1-HISTORY OF TRADE AND
COMMERCE IN INDIA
A. One Word or One Line Questions
Q. 1. How did
India establish trade relations with the rest of the world?
Ans.
India established trade relations with the rest of world through ‘Silk Route’.
Q. 2. According to archaeological evidence, which were
two main routes for trade from India?
Ans. Land route and sea
route.
Q. 3. Which system of exchange was prevalent in times
of ancient civilization?
Ans. Barter system of
exchange.
Q. 4. In which form of money came into existence with
the progress of civilization?
Ans.
With the progress of civilization, metallic money came to existence.
Q. 5. Name some
of the important economic activities of people in ancient India.
Ans.
Agriculture, domestication of animals, weaving cotton, dyeing fabrics,
handicrafts, sculpting, masonry etc.
Q. 6. Which were the intermediaries who played an
important role in the promotion of trade and commerce in ancient India?
Ans.
These intermediaries were: brokers, distributors, commission agents, Jaga
seths, bankers etc.
Q. 7. Name the
taxes imposed on trade and commerce in the ancient India.
Ans. Octroi duty, custom
duty, ferry tax, labour tax etc.
Q. 8. Name any
four major trade centres in ancient India.
Ans. Pataliputra,
Peshawar, Taxila, Mathura.
Q. 9. Write any
four major exports of India in ancient times.
Ans. Spices, indigo,
opium, copper etc.
Q. 10. List any four major import items of ancient
India.
Ans.
Gold, silver, lead, rubies etc.
B. Fill in Blanks
1. India’s
maritime trade with the rest of the world was done through____route.
2. The local bankers in ancient India were known as
_____
3. ____and____ were two financial instruments
which were used to carry-out transactions in ancient India.
4. A hundi which is payable at sight is _____ hundi.
5. _____hundi
is that hundi which is payable after a specific period of time.
6. ______ Hundi is drawn to cover the risk
involved in the process of transit of goods.
Ans.
1. silk, 2. jagat seths, 3. Hundi and chitti, 4. darshani, 5. Muddati, 6. Jokhami
C. True/False
1. ‘Silk route’ was a maritime route for trade.
2. India’s civilisational centres like Harappa and
Mohenjodaro had no trade and commerce relations with other contemporary
civilisations.
3. The development of a traditional system of weights
and measures also made a significant contribution in the promotion of trade and
commerce in ancient times.
4. A hundi is
not capable of change through transfer.
5. Firman-jog
hundi is payable on the order of the payee.
Ans. 1. False, 2.
False, 3. True, 4. False, 5. True, 6. True, 7. True, 8. True
D.
MCQ
1. Which of the following contributed in the
development of trade and commerce in ancient India?
(a) Evolution of money
(b) Development of a traditional system of weights and
measures
(c) Development of indigenous banking system
(d) All of these.
2. Which of the following is not a feature of Hundi?
(a) It warrants the payment of money
(b) It is not capable of change through transfer
(c) It is not capable of change through transfer by
valid negotiation
3. The development of indigenous banking system
promoted which of the following activities in the ancient India?
(a) Agriculture
(b) Domestication of animals
(c) Small factories in the form of karkhanas
(d) All of these.
4. Who provided loans for foreign trade in ancient
India?
(a) Intermediaries (b) Government
(c) Both (a) and (b) (d) None of these
5. At which of the following trading centres of
ancient India, did Chinese ships used to visit for trade?
(a) Pulicat (b) Calicut
(c) Both (a) and (b) (d) None of these.
6. By whom, were guilds organised in ancient India?
(a) Local bankers
(b) Intermediaries
(c) Trading communities
(d) All of these.
7. Which of the following taxes, was not imposed on
trade and commerce in ancient India?
(a) Sales tax
(b) Octroi tax
(c) Ferry tax
(d) Custom
duty.
Ans. 1. (d), 2. (b),
3. (d), 4. (a), 5. (b), 6. (c), 7. (a),
2-NATURE AND PURPOSE OF
BUSINESS
One Word or One Line Questions:-
Q. 1. Name the types of activities.
Ans. (i) Economic
Activities. (ii) Non-Economic Activities.
Q. 2. What is
the main aim of economic activities?
Ans. The main aim of
economic activities is to satisfy human desires and wants.
Q. 3. In which
activities profit element is present?
Ans. Economic Activities.
Q. 4. Give two examples of Economic Activities.
Ans. (i) Teacher
teaching in a school. (ii) Worker working in a factory.
Q. 5. Give two examples of Non-Economic Activities.
Ans. (i) Mother
cooking food for her baby. (ii) Doctor giving free medicines to poor patients.
Q. 6. What are the categories of Economic Activities?
Ans. (i) Business (ii)
Profession (iii) Employment.
Q. 7. Name examples of Business Activities.
Ans. (i) Industrial activities (ii) Trade
activities (iii) Aids to trade.
Q. 8. Give any one example of industrial activity.
Ans. Purchase of raw
material and others necessary industrial inputs.
Q. 9. Give any one example of trade activities.
Ans. Producers
supplying goods to wholesalers.
Q. 10. Give one example of aid to trade.
Ans. Banks extending
all types of financial services to trade and industry.
Q. 11. Name any
one important professional body in India.
Ans. The Institute of
Chartered Accountants of India.
Q. 12. What is must for profession?
Ans. Specialised
knowledge, training and qualification is must for a profession.
Q. 13. Who is employer?
Ans. The person who hires employees is called employer.
Q. 14. Who are employees?
Ans. The persons who
work under the contract of employment are called employees.
Q. 15. Give one
feature of employment.
Ans. The employees get
salaries or wages of the services rendered to the organisation.
B. Fill in the blanks
1. Human beings are having _________ wants.
2. The main objective of every business is to
___________
3. The persons who work under the contract of
employment are called ………..
4. The employees get …….. for the services rendered to
the organization.
5. Marketing
consists of efforts for the sale or exchange of ……….
6. ______ are
required for the survival of the business.
Ans. 1. False,
2. True, 3. False, 4. False, 5. True, 6. False
D.
MCQ
1. Human activities are classified into
................... categories:
(a) 3 (b) 5
(c) 1 (d)
2
2. The primary aim of every business activity is to:
(a) Help Society
(b) Earn Profits
(c) Help its Suppliers (d) Help its Competitors
3. Which one of the following is not the feature of
business?
(a) Creation of utilities (b) Regular dealings
(c) Profit motive (d)
Non-economic activities
4. Professionals charge...........for rendering
services.
(a) Rent (b)
Profit
(c) Fee (d)
Interest
5. Which one of the following is the feature of
profession?
(a) Specialised knowledge (b) Professional fee
(c) Specific code of conduct (d) All of these
6. Which one of the following is not the feature of
Profession?
(a) Specialised knowledge (b) Professional fee
(c) Profession association (d) Open entry
Ans. 1. (d), 2. (b),
3. (d), 4. (c), 5. (d). 6. (d)
3-Classification of
Business Activities
A. One
Word to One Sentence Questions
Q. 1. Name some
Industrial Goods.
Ans. Machinery, Equipments, Tools, Plants etc.
Q. 2. Name some Intermediate Goods.
Ans. Rubber, Plastics, Aluminium.
Q. 3. What are the categories of Industries?
Ans. Primary,
Secondary, Tertiary.
Q. 4. Which type of industries are included in
the Primary Industry?
Ans. Genetic Industries, Extractive Industries.
Q. 5. Name two types of secondary industries.
Ans. (i) Construction
Industry
(ii) Manufacturing Industry.
Q. 6. Name the types
of manufacturing industries.
Ans. (i) Analytical Industry (ii)
Synthetic Industry (iiii) Processing
Industry.
Q. 7. Name the
categories of service industry.
Ans. (i) Transport (ii)
Insurance (iii)
Warehousing
(iv) Banking
(v) Advertising.
Q. 8. What is insurance?
Ans. It provides coverage for all types of risks
related to business.
Q. 9. Name the
components of commerce.
Ans. Trade and Aids to Trade.
Q. 10. Name the types of trades.
Ans. Internal Trade, External Trade, Wholesale
Trade, Retail Trade.
Q. 11. What is retail trade?
Ans. Retail trade involves buying of goods from
the manufacturers and selling them in small quantatities.
Q. 12. What do you mean by Aids to Trade?
Ans. The agencies which facilitate trade are
known as aids to trade.
Q. 13. Define business
risks.
Ans. According to Wheeler, “Risk is the chance of
loss. It is the possibility of some unfavourable occurrence.”
Q. 14. Name the causes of business risks.
Ans. (i) Physical Causes (ii) Natural Causes (iii) Human Causes (iv) Economic Causes.
Q. 15. Write down two
physical causes of business risk.
Ans. (i) Wear and Tear of machinery (ii) Mechanical defects in
machines.
Q. 16. Write down two economic causes of
business risk.
Ans. (i) Fluctuations in Demand (ii) Increase in
Competition.
B.
Fill in the blanks
1. ……………fills the gate between producer of
goods and service and their consumers.
2. Construction
Industry is an example of ………….
3. ......... provides
coverage for all types of risks related to business.
4. ......... is used
for storing of raw materials and finished goods.
5. ......... removes
the hindrance of finance.
6. Commerce is
basically concerned with the transfer of................ .
7. When the goods are
produced according to local demands it is called............. .
Ans. 1. Service
industries 2.
Secondary industries,
3. Insurance, 4.
Warehousing,
5. Banking, 6.
goods
7 local trade.
C.
True or False
1. Commerce is
concerned with exchange of goods and services for profit.
2. Banks make the
consumer aware about the availability of goods in the market.
3. Trade refers to
purchase and sale of goods and services.
4. When the trader of
one country purchases goods from seller of the foreign countries, it is known as
export trade.
