based on their honesty and reliability.
(ii) Auctioneers: Auctioneers are agents who sell goods by auction on behalf of their principals. The auction sale is made through a notification to the public. The notice clearly mentions the date, time, place, and details of goods, which will be widely published through newspapers, posters, leaflets, and announcements, etc., Auction sales may be “WITH RESERVE” and “WITHOUT RESERVE”. In the case of auction “WITH RESERVE,” no sale can take place below the minimum price fixed by the seller, which is known as “Reserve Price”. In the case of auction “WITHOUT RESERVE,” the auctioneer is bound to sell the product to the highest bidder. The price for which the bid is accepted is called “knocked down the price”. Striking a hammer on the desk indicates the acceptance of a bid by the auctioneer. After the highest bid is accepted, the auctioneer becomes the agent for both the seller and the buyer. For his services, the auctioneer is entitled to receive a commission, which is a certain percentage of the sale proceeds.

Question 3.
Explain the service rendered to the government.
Answer:
Services to the Government are:

1. Payment of taxes: Retailers collect General Service Taxes and pay them to the Government which leads to an increase in national income.
2. Helps in Improve the Standard of Living: Retailers help society to improve the standard of living of people and contribute to the economic development of a country.
3. Implementation of Government Policies and Acts: Retailers implement the government policies and enforcing the acts such as the prohibition of tobacco products, prohibition of child labor, prohibition of adulteration considering common interest.

Question 4.
Explain direct marketing.
Answer:
The manufacturer establishes branches all over the country or in other countries also. The producer first enrolls few consumers. These consumers are asked to bring in more consumers. Various commissions are paid to the senior and junior consumers according to their turnover. All consumers directly purchase from the producer’s branches.

Question 5.
Explain mail-order business or phone order business.
Answer:
The manufacturer collects orders from the consumers through post or mail or phone and delivers the products themselves. Some producers send the catalog of their products directly to the consumers and receive orders over post or phone. Then they distribute goods to the demanding consumers.

Long answer questions

Question 1.
What are the types of Wholesalers?
Answer:

1. Manufacturer wholesaler: Manufacturer wholesaler undertakes manufacturing of goods in addition to the wholesale business.
   He Sells not only the goods manufactured by him on wholesale business but also goods manufactured by other producers.
2. Retail Wholesaler: This type of wholesaler carries on both wholesale and retail trade. He purchases goods in bulk from manufacturers and sells them directly to consumers through his own retail outlets, eg: Super Bazaar.
3. Merchant Wholesaler: A merchant wholesaler neither manufactures goods nor sells them directly to consumers. He is the ‘wholesaler proper’ or ‘pure wholesaler’. He buys goods in bulk from manufacturers and sells them in small lots to retailers. Merchant wholesalers can be further classified into three categories on the basis of the degree of specialization, (a) General merchandise wholesalers, (b) Single line wholesalers, (c) Speciality wholesalers.
   (a) General Merchandise Wholesalers: This type of wholesaler deals in a wide range of goods such as groceries, electrical equipment, medicines, cloth, etc. The importance of this type of wholesaler has heightened due to increasing specialization in trade.
   (b) Single Line Wholesalers: This type of wholesaler deals in only one line of goods and distributes different brands and varieties of the particular line. For example, a wholesaler may deal in refrigerators produced by different manufacturers.
   (c) Speciality Wholesalers: This wholesaler specializes in a single product. For example, a wholesaler may deal only in Tata tea and
   nothing else.

Question 2.
Difference between factors and brokers.
Answer:

Factors	Brokers
Take possession of goods.	Do not take possession of goods.
Deals in his own name.	Deals on behalf of the owner of goods (principal). ‘
Right to receive payments.	Cannot receive payments.
Personally liable for his actions.	The principal is liable for his actions.
Remuneration is called commission.	Remuneration is called brokerage.
He has a right of lien on goods in his possession for his unpaid charges.	He cannot have the right of lien on goods in his possession for his unpaid charges.
He is a general mercantile agent.	He is a special mercantile agent.

For Own Thinking

1. Students should visit a nearby wholesale trade unit and watch the trading activities held there.
Answer:
Rathna Fan House – T. Nagar. All kinds of fans are available here.

2. Students should visit a nearby two-wheeler showroom and watch which type of channel of distribution followed by them.
Answer:
Manufacturer – middlemen – showroom – customers.

For Future learning

1. Students should know that there will be SOHO (Small Office – Home Office) method that plays an important role.
Answer:
Small office: For. business purposes to open a separate office to use business purposes.
Home office: For business purposes, our home is used as a business office purpose.

2. Students should recognize the importance of online trading and develop them as per the future developments in this field.
Answer:

1. Importance of online trading and develop online trading.
2. The fast growth of increasing the population no time to spend for shopping.
3. So people to sit at home. to order the products which are necessary for their home. So online trading is essential for the fast growth of the population.

