Students get through the TN Board 11th Commerce Important Questions Chapter 13 Warehousing which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 13 Warehousing

Very short answer questions

Question 1.
Define warehouse.
Answer:
According to Stephenson “A warehouse is an establishment for the storage or accumulation of goods”.

Question 2.
Write a note on warehousing in Tamil Nadu.
Answer:
A premier warehousing agency in the State of Tamil Nadu was established in 1957. It provides price support to the agricultural sector. It is one of the biggest public warehouses operating in the state offering logistic services to a diverse group of clients.

Question 3.
What are the documents used in warehousing?
Answer:

  1. Warehouse warrant,
  2. Dock warrant,
  3. Dock receipt,
  4. Warehouse keeper’s certificate and Delivery order.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 4.
Food Corporation of India. Explain.
Answer:
It provides storage facilities for food grains. FCI also hires storage capacity from other sources such as CWC, SWC, State Governments, and private parties. The available storage capacity of the Food Corporation of India in the seventh plan is 20.33 million tonnes.

Question 5.
What is in Transit Mixing?
Answer:
It refers to a function in which the warehouse receives products from different plants and mix and repack them as per the client’s requirement.

Short answer questions

Question 1.
What is the village storage?
Answer:
Underground storage structures are used by farmers in villages to store food grains. They are safer from threats from various external sources of damage, such as theft, rain, or wind. Separate peripheral structures with mud are erected as surface storage structures for food grains. PAU bin, Pusa bin, HapurTekka, etc. are used for small-scale storage of grains. Cap storage, Silos, etc, are used for large-scale storage of food grains.

Question 2.
Define Government licensed Warehousing.
Answer:
Bonded warehouses are those warehouses, which are licensed by the government to accept the storage of imported goods that are not cleared due to non-payment of customs duty by the importer. Branding can be undertaken in the warehouse itself.
Bank loans can be obtained by submitting the receipt issued by these warehouses as collateral security. Strict supervision and control are imposed by customs authorities on their operation and functioning.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 3.
What are the disadvantages of Warehousing?
Answer:
Warehousing is not effective because of the following reasons:

  1. There are no adequate transport facilities between the place of production and warehouses.
  2. Lack of sufficient storage facilities for different commodities such as perishable and non-perishable commodities.
  3. Complicated formalities are to be fulfilled at the warehouses. The illiterate and innocent farmers are not able to cope with these procedures.
  4. The complicated process of Barcode technology can reduce the storing of goods by some producers.
  5. Unavoidable delay in obtaining financial assistance may cause loss to the owner of goods.

Question 4.
What is the Warehousing in India?
Answer:
India is an agrarian country but the importance of warehousing was not felt till 1950.
Agriculture contributes 16 percent of the overall GDP and accounts for the employment of approximately 52 percent of the Indian population. It is estimated that more than 40 percent of our agricultural productions wasted due to poor storage facilities.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Long answer questions

Question 1.
What are the factors determining the warehousing?
Answer:

  1. Mass production: Production is based on the anticipated demand for goods. Mass production of goods takes place by establishing big factories and modem production. The market for such goods is spread all over the country. Therefore, warehouses are to be built at different places to store these products and provide prompt supplies when demanded.
  2. Nature of commodities: Some goods are perishable in nature and therefore they should be consumed in time to avoid deterioration. Storing them in cold storage can extend the life of the goods.
  3. Seasonal production but regular consumption: The farm products such as wheat, sugar, pulses, etc. are produced only in seasons. But the Consumption of these products is evenly spread throughout the year. If proper storage facilities are not provided, .the quality of these goods deteriorates and may become not usable.
  4. Regular production but seasonal consumption: Certain goods are produced regularly throughout the year. But, they are demanded in seasons only. For example, raincoats, blankets, umbrellas, etc. require
    storage for a whole year. They can be N released in large quantities to meet the heavy demand in the rainy and winter seasons.
  5. Proximity to production centers: Productions of goods at specific centers need to be supplied in time and without interruption to consumers throughout the country. For this purpose, goods are regularly fed to the warehouses situated in different market areas.