5. Banks provide
short term and long term funds to the business enterprises.
Ans. 1. True, 2. False, 3. True, 4. False 5.
True
D.
MCQ
1. The units which
are engaged in manufacturing of products are collectively known as:
(a) Firms (b)
Commerce
(c) Industry
(d) Trade
2. Import and Export
Trade is an example of:
(a) Internal Trade (b)
Foreign Trade
(c) External Trade (d)
Both b and c
3. ......... deals
only with buying and selling of goods.
(a) Trade (b) Industry
(c) Commerce
(d) All of the above
4. The trade is
confined to the boundaries of the state is known:
(a) Provincial Trade
(b) Local Trade
(c) External Trade
(d) None of the above
5. Which one of the
following is not the type of foreign trade?
(a) Import Trade (b)
Export trade
(c) Provincial Trade (d)
Entrepot trade
6. Which of the
following services come under aids to trade?
(a) Banking and
Insurance
(b) Transportation and Communication
(c) Both (a) and (b)
(d) None of the above.
Ans. 1. (c), 2. (d),
3. (a), 4. (a), 5. (c), 6. (c)
4-SOLE-PROPRIETORSHIP
A. One Word or one Line Questions
Q. 1. Define Sole-Trader.
Ans. According to
James Stephenson, “A Sole-trader is a person who carries on business
exclusively by and for himself.”
Q. 2. What is
the extent of liability of a sole proprietor?
Ans. Unlimited liability.
Q. 3. What is the reward for starting sole-proprietorship?
Ans. All profits of
the business belong to sole proprietor.
Q. 4. What is
the limitation for not expanding sole proprietary business?
Ans. The financial
resources are limited and managerial talent is also limited.
Q. 5. Can a sole proprietor add a partner in the
business?
Ans. No, the entry of
a partner will make it a partnership concern.
Q. 6. What is
the advantage of admitting a partner?
Ans. The new partner
brings with him some additional capital and experience which will help in the expansion
of business.
Q. 7. Can a
sole proprietor employ a servant for help?
Ans. Yes, a sole
proprietor can employ a servant for help.
B. Fill in the blanks
1. A sole-trade business is owned by……..
2. Sole-trader is the………judge of his business.
3. The liability of a sole-trader is…….
4. Sole-proprietorship is a………form of organisation.
5. The area of
operation of sole-trade is………
6. Sole-proprietorship is subject to minimum
government….…….
Ans. 1. one man, 2.
Supreme, 3. Unlimited,
4. stable,
5.
limited, 6. regulations
C. True or False
1. Sole-trader is the ‘supreme judge’ of his business.
2.
Sole-proprietorship is subject to strict government regulations.
3. A sole-trader and his business are not different
entities.
4. A sole-trader is not in a position to enjoy the
benefits of hereditary goodwill.
5. The managerial ability of sole-trader is limited.
6. One man
business is generally run on large scale basis.
Ans. 1. True, 2.
False, 3. True, 4. False, 5. True, 6. False.
D.
MCQ
1. Sole-trade
organisations are also called as:
(a) Individual Proprietorship
(b) Single
Entrepreneurship
(c)
Sole-Proprietorship
(d) All of the
above
2. Sole-Proprietorship is best suitable when risk
involved is:
(a) Minimum
(b) High
(c) Both (a) and (b)
(d) None of the above
3. Which one of the following is not the feature of
Sole-Proprietorship?
(a) Individual ownership
(b) Limited Liability
(c) Limited scope of operation
(d) One man
management
4. Which one of the following is the advantage of
sole-proprietorship?
(a) Easy to Form
(b) Self-employment
(c) Socially desirable
(d) All of
these.
Ans. 1. (d), 2. (a),
3. (b), 4. (d).
-5- PARTNERSHIP
A. One Word or One Line Questions
Q. 1. Which act
governors partnership firm?
Ans. Partnership Act,
1932.
Q. 2. What is
the position of liability in partnership?
Ans. The liability of
partners is unlimited.
Q. 3. What does unlimited liability mean in
partnership?
Ans. Unlimited
liability states that personal assets of the partners can also be used to pay
business liabilities.
Q. 4. How does partnership overcome the limitations of
sole-proprietorship?
Ans. By pooling
financial and managerial resources and sharing business risks.
Q. 5. Name the
business organisation which can be formed by oral agreement among members?
Ans. Partnership.
Q. 6. Name the enterprise which is owned by minimum
two persons.
Ans. Partnership.
Q. 7. Define
Co-ownership?
Ans. When a property
is owned by more than one person, then it is called co-ownership.
Q. 8. Which type of partnership firm is formed for a
specific purpose?
Ans. Particular
Partnership.
Q. 9. Name the type of partnership which is started to
carry out a particular task. Ans. Particular
partnership.
Q. 10. Name the type of partnership in which liability
of members is unlimited and all of them can take part in management.
Ans. General
partnership.
Q. 11. Give two merits of partnership organisation.
Ans. (i) Easy
formation (ii) Greater managerial ability.
Q. 12. Name two
limitations of partnership organisation.
Ans. (i) Unlimited
liability. (ii) Limited resources.
Q. 13. Name the
document prepared in partnership.
Ans. Partnership deed.
Q. 14. What do
you mean by Partnership deed or agreement?
Ans. When all partners
sign as a written agreement, then it is called partnership deed or as articles
of partnership.
Q. 15. Is it
essential to prepare partnership deed in writing?
Ans. No.
B. Fill in the blanks
1. Partnership is an association of………..
2. In partnership, all partners have a right to
participate in the……..of business.
3. In General Partnership, the liability of members
is………
4. Partnership form of organisation is suitable for
......... size of business.
5. No partner can ......... or ......... his share to
other without the ......... of all the partners.
Ans. 1. Two or more
persons, 2. Working,
3. Unlimited, 4. Medium,
5. Sell, transfer.
C. True or False
1. In India, partnership is governed by Indian
Partnership Act, 1932.
2. Profit is not the main objective of a partnership
business.
3. In the absence of any agreement, every partner has
equal share in the profits.
4. Partnership deed is must for the existence of
partnership.
5. The liability of partners is limited.
6. Partners can sell or transfer his share to other
without the consent of all other partners.
Ans. 1. True, 2.
False, 3. True, 4. True, 5. False, 6. False.
D.
MCQ
1. Which one of the following is not a feature of
partnership?
(a) Agreement between partners (b) Sharing of profit
(c) Limited liability (d)
Utmost good faith.
2. Which type of partnership firm is formed for a
specific purpose?
(a) Limited Partnership (b) Particular Partnership
(c) Partnership at Will (d) General Partnership
3. A minor is a person who has not yet attained the
age of
(a) Nineteen Years (b)
Eighteen Years
(c) Twenty one Years
(d) Twenty Years
4. The other name of sleeping partner is
(a) Secret Partner (b)
Dormant Partner
(c) Sub Partner (d)
Nominal Partner
Ans. 1. (c), 2. (b), 3. (b), 4. (b)
-6- HINDU UNDIVIDED FAMILY BUSINESS
A. One
Word or One Line Questions
Q. 1. What is meant by Hindu Undivided Family
Business?
Ans. It refers to a form of organisation wherein
the business is managed and controlled by the eldest male member of the family
know as ‘Karta’ of the family.
Q. 2. Which form of
organisation has membership by birth?
Ans. Hindu Undivided
Family Business.
Q. 3. Name the two
schools of thought which govern membership of Hindu Undivided Family Business.
Ans. (i) Mitakshara (ii) Dayabhaga.
Q. 4. How many
members are required to establish a Hindu Undivided Family Business?
Ans. At least two members.
Q. 5. What is the main source of capital in
Hindu Undivided Family Business? Ans. Ancestral
property.
Q. 6. Does the death
of karta dissolves the family firm?
Ans. No, the firm continues.
Q. 7. Who manages and controls the affairs of
Hindu Undivided Family Business? Ans. Eldest male
member of the family.
Q. 8. Name the head
of Hindu Undivided Family Business.
Ans. Karta.
B.
Fill in the blanks.
1. The Full form of
JHF is
2. The liabilities of Karta are
3. The continuity of Joint Hindu Family
is
4.
keeps all business secrets to himself.
5. There must be minimum members to form a
Hindu Undivided Family.
Ans. 1. Joint Hindu Family, 2. Unlimited,
3. Permanent, 4. Karta,
5.
two
C.
True or False.
1. Karta enjoys
complete freedom in the choice of business.
2. Registration is
compulsory for Hindu Undivided Family Business.
3. 'Karta' keeps all
business secrets to himself.
4. A minor can become
a partner in the partnership firm.
5. There must be
minmum ten members to form a Hindu Undivided Family.
Ans. 1. True, 2.
False, 3. True, 4. False, 5. False
D.
MCQ
1. On the basis of
schools of Hindu Law, Joint Hindu Family can be divided into following
categories.
(a) Mitakshara
(b) Dayabhaga
2. Minimum number of
members to form a Joint Hindu Family:
(a) Three
(b) Four
(c) Five (d) Two
3. Which one of the
following is the merit of Hindu Undivided Family Business?
(a) Freedom in choice
of business (b) No
legal formalities
(c) Continuity (d)
All of the above.
4. Which one of the
following is not the merit of Hindu Undivided Family Business?
(a) No legal
formalities
(b) Unlimited liability
(c) Limited
managerial skill (d) Continuity.
Ans. 1. (a), 2. (d),
3. (d), 4. (c)
-7- CO-OPERATIVE SOCIETIES
A. One Word or One Line Questions.
Q. 1. What do
you mean by co-operative society?
Ans. A form of organisation, where in persons
voluntarily associate together as human being on the basis of equality for the
promotion of economic interests of themselves.