Multiple-choice questions

1. A commission agent is an intermediary involved in:
(a) import trade
(b) entrepot trade
(c) export trade
(d) domestic trade
Answer:
(c) export trade

2. Sale of domestic goods to foreign countries:
(a) import trade
(b) export trade
(c) entrepot trade
(d) retail trade
Answer:
(b) export trade

3. A mercantile agent who guarantees his principal for the collection of dues from the customers to whom credit sales are made:
(a) delcredre agent
(b) commission agent
(c) factor
(d) broker
Answer:
(a) delcredre agent

4. Remuneration given to a broker is called
(a) commission
(b) salary
(c) dividend
(d) brokerage
Answer:
(d) brokerage

5. This retail business acts as a universal supplier of a wide variety of products
(a) multiple shops
(b) teleshopping
(c) departmental store
(d) mail-order business
Answer:
(c) departmental store

6. It helps disabled and elderly people:
(a) e-commerce
(b) installment system
(c) teleshopping
(d) multiple shops
Answer:
(c) teleshopping

7. Commission agents play a vital role in marketing:
(a) agricultural
(b) industrial
(c) traders
(d) wholesaler
Answer:
(a) agricultural

8. ……….. is not personally liable for the contracts concluded.
(a) Brokers
(b) Factors
(c) Commission agent
(d) Auctioneers
Answer:
(a) Brokers

9. Channel of distribution means the chain of ………… engaged in the distribution of goods.
(a) wholesaler
(b) retailer
(c) middlemen
(d) all the above
Answer:
(c) middlemen

10. The nature and type of product help in determining a decision about the channel of distribution are called:
(a) product factor
(b) market factor
(c) consumed factor
(d) middlemen factor
Answer:
(a) product factor

Students get through the TN Board 11th Commerce Important Questions Chapter 22 Types of Trade which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 22 Types of Trade

Very short answer questions

Question 1.
Explain-Division of merchant middlemen?
Answer:

Question 2.
Functions of wholesalers?
Answer:

1. Sale to other dealers: The wholesaler sells goods to retailers. He does not come into direct contact with the ultimate consumer.
2. Buying directly from the manufacturer: Usually, the wholesaler buys directly from the manufacturer.

Question 3.
Features of Internal trade?
Answer:
It does not involve any custom/import duty, but buyers need not pay taxes to the government. The goods must be a part of domestic production.

Question 4.
India’s important export items.
Answer:

1. Petroleum products.
2. Jewelry.
3. Automobile
4. Bio-chemicals
5. Pharmaceuticals.

Question 5.
India’s important import items.
Answer:

1. Mineral fuels including oil.
2. Gem, precious metals.
3. Electrical machinery and equipment.
4. Machinery including computers.
5. Organic chemicals.

Question 6.
Name the Entrepot centres.
Answer:

1. Singapore.
2. Dubai.
3. Hongkong.

Question 7.
What are the functions of Wholesaler?
Answer:

1. Assembling and buying.
2. Storing or warehousing.
3. Financing.
4. Transportation.
5. Risk bearing
6. Grading packing and packaging
7. Providing market Information.

Short answer questions

Question 1.
Explain the services rendered, by a retailer?
Answer:

1. Organized link: The retailer is an important agency linking up the wholesaler on one side and the consumer on the other side.
2. Consumer preferences: The retailer is in close touch with the consumers. So he can inform the consumer’s preferences to the wholesaler.
3. Personal attention: The retailer is able to provide more personal attention to his customers. He gives special services on the spot when the articles require a minor repair.
4. Widening of the market: The retailer makes it possible to widen the size of the market. The relieves wholesalers from the burden of organizing sales outlets to various.

Long answer questions

Question 1.
Difference between Internal Trade and Foreign Trade.
Answer:

Internal Trade	Foreign Trade
It refers to the trade within a country.	It refers to trade between two or more countries.
It involves the exchange of goods and services within the country.	This involves the exchange of goods and services between two or more countries.
In-home trade there is no exchange of currencies.	In foreign trade exchange of currencies of different countries takes place.
In-home trade the risk of transportation is very less when compared to foreign trade.	In international trade, the goods are to be transported to long distances through various modes of transport, and hence the risk of transportation is more.
In-home trade only the laws prevailing in that country have to be followed.	In foreign trade, the laws, customs, and regulations of different countries are to be followed
The aim of home trade is to provide essential goods and services economically.	The aim of foreign trade is to raise the standard of living of the people.

Question 2.
What are the differences between the wholesaler and retailer?
Answer:

Wholesaler	Retailer
A wholesaler is a link between manufacturer and retailer.	The retailer is a link between a wholesaler and the ultimate consumer.
He buys in large quantities from the manufactures.	He buys in small quantities from the wholesaler.
He deals with one line of products.	He deals in different types of products.
Business spread to different areas.	Business located in particular place of the area.
He is very close to the manufacturer but distant from the consumer.	He is very close to the consumer and away from the manufacturer.
He operates his business in big commercial cities.	He operates even in the smallest villages and also big cities.
Do not provide after-sale service.	Provide after-sale service.

