RBSE Solutions for Class 9 Social Science Chapter 18 Business and Commercial Activities

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RBSE Solutions for Class 9 Social Science Chapter 18 Business and Commercial Activities are part of RBSE Solutions for Class 10 Social Science. Here we have given Rajasthan Board RBSE Class 9 Social Science Chapter 18 Business and Commercial Activities.

Board RBSE
Textbook SIERT, Rajasthan
Class Class 9
Subject Social Science
Chapter Chapter 18
Chapter Name Business and Commercial Activities
Number of Questions Solved 61
Category RBSE Solutions

Rajasthan Board RBSE Class 9 Social Science Chapter 18 Business and Commercial Activities

TEXTBOOK QUESTIONS SOLVED

Multiple Choice Questions (MCQs)

Question 1.
What should be the objective of business?
(a) Maximum profit earning
(b) Only service
(c) Welfare of people workers working in the institution.
(d) Earning profit by consumer satisfaction through social service
Answer:
(d).

Question 2.
Meaning of Business:
(a) Manufacturing of goods
(b) Sale and purchase of goods
(c) Advertisement of goods
(d) Any economic activity
Answer:
(b).

Question 3.
Following is included in business:
(a) Production of goods
(b) Distribution of service
(c) Distribution of goods
(d) Production and Distribution of both goods and services
Answer:
(d).

Question 4.
Which of the following is not correct?
(a) Business is related with sales and purchase of goods
(b) Commerce is a part of business
(c) Business is a part of Industry.
(d) Activities which make the business easy to run are called auxiliary activities.
Answer:
(c).

Question 5.
In ancient times temples in India were gold plated because:
(a) In those days such tradition was in practice
(b) Indian traders brought with them gold and gold coins after selling their goods in foreign lands.
(c) Devotees loved golden temples.
(d) Golden temple looked beautiful
Answer:
(b).

Question 6.
The main function of Banks are:
(a) Give loan
(b) Receive deposits
(c) Receive deposits & giving loan
(d) Doing business
Answer:
(c).

Question 7.
Law of compensation is not bound:
(a) in sea insurance
(b) in vehicle insurance
(c) in life insurance
(d) in fire insurance
Answer:
(c).

Question 8.
Investment element is present in:
(a) in sea insurance
(b) in life insurance
(c) in fire insurance
(d) in crop insurance
Answer:
(b).

Question 9.
In Insurance contract the most reliable means:
(a) Believe in Insurance document
(b) Believe of insurer in Insurance company
(c) Believe in insurer and insured
(d) Presentation of important facts of insured object by the insurer
Answer:
(c).

Question 10.
Which of the following means can send printed or pictorial message in the same form?
(a) Telephone
(b) Telegram
(c) Telex
(d) Fax
Answer:
(d).

Very Short Answer Type Questions

Question 1.
What do you understand by business?
Answer:
All human economic activities related with the production and distribution of goods and services, aimed at earning profit is called business.

Question 2.
Write the meaning of profession.
Answer:
Any activity or service made available by a qualified and trained person using his specific knowledge or skill in return for the amount of fees is called profession.

Question 3.
To which category of industry are these acts related?
Answer:
Activity                                     Category of Industry
Fishing from sea                        Answer: Extraction.
Weaving cloths                           Answer: Manufacturing.
Animal husbandly                     Answer: Genetic.
Construction of dams               Answer: Construction.

Question 4.
Which auxiliary activity can remove the obstacle of distance?
Answer:
Transportation activity can remove the obstacle of distance.

Question 5.
Which auxiliary activity helps to remove the obstacle of risk?
Answer:
Insurance activity removes the obstacle of risk.

Short Answer Type Questions

Question 1.
Write any four characteristics of business?
Answer:
Four characteristics of Business are:

  1. Human Economic activities.
  2. Transaction of goods and services.
  3. Production and distribution.
  4. Continuity in business transactions.

Question 2.
Which activities are included in commerce?
Answer:
Commerce includes the main activity of distribution of goods and services besides the auxiliary activities like transportation, warehousing, insurance, communication, bank and many other financial institutions.

Question 3.
How is trade different from commerce?
Answer:
Differences between Trade and Commerce:

  1. Meaning:
    Purchase and sale of goods and services for profit is called trade. Commerce is related with the trade and its auxiliary activities.
  2. Objective:
    Trade aims at exchange of goods and services. The objective of commerce is to remove obstacle from the ways of exchange of goods and services.
  3. Scope:
    The scope of trade is limited whereas the scope of commerce is wide.
  4. Creation of utility:
    In case of trade authority utility is created whereas in case commerce, Time, place and authority utilities are created.
  5. Interdependence:
    The basis of trade is industry and the basis of commerce is trade.