Q. 2. Under
which act co-operative societies is registered?
Ans. A co-operative
society is registered under Indian Co-operative Societies Act, 1912.
Q. 3. How many members can start a co-operative
society?
Ans. 10 adult members.
Q. 4. How is capital raised by co-operative society?
Ans. Capital is raised by issuing shares to the members.
Q. 5. What is the status of liability of members of
the co-operative society?
Ans. The liability of members is limited.
Q. 6. Name office bearers of co-operative society.
Ans. President,
Vice-president, Secretary, Treasurer.
Q. 7. Give any two principles of Co-operative
Societies.
Ans. (1) Voluntary
Membership (2) Democratic Management
Q. 8. Is registration of the co-operative society is
compulsory?
Ans. No, it is
optional.
Q. 9. State two
merits of a co-operative society.
Ans. (i) Open
membership (ii) Democratic management.
Q. 10. Which co-operative society is started to
protect the interests of weaker sections?
Ans. Consumer
co-operative society.
Q. 11. Which co-operative societies helps its members
to do farming on scientific basis?
Ans. Co-operative farming society.
Q. 12. Which-co-operative society extend credit
facilities to members?
Ans. Credit
co-operatives.
Q. 13. Name a
co-operative society providing help their members to construct their own house.
Ans. Housing
Co-operatives.
Q. 14. Which societies help small producers in selling
their products at good price? Ans. Marketing
co-operative societies.
Q. 15. What is
the voting pattern for members of a co-operative society?
Ans. ‘One person, one
vote’.
B. Fill in the blanks Fill in the blanks
1. The co-operative society is registered
under......... .
2. Membership of co-operative societies
is................ .
3. The management of a co-operative society is always
elected in.......... way.
4. In co-operative society, the voting rights are
based on the principle......... .
5. The primary objective of the society is......... .
6. Trading in co-operative societies is done
one............ basis.
Ans. 1. Indian
Co-operative Societies Act, 1912,
2. Voluntary, 3.
Democratic,
4. one person, one vote, 5.
Service First, Profit Second,
6. Cash.
C. True or False
1. The main aim of co-operative societies is to
protect the interest of the society.
2. High rate of interest is paid to members in reward
for their contribution to the capital of society.
3. The Primary objective of the society is ‘Profit
first, Service second’.
4. In a co-operative society, the voting rights are
based on ‘One Person, One Vote’.
5. In co-operative societies, trading is done on
‘credit basis’.
Ans. 1. True, 2.
False, 3. False, 4. True, 5. False.
D.
MCQ
1. The consumer co-operatives are established for the
benefit of
(a) Upper class people
(b) Lower and Middle Class People
(c) Both (a) and (b) (d)
None of the above
2. The main aim of co-operative society is to
(a) Earn Profits (b)
Serve the Society
(c) Both a and b (d)
None of the above
3. Co-operative societies generally transact business
on:
(a) Cash Basis (b)
Credit Basis
(c) Both Cash and Credit Basis (d) None of the above
4. Which one of the following is the feature of
co-operative societies?
(a) Voluntary membership (b) Democratic management
(c) Limited liability
(d) All of these.
5. Which one of the following is not the merit of
co-operative society?
(a) Open and voluntary membership (b) Democratic
management
(c) Surplus of Goods at higher rate (d) Low management cost.
6. Which one of the following is not the limitation of
co-operative societies?
(a) Lack of Secrecy (b)
Inefficiency of management
(c) surplus shared by members (d) Government interference.
Ans. 1. (b), 2. (b),
3. (a), 4. (d), 5. (c), 6. (c)
-8- JOINT STOCK COMPANY
A. One Word or One Line
Questions
Q. 1. Under which
act companies are governed?
Ans. Companies Act,
2013.
Q. 2. Which
form of organisation is called an artificial person created by lawy? Ans. Joint Stock Company.
Q. 3. How is a company an artificial person?
Ans. A company is
created by law and has separate legal entity.
Q. 4. Is it compulsory for a company to get registered?
Ans. Yes.
Q. 5. Name a
form of organisation where members can transfer their shares without consent
from anyone.
Ans. Joint Stock Company.
Q. 6. Give the
names of Indian Statutory Companies.
Ans. Reserve Bank of
India, Life Insurance Corporation of India, Unit Trust of India, Indian Airline
etc.
Q. 7. Indian Oil Corporation is an example of which
type of company?
Ans. Government Company.
Q. 8. Who
contributes capital in joint stock company?
Ans. Shareholders.
Q. 9. What can be the maximum number of members in a
public company?
Ans. No limit.
Q. 10. How many minimum members can form of a public company?
Ans. Seven Members.
Q. 11. How much minimum paid capital is required for a
public company?
Ans. Rs.5 lakhs.
Q. 12. Who manages the Joint Stock Company?
Ans. Board of
Directors.
Q. 13. What is the minimum and maximum number of
members of a private company?
Ans. A minimum of two
members are required and the maximum number is 200.
Q. 14. Name the type of company where members are
restricted to transfer their shares.
Ans. Private Company.
Q. 15. How much minimum paid up capital is required
for a private company?
Ans. Minimum of Rs. 1
lakh paid up capital.
Q. 16. What is the minimum number of directors of a
private and public company?
Ans. Private Company: 2
Public
company: 3
Q. 17. What is minimum quorum of members at tending
meeting of a private and a public company?
Ans. Private company:
2 members; Public company: 5 member s
Q. 18. De fine One Person Company.
Ans. One person
company is a company which has only one personas member.
Q. 19. How much maximum paid up share capital of one person
company.
Ans. Not more than Rs. 50 Lakhs.
Q. 20. What is the limit of annual turnover of one person
company?
Ans. Annual turnover
should not exceed Rs. 2 crore.
B. Fill in the blanks:
1. A company is an ......... per son created by........
.
2. In India, Joint Stock Companies are governed by........
.
3. A Joint Stock Company works on ......... basis.
4. ......... company have no need to issue a
prospectus or to file a statement in lieu of prospectus with the registrar.
5. Shareholder s of company is free to dispose of
their ................ .
6. Maximum number of member s of a private company is
................ .
Ans. 1. Artificial, law, 2. Companies Act, 2013,
3. Democratic, 4.
Private,
5. shares, 6. 200.
C. True or False
1. A company enjoys a separate legal entity from its
members.
2. Shareholder s of a public company is free to
dispose of their shares.
3. A Joint Stock companies works on democratic basis.
4. In India, Joint Stock Companies are governed by
Companies act, 2008.
5. Minimum number of member s of private company is
ten.
6. The name of the Private company end with the words.
‘Public Limited’.
7. Joint Stock Company is managed and controlled by
Board of Director s .
Ans. 1. True,
2. True, 3.
True, 4. False,
5. False,
6. False, 7. True
D. MCQ
1. A public company must have at least following
number of member s.
(a) Six
(b) Two
(c) Seven (d) Nine
2. The maximum number of member s in case of private
company.
(a) Fifty one (b)
Fifty two
(c) Fifty five (d)
None of the above
3. The number of member s require to complete a quorum
of a private company.
(a) Three (b)
Four
(c) Two (d)
Five
4. Which one of the following company can issue share
warrants?
(a) Public Company
(b) Private Company
(c) Both (a) and (b)
(d) None of the above
5. Which one of the following is not a limit at ion of
Joint Stock Company?
(a) Difficulty informat ion (b) Lack of quick decisions
(c) Democratic set up
(d) Excessivestate regulations
Ans .1. (c), 2. (d), 3. (c), 4. (a), 5.
(c)
-9- FORMATION OF A COMPANY AND CHOICE OF FORMS OF BUSINESS
A. One Word or One Line
Questions
Q. 1. Define promotion?
Ans. According to Hoagland, “Promotion is a
process of creating an enterprise.”
Q. 2. When does
company come into existence?
Ans. A company comes into existence when a number
of persons join hands together to achieve some common object.
Q. 3. Name various
stage in the formation of a company.
Ans. (i) Promotion
(ii) Incorporation (iii) Raising of Capital (iv) Commencement of Business.
Q. 4. What is the
effect of ‘Certificate of incorporation’?
Ans. After incorporation, the company becomes a
separate legal entity and comes into existence from the date of incorporation.
Q. 5. Is certificate
of commencement necessary for all companies?
Ans. All companies whether public or private,
having share capital require certificate of commencement of business.
Q. 6. What is the
full form of MOA and AOA?
Ans. Memorandum of Association and Articles of
Association.
Q. 7. Who is called Promoter?
Ans. A promoter is one who undertakes necessary
steps to form a company.
Q. 8. What is
Memorandum of Association?
Ans. It is a document
which sets out the constitution of the company.
Q. 9. What is
Articles of Association?
Ans. It is a document which sets out the
regulations for the internal management of the company.
Q. 10. What do you
mean by Prospectus?
Ans. It is a document which is issued by a
company to invite the public to deposit money in the form of shares or
debentures.
Q. 11. Name the steps
involved for formation of a company.
Ans. Promotion, incorporation, raising of capital
and commencement of business.
Q. 12. Name two
factors influencing choice of form of business organisation.
Ans. (i) Capital
requirements (ii) Scale and scope of operations.
B. Fill in the blanks
1. The main purpose
of ......... is to set out the objectives of the company.
2. .............sets
out rules and regulations for the internal management.
3. A
..............provides the information to the general public regarding the
purpose for which the capital is required by the company.
4. ......... depend
upon the size of business to be started.
5. If the degree of
risk involved is ......... then sole-proprietorship form of organisation will
be suitable.
6. In case of large
scale business, the financial requirements are.........
Ans. 1. Memorandum of
Association, 2. Articles
of Association
3. prospectors 4. Capital Requirements,
5. low, 6.
more.