For Own Thinking

Question 1.
Students should go to a nearby internal trade unit and observe the trade activities.
Answer:
Student Name: Raja. He is going to Leather Garments, Keelkattalai (pouch).
1st step: Buying fill leather.
2nd step: Cutting the leathers in suitable shape.
3rd step: Stitching the leathers.
4th step: To form the pouch.

Question 2.
Students should go to the retail shops, and observe the trading activities.
Answer:
To observe the retail shop. Students observe the retail shop.

1. In retail shop all food items.
2. In retail shop all snacks items.
3. In retail shop all oil items.
4. In retail shop all kinds of soaps.

The student’s observation is all kinds of items are sold here.

For Future learning

1. In the future the location of trade houses will be completely changed, where the customers place an order by mobile phone or e-mail and it should be delivered at the doorstep of the buyer.
Answer:
In the future, he needs trade houses. Because nowadays by using the network to buy all the goods.

2. In the future there is no need for showrooms, displays, window decorations, etc. retail shops provide code numbers to the products and hence there is no heed for retail shops. So, the students should be prepared to meet future changes.
Answer:
Yes, students should be prepared to meet future changes. All items are available in net-based shopping.

Case Study

1. Mr. Kovalan completed his M.Com., degree and proposed to start a business dealing with power loom machines. After a complete analysis, it was found that it is better to buy from foreign countries than to buy from domestic manufacturers. So what is your opinion on whether to purchase from foreign countries or from domestic manufacturers?
Answer:
Better to buy from domestic manufactures. Because our country gets more income from income tax and giving more employment opportunities.

Multiple choice questions

1. The persons who come in between the primary producer and the final consumer to promote trade is called as:
(a) trader
(b) middleman
(c) agent
(d) auctioneer
Answer:
(b) middleman

2. An agent is appointed by the:
(a) wholesaler
(b) principal
(c) retailer
(d) manufacturer
Answer:
(b) principal

3. …….. is one which is carried on within the boundaries of a particular country.
(a) Home trade
(b) Foreign trade
(c) Import trade
(d) Export trade
Answer:
(a) Home trade

4. ……….. is a trade between one country with another country.
(a) Home trade
(b) Foreign trade
(c) Retail trade
(d) None of these
Answer:
(b) Foreign trade

5. The nature and type of product help in determining a decision about the channel of distribution are called:
(a) consumer factor
(b) market factor
(c) product factor
(d) middlemen factor
Answer:
(c) product factor

6. ……… is not personally liable for the contracts concluded
(a) Factors
(b) Brokers
(c) Commission agent
(d) Auctioneers
Answer:
(b) Brokers

7. ………. is a link between manufacturer and retailer.
(a) Factors
(b) Broker
(c) Auctioneers
(d) Wholesaler
Answer:
(d) Wholesaler

8. A warehouse keeper accepts goods for the purpose of:
(a) storage
(b) export
(c) selling
(d) packaging
Answer:
(a) storage

9. ………. are agents -who merely bring the buyer and the seller in to contact.
(a) Selling agent
(b) Commission agent
(c) Broker
(d) Stockist
Answer:
(c) Broker

10. Wholesaler’s deals in ……… quantity of goods.
(a) small
(b) large
(c) medium
(d) limited
Answer:
(b) large

11. Small scale fixed retailers include:
(a) general stores
(b) pedlars
(c) cheapjacks
(d) hawkers
Answer:
(a) general stores

12. Trade may be classified into home trade and:
(a) foreign trade
(b) retail trade
(c) entrepot
(d) itinerant trade
Answer:
(a) foreign trade

13. Business deals with goods and;
(a) exchange of goods
(b) services
(c) time
(d) place
Answer:
(b) services

TN 12th Biology Important Questions State Board English Medium 2022-2023.

Biology NEET MCQ

TN State Board 12th Biology Important Questions and Answers

TN State Board 12th Bio Botany Important Questions and Answers

• Chapter 1 Asexual and Sexual Reproduction in Plants Important Questions
• Chapter 2 Classical Genetics Important Questions
• Chapter 3 Chromosomal Basis of Inheritance Important Questions
• Chapter 4 Principles and Processes of Biotechnology Important Questions
• Chapter 5 Plant Tissue Culture Important Questions
• Chapter 6 Principles of Ecology Important Questions
• Chapter 7 Ecosystem Important Questions
• Chapter 8 Environmental Issues Important Questions
• Chapter 9 Plant Breeding Important Questions
• Chapter 10 Economically Useful Plants and Entrepreneurial Botany Important Questions

TN State Board 12th Bio Zoology Important Questions and Answers

• Chapter 1 Reproduction in Organisms Important Questions
• Chapter 2 Human Reproduction Important Questions
• Chapter 3 Reproductive Health Important Questions
• Chapter 4 Principles of Inheritance and Variation Important Questions
• Chapter 5 Molecular Genetics Important Questions
• Chapter 6 Evolution Important Questions
• Chapter 7 Human Health and Diseases Important Questions
• Chapter 8 Microbes in Human Welfare Important Questions
• Chapter 9 Applications of Biotechnology Important Questions
• Chapter 10 Organisms and Population Important Questions
• Chapter 11 Biodiversity and its Conservation Important Questions
• Chapter 12 Environmental Issues Important Questions

Students get through the TN Board 11th Commerce Important Questions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Very short answer questions

Question 1.
Give full form of SIDBI.
Answer:
Small Industries Development Bank of India.