Question 2.
Write a brief note on the various types of documents used in the warehousing.
Answer:

  1. Warehouse warrants: It is a document issued in favor of the owner or depositor of goods by the warehouse keeper. This is a document of title of goods and can be transferred by simple endorsement and delivery. To transfer all the goods the warehouse warrant is sufficient. If only a part of the goods are to be transferred then a delivery order is needed. The delivery order is to be accompanied by the warehouse warrant.
  2. Warehouse Keeper’s Receipt: It is a document issued by the warehouse keeper, which acknowledges the receipt of goods from the depositor of goods. It also shows the existence of an agreement to keep the goods in the warehouse subject to certain conditions. This is not a document of title of goods and is not transferable.
  3. Dock Warrant: Dock is a place in the harbor where the goods are kept for loading into the ship. A dock warrant is a document of title of goods issued by dock authorities. This document certifies that the dock authorities hold the goods. To take delivery of the goods this certificate should be given back to dock authorities. The right of getting delivery of goods can be assigned to third parties too.
  4. Dock Receipt: Dock receipt is an acknowledgment of receipt of goods issued by dock authorities to the owner of the goods. It is not a document of the title of goods. Therefore, the right of taking of delivery of goods cannot be transferred.
  5. Delivery Order: This is a document through, which the depositor directs the warehouse keeper to deliver the specified goods either to the party mentioned in the document or to the bearer. The warehouse keeper delivers the goods as per the instruction. Transfer of ownership takes place through this document.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 3.
What are the Central Warehousing functions?
Answer:
It was established in 1957. The available storage capacity of Central Warehousing Corporation is 11.17 million tonnes and with the operation through 464 warehousing centers across the country, (as of 30th September 2017).
Functions of Central Warehousing Corporation:

  1. To provide agency services for scientific storage of agricultural produce, seeds, manures fertilizers, agricultural implements, and other notified commodities.
  2. To issue a negotiable warehouse receipt for procuring credit to the owners of goods.
  3. To preserve the produce deposited with care and protect against insects and various pests and deterioration due to moisture and dampness.
  4. To act as an agent of the government for the purchase and sale, storage, and distribution of specified commodities and transport to and from the warehouse.
  5. To reduce the cost of storage and facilitate the marketing of products through proper grading.

Question 4
Write in detail about performances.
Answer:
A premier warehousing agency in the State of Tamilnadu was established in 1957. It provides price support to the agricultural sector.
Performances:

  1. Tamilnadu Warehousing Corporation (TNWC) operates 65 warehouses across the state with a storage capacity of 6.3 lakh tonnes providing warehousing services for a wide range of products running from agricultural products to sophisticated industrial products.
  2. Warehousing activities of Tamil Nadu Warehousing Corporation include food grain warehouse and custom bonded- warehouse.
  3. Apart from storage and handling, Tamil Nadu Warehousing Corporation also offers its services in the area of handling, transportation, disinfecting services, fumigation services, and other ancillary activities.
  4. Tamil Nadu Warehousing Corporation also offers training on the scientific storage of stocks to different agencies.
  5. Scientific storage and handling services are offered for more than 200 commodities that include agricultural produce, industrial raw materials, finished goods, and a variety of hygroscopic items.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 5.
Write in detail about the functions of TNWC.
Answer:

  1. The Regional Managers/Senior Regional Managers conduct regular inspections of warehouses with 100% physical verification of stocks in their region.
  2. The copies of inspection reports for all inspections conducted by RMs/SRMs are submitted to Head Office along with their remarks if any. Based on this, further action is taken by the Head Office.
  3. Regional Managers also conduct surprise inspections to sort out the problems in the warehouses.
  4. The Regional Managers submit tour diaries every month for review by the Inspection Cell.
  5. The inspection wing conducts staff meetings and Regional Managers’ meetings depending upon the need to sort out business matters, collection, staff grievances, etc.