C. True or False
1. The name of the
company must be identical with the name of the company already registered.
2. The main purpose
of Memorandum of Association is to define the scope of activities of the
company.
3. A promoter
conceives an idea of starting a new business enterprises.
4. Promotional
aspects of the company are divided into three categories.
5. The capital clause
must state the authorised or nominal share capital of company.
Ans. 1. False,
2. True, 3.
True, 4.
False, 5.
True.
D. MCQ
1. A company is
incorporated under
(a) Companies Act,
1957 (b)
Companies Act, 2013
(c) Companies Act,
1958
(d) Companies Act, 1959
2. Memorandum of
Association defines
(a) Rights and
Objectives of the company (b)
Rights of the members
(c) Both (b) and (c) (d)
None of the above
3. The promoters who
are not in promotion work on regular basis are known as
(a) Professional
Promoters (b)
Financial Promoters
(c) Occasional
Promoters (d)
Both (b) and (c)
4. A public company
must use the word at the end of its name.
(a) Private Limited (b)
Limited
(c) Pb Limited (d)
All of the above
5. A form of business
organisation which is easy to form is called:
(a) Suitable
(b) Ideal
(c) Company
(d) Firm
6. Which factors are
to be considered for setting up a new business?
(a) Government Policy
(b)
Business Location
(c) Financial Analysis
(d)
All of the above
Ans. 1. (b), 2. (a), 3. (c), 4. (b) 5. (b), 6. (d)
10-PRIVATE SECTOR AND PUBLIC SECTOR ENTERPRISES
A. One Word or One Line
Questions
Q. 1. Name any
two Private Enterprises.
Ans. (i) Reliance
Industries Ltd., (ii) Bombay Dyeing.
Q. 2. Define
Public Sector Enterprises.
Ans. Public Sector
Enterprises are those which are owned, managed and controlled by government.
Q. 3. Give two examples of departmental undertaking.
Ans. (i) Railways.
(ii) Postal Department.
Q. 4. State one merit of departmental undertaking.
Ans. Public
accountability.
Q. 5. Name two
statutory corporation.
Ans. (i) Life
Insurance Corporation of India. (ii) Reserve Bank of India.
Q. 6. State two
features of statutory corporation.
Ans. (i) Incorporated
by special act of legislation. (ii) Public Accountability.
Q. 7. State two limitations of statutory corporation.
Ans. (i) Limited
Autonomy. (ii) Inflexibility.
Q. 8. Name the
company in which 51% shares are held by government.
Ans. Government
company.
Q. 9. Name any two government companies.
Ans. (i) Hindustan
Machine Tools. (ii) Indian Oil Corporation.
Q. 10. State any two merits of Government Company.
Ans. (i) Run on commercial
lines. (ii) Financial autonomy.
Q. 11. State two limitations of a government company.
Ans. (i) Red Tapism.
(ii) Official Domination.
Q. 12. State two economic objective of public
enterprises.
Ans. (i) Balanced
economic growth. (ii) Production of essential goods.
Q. 13. Which type of companies give due importance to
Social Objectives?
Ans. Public Sector Enterprises.
Q. 14. Which economic reform changed the role of
public sector?
Ans. Industrial
Policy, 1991.
B. Fill in the blanks
1. In Private
Sector Enterprises, the financial management is done by the........... .
2. Public enterprises are managed and controlled
by.........
3. Food Corporation is an example of...............
4. Departmental organisations work as a part of .........
and managed by.........
5. Statutory Companies are incorporated by.........
6. Railway is an example of..............
Ans. 1. Owners, 2. Government, 3. Public
enterprises,
4. Government, civil servants,
5. Special Act of
Parliament 6.
Departmental organization.
C. True or False
1. The main objective of private enterprises is to
earn profits.
2. Private sector enterprises are more efficient due
to quick decision making.
3. Indian Oil Corporation is an example of private
enterprises.
4. Departmental undertakings suffer from the evil of
Red Tapism.
5. Public enterprises are established to check
monopolies.
Ans. 1. True, 2. True,
3. False, 4. True, 5. True.
D. Multiple Choice Questions
1. Which one of the following is not a public sector
enterprise?
(a) Departmental Organisations
(b) Joint Hindu Family Business
(c) Public Corporation
(d) Government Companies
2. In case of government companies, the contribution
of govt. is atleast.
(a) 50% (b)
49%
(c) 51%
(d) 59%
3. Which one of the following is the feature of
Statuary Corporation?
(a) Statuary Corporations are incorporated by a
special Act of Parliament or of a State Legislature
(b) The Government invest entire share capital in the
corporation
(c) Both (a) and (b)
(d) None of the above.
4. Which one of the following is the feature of
Government Companies?
(a) Government Companies are register under the
Companies Act 2013
(b) Atleast 51% of paid up capital is contributed by
government
(c) Government company is managed by Board of Director
(d) All of the above.
5. Which one of the following is not the disadvantage
of Government Companies?
(a) Political Interference (b) Red Tapism
(c) Help in balance growth (d) Limited autonomy.
Ans. 1. (b), 2.
(c), 3 (c), 4 (d), 5 (c)
-11- MULTINATIONAL COMPANIES
A. One Word or One Line Questions
Q. 1. What is the full form of MNC?
Ans. Multinational Companies.
Q. 2. Name some
American MNCs.
Ans. Coca Cola, Pepsi,
Ponds, General Motors, IBM.
Q. 3. Name some British MNCs.
Ans. Lipton, Brook
Bond, Hindustan Liver etc.
Q. 4. State two
features of multinational companies.
Ans. (i) Operation in
number of countries. (ii)
Centralised management.
Q. 5. State two methods of operation of Multinational
companies.
Ans. (i) Opening of
Branches. (ii) Giving Franchise.
Q. 6. Give any two disadvantages of MNCs to Host
Countries?
Ans. Disregard for
National Priorities, Creation of monopolies.
Q. 7. State two features of Joint Venture.
Ans. (i) Joint
ownership and Management. (ii) Specified objectives.
Q. 8. State two types of Joint Ventures.
Ans. (i) Contractual
Joint Venture (CJV). (ii) Equity Based Joint Venture (EJV).
Q. 9. State two benifits of Joint Venture.
Ans. (i) Availability
of more resources. (ii) Reduction of competition.
Q. 10. State two drawbacks of Joint Venture.
Ans. (i) Conflicts
among partners. (ii) Problems concerning control and management.
Q. 11. State two benifits of Public Private
Partnership.
Ans. (i) Improvement
in efficiency. (ii) Rapid development of infrastructure.
Q. 12. Describe one disadvantage of Public Private
Partnership.
Ans. Project costs or
the cost of the services delivered under PPP model is high.
B. Fill in the blanks
1. MNC's have their headquarters in......... while
carry out business in.........
2. MNC's try to create......... by eliminating local
competition in the market.
3. Multinational companies carry on their operation in
number of..........
4. There is ............... in MNCs.
5. There is ............ in MNCs.
6. ......... is the best example of Joint Venture
Company.
Ans. 1. Home country, host countries, 2. Monopolies,
3. Countries, 4.
Centralized
5. Management, 6. Maruti
Udyog.
C. True or False
1. Adverse balance of trade is the major problem in
developing countries.
2. There is no need for franchise holder to follow all
the provisions mentioned in
franchise agreement.
3. Multinational Corporations are also called as
multinational companies.
4. MNCs try to dominate the markets of host countries.
Ans. 1. True, 2. False, 3. True, 4. True.
D. MCQ
1. Which type of corporation operates beyond the
boundaries of its home country?
(a) Multinational Corporation (b) Transnational Corporation
(c) International Corporation (d) Global Corporation
2. The main objective of multinational companies is to
make use of
(a) Raw materials (b)
Capital
(c) Labour or market of foreign countries (d) All of the above
3. Home country is the country where MNC is
(a) Incorporated
(b) Selling Its Products
(c) Producing Goods (d) All of the above
4. The home country of 'Suzuki and Sony' is
(a) America (b)
Italy
(c) Japan (d)
France
Ans. 1. (b), 2. (d), 3. (a) 4. (c)
-12- BUSINESS SERVICES
A. One Word to One Sentence
Questions
Q. 1. What are
business services?
Ans. Business Services consist of all those
activities which are concerned with manufacturing and distribution of goods.
Q. 2. Which are two types of funds required by
a businessman?
Ans. Every businessman requires two types of
funds i.e. long term and short term.
Q. 3. Write any one
point of importance of business service.
Ans. Business services enable a businessman to
provide better services to the customers.
Q. 4. Name any four
business services.
Ans. 1. Banking 2. Transportation 3. Insurance 4.
Underwriting.
B. Fill in the blanks
1. Banking,
transportation, insurance etc. are ............ services.
2. The commercial
organisations which provide business services are collectively
called..............sector.
3. ................
funds are needed for the purchase of fixed assets.
4. Specialised
financial institutions which provide long term finance are called
...............banks.
5. Business risks are
covered with the help of................. .
Ans. 1. business 2.
service 3. Long
term 4. development 5.
Insurance
C. True or False
1. Short term funds
are needed to meet day to day expenses of business.
2. Storage and safety
of goods does not come under business services.
3. Business services
help in increasing the sales.
4. Business services
help in the removal of place hindrance through transportation of goods.
5. Discounting of bills of exchange is not a
business service.
Ans. 1. True 2. False 3. True 4.
True 5. False
D. MCQ
1. Which of the following facts highlights
need for business services?
(a) To fulfill
financial requirements (b) Storage and safety of goods (c) both (a) and (b) (d) None of
these.
2. Which institutions
provide long term finance to the businessmen?