Question 2.
Give full form of NABARD.
Answer:
National Bank for Agriculture and Rural Development

Question 3.
Discuss any two characteristics of SSI.
Answer:

1. They are run as sole proprietorships or partnerships.
2. Normally they use labor-intensive methods.

Question 4.
Name any two units included in the SSI category.
Answer:
Export-oriented units and Ancillary units.

Question 5.
What are different parameters used to measure the size of a business?
Answer:
Following parameters may be used to measure the size of the business:

1. A number of workers employed.
2. Size of plant and machinery.
3. Total output.
4. Inventory size.

Question 6.
What are small sector industries in the village?
Answer:
The small sector industries in the village are:

1. Handlooms,
2. Handicrafts,
3. Coir,
4. Sericulture,
5. Khadi industries,
6. Village industries,
7. Small scale industries and power loom.

Question 7.
Give example Commercial Bank.
Answer:
Commercial Banks: Public sector banks.
eg: State Bank of India, Indian Bank, Indian Overseas Bank, Canara Bank.
Private sector banks: e§: ICICI, Axis Bank, City Union Bank, HDFC, Karur Vasya Bank, Tamilnadu Mercantile Bank.

Question 8.
Give an example for non-banking finance institutions?
Answer:
Non-Banking Finance Institutions:

1. National Small Industries Corporation Ltd (NSIC).
2. Small Industries Development Bank of India (SIDBI).

Question 9.
Examples of the regional rural banks.
Answer:

1. Pandian Rural Bank.
2. Pallavan Rural Bank.
3. Vallalar Rural Bank.

Question 10.
Examples of cooperative banks.
Answer:

1. TNSC Bank.
2. District Central Co-operative Bank.

Question 11.
Example of micro-finance Institutions.
Answer:
Mudra Bank.

Short answer questions

Question 1.
State the objective of small bu Iness in rural India.
Answer:

1. To create more employment opportunities with less investment
2. The removal of the more economic backwardness of rural and less developed regions of the economy.
3. They reduce regional imbalances.
4. The mobilization and ensure optimum utilization of unexploited resources of the country.

Question 2.
What is the role of district industries center for the growth of small businesses in India?
Answer:
The district industries centers programme was launched on May 1st 1978, with a view to providing an integrated administrative framework at the district level which looks at the problem of industrialization in the district.

Question 3.
Write a short note on Mudra Bank.
Answer:
The Government of India has launched MUDRA Bank with a capital amount of Rs. 20,000 Crores and a credit guarantee corpus of Rs. 3,000 Crores, to help micro small, and medium enterprises and startups to resolve problems relating to financing.

Question 4.
Explain (MSME Sector).
Answer:
MSME Sector provides more employment opportunities to the people of India. It helps towards the industrialization of rural and backward areas. This sector reduces regional imbalances. It provides an equitable distribution of national income and wealth.

Question 5.
Explain Micro Enterprises.
Answer:
Micro Enterprises are engaged in low scale activities such as:

1. Clay pot making.
2. Fruits and vegetable vendors.
3. Transport (three-wheeler, tempos, and autos).
4. Repair shops.
5. Cottage industries, small industries.
6. Handlooms, handicraft works, etc.

Long answer questions

Question 1.
What are the modes of linkage to self-help groups?
Answer:
There are three distinct modes of credit to SHGs. Under the first mode, banks lend directly to the SHGs. In the second mode, banks provide loans to the NGOs for onward lending to the SHGs and ultimately to micro-entrepreneurs. Under the third mode, banks extend credit to the SHGs with the NGOs serving as facilitators. Out of these three methods, the last method of direct lending by the bank with NGO facilitation is widely practiced.

Question 2.
Write short notes on self, help groups in India.
Answer:
In December 2017 there were 45,67,090 SHGs in India. The total number of members in SHGs during the same period stood at 5,02,65,933 at all Indian levels. The five-year plans of the government of India have given due recognition to the relevance of the Self-help group concept to implement developmental schemes at the grassroots level.

Question 3.
Write a short note on SHG’s in Tamil Nadu.
Answer:
In Tamil Nadu, Tamil Nadu Corporation for Development of Women Limited (TNCDW) was established in the year1983 with the prime objective of socio-economic development and empowerment of rural women. The Government of Tamil Nadu spearheaded the Self Help Group concept in the country by forming SHGs in Dharmapuri district with the assistance of the International Fund for Agricultural Development (IFAD) in September 1989. The success of the IFAD project paved way for the now popularly called “Mahalir Thittam” project, which was launched during 1997-98 with the State Government funding and was progressively extended to all the 30 districts. The SHG movement has now emerged as a powerful and vibrant movement illuminating the lives of many poor women in the state.