Question 4.
Write the types of industries on the basis of nature of work.
Answer:
Types of Industries on the basis of nature of work are:

  1. Genetic Industries:
    Industries which are concerned with the generating activities like agriculture, gardening, animal husbandry, fishery, poultry, forestry etc.
  2. Extractive Industries:
    Various kinds of goods are extracted from natural resources like land, forests, water etc. A few example of extractive industries are getting coal, iron, copper, natural oil, gas etc. through mining, catching fish from sea, wood, herbs, gum, rubber etc. from forests etc.
  3. Manufacturing Industries:
    In such industries raw material and semi-finished goods are transformed into finished goods, e.g. Making sugar from sugarcane, cloth from cotton, furniture from wood etc.
  4. Constructive (Building) Industries:
    They create means which are more useful to the people, like building roads, bridges, canals, dams, etc.
  5. Assembling Industries:
    Here some parts of a machine are assembled so to make them useful for the consumer, e.g. computers, cars, watches, etc.

Question 5.
Give any four activities of business objective.
Answer:
The four activities of Business objective are:

  1. To earn satisfactory profit.
  2. Providing satisfaction to the customer.
  3. Avoid profiteering and unfair trade practice.
  4. Keeping the national interest in priority, welfare and social security to workers. To provide opportunity of promotion, salary and working facilities.

Question 6.
Write any four acts of human objectives in business.
Answer:
Four acts of human objectives:

  1. Humanistic behaviour with labourers and workers.
  2. To provide adequate salary and good working conditions.
  3. To manage labour welfare and social security. ,
  4. To settle the grievances of workers as early as possible.

Question 7.
Name the various modes of transportation.
Answer:
Various modes of transportation are:

  1. Land Transportation:
    1. Rail Transport
    2. Road Inland Transport.
  2. Air Transport-Aeroplanes.
  3. Water Transportation:
    1. Shipping and
    2. Internal Water Transport.

Long Answer Type Questions

Question 1.
Explain the meaning of business and its main characteristics.
Answer:
Meaning of Business:
All human activities that are related to purchase and distribution of goods or services and that are aimed at making profit, are called business. In the modern process of globalization business is also aimed at satisfaction of various needs of the whole society. In other words business includes all those legal human economic activities that are performed for regular production and distribution of goods and services and are aimed at securing social satisfaction so that the living standard of the society is improved.
Characteristics of Business:

  1. Human Economic Activities:
    All economic activities related with earning of profit, by human beings, are business. Activities of non-economic men like saints, hermits or missionaries are not included in business.
  2. Transaction of Goods and Services:
    In business there is a transaction of goods and services and that transaction may be of consumer goods such as clothes, jewellery, sweets, etc. or industrial goods such as machinery, services like, transportation, warehousing, insurance, banking etc. are also included in business.
  3. Production and Distribution:
    In business both goods and services are produced and distributed but to produce the goods for one’s own use, is not business.
  4. Continuity in Business Transactions:
    Continuity in business is necessary for business distribution and production of goods and services.
  5. Legality:
    The illegal human activities like theft, smuggling, gambling, black marketing, etc. are not included in business.
  6. The Main Objective of Business is to earn Profit:
    Earning profit is very necessary to maintain development and expansion of business.
  7. Presence of Risk:
    There is a possibility of loss in every business. The capacity to bear such losses called risk. Greater the possibility of risk in a business, greater are the chances of earning profit in that business.
  8. Mutual Interest:
    Business is not done for one sided profit. It is for mutual interest or satisfaction. If the customer is not satisfied, the business cannot be stable in the market. Thus, the mutual interest or satisfaction between businessman and the consumers is very essential.
  9. Means of Social Change:
    Business can help people enhance their means of earning. An improvement in earning leads to better living standard and consequent change in the process of thinking according to social needs.
  10. Creation of Utilities:
    Creation of the quality of satisfying the consumers’ need in goods by the use of human abilities is called creation of utility.

Following utilities are created by business:

  1. Form utility
  2. Place utility
  3. Time utility
  4. Authority utility

Question 2.
What do you understand by the objectives of business. Explain in detail the objectives of business.
Answer:
Objectives of Business:
According to the traditional concept the main purpose of business was to earn profit but in the modern -competitive age and according to Urwik, earning profit cannot be the only aim of business. To serve society is also regarded as a prominent aim of business.
According to William G. Scott: Objective of business must be the satisfaction of human needs because the right to conduct business is also given by an organised society.