(a) Development Banks (b) Business Banks
(c) Both (a) and (b) (d) None of
these.
3. Which of the
following is a business service?
(a) Warehousing (b)
Advertising
(c) Installment of Credit (d) All of
these.
4. Which of the following is a correct statement?
(a) Long term funds are needed for purchasing fixed
assets.
(b) Short term funds are needed for purchasing fixed
assets.
(c) Short term funds are needed for purchasing plant
and machinery.
(d) None of these.
Ans. 1. (c) 2. (a) 3. (d) 4. (a)
-13-BANKING
A. One Word or One Line
Questions
Q. 1. State
main functions of commercial banks.
Ans. The main
functions of commercial banks are accepting of deposits from the public and
providing the loans to trade and industry.
Q. 2. What is the main function of agricultural banks?
Ans. Agricultural Banks provide long term
loans to farmers for purchase of agricultural tools and equipments.
Q. 3. Which agricultural bank provide short term loan
to farmers?
Ans. Co-operative
Banks.
Q. 4. Name the agricultural bank providing long term
loan to farmers.
Ans. Land Mortgage
Bank.
Q. 5. Give one main functions of industrial bank.
Ans. Industrial Bank
provide long term loans to industries for expansion and modernisation.
Q. 6. Which banks deal with foreign exchange business?
Ans. Exchange Banks.
Q. 7. When was NABARD established?
Ans. July 12, 1989.
Q. 8. When was Export-Import (EXIM) Bank established?
Ans.
EXIM Bank was established on January 1, 1982.
Q. 9. State two primary functions of State Bank of
India.
Ans.
(i)
To grant the loans. (ii) To deal in hundies and bill of exchange.
Q. 10. When was
RBI established?
Ans. Reserve Bank of
India was established in 1935.
Q. 11. Which
bank issue currency notes in India?
Ans. Reserve Bank of
India.
Q. 12. State two primary functions of commercial
banks.
Ans. (i) Acceptance of
Deposits. (ii) Granting of loans and advances.
Q. 13. State two secondary functions of commercial
banks.
Ans. (i) Collection of
cheques, bills etc. (ii) Purchase and sale of securities.
Q. 14. State
two utility functions of commercial banks?
Ans. (i) Underwriting
of securities. (ii) Issuing of traveler's cheque and letter of credit.
Q. 15. Which bank account promote the habit of savings
among the low and middle class?
Ans. Saving Bank
Account.
Q. 16. Which bank account is generally opened by
businessmen?
Ans. Current Account.
Q. 17. What is
the utility of current account?
Ans. In this account,
a depositor can withdraw and deposit money at any time during the working hours
without giving any notice to the bank.
Q. 18. What is fixed deposit account?
Ans. Fixed deposit
account is that account wherein a definite amount of money is deposited for a
fixed period and cannot be withdrawn before the expiry of that period.
Q. 19. What is Reccuring Deposit?
Ans. It is an account
in which the depositor agrees to deposit a definite amount of money every month
for a specific period i.e. one year, two years, five years etc. Q.
20. What is Bank Draft?
Ans. Bank draft is a
banking instrument through which customers can transfer or send money from one
place to another.
Q. 21. What is Bank overdraft?
Ans. Bank over-draft is a facility given to
the customer by the bank to overdraw his current account upto a specified
amount.
Q. 22. What is cash credit?
Ans. Under cash
credit, the bank advances loan to the customer by hypothecating his current
assets or fixed assets in its favour.
Q. 23. What is full form of RTGS?
Ans. Real Time Gross
Settlement.
Q. 24. What is full form of NEFT?
Ans. National Electronic
Fund Transfer.
B. Fill in the blanks
1. ......... is called the backbone of modern
commerce.
2. Bank is a financial institution which deals in
money and.........
3. ............ banks accept deposit from public and
provide loans to trade and industry.
4. ........banks deal with foreign exchange business.
5. .........acts as Banker's Bank.
6. Current account is also called
as...........account.
Ans. 1. Banking, 2. Credit,
3. Commercial, 4. Exchange, 5. RBI, 6.open.
C. True or False
1. Indigenous
Bankers provide long term loan to industries for expansion and m odernisation.
2. Imperial bank of India was nationalised and renamed
as State Bank of India on July 1, 1955.
3. State Bank
of India issue currency notes.
4. Reserve Bank of India deals with financial
policies.
5. A lump sum amount of advance made by a bank against
security or otherwise is called loan.
Ans. 1. False, 2. True, 3. False,
4. False, 5.
True
D. MCQ
1. Which one of the following banks provide long term
loan to farmers?
(a) Co-operative Banks
(b) Long Mortgage Banks
(c) Exchange Banks (d)
Industrial Banks.
2. Which one of the following banks issues currency
notes in India?
(a) State Bank of India (b) Reserve Bank of India
(c) EXIM Bank (d)
Both (a) and (b)
3. Which one of the following is the primary functions
of commercial bank?
(a) Acceptance of Deposits (b) Granting of loans and advances (c) Both
(a) and (b) (d) None of the above.
4. The other
name of fixed deposit account is
(a) Saving Bank
Account
(b) Fixed Deposit Receipt
(c) Fixed
Deposit Accountholder
(d) Term Deposit Account
5. The Reserve
Bank of India was established in
(a) 1936 (b)
1934
(c) 1935 (d)
1932 6.
6. NABARD was established in
(a) 1989 (b)
1979
(c) 1987
(d) 1980
Ans. 1. (c), 2. (b), 3. (c), 4. (d),
5. (c), 6.
(a)
-14- INSURANCE AND POSTAL SERVICES
A. One Word or One Line Questions
Q. 1. Define
insurance.
Ans. Insurance is
defined as the equitable transfer of the risk of a loss, from one entity to
another, in exchange for a premium.
Q. 2. What is insurance
policy?
Ans. Insurance policy
is a formal document in written which contains all the terms and conditions of
the contract of insurance.
Q. 3. Who is an insurer?
Ans. It is the
insurance company which undertakes the risk.
Q. 4. Who is an insured?
Ans. A person who has taken up the insurance
policy is called insured.
Q. 5. What is cover note?
Ans. It is an interim
protection note. It is issued by the insurer to the insured.
Q. 6. On what technique, insurance is based?
Ans. Insurance is
based on an important technique known as Tooling System'.
Q. 7. What are the Principles of Insurance?
Ans. Insurable
interest, utmost good faith, indemnity, subrogation, contribution, causa
proxima etc.
Q. 8. What is meant by insurable interest?
Ans. By insurable
interest we mean that there should be some pecuniary interest in the
subject-matter of insurance contract.
Q. 9. What is
the main difference between Insurance and Assurance?
Ans. The word
Insurance is used for fire and marine whereas assurance word is used for life
assurance policies.
Q. 10. What is Re-insurance?
Ans. When an insurance
company insures its risk with other companies it is known as re-insurance.
Q. 11. What is Double Insurance?
Ans. It means taking
more than one policies for the same subject matter.
Q. 12. What is the utility of Life Insurance?
Ans. Protection for
Family, Investment Credit Facility, Encourage Saving etc.
Q. 13. Name some types of Health Insurance Policies.
Ans. Mediclaim
Insurance, Disability Insurance, Maternity Insurance, Dreadful Diseases
Insurance.
Q. 14. What is Mediclaim Insurance?
Ans. This type of
health insurance policy covers the reimbursement of the expenses made on the
treatment during illness
Q. 15. Name some types of Fire Insurance Policies.
Ans. Valued Policy,
Specific Policy, Average Policy, Floating Policy, Reinstatement Policy etc.
Q. 16. What is Marine Insurance?
Ans. Marine Insurance
contract is an arrangement by which the insurer undertakes to compensate the
owner of the ship or cargo for complete or partial loss at sea.
Q. 17. Name types of marine insurance.
Ans. (i) Hull
Insurance (ii) Cargo Insurance (iii) Fright Insurance.
Q. 18. What is Jettison Clause?
Ans. This clause covers the loss caused by throwing off
certain cargo in order to lighten the load on a ship in emergency situations.
Q. 19. Mention any two types of postal services
available in India.
Ans. (i) Registered post (ii) Parcel.
Q. 20. What is speed post?
Ans. Speed post, a
fastest mode of communication, is used for sending letters and parcels in a
short period
B. Fill in the blanks
1. ......... provides cover age for all types of risks
and uncertainties of life.
2. ......... is issued by insurer to insured.
3. Only in ......... a person can claim for all the
policies under double insurance. (Life Insurance, Marine Insurance)
4. .........insurance is r elated with ship, cargo
etc.
5. .........insurance cover the loss due to dishonest
employee misappropriat ion or
embazzlement.
Ans. 1. Insurance, 2. Cover Note,
3. life insurance, 4. Marinem,
5. Fidelity
C. True or False
I. Under
without profit policy, the insured does not get any share in profits of the
insurance company.
2. The insurance policy is always unstamped.
3. Insurance contracts are not enforceable by law.
4. The life insurance policy is generally for a longer
period i.e. 10, 15, 20 years.
Ans. 1 True, 2.
False, 3.
False,
4. True.
D. MCQ
I. The agreement providing for insurance is known as
(a) Premium (b)
Insured
(c) Insurer (d)
Insurance Policy
2. In Marine Insurance, premium is paid in
(a) Regular Installments (b) Lumpsum Amount
(c) Monthly Installments (d) None of the above
3. Which type
of policy remains in force throughout the life of the assured, till his death?
(a) Endowment Policy (b) Group Insurance Policy
(c) Whole Life Policy
(d) With Profit Policy
4. The amount or fee paid under insurance policy is
known as
(a) Bonus (c)
Premium
(b) Subscription Fee (d)
Interest
5. Which one of the following service is provided by
Department of Posts in India? (a) Parcels (b)
Registered Post
(c) Speed Post
(d) All of these.
