Students get through the TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Very short answer questions

Question 1.
Define Franchising.
Answer:
One of the key components of the success of any business lies in its ability to reach out to customers at the local, national, and global levels. Franchising has often been used as a method for expanding domestic markets and for entering international markets.

Question 2.
What is a Reduction in investment?
Answer:
Companies through outsourcing avail the services of outsiders which in turn reduces the investment requirements. The amount so available can be utilized productively and this increases the profits.

Question 3.
What are the core and noncore activities?
Answer:
Companies can benefit in the long run provided they are keen on their core activities rather than noncore, activities. A core activity involves experience, expertise, efficiency, and even investment in the field of specialization. Noncore activities can be outsourced to outsiders who are specialists in their area of operation.

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Question 4.
What is B2B?
Answer:
Business to Business (B2B): Under the model, business concerns transact with one another through the internet. For instance, Snapdeal, Flipkart, Alibaba, Indiamart, Trade India. Com etc.

Question 5.
What is C2B?
Answer:
This model is reverse to auction model. Products like automobiles, electronic items furniture, and similar product are traded by customers through websites, eg: Naukri.com and Monster.com are examples of Indian companies operating in this domain.

Question 6.
Examples of factoring companies.
Answer:
(i) Canbank Factors limited.
http:// www.canbankfactors.com
(ii) SBI Global.
http:// www.sbiglobal.in
(iii) IFCI Factors Limited, http:// www.ifcifacors.com

Question 7.
What is forfeiting?
Answer:
Forfeiting is defined as “the non-recourse purchase by a bank or any other financial institution of resembles arising from export of goods and services.

Question 8.
What do you mean by BPO?
Answer:
BPO means getting contractual services of external companies or a group of companies to complete the special work or process of a company, eg: Gall center, Data entry.

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Question 9.
What do you mean by KPO?
Answer:
KPO refers to the outsourcing of knowledge-based processes. It means obtaining end knowledge work from outside the organization in order to run the business successfully and in a cost-effective manner.

Question 10.
Mention the types of factoring?
Answer:

  1. Full-service factoring.
  2. With resource factoring.
  3. Maturity factoring,
  4. International factoring.

Short answer questions

Question 1.
Give any five top 10 franchises in India.
Answer:

Name of Franchise Country of Origin Number of Years of Franchising in India Industry
Subway USA 16 Food and Beverage
Aloha India Malaysia 15 Education and Training
Baskin – Robbins USA 24 Food and Beverage
Kidzee India 14 Children’s
US Dollar Store India 13 Retail
McDonald’s USA 21 : Foods and Beverage

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Question 2.
Difference between factoring & forfeiting?
Answer:

Factor Forfeiting
Financing is dependent on the exporter’s credit standing. Financing is dependent on the availing bank’s financial standing.
Cost is borne by the seller. Cost is borne by the overseas buyer.
For transactions of short-term maturity period. For transactions of medium-term maturity period.
Only a certain percent of receivables factored is advanced. Full finance is available.
Risk can be transferred to the seller. All risks are borne by the forfeiter.

Question 3.
What is the impact of e-commerce on vendors?
Answer:

  1. Vendors could have wider access to customers across the globe.
  2. This helps minimize the cost of operating business due to the direct distribution of goods to end consumers thanks to the minimum invention of intermediaries.
  3. The vendor could interact with multiple buyers and sellers.
  4. Business concerns could orient marketing efforts towards targeted customers.

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Long answer questions

Question 1.
Explain the terms (i) Franchisee, (ii) Franchisor, (Hi) Factoring, (iv) Forfeiting.
Answer:

  1. Franchisee: The individual who acquires the right to operate the business or use the trademark of the seller is known as the franchisee.
  2. The franchisor: The owner of a business that provides the franchise. Generally, he owns the patent/trademark and offers it to the franchisee under a licensing agreement. Depending on the agreement, the franchisor may also provide support services like service/product training, marketing,
    advertising, etc. The franchisor levies fees in the form of royalty.
  3. Factoring: In a report submitted to the Reserve Bank of India, Mr. C.S. Kalyanasundaram defines factoring as “a continuing arrangement under which a financing institution assumes the credit and collection functions for its clients, purchases receivables as they arise (with or without recourse for credit losses, i.e., the customer’s financial inability to pay), maintains the sales ledgers, attends to other book-keeping duties relating to such accounts, and performs other auxiliary duties”.
  4. Forfeiting: The non-recourse purchase by a bank or any other financial institution of receivables arising from the export of goods and services.

Question 2.
What are the general impacts of E-commerce?
Answer:
About 40 million people in India is said to be employed in the e-commerce sector either directly or indirectly.