A businessman runs his business to satisfy various groups of society to achieve the following objectives:
(a) Profit Objective: According to Peter. F. Drucker, “ The aim of any business is not to earn maximum profit but earn to such an extent that is sufficient to bear its inherent risk or to save oneself from the loss.” Therefore to earn profit is a basic need for the continuance, development and expansion of the business.
The following are the main objectives for the fulfilment of this economic aim:

  1. To earn satisfactory profit.
  2. To innovate the business methods.
  3. To improve quality of goods and services so that the customers may get better product at lower prices.
  4. To look for new markets and to create new customers.
  5. To develop and expand business activities.

(b) Service Objective: Service along with profit has become the main aim of the business.
For fulfilling this aim the main activities are to:

  1. Provide goods as per needs of the customers.
  2. Supply better quality goods at fair price.
  3. Avoid profiteering and unfair trade practices.
  4. Provide after sale service.
  5. Avoid false and misleading advertisements.
  6. improve new techniques.

(c) Human Objective:
The humanistic aim of a businessman is to deal with various human groups in a proper manner, to protect their interests and to establish proper adjustment among them.
In order to achieve this humanistic aim one has to do these activities:

  1. Humanistic behaviour with workers and labourers.
  2. To provide adequate salary and good working conditions.
  3. To manage labour welfare and social security.
  4. To settle the grievances of workers as early as possible.
  5. To provide opportunities of promotions and development of employees.
  6. To ensure proper returns to the investors.
  7. To ascertain the security of the invested capital.
  8. To be cooperative towards the suppliers and to pay proper price for their material.
  9. To make available maximum opportunities for employment.
  10. To keep in view national interests and priorities.

Question 3.
Write an essay on the scope of business.
Answer:
Scope of Business:
Business is a comprehensive term. All those activities that are related to the production and distribution of goods and services are included in the area of business. Thus business includes two types of activities, i.e. the production related activities known as Industry and distribution related activities known as commerce. Thus business covers the scope of industry as well as commerce. Industry means the business activities performed to produce goods by using physical or natural resources and transforming them into consumable goods which may meet the needs of the consumers.

Commerce: It is related with the acts to distribute goods to the consumer at proper place, time, manner, quantity and price. In this process of distribution commerce has to seek help from many auxiliary institutions like transportation, warehousing insurance, communication, bank and other financial institutions.
All the commerce related activities are of two categories:

  1. Trade and
  2. Auxiliary activities of trade.

Thus scope of business includes Industry and commerce as explained above.

Question 4.
Explain difference between trade, commerce and Industry.
Answer:
These three aspects of Business can be distinguished from each other on the below given basis:

  1. Meaning:
    Trade: Purchase and sale of goods and services for profit is called trade. Commerce: Trade and auxiliary activities of trade are included in commerce. Industry: The production of goods and services is called industry.
  2. Objective:
    Trade: The objective of trade is exchange of goods and services.
    Commerce: The objective of commerce is to remove the obstacles from the ways of exchange of goods and services.
    Industry: The objective of industry is to produce goods and services.
  3. Scope:
    Trade: The scope of trade is limited to the purchase and sale of goods. Commerce : Scope of commerce is wide. It includes trade and its auxiliary activities. Industry: It includes all types of activities related to production.
  4. Creation of Utility:
    Trade: Authority utility is created.
    Commerce: Time, place and authority utilities are created.
    Industry: Form utility is created.
  5. Interdependence:
    Trade: It is based on industry.
    Commerce: Basis of commerce is trade.
    Industry: It is based on commerce.
  6. Ownership:
    Trade: It is owned and controlled by merchants, wholesalers, retailers, importers and exporters. .
    Commerce: It is owned and controlled by merchants and commercial men. Industry: It is owned by industrialists.
    Thus trade, commerce and industry though part of the business, are distinguished from each other.

Question 5.
What do you understand by Industry? Write different types of industries?
Answer:
Industry is related with those activities which are conducted to produce goods by harnessing different physical or natural resources, so as to fulfil the needs of the consumers. Thus, industry creates ‘Form utility’ through processing, manufacturing, construction and extraction.
On the basis of nature of work the industries can be categorised into five types as given below:

  1. Genetic Industries as:
    • Agriculture
    • Horticulture
    • Gardening
    • Animal Husbandry
    • Fisheries
    • Poultry
  2. Extractive Industries:
    • Mining to get coal, iron, gas, natural oil, etc.
    • Fishing to catch fish
    • Hunting in the forest
    • Harnessing, wood, herbs, gum, rubber, etc. from forests.
  3. Manufacturing Industries:
    • Making sugar from sugarcane
    • Clothes from cotton.
    • Furniture from wood
    • Cement industry
    • Paper industry
    • Soap industry
    • Jute Industry etc.
  4. Constructive Industries: Construction of
    • Roads
    • Bridges
    • Canals
    • Dams and Buildings
  5. Assembling Industries:
    • Computer
    • Car
    • Scooter
    • Watches
    • Television sets etc.