Ans. 1. (d),
2. (b), 3. (c),
4. (c), 5.
(d)
-15- CONCEPT OF E-BUSINESS AND BUSINESS OUTSOURCING
A.
One Word or One Line
Questions
Q. 1. What is E-Business?
Ans. E-Business is the process of doing business
online, may that be good or service.
Q. 2. What is the full form of B2B?
Ans. Business to Business
Q. 3. What is the full form of B2C?
Ans. Business to Consumer
Q. 4. Name two
resources required for successful E-Business implementation? Ans. (i) Adequate Computer System. (ii) Internet Connection.
Q. 5. State any one feature of e-business.
Ans. It is 24 hours and 7 days service.
Q. 6. What is meant by B2B?
Ans. The transactions taking place between
businesses companies are referred to business to business or B2B transactions.
Q. 7. Name two two
items included in e-Business.
Ans. (i) B2B (H) B2C.
Q. 8. What is B2C?
Ans. The transactions taking place between
business and consumer are known as business to consumer or B2C.
Q. 9. What is C2C
Commerce?
Ans. The transactions
taking place electronically between two or more consumer.
Q. 10. Name two
benefits of e-business?
Ans. (i) E-Business provides customers the
competitive rate. (ii) Market place.
Q. 11. What is meant
by online transactions?
Ans. It refers to transactions taking place
between buyers and sellers through internet.
Q. 12. What is the
common mode of payment for online purchases?
Ans. Through Credit Card and Debit Card.
Q. 13. Name two transaction risks in
e-business.
Ans. (i) Default on order taking (ii) Default on
delivery.
Q. 14. What points
should be kept in mind to ensure security of E-Commerce? Ans.
Authentication, Confidentiality, Integrity, Non-Repudiation etc.
Q. 15. What are the tools available to protect
Information?
Ans. Encryption, Firewalls, Digital Signatures.
Q. 16. What do you
mean by Encryption?
Ans. It is the process of encoding the data so
that it cannot be read by any wrong person.
Q. 17. BPO stands
for?
Ans. Business Process
Outsourcing.
Q. 18. What do you
mean by outsourcing?
Ans. It means availing the services of some
outside agencies.
B.
Fill in the blanks
1. ............. is
required for successful implementation of e-commerce.
2. ...............
refers to all the transactions that take place among persons or department of some
firm.
3. Full form of ISP
is.........
4. ......... is a
program delivered along with e-mails to delete data, mail copies etc.
5. Majority of the
electronic frauds are made by............... .
Ans. 1. Internet
connection, 2.
Infra B-Commerce,
3. Internet Service
Provider, 4. Trojan
Horses,
5. hackers
C. True or False
1. E-business is about buying and selling
products and services on WWW.
2. ISP stands for Internet Subscriber
Provider.
3. An adequate
computer system is required for successfully implementing e-commerce.
4. In B2C Commerce,
companies are allowed to sell goods and services to each other.
5. Majority of
electronic frauds are made by crackers.
Ans. 1. True 2. False,
3. True, 4. False, 5. True
D. MCQ
1. Which one of the following resources are
required for successful e-business implementation 7
(a) Adequate Computer System (b) Internet
Connection
(c) Well designed
website (d)
All of the above.
2. B2B stands for:
(a) Business to
Businessmen (b)
Business to Business
(c) Company to
business (d)
All of the above
3. Which one of the
following is the limitation of E-Business?
(a) Failure to know customers (b) No
customer loyalty
(c) Both (a) and (b) (d) None of the above
4. Which one of the following is the security
issues in E-Business?
(a) Hacking
(c) Virus and Trojan Horses
(b) Brand Hijacking (d) All of
the above
5. Which one of the
following is not a tool to protect Information?
(a) Encryption
(c)n Firewalls
(b) Trojan Horses
(d) Digital Signature.
6. Which services are
efficient and faster as compared to postal services?
(a) Advertisement Services (b) Customer
Support Services (c) Courier Services (d)
Both (a) and (c)
7. Preparing project
reports are covered under the head of
(a) Customer Support Services (b)
Underwriting of Shares
(c) Project Reports (d)
Financial Services
Ans. 1.
(d), 2. (b), 3. (c),
4. (d), 5. (b), 6. (c),
7. (d)
-16- SOCIAL RESPONSIBILITY OF BUSINESS AND BUSINESS ETHICS
A. One Word or one Line
Questions
Q. 1. What do you mean by Social
Responsibility?
Ans. Social Responsibility may be taken to mean
intelligent and objective concern for the welfare of the society.
Q. 2. What is ethical
responsibility of business?
Ans. A business should not be involved in
exploiting customers and employees.
Q. 3. What is legal
responsibility of business?
Ans. Every business is expected to follow rules
and laws for their proper control.
Q. 4. To whom is
Business responsible?
Ans. Shareholders, Investors, Employees,
Community, Government, Competitors, Consumers, Suppliers etc.
Q. 5. Give some arguments to support the
social responsibility of business.
Ans. Long term interest of business, creation of
society, human resources, avoidance of social pressure etc.
Q. 6. State any one
argument against assuming social responsibility by business. Ans. The objective of profit maximisation may not be
achieved.
Q. 7. State two reasons for the need of human
Right.
Ans. (i) Protection against human injustice. (ii)
Check on unlimited powers of the state.
Q. 8. Supplying quality goods at reasonable
prices, towards which group the business is performing this responsibility?
Ans. Consumers.
Q. 9. Give an example of responsibility of
business towards government.
Ans. To pay regular taxes to the government.
Q. 10. Mention any one responsibility of
business towards investors.
Ans. To ensure a adequate rate of return on his
investment.
Q. 11. State one
responsibility of business towards society?
Ans. It must ensure the optimum use of limited
natural resources of the country.
Q. 12. Give one responsibility of business
towards suppliers.
Ans. It must make timely payments to suppliers.
Q. 13. What is meant
by Business Ethics?
Ans. Ethics refers to code of conduct for
business.
Q. 14. Name two
factors affecting Business Ethics.
Ans. (i) Personal values (ii) Social values.
B. Fill in the blanks
1. A businessman has
to obey various ................ enacted by the government.
2. To ensure the
safety of workers, the business should provide better ......... conditions.
3. ......... work for
protection of human rights.
4. Ethics refer to .........
for business.
Ans. 1. Legislations, 2.
Working, 3. NGO's,
4. Code of Conduct
C. True or False
1. Business has no responsibility towards
society.
2. Business houses
have no need to prepare proper records of accounts.
3. Government of
India has established National Human Right Commission at national level with
chapters at state level.
4. The main causes of air pollution are
radioactive gases, carbon monoxide gases etc.
5. A business can
help the society by selling goods and services at prices which consumers are
willing to pay.
Ans. 1. False,
2. False, 3. True,
4. True, 5. True
D. MCQ
1. Business have responsibility towards:
(a) Community
(b) Government
(c) Employees
(d) All of the above
2. Which one of the following is the
responsibility of business towards investors? (a) Business must ensure a
adequate rate of return on their investment.
(b) Business ensure a
reasonable appreciation in the capital of the investors
(c) Both (a) and (b)
(d) None of these
3. Which one of the
following is not the responsibility of business towards employees?
(a) It must pay fair
wages or salaries.
(b) To ensure the
safety of workers, it should provide better working conditions. (c) It must ensure
them security for their jobs.
(d) All of the above
4. Which one of the
following is the responsibly of business towards Government? (a) It must pay
regular taxes to the government
(b) It must maintain
and prepare records of accounts
(c) It should avoid to corrupt the democratic
system
(d) All of the above
5. Which one of the
following is the responsibility of business towards Society?
(a) It must provide employment opportunities
to the society at large.
(b) It must ensure
the optimum use of scarce natural resources of the country.
(c) Both (a) and (b)
(d) None of these
Ans. 1. (d), 2 (c),
3. (d), 4. (d), 5. (c)
-17- SOURCES OF BUSINESS FINANCE
A. One Word or One Line
Questions
Q. 1. What do you
mean by Business Finance?
Ans. Business finance is that business activity
which deals with acquisition, and use of funds in order to achieve the overall
objectives of the business.
Q. 2. Name different categories of finance.
Ans. (i) Public Finance, (ii) Private Finance.
Q. 3. Name types of
Business Finance.
Ans. Long Term Finance, Medium Term Finance,
Short Term Finance.
Q. 4. What are the
main sources of medium term finance?
Ans. Debentures, Banks, Public deposits etc.
Q. 5. What are the
sources of short term finance?
Ans. Commercial Banks, Customer Advances, Trade
Creditors etc.
Q. 6. Name types of shares.
Ans. Equity Shares, Preference Shares, Deferred
Shares.
Q. 7. Why is equity
share called a permanent source of funds?
Ans. Because equity share capital can be returned
only on the liquidation of the company.
Q. 8. Name types of preference shares.
Ans. Cumulative, non-cumulative, redeemable,
irredeemable, participating, non-participating, convertible and non-convertible
preference shares.
Q. 9. What are
Deferred Shares?
Ans. These are known as promoters or founders
shares because these are issued to promoters for their services rendered to the
company.
Q. 10. What is Retained Earnings?
Ans. It refers to that part of total profits which
are re-invested or re-employed into business.
Q. 11. Which category
of shareholders participate in the management of the company?
Ans. Equity shareholders.
Q. 12. Out of owners'
funds and borrowed funds, which one is a permanent source of finance?
Ans. Owner's funds.
Q. 13. What do you
mean by FDI?
Ans. Foreign Direct
Investment means direct investments in projects of domestic economy by a
foreign investors.
B. Fill in the blanks
1. Shor t finance is
generally r equired for a period of .........