For Own Thinking

1. Role of women as entrepreneurs.
Answer:
One of the famous Indian women entrepreneurs is Indira Nooyi. She was born in Chennai and had her bachelor’s degree in Madras Christian College. Master’s Degree in public management from Yale University. Masters in Finance and Marketing from IIM, Kolkata.
Occupation: Joined PepsiCo in 1994 and became CFO in 2001. Earlier she held Senior Executive positions in Motorola and Asia Brown Boveri.
She was a product manager at Johnson and Johnson and then textile firm mettur Beardsell. Awarded PadmaBushan for her business achievements and for being an inspiration to India’s corporate leadership.
She helped the company to complete 30 billion dollars worth of crucial deals within the last couple of years.

2. Income-tax exemption for Start-up initiatives.
Answer:
The Government of India has launched Mudra Bank with a capital amount of Rs. 20,000 Crore and credit guarantee corpus of Rs. 3000 Crore to help MSMEs and startups to resolve problems relating to income tax exemption and financing.

For Future learning

1. World Association of Small & Medium enterprises (WASME).
Answer:
UNICTAD, ITC, WIPO, UNESCO, UNESCAP, global nonprofit organization head quarters – Noida (India).

2. Ministry of MSME and its functions.
Answer:
Ministry of MSME. Its function is to honor the people who are producing quality goods. Gandhimathi appliances are honored by the Ministry of MSME. National Award 2010. Quality product in Micro and «* small enterprises for LPG operated stoves/appliance.

Multiple choice questions

1. Village and Small industries together provide the ………. employment opportunities in India.
(a) largest
(b) smallest
(c) highest
(d) self
Answer:
(a) largest

2. How much do small industries in India account for the total industrial units?
(a) 100%
(b) 95%
(c) 80%
(d) 75%
Answer:
(b) 95%

3. What is the investment limit for SSI?
(a) One crore
(b) Two crore
(c) Three crore
(d) Five crore
Answer:
(a) One crore

4. Name the apex bank set up to provide direct and indirect financial assistance to the small-scale sector?
(a) UTI
(b) SBI
(c) SIDBI
(d) RBI
Answer:
(c) SIDBI

5. Name any two units included in:
(a) UTI
(b) NABARD
(c) SIDBI
(d) SSI
Answer:
(d) SSI

6. Name any two institutions specially set up to promote small scale enterprise:
(a) SIDBI & SIDCO
(b) NABARD
(c) WASME
(d) KVIC
Answer:
(a) SIDBI & SIDCO

7. Public sector banks example:
(a) Pandian Rural bank
(b) ICICI
(c) State Bank of India
(d) Mudra bank
Answer:
(c) State Bank of India

8. Regional Rural bank example:
(a) Indian bank
(b) Pallavan Rural Bank
(c) HDFC
(d) KVB
Answer:
(b) Pallavan Rural Bank

9. Co-operative Banks example:
(a) TNSC
(b) NSIC
(c) SIDBI
(d) SBI
Answer:
(a) TNSC

10. Tamilnadu Mercantile Bank example:
(a) public sector
(b) private sector
(c) regional rural bank
(d) co-operative bank
Answer:
(b) private sector

Students get through the TN Board 11th Commerce Important Questions Chapter 20 International Finance which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 20 International Finance

Very short answer questions

Question 1.
Give the full form of GDR and ADR.
Answer:
GDR – Global Depository Receipts ADR – American Depository Receipts

Question 2.
What is trade credit?
Answer:
Trade credit is the credit extended by one trader to another for the purchase of goods and services.

Question 3.
What is Debenture?
Answer:
A Debenture is a document or certificate which is issued under the common seal of the company, acknowledging its debt to the holders at given terms and conditions.

Question 4.
State two factors affecting the working capital requirement of a firm.
Answer:
Nature of business and speed of sales

Question 5.
State two factors affecting the fixed capital requirement of a firm.
Answer:
Size of business and nature of business

Question 6.
Why preferences are given to preferential shares.
Answer:
They are given some preferences because they are not given voting rights.

Question 7.
Who regulates the acceptance of public deposits?
Answer:
Reserve Bank of India.

Short answer questions

Question 1.
List sources of raising long-term and short-term finance.
Answer:
Sources of raising long and short term finance are shown in the chart given below:
Long term Finance sources:

1. Equity shares,
2. Retained shares,
3. Preference shares,
4. Debentures,
5. Long from financial institutions,
6. Long from a bank.

Short term Finance sources:

1. Trade credit,
2. Factoring,
3. Banks,
4. Commercial papers.

Question 2.
What is Foreign Direct Investment (FDI).
Answer:
It is an investment made by the company or an individual in one country with business interests in another country in the form of either establishing business operations or acquiring business assets in the other country such as ownership or controlling interest in a foreign country.