For Future teaming

The warehouse of the future: How will it impact efficiency?
Answer:
From 2019, new technology could be revolutionary and improving efficiency in warehouses by Warehousing Management System (WMS). Technologies including artificial intelligence, 3D printing, and self-driving vehicles could be more widely used in warehouses- everywhere sooner than you think. By 2030, warehouses will be a part of an initiative to achieve zero net energy.
Warehouse buildings will operate 24 x 7 x 365 and be designed with sustain¬ability. By creating strategies, warehouses will save costs and prevent harmful emissions. Solar panels will become the main source of energy for warehouses. This will assist in running the warehouse lighting and equipment. As well as recharging the electric vehicles that make deliveries. New technologies could be increasing the efficiency of how warehouses are run as soon as 2019.

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Multiple choice questions

1. Warehousing is one of the functions of:
(a) banking
(b) insurance
(c) marketing
(d) none of these
Answer:
(c) marketing

2. ……… is based on the anticipated demand for goods.
(a) Production
(b) Marketing
(c) Transport
(d) Warehouse
Answer:
(a) Production

3. ……… Warehouse service provides inspection packing and shipping:
(a) private
(b) public
(c) co-operative
(d) all of the above
Answer:
(b) public

4. …….. warehouse are owned by private persons to store their own products
(a) Private
(b) Public
(c) Co-operative
(d) Household warehouse
Answer:
(a) Private

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

5. …….. are formed by the state and central government for their exclusive uses.
(a) Food Corporation of India
(b) Government Warehouse
(c) Bank godowns
(d) None of these
Answer:
(b) Government Warehouse

6. The term ware means:
(a) sales
(b) manufactures
(c) products
(d) goods
Answer:
(c) products

7. The Central warehousing corporation was established in:
(a) 1957
(b) 1900
(c) 1988
(d) 1986
Answer:
(a) 1957

8. The available storage capacity of SWC in the seventh plan is ……. tonnes.
(a) 9.70 Million
(b) 8.70 Million
(c) 28.70 Million
(d) 10.70 Million
Answer:
(a) 9.70 Million

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

9. CWC stands for:
(a) Central Water Commission
(b) Central Warehousing Commission
(c) Central Warehousing Corporation
(d) Central Water Corporation
Answer:
(c) Central Warehousing Corporation

10. FCI, STC, CWC are examples of:
(a) Bonded warehouse
(b) Government warehouse
(c) Private warehouse
(d) Co-operative warehouse
Answer:
(b) Government warehouse

11. Storage is only a:
(a) holding place
(b) marketing center
(c) bonded warehouse
(d) delivery point
Answer:
(b) marketing center

12. The warehouse owned by large scale manufacturers wholesalers etc., are called:
(a) public warehouse
(b) private warehouse
(c) co-operative warehouse
(d) bonded warehouse
Answer:
(b) private warehouse

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

13. The acknowledgment of receipt of goods issued by dock authorities to the owner of the goods is known as:
(a) dock warrant
(b) warehouse warrant
(c) delivery order
(d) dock receipt
Answer:
(d) dock receipt

14. A premier warehousing agency was started in Tamil Nadu in the year:
(a)1975
(b) 1989
(c) 1957
(d) 1991
Answer:
(c) 1957

15. As of 1st April 2002 the storage capacity of FCI was:
(a) 20.33 million tonnes
(b) 203.3 lak million
(c) 358.40 Lakh tonnes
(d) 162.78 million tonnes
Answer:
(c) 358.40 Lakh tonnes

16. Grain elevators it’s popular in:
(a) Andhra
(b) USA & UK
(c) Japan
(d) China
Answer:
(b) USA & UK

TN Board 11th Commerce Important Questions Chapter 13 Warehousing

17. On the basis of ownership warehouse can be classified into:
(a) one
(b) two
(c) three
(d) four
Answer:
(c) three

18. On the basis of service warehouse can be classified into:
(a) ten
(b) nine
(c) five
(d) eight
Answer:
(b) nine