2. Other name of
owner 's fund is .........
3. Convertible
preference shares can be converted into......... shares after a specified
period of term.
4. ......... is a
document of acknowledgement of debt.
5. ......... cannot
carry any voting rights.
Ans. 1. 1 year; 2. Ownership Securities; 3. Equity shares;
4. A debenture; 5. Debenture holders
3. Convertible
preference shares can be converted into
shares after a specified period of term.
4. is a document of acknowledgement of debt.
5.
cannot carry any voting rights. MIS.
Ans.1. 1 year; 2. ownership
Securities; 3.
equity shares; 4. A
debenture;
5. Debenture holders
C. True or False
1. Without adequate
finance, no business can carry out its operations.
2. Preference
shareholders are not the owners of the company.
3. Equity shares
cannot be redeemed except in case of winding up of company.
4. In cash credit a customer is given credit
upto a definite limit against his current assets.
5. ADR represents the number of shares hold by
an foreign investor in a company registered in India.
Ans. 1. True, 2. True, 3. True,
4. True, 5. True
D. MCQ
1. What is life blood of every business
enterprise?
(a) Cash (c)
Government
(b) Finance
(d) Owner
2. Medium term
finance is generally required for a period of:
(a) 1 to 3 years (b) 2 to 5 years
(c) 2 to 4 years (d)
1 to 5 years
3. Short term finance
is also called as
(a) Short Term
Capital (c)
Retained Earnings
(b) Working Capital
(d) Both (a) and (b)
4. Debentures are a part of:
(a) Owned Capital (b)
Borrowed Capital
(c) Both a and b (d) None of the above
Ans. 1. (b), 2. (b), 3. (d), 4. (b)
-18- Entrepreneurship
Development
A. One Word or One Line
Questions
Q. 1. Which are
four key factors of production?
Ans. Four key factors
of production are land, labour, capital and entrepreneur.
Q. 2. Who is an
entrepreneur?
Ans. An entrepreneur
is a person who takes the initiative to set-up a business unit.
Q. 3. Define
Entrepreneurship Development.
Ans. Entrepreneurship
Development refers to the process of development of entrepreneurial qualities
of the entrepreneurs.
Q. 4. Write any one feature of entrepreneurship
development.
Ans. It is a system
process of development entrepreneurial qualities.
Q. 5. Describe any one point highlighting the need for
entrepreneurship development.
Ans. Entrepreneurship
development is needed to promote rapid economic growth in the country.
Q. 6. What is
Start-up India scheme?
Ans. It is a flagship
initiative of the Government of India to promote innovations and
entrepreneurship in the country.
Q. 7. Which are the three key areas of Start-up India
scheme?
Ans. (i) Simplification and hand holding. (ii) Funding
support and incentives. (iii) Industry academia partnership and incubation.
Q. 8. What should be the annual turnover of a business
unit to be considered as under start-up India scheme?
Ans. Annual turnover
should not exceed Rs. 100 crore in any of the preceding years.
Q. 9. Write any one feature of Start-up India Scheme.
Ans. It is a scheme
which aims to encourage entrepreneurship.
Q. 10. What is crowd funding?
Ans. Under crowd
funding, funds to finance a start-up are collected from a large number of
people.
B. Fill in the blanks
1. The process of entrepreneurship is undertaken
by..............
2. ..............scheme aims to promote innovations
and entrepreneurship in India.
3. To be included under Start-up India Scheme, a
business entity must not be more than..............years old.
4. Start-up India scheme was launched in..............
5. If bank finance is not available, then start-ups
can be financed through.............. finance.
6. Intellectual property rights for literary and
artistic works are granted under ..............
7. Products having geographical origin are protected
under..............
Ans. 1. entrepreneurs, 2. Start-up India, 3. ten,
4. August 2015, 5. micro,
6. copyright, 7.
geographical indication
C. True or False
1.
Entrepreneurship development helps to achieve a rapid rate of economic growth.
2. Environmental factor do not play any role in
entrepreneurship development.
3. Starting
India scheme is fuanded by the World Bank.
4. Industry-academia partnership is also one of the
key areas of Start-up India Scheme.
5. Start-up India scheme aims to promote innovations
and entrepreneurship development.
6. For getting
benefits under Start-up India scheme, a business unit need not be incorporated
or registered in India.
7. Venture Capital is also a method to fund start-ups.
8. The property created with the help of human
intellect is known as Intellectual Property.
Ans. 1. True 2. False 3. False
4. True _ 5. True 6. False
7. True 8. True
D. MCQ
1. Why is entrepreneurship development needed?
(a) To develop efficient entrepreneurs (b) To encourage
innovations (c) Both (a) and (b) (d)
None of these
2. When was Start-up India scheme launched in India?
(a) January 26, 2015 (b)
August 15, 2015
(c) October 02, 2015 (d)
None of these
3. Which one of
the following is not one of the three key areas of Start-up India Scheme
(a) Starting-up of a new business unit.
(b) Industry-academic partnership.
(c) Funding support and incentives.
(d)
Simplification and handholding.
4. Which one of
the following is not true about Start-up India scheme?
(a) It aims to promote entrepreneurship in the
country.
(b) Tax
benefits are not given to business units under it.
(c) Both (a) and (b)
(d) None of
these
5. Which one of the following is a way to fund a
Start-up in India?
(a) Boot Strapping
(b) Crowd
Funding
(c) Both (a) and (b)
(d) None of these
6. Which of the following statement is correct?
(a) Incubators provide funds to start-up in their
initial stages.
(b) Accelerators provide funds to start-up in their
initial stages.
(c) Both (a)
and (b)
(d) None of these.
7. Those start-ups which fail to get finance from
banks, from where can those obtain funds?
(a) Micro finance and
NBFCs
(b) Venture Capital
(c) Winning Contest Funds
(d) None of these
8. Which one of the
following is not a type of intellectual property?
(a) Industrial Design
(b) Venture Capital
(c) Trademark
(d) Copyright
9. Which one of the following is not
industrial property?
(a) Copyright
(b) Trademark
(c) Industrial Design
(d) All of these
10. Who among the
following don't have copyrights?
(a) Authors
(b) Agriculturalists
(c) Artists
(d) Architects
Ans. 1. (c) 2. (b) 3. (a) 4. (b)
5. (c) 6. (a) 7. (a) 8. (b)
9. (a) 10.
(b)
-19- Small Scale Enterprises
A. One Word or One Line
Questions
Q. 1. Which are
various categories of small scale enterprises in India?
Ans.Various categories of small scale
enterprises in India are micro, small and medium enterprise.
Q. 2. Under
which act, were small scale enterprises defined in India?
Ans. Small scale enterprises were defined in India under
Micro, Small and Medium Enterprises Development act 2006.
Q. 3. When were the recent changes made in the
definition of MSMEs?
Ans. May and June 2020.
Q. 4. How are MSMEs being defined in India under the
latest revision of their definition?
Ans. As per the
revision carried out in May and June 2020, MSMEs are being defined on the basis
of investment made and annual turnover.
Q. 5. How are
micro enterprises defined as present?
Ans. Micro
Enterprises: (1) Investment: Less than Rs.1 crore
(2) Annual
Turnover: Less than Rs.5 crore.
Q. 6. Define
small enterprises as per the latest definition.
Ans. Small
Enterprises: (1) Investment: More than Rs.1 crore, but less than Rs.10 crore.
(2) Annual Turnover: More than Rs.5 crore, but less
than Rs.50 crore.
Q. 7. What is
the role of MSMEs in employment generation?
Ans. MSMEs generate
large number of employment opportunities.
Q. 8. Name any two
agencies which provide help to small scale business enterprises.
Ans. (1) National
Small Industries Corporation (NSIC)
(2) The
District Industries Centres (DICs)
B. Fill in the blanks
1. Small scale business enterprises refer
to............ .
2. In India, MSMEs have been defined under............
Act, 2006.
3. In India, small business enterprises are classified
in............ categories.
4. In case of manufacturing enterprises MSMEs were defined
on the basis of investment in........... under the MSMED Act, 2006.
5. As per the latest revision, maximum annual turnover
limit for medium enterprises is Rs............ crore.
6. MSMEs are more suitable to............ countries.
7. MSMEs used............ intensive technique.
8. NSIC was established in ............ .
Ans. 1. MSMEs, 2. MSMED, 3. three,
4. plant and machinery, 5. 250,
6. developing. 7. labour, 8. 1955
C. True or False
1. At present,
MSMEs are being defined in India on the basis of investment made and annual
turnover.
2. The
contribution of MSMEs in total GDP of India is negligible.
3. MSMEs play a very vital role in the rural
development in a developing country like India.
4. MSMEs
generally use imported technology and important resources.
5. NSIC has set-up its branches in all the district
headquarters throughout the country.
6. NSIC helps the MSMEs in profitable marketing of
their products.
7. DICs have been providing a wide range of services
to the small scale business enterprises in India.
Ans. 1. True, 2. False, 3. True,
4. False, 5. False, 6. True,
7. True
D. MCQ
1. Which of the
following is a type of small scale business enterprise in India?
(a) Micro
enterprises
(b) Small enterprises
(c) Medium
enterprises (d)
All of these
2. Micro, small and medium enterprises are defined in
India under MSMED Act, on the basis of which of the following criterion.
(a) Investment
in plant and machinery in case of manufacturing enterprises.
(b) Investment
in equipment in case of service enterprises.
(c) Both (a) and (c)
(d) None of
these
3. Which of following is correct about the latest
definition of MSMEs in India?
(a) It defines
both manufacturing enterprises and services enterprises on the basis of a
composite criteria.
(b) It defines MSMEs on the basis of investment made
and annual turnover.
