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Q1 Define services and goods. Ans: Services: Services are defined as all those economic activities which are intangible and imply an interaction to be realised between service provider and the consumer.
Goods: A goods is defined as the physical product capable of being delivered to a purchaser and that involves the transfer of ownership from seller to the customer. Goods also generally used to refer to commodities or items of all the types, excepting services, being involved in trade or commerce.Q2 What is e-banking. What are the advantages of e-banking? Ans: Recent world is of computers. Computers are affecting every walk of our life or our daily routine of an particular individual or an organisation. By the extensive network of computers which is connected through internet, the world is rendered into the global village. With the disclosure of Internet banking, banking scenario is also changing quickly. E- banking implies performing all the functions or duties of commercial banks to be conducted electronically. Advantages of e-banking are as follows:
1. Helps to manage savings and checking accounts, apply for loans quickly and easily round the clock.
2. Customers can see balances on line and find out whether cheques or deposits have cleared.
3. Customers can easily transfer their funds between the two accounts.
4. It gives demat services for the shares.
5. Customers can easily down load financial information (relating to their FDs, A/c, cheques, Bills etc.) into personal computer rapidly.Q3 Write a note on various telecom services available for enhancing business. Ans: Different types of telecom services which are as follows:
1. Cellular Mobile Services : These services are all types of mobile telecom services which includes voice and non-voice messages, data services and PCO services that utilizes any type of network equipment within their area of service. They can also provide direct inter-connectivity relationship with any other type of telecom service provider.2. Radio Paging Services : This Service is an affordable means of transmitting information to on person to another persons even when they are on mobile. It is a one- way information broadcasting solution, and has spread its reach on far and wide levels . Radio paging services are available that includes tone only, numeric only and alpha/numeric paging etc.
3. Fixed line Services : These are fixed services which includes voice and non-voice messages and data services to establish linkages for distantly located traffic. These uses any kind of network equipments that firstly connected through fibber optic cables laid across length and breadth of the country. They also gives inter connectivity with other types of telecom services too.
4. Cable Services: These are the linkages and switched services within a licensed area of operation to handle the media services which are one way and are entertainment related services. The two way communication includes voice, data and information services through cable network would collides significantly in the future. Services's offerings through the cable network would be identical to providing fixed services.
5. VSAT Services: (Very Small Aperture Terminal) refers as satellite-based communication services. It offers business and government agencies a highly flexible and reliable and uninterrupted service which is equal to or better than the land-based services. It can be used to provide pioneering the appellations like Tele-Medicine, Newspapers-on-line, Market rates, the teleeducation even in the most remote areas of our country.
6. DTH Services: DTH which means Direct to Home; is again a satellite based media services that is provided by the cellular companies. One can receive media services directly through the satellite with the help of a small dish antenna and a set top box. The service provider of DTH provides a bouquet or offer of multiple channels whcih can be seen on our television without being dependent on the services which is provided by the cable network services provider.
Q4 Explain briefly the principles of insurance with suitable examples. Ans: Principles of insurance are as follows:
(a) Utmost good faith: It is the principle of insurance that insured person should open or defined all the facts to the insurer. Non disclosure of these facts by the knowledgeable party could affect the validity of such types of contract; e.g. in a court case in England, the court decided that the insurance company could not be made to pay the claim, since it had come to know of the disease after the person has died.(b) Indemnity: Indemnity's contract is one where the insured person is paid only the original amount of loss or the amount of the policy, whichever is low e.g. a person insured his house against fire and later he agreed to sell his house to another person. Before the completion of sale the house was damaged by fire. The seller received not only the compensation from the insurance company but also, the price of the house from the buyer as per the sale's contract. The court decided that the insurance company could recover the amount it had paid. But life insurance contracts are treated well.
(c) Insurable interest: It shows a legally recognisable relationship between the person insuring another person or thing, (b) the person or thing which is insured like that he will stand to gain in financial terms if the person or thing insured by him without being stop to exist, and he would suffer a financial loss if that person dies or that thing is destroyed. Thus, X cannot insure the life of Y if there will be no relationship between the two of them.
(d) Cause proxima: An insured person can overcome the loss only if it is caused by any of the risks insured. Such types of risk should be the closest, and not a distant or remote, because of the loss e.g. a ship carrying oranges has met with an accident as a conclusion of which there is some delay in unloading and the oranges were also spoilt. In this case, the loss is not due to the accident but because of the getting late in unloading. Hence, the shipper would not be much able to overcome the loss from the insurance company.
(e) Contribution: When we take advantage of insurance company, we have to pay the contribution. Its motif is to divide the actual amount of loss among the various different insurers who are liable for the same risk in respect of the same subject matter, under different policies. However, this does not apply to life insurance e.g. X insures his house against the fire for Rs. 20,000 with insurer Y and Rs. 40,000 with insurer Z. If the house catches the fire and the actual loss amounts to Rs. 24000 then Y will be responsible to pay Rs. 8,000 and Z Rs. 16000. If the whole amount of loss is paid by Y, he can recover Rs. 16000 from Z and if it is paid by Z, he can recover Rs. 8,000 from Y.
(f) Subrogation: The principle of subrogation appeals in the fire and marine insurance only. It is understood that one paying the amount of loss to the insured person, the insurance company will become entitled to all the signs that were available to the insured person to protect himself against the loss i.e. after paying full indemnity in respect of the loss to the assured, the insurer will come into the shoes of the assured and exercise all rights and remedies to which the assured was entitled against third parties and continue doing so until he has recouped the entire amount will be paid under the policy to the assured.
(g) Period of insurance: Life insurance's contract is a continuing contract subject to regular payments of premium. A contract of fire insurance is for a fixed duration. A contract of marine insurance may be for certain period of time or for a certain voyage.
Q5 Explain warehousing and its functions. Ans: Warehousing: It described as to preserving a quantity of goods for the use when it required. Functions of warehousing are as given below:
1. Consolidation: In this function the warehouse receives and consolidates, materials or goods from various different production plants and dispatches the same to particular customer on a single transportation shipment.
2. Break-Bulk: This function described as the shipment of bulk quantity of goods from the production plants to the various distribution warehouse and then reshipment in small amount of quantities to different customers.
3. Stock Piling: The another function of warehouse is the seasonal storage of goods to select business for e.g. Agriculture products are harvested at particu;ar times with subsequent consumption throughout the whole year.
4. Value-added Services : Certain value added services are also given by the ware houses like in the transit mixing, packaging and labelling etc.