Question 3.
What are forms to take foreign direct investment?
Answer:

1. Establishment of a new enterprise in a Foreign country.
2. Expression of existing branch or subsidiary in a Foreign country.
3. Acquisition of enterprise located in a Foreign country.

Question 4.
What are the sources from where the funds generated?
Answer:

1. Commercial Banks.
2. Depositary receipts.
3. International Agencies and development Banks,
4. International capital markets.

Long answer questions

Question 1.
Differentiate between fixed capital and working capital.
Answer:

Question 2.
Differentiate between owner’s funds and borrowed funds.
Answer:

Question 3.
What are the steps in the process of issuing GDR?
Answer:
There are four steps in the process of issuing GDRs as follows.

1. The company issuing GDRs hands over its shares to one Domestic Custodian Bank (DCB).
2. The DCB requests the Overseas Depository Bank (ODB) situated in the foreign country for issuing the shares as GDR.
3. The ODB converts the shares shown in rupees into GDR which are denominated in US dollars.
4. Finally, ODB issues them to the intending investors.

Question 4.
What is ADR and what are the steps in process of issuing ADRs.
Answer:

1. First of all, a company hands over the shares to a Domestic Custodian Bank (DCB)
2. Then DCB requests the American Depository Bank (ADB) to issue the shares in the form of ADRs
3. ADB converts the issue which are in rupees into US dollars
4. Finally, ADB issues them to the intending investors.

For Own Thinking

1. Role of World Bank in globalization.
Answer:
The Bretton woods institutions the IMF and World Bank have an important role to play in making globalization work better. They were created in 1944 to help restore and sustain the benefits of global integration by promoting international economic cooperation.

2. The concept of Hot Money.
Answer:
Hot money refers to funds that are controlled by investors who actively seek short-term returns. These investors scan the market for short-term, high-interest-rate investment opportunities. A typical short-term- investment opportunity that attracts hot money is the certificate of deposit.

For Future learning

1. Possibilities of making the western and American countries in favour of Indian Depository Receipt (IDR).
Answer:
An IDR is meant to diversify your holding across regions to free you from a region bias or the risk of a portfolio getting too concentrated in the home market you need to study the firms. Financials before you buy its IDR.

2. Petrodollar system and its future.
Answer:
If you have never heard of the petrodollar system. It will not surprise me. It is certainly not a topic that makes its way out of Washington and wall street circles too often. The mainstream media rarely if ever discusses the inner working of the petrodollar system.

Multiple choice questions

1. Name of the Indian companies which have raised money through the issue of GDRS:
(a) HDFC
(b) ICICI
(c) SBI
(d) Indian bank
Answer:
(b) ICICI

2. Public deposits are the deposits raised by organizations directly from the public:
(a) HDFC
(b) ICICI
(c) IDBI
(d) SBI
Answer:
(c) IDBI

3. Equity shareholders are called the of the company.
(a) Owners
(b) Consumers
(c) Public
(d) Bankers
Answer:
(a) Owners

4. Who regulates the acceptance of public deposits?
(a) RBI
(b) SBI
(c) UTI
(d) ICICI
Answer:
(a) RBI

5. Debenture holders are ……… of the company.
(a) Creditors
(b) Debtors
(c) Owners
(d) Customers
Answer:
(a) Creditors

6. Internal sources of capital are:
(a) Generated through outsiders such as suppliers
(b) Generated through loans from commercial banks
(c) Generated through the issue of shares
(d) Generated wit in the business
Answer:
(d) Generated wit in the business

7. Public deposits are the deposits that are raised directly from:
(a) the public
(b) the directors
(c) the auditors
(d) the owners
Answer:
(a) the public

8. ADRs are issued in:
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

9. Funds required for purchasing current assets is an example of:
(a) fixed capital requirement
(b) ploughing back of profits
(c) working capital requirement
(d) none of the above
Answer:
(c) working capital requirement

10. Trade credit is the example of:
(a) long term finance
(b) medium-term finance
(c) short term finance
(d) All of the above
Answer:
(d) All of the above

Students get through the TN Board 11th Commerce Important Questions Chapter 19 Sources of Business Finance which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 19 Sources of Business Finance

Very short answer questions

Question 1.
What are External sources?
Answer:
External sources of funds include all those sources which generate funds from outside the business enterprise. For example issue of shares and debentures, borrowings from banks and financial institutions, public deposits, factoring, leasing, hire purchase, etc.

Question 2.
What are mutual funds?
Answer:
An individual investor who wants to invest in equities and bonds with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund. A systematic investment plan is one of the best investment options in India.

Question 3.
Business finance on the basis of ownership types of categories.
Answer:

Question 4.
Expand ULIP?
Answer:
ULIP is a life insurance-linked product, which provides risk cover for the policyholder along with investment options to invest in any number of qualified investments such as stocks, bonds, or mutual funds.