(c) Both (a) and (b)
(d) None of these
4. Which of the
following is not a benefit of small scale business enterprises?
(a) Adoption of
Capital intensive techniques
(b) Adoption of
labour intensive techniques
(c) Both (a) and (b)
(d) None of
these
5. Which of the
following highlights the role of MSMEs (Small Business) in rural areas?
(a) Generation
of employment opportunities
(b) Focus on
local area
(c) All of
these
(d) All-round rural development
6. The DICs are set-up in India
(a) At the department level
(b) At the
district level
(c) Both (a) and (b)
(d) None of these
Ans. 1. (d), 2. (c), 3. (c),
4. (a), 5. (d), 6. (b).
-20- INTERNAL TRADE
A. One Word or One Line
Questions
Q. 1. What do you mean by Internal trade?
Ans. Internal trade
refers to buying and selling of goods inside the geographical boundaries of a
country.
Q. 2. What are the other names of Internal Trade?
Ans. (i) Home Trade.
(ii) Domestic Trade.
Q. 3. Name the
types of Internal Trade.
Ans. (i) Direct Sale.
(ii) Indirect Sale.
Q. 4. What is direct sale?
Ans. When producer or
manufacturer directly sells the goods to the consumers then it is known as
Direct Sale.
Q. 5. What is Indirect Sale?
Ans. When producer or
manufacturer sells their products to the intermediaries i.e. wholesaler,
retailers etc. it is known as Indirect Sale.
Q. 6. What is
wholesale trade?
Ans. The wholesale
trade means large scale buying of goods from the manufacturers and selling them
in small quantities to various retailers.
Q. 7. Who is wholesaler?
Ans. A wholesaler
purchases goods from manufacturers in large quantity and resells them to
retailers in small quantities.
Q. 8. Name the trader who is a link between
manufacturer and retailer.
Ans. Wholesaler.
Q. 9. Name two
services provided by a wholesaler to the manufacturer.
Ans. (i) Facilitating
large scale production. (ii) Helping in marketing information.
Q. 10. What is the meaning of retail trade?
Ans. Retail trade refers to buying of goods in relatively
small quantities from wholesalers and selling them to ultimate consumers.
Q. 11. Name the trader acting as a link between the
wholesaler and consumer.
Ans. Retailer.
Q. 12. Describe one service of retailers towards
wholesaler
Ans. The retailers provide valuable market
information to wholesalers about the changing attitude of the consumers towards
their tastes and fashion.
Q. 13. Describe
one service of retailers towards consumers.
Ans. The retailers
inform the consumers about the arrival of new products in the market.
Q. 14. Name different types of Retailers.
Ans. (i) Itinerant
Retailers/Mobile Retailers (H) Fixed Shop Retailers.
Q. 15. Name types of Fixed Shop Retailers.
Ans. Small Scale,
Large Scale.
Q. 16. What is the other name of Multiple Shops?
Ans. Chain Stores.
B. Fill in the blanks
1. Complete the
channels of distribution........., Agent......... Retailer.........
2. Wholesaler is the link between.........
and.........
3. The term retailer has been taken from French
word........
4. ......... carry their goods on their heads or their
backs and move from door to door in the residential localities of a city.
Ans. 1. Producer, Wholesaler. Customer, 2.
Manufacturer and Retailer, 3. 'Re-taller', 4. Peddlers
C. True or False
1. The
wholesaler purchases goods from retailers and sell it to customers.
2. The retailers are last link in chain of
distribution of goods to consumers.
3. The
retailers mostly transact business on credit basis.
4. A departmental store of many retail shops under one
roof and management.
5. Super Bazaar is an example of retail shop.
Ans. 1. True, 2.
True,
3. False, 4.
True,
5. False
D. MCQ
1. The wholesaler sell
goods at
(a) Low Prices
(c) Moderate Prices
(b) High Prices (d)
Both (a) and (b)
2. Which one of the following is correct regarding the
wholesalers?
(a) Wholesaler is a link between manufacturer and
retailer
(b) Wholesaler purchases goods on credit and sellers
them to retailers in cash
(c) Wholesaler
provides financial help to producers as well as retailers
(d) Both (a) and (c)
3. Departmental stores are having
(a) Low Operating Cost
(b) High Operating Cost
(c) Reasonable
Operating Cost
(d) None of the above
4. Which one of the following is the advantage of
Departmental Store?
(a) Central Location
(b) Large variety of goods
(c) Public utility service to their customers
(d) All of the above
5. The stores which deals in one type of product is
known as:
(a) One price shops
(c) Chain Stores
(b) Street Stall Holders
(d) General Stores
Ans. 1. (a), 2. (d), 3. (b)
4. (d), 5.
(c)
-21- INTERNATIONAL TRADE
A. One Word or One Line
Questions
Q. 1. What do you mean by international trade?
Ans. Buying and selling of goods between two
or more nations is called international trade.
Q. 2. What are the other names of international trade?
Ans. (i) Foreign Trade
(ii) External Trade.
Q. 3. Name types of International Trade.
Ans. (i) Export Trade,
(ii) Import Trade, (iii) Enterpot trade.
Q. 4. What does
Enterpot Trade mean?
Ans. Enterpot trade
means purchasing or importing the goods into one country for the purpose of
exporting them to some other countries.
Q. 5. What is Export Trade?
Ans. The selling of goods to the traders of
other countries is known as export trade.
Q. 6. What is Import Trade?
Ans. Buying the goods
from the traders of the other countries is known as Import Trade.
Q. 7. When a trader of Ludhiana sells goods to the
trader of USA, which type of trade is it?
Ans. Export Trade.
Q. 8. When a trader of India buys the goods from the
trader of Japan, which type of trade is it?
Ans. Import Trade.
Q. 9. What is sent to importer along with shipment
advice?
Ans. A non-negotiable
copy of bill of lading and master document copy.
Q. 10. Name types of Bill of Lading.
Ans. Clean Bill of
Lading, Foul Bill of lading, Thorough Bill of Lading.
Q. 11. Who
issued certificate of Inspection?
Ans. It is issued by
the Export Inspection Council of India (EIC) to ensure that proper quality of
goods are exported.
Q. 12. What do you mean by Red Book?
Ans. The Import Trade
Control Policy Book is called Red Book. It contains the import policy declared
by the Indian government.
Q. 13. Define Indent.
Ans. It is just a form
of order which is sent to the exporter for goods to be imported.
Q. 14. When did World Trade Organisation come into
existence?
Ans. World Trade
Organisation came into existence on January 01, 1995.
Q. 15. State
any one primary objective of World Trade Organisation.
Ans. WTO has the
primary objective of promoting free trade in both, goods and services all over
the world.
Q. 16. Write
down one main function of World Trade Organisation.
Ans. Main function of
WTO is to administer various agreements made under the aegis of VVTO Q.
17. Write down
one benefit of World Trade Organisation.
Ans. WTO has played a
vital role in the settlement of many trade disputes among member nations.
B. Fill in the blanks
1. ......... is
an essential document of foreign trade.
2. The cost of transportation is high in ......... as
compare to Home Trade.
3. There are ......... restrictions in home trade.
(more, no)
4. Before exporting the goods, it is compulsory for An
exporter to get.........
5. ......... is the second step of export procedure.
6. Airway Bill is a ......... bill issued by the
airline for carriage of goods.
7. ......... is last step of export procedure.
8. ......... will depute an inspector for the purpose
of inspecting the goods.
Ans. 1. Foreign Bill, 2. Foreign Trade, 3. no.,
4. code number from
RBI, 5. Importer Exporter
Code Number,
6. Non-transferable,
7. Presentation of
documents to bank,
8. Inspecting Agency
C. True or False
1. Regional
Licensing Authority will issue Importer-Exporter code number to the exporter.
2. Export invoice is a basic document in export
transaction which contains information about the description of goods, value of
goods etc.
3. A bill of
exchange is non-negotiable instrument.
4. PAN is permanent acceptance number.
5. Drawer is maker of the bill to whom payment is due.
6. To import the goods into India, the importer has to
obtain a valid license under the Imports and Export Act, 1947.
7. The goods
covered by Open General License cannot be imported by obtaining a general
permission only.
8. Indent house
act as a middleman between importers and exporters.
Ans. 1. True, 2.
True, 3. False,
4. False, 5. True, 6. True,
7. False, 8. True
D. MCQ
1. At time of foreign trade, a large number of
documents are required to prepare by
(a) Exporter (c) Both a and b
(b) Importer
(d) None of the above
2. Which document starts with the words "Shipped
in good order and condition". (a) Thorough Bill of Lading
(b) Clean Bill
of Lading
(c) Foul Bill of Lading
(d) None of the above
3. Which document is used when a general ship carries
many consignments as a common carrier.
(a) Cart Ticket
(b) Mate's Receipt
(c) Shipping Bill
(d) Bill of Lading
4. Number of parties to a bill of exchange
(a) Two
(b) Four
(c) Three
(d) None of the above
5. D/A stands
for
(a) Document against Payment
(b) Document against Acceptance
(c) Document against
Airway Bill
(d) Both b and c
6. Which of the following documents are used in import
trade?
(a) Quota
Certificate
(b) Bill of Sight
(c) Letter of
Credit
(d) All of
these
7. Which of the
following document specify the quantity and value of good which the importer
can import?
(a) Letter of
Credit
(b) Dock Challan
(c) Advice Note
(d) Quota Certificate
8. Which method an importer can adopt for payment of
price?
(a) Letter of
Credit
(b) Bill of Exchange
(c) Payment to
the exporter's agent
(d) All of the above
9. Import trade is carried on under the control of
(a) Importer
(c) Both (a) and (b)
(b) Exporter
(d) Government