  1. E-commerce generates great opportunities for entrepreneurship in the sphere of online retailing, online service digital commerce, and so on.
  2. E-commerce companies have invested heavily in supply chain areas, warehousing, and delivery points.
  3. With a rise in e-commerce transactions sale of financial, physical, and data security system-related products has seen tremendous growth in India.
  4. E-commerce promotes innovative practices of carrying on a business. Social media and social media networks have opened new ways of transacting with customers through e-commerce.
  5. Thanks to wider broadband connectivity many business concerns are switching over to the e-commerce mode of transacting business.

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

For Own Thinking

1. You are a small-scale manufacturer of ignition coils for automobiles, located near Ranipet. Explain how will you avail of financial credits through factoring if you get orders from
a. Ford India, Chennai
b. Maruti Suzuki, Gurgaon
c. Kun Hyundai, Seoul.
Mainly used in advertising industry, construction, household appliances industry, electrical industry, furniture industry, and transportation.

For Future teaming

Question 1.
Identify methods of moving goods.
Answer:
In contrast to pull and push methods. The push method is a system that is used in traditional production when work or output finished it is pushed to the station. While pull method is pulling output from the proceeding station as needed.

Question 2.
Draft ways and means of overcoming the problems in Logistics.
Answer:
International organizations have a key role to play in meeting this challenge, including by rapidly but accurately assessing the extent of available host nation support in order to plan for the delivery of the necessary additional logistic support from other sources.

Question 3.
Project the future of Logistics Management in India.
Answer:
Logistics management functions that are a part of ERP systems are usually integrated with other business functions in the system. Like sales finance procurement and human resources. More specialized and warehouse management.

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

Multiple choice questions

1. E-Business and E-Commerce are:
(a) synonyms
(b) antonyms
(c) former is wider than latter
(d) extroverted
Answer:
(c) former is wider than latter

2. When was electronic data interchange (EDI) Standardised?
(a) 1984
(b) 1995
(c) 2000
(d) 1999
Answer:
(a) 1984

3. In B2B, B2C, C2C, etc B and C stand for:
(a) business and corporate
(b) biding and customer
(c) business and customer
(d) business and consumer
Answer:
(d) business and consumer

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

4. When parties involved in the electronic transactions are from within a given business firm it is called?
(a) B2B commerce
(b) Intra B commerce
(c) C2C commerce
(d) B2C commerce
Answer:
(b) Intra B commerce

5. When a firm transacts with its employees it is referred to as:
(a) B2B commerce
(b) B2E commerce
(c) C2C commerce
(d) B2C commerce
Answer:
(b) B2E commerce

6. Work from home using the internet is covered under:
(a) online networking
(b) virtual private network
(c) electronic data exchange
(d) PayPal
Answer:
(b) virtual private network

7. Which of the following is a benefit of e-business?
(a) Less Risky
(b) Less Technological Requirements
(c) Convenience
(d) All of the above
Answer:
(c) Convenience

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

8. Which of the following is not an application of e-business?
(a) E-Procurement
(b) E – bidding
(c) E – delivery
(d) All of the above
Answer:
(d) All of the above

9. Which of the following can be used only for e-business?
(a) Cheques
(b) Credit card
(c) Debit card
(d) E-Cash
Answer:
(d) E-Cash

10. About 95% of online consumer transactions are executed through:
(a) cheques
(b) credit card
(c) debit card
(d) e-cash
Answer:
(b) credit card

11. When a customer claims that he has made the payment but the seller does not get it, it is called?
(a) Default on delivery
(b) Default on order taking
(c) Bad debts
(d) Default on payment
Answer:
(d) Default on payment

12. Which of the following is used to handle data storage risk?
(a) VIRUS
(b) Hacking
(c) Cryptography
(d) All of the above
Answer:
(c) Cryptography

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

13. ……….. is the largest captive BPO unit in India for providing certain kinds of services to the parent company in the united states as well as to its subsidiaries in other countries.
(a) Infosys
(b) General Electric (GE)
(c) Accenture
(d) None of these
Answer:
(b) General Electric (GE)

14. BPO ……… cost and ………. excellence
(a) reduces, reduces
(b) increases, increases
(c) reduces, increases
(d) increases reduces
Answer:
(c) reduces, increases

15. In India ……. and ……… are referred to as emerging modes of business
(a) e- business and e-commerce
(b) outsourcing and e-commerce
(c) outsourcing and e-business
(d) online trading and networking
Answer:
(b) outsourcing and e-commerce

16. E-commerce does not include:
(a) business interactions with its suppliers
(b) business interactions with its customers
(c) interactions among the various departments within the business
(d) interactions among the geographically dispersed units of the business
Answer:
(c) interactions among the various departments within the business

TN Board 11th Commerce Important Questions Chapter 16 Emerging Service Business in India

17. A call center handles.
(a) only inbound voice-based business
(b) only outbound voice-based business
(c) both voice-based and non-voice based business
(d) both customer-facing and back-end business
Answer:
(d) both customer-facing and back-end business

18. It is not an application of E-business:
(a) online bidding
(b) online procurement
(c) online trading
(d) contract R and D
Answer:
(d) contract R and D