Short answer questions

Question 1.
Explain PPF?
Answer:
Public Provident Fund (PPF): It is the safest long-term investment option for investors in India. It is totally tax-free. PPF account can be opened in a bank or post office. The money deposited cannot be withdrawn before 15 years and an investor can earn compound interest from this account. However, the investor can extend the time frame for the s next five years if the investor does not opt to withdraw the amount matured for payment at the maturity date. PPF investor can take a loan against PPF account when he/she experiences financial difficulties.

Question 2.
What is the post office saving scheme?
Answer:
There are different types of postal small savings schemes namely Post Office Savings Account, Post Office Recurring Deposit Account (RD), Post Office Fixed Deposit Account (FD/TD), Post Office Monthly Income Account Scheme (MIS), Senior Citizens Saving Scheme (SCSS) Public Provident Fund Account (PPF), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), Sukanya Samriddhi Account (SSA). Investors can choose the appropriate postal schemes as per their needs. Postal investment schemes are the safest investments.

Question 3.
What are public deposits?
Answer:
Public deposits are more beneficial than the fixed deposit in the bank, in the matter of yielding good returns. An investor has to select the investment period very carefully. He/she is not allowed to withdraw money before maturity. However, the public deposits collected by companies and institutions do not offer any insurance benefits. It does not come under the control of the Reserve Bank of India. Investors who are willing to invest for the long term can opt for public deposits.

Question 4.
What is Bonds?
Answer:
Bonds are one of the ideal investment options for those investors who would like to invest their hard-earned money safely. Bonds are issued both by government and public and private sector companies and financial institutions. Mostly there are four types of bonds sold in ‘India namely Government bonds, Corporate bonds, Banks and other financial institutions bonds, and Tax saving bonds. The term bond is used for the debt collected by the government while the term debenture is used when the corporates collect debt capital from the public. Investment in bonds is totally risk-free.

Question 5.
Explain bank deposits.
Answer:
Fixed deposits (FD) enable the investor to invest the money for a specific period. The Fixed deposit can be opened from a minimum period of 7 days to a maximum period of 10 years. The fixed deposit holder can take a loan against the fixed deposit receipt. The depositor cannot withdraw the fixed deposits before the maturity date.
A recurring deposit (RD) account is another investment option for those people who earn regular income. This deposit can be opened for a minimum period of 1 year to a maximum period of 10 years. The Recurring deposit holder can take a loan against the installments paid.

Question 6.
Explain the terms- Bank overdraft?
Answer:
Bank overdraft refers to an arrangement whereby the bank allows the customers to overdraw the required amount from its current deposit account within a specified limit. Interest is charged only on the amount actually overdrawn.

Question 7.
Explain the term-Share.
Answer:
Corporate enterprises generally obtain capital mainly from share capital which is divided into small units called shares. Each share has a nominal value. The Indian Companies Act 2013 describes a share as “to be a share in the share capital of a company”. The person holding a share is called a shareholder.

Question 8.
Write about savings.
Answer:
The concept of savings plays an important role in the economic development of any country. Saving is defined as the difference between income and consumption. In other words, it points to sacrifices of some sort. Earning money may be easy, but using it in the right way as well as saving it for the future is pretty tough. Savings is important for each and every one of us to lead a peaceful life. Saving paves way for a happier future. “World Savings Day” was promoted all over the world to emphasize the value Of savings. October 31 has been declared as the “World Savings Day” by. the International Savings Bank Congress.

Question 9.
Write about Estate Investment.
Answer:
Real estate is one of the fastest-growing sectors in India. Buying a flat or plot is supposed to be the best decision amongst the investment options. The value of the real asset may increase substantially depending upon the area of location and other support facilities available therein. However, an investor in real estate has to be cautious and circumspect in verifying the genuineness of the title deeds before investing in real estate assets and also the reputation of the seller of real assets.

Long answer questions

Question 1.
Do the following points highlight the importance of savings?
Answer:
Importance of Savings: Money invested in a deposit account, small savings schemes, mutual funds, life insurance policies, Bonds of Government companies, shares, etc. lead to the overall economic development of a country.

1. Money invested in bank deposits facilitates employment generation in various sectors of the economy and poverty alleviation.
2. The savings invested in bank deposits lead to credit creation in the country which in turn promotes industrial and agricultural development in a country.
3. Savings invested in government bonds and various institutions help in great measure in building in strengthening the infrastructure facilities in a country.
4. A country with higher savings can easily face the consequences of an economic recession.
5. The bad consequences of inflation can be met easily with strong savings. As a result, the evil effect of soaring prices can be controlled.

Question 2.
Significance of business finance.
Answer:
The following points highlight the significance of business finance.

1. A firm with adequate business finance can easily start any business venture.
2. Business finance helps the business organization to purchase raw materials from the supplier easily to produce goods.
3. The business firm can meet financial liabilities like prompt payment of salary and wages, expenses, etc., in time with the help of sound financial support.
4. Sound financial support enables the enterprises to meet any unexpected or uncertain risks arising from the business environment efficiently. For example economic slowdown, trade cycles, severe competition, a shift in consumer preference, etc.
5. A sound financial position empowers the enterprise to attract talented manpower and introduce the latest technology.

Question 3.
Explain the nature of Business finance.
Answer:
Nature of Business Finance: The following characteristics can be derived from the above definitions.

1. Business finance comprises all types of funds namely short, medium, and long-term used in business.
2. All types of organizations namely small, medium and large enterprises require business finance.
3. The volume of business finance required varies from one business enterprise to another depending upon its nature and size. In other words, small and medium enterprises require a relatively lower level of business finance than large-scale enterprises.
4. The amount of business finance required differs from one period to another. In other words, the requirement of business finance is heavy during the peak season while it is at a low level during the dull season.
5. The amount of business finance determines the scale of operations of business enterprises.

Case Study

Gokul Steel Ltd is a large and credit-worthy company that manufactures steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation costs. To meet the expenses of floatation cost, the company decides to tap the money market.
(a) Name and explain the money-market instrument the company can use for the above purpose.
They help the central bank in regulating liquidity in the economy. Money market help short-term fund user to fulfill their needs reasonable costs.
(b) What is the duration for which the com party can get funds through the instrument?
These instruments are short-term notes issued by state and municipal governments although they carry somewhat more risk than T-bills and tend to be less negotiable. They feature the added benefit that the interest is not subject to federal income tax. For this reason, corporations find that the lower yield is worthwhile on this type of short-term investment.
(c) State any other purpose for which this instrument can be used.
Financial instruments are assets that can be traded. They can also be seen as packages of capital that may be traded. Most types of financial instruments provide an efficient flow and transfer of capital all throughout the world investors. These assets can be cash a contractual right to deliver or receive cash or another type of financial instrument or evidence of one’s ownership of an entity.

For Own Thinking

Question 1.
Working of chit funds.
Answer:
Equity mutual funds are managed by professional and certified funds managers who have expertise and experience in financial markets. As mutual funds collect money from many investors the cost of asset management is divided between a larger number of people. Thus reducing the assets management fee per person.

Question 2.
Finance for bonded labor.
Answer:
“Debt bondage” also known as debt slavery or bonded labor is a person’s pledge of labour or service as security for the repayment for a debt or other obligation where there is no hope of actually repaying the debt.

For Future teaming

Question 1.
Export finance for small entrepreneurs.
Answer:
Exporting goods and services can bring significant opportunities for companies of all sizes. By tapping into new markets and new revenue streams. Companies can access a larger customer base and grow their business. Importantly these opportunities are not limited to large corporations.

Question 2.
Financing software companies run by young graduates.
Answer:
Even employees already working in the financial sector eyeing opportunities in tech; In a new study of over 800 financial services employees in partnership with Kronos. We found that one-fourth are more interested in working in the tech industry than finance. Finance as a career choice is down 22% from 2008 and graduates from the top 10 MBA schools are now 40% less likely to work’ in investment banking.

Multiple choice questions

Question 1.
Equity Shareholders are called:
(a) owners of the company
(b) partners of the company
(c) executives of the company
(d) guardian of the company
Answer:
(a) owners of the company

Question 2.
The term redeemable is used for:
(a) preference shares
(b) commercial paper
(c) equity shares
(d) public shares
Answer:
(a) preference shares

Question 3.
Funds required for purchasing current assets is an example of:
(a) fixed capital requirement
(b) plowing back of profits
(c) working capital requirement
(d) lease financing
Answer:
(c) working capital requirement

Question 4.
ADRS are issued in:
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

Question 5.
Under the lease agreement, the lessee gets the right to:
(a) share profits earned by the lessor
(b) participate in the management of the organization
(c) use the asset for a specified period
(d) sell the assets
Answer:
(c) use the asset for a specified period

Question 6.
Public deposits are the deposits that are raised directly from:
(a) the public
(b) the directors
(c) the auditors
(d) the owners
Answer:
(a) the public

Question 7.
Debentures represent:
(a) fixed capital of the company
(b) permanent capital of the company
(c) fluctuating capital of the company
(d) loan capital of the company
Answer:
(d) loan capital of the company

Question 8.
Under the factoring arrangement the sector:
(a) produces and distributes the goods or services
(b) makes the payment on behalf of the client
(c) collects the client’s debt or account receivables.
(d) transfer the goods from one place to another
Answer:
(c) collects the client’s debt or account receivables.

Question 9.
The maturity period of a commercial paper usually ranges from:
(a) 20 to 40 days
(b) 60 to 90 days
(c) 120 to 365 days
(d) 90 to 364 days
Answer:
(d) 90 to 364 days

Question 10.
Internal sources of capital are those that are:
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through the issue of shares.
(d) generated within the business
Answer:
(d) generated within the business