Question 6.
Explain the various types of banks.
Answer:
Various types of banks:

  1. Central Bank:
    It is the apex bank in the banking system of the country. Reserve Bank of India is the central bank in India, performing the following functions:

    1. It regulates and controls the credit effectively.
    2. It exercises control on all banking activities.
    3. It issues currency and is the representative of the government of India.
  2. Commercial Banks:
    These banks do general banking functions. These banks are working both in the public as well as private sectors. In India there are 27 commercial banks, i.e. State Bank of India and its associates.
    Functions of the commercial banks:

    1. They deposit money and advance loans.
    2. They transfer money as the agents of the customers.
    3. They collect bank drafts and cheques and arrange their payment.
  3. Co-operative Banks:
    In India the co-operative banks are functioning, mainly to fulfill the need of agricultural credit. They work on the basis of co-operative principles.
    There is three-tier system of cooperative banks in India:

    1. State co-operative bank at state level.
    2. Central co-operative bank at district level.
    3. Primary Agricultural Credit Co-operative Societies (Samities) at village level.
      For a long term credit the government has established Central Land Development Bank at State level and Primary Land Development bank at district level.
  4. Industrial Development Bank:
    Most of the Industrial banks came into existence after independence as at the central level Industrial Finance Corporation of India, 1948, Industrial Credit and Investment Corporation of India 1955, Industrial Development Bank of India, 1964 and Industrial Reconstruction bank of India 1985 and at state level there is State Finance Corporation.
  5. Regional Rural Banks:
    Rural banks have been established to fulfill the village level credit needs. The first gramin bank was established on 2nd Oct, 1975. Presently there are 14000 branches of 196 Regional banks in 516 districts.
  6. Export – Import Bank:
    This was established to encourage and to promote foreign trade. The bank provides loan facilities to businessmen engaged in Export and Import trade. In India this bank was established in Jan, 1982.
  7. Investment Bank:
    The main function of this bank is to collect the scattered savings in the country and utilize them for productive purposes. L.I.C, Unit Trust of India, Mutual Funds etc. are the agencies which are working as Investment banks in India.
  8. Saving Bank:
    In India it is the commercial banks which are doing the work of the saving banks. There is no such separate bank for savings exclusively.
  9. International Bank:
    In 1944 after the second world war International Bank for Reconstruction and Development was established in order to stabilize and improve economic condition of various countries of the world. This bank is also called World Bank. It has two associate institutions i.e. International Development Association and International Financial Corporation.
  10. Indigenous Bank:
    In India the Indigenous banks are very common. They are known as Mahajans, Sahukars, Sarraf, etc. They help the people by providing loans for business and agricultural purposes.

Question 7.
What is Cheque? Explain the essential characteristics of cheque.
Answer:
The cheque is an unconditional order to the bank to pay certain amount to certain person ordered (specified) or to self or to the bearer of the document on demand. According to the Indian Negotiable Instrument Act, 1981 (Section 6) A, ‘Cheque is a bill of exchange drawn on a specified bank and not expressed to be payable otherwise on demand.
Essential Characteristics of a Cheque:

  1. It is always a written order, never an oral one.
  2. It is written by the customer only to his bank.
  3. It is unconditional, i.e. there is no condition in cheque.
  4. A fixed amount written on the cheque is paid by the bank.
  5. The man whose name is written or is ordered by the customer is entitled to get the payment. Sometimes the bearer of the cheque also gets the payment of a cheque.
  6. The payment of cheque is made only on demand. There is no fixed date for payment.
  7. Customer’s signature on the cheque is necessary and it must tally with his specimen signature in the bank record.
  8. The cheque must bear the account number and date.
  9. The cheque printed on the prescribed form only should be used.
    These are the essential features of a cheque.

Question 8.
Discuss various means of communication?
Answer:
Communication: Means of Communication can be grouped as

  1. Postal services
  2. Means of speedy communications.

(a) Postal Services provided by the post office.

  1. For Sending Message:
    1. Post Card: Cheapest mode available for short message.
    2. Printed Post card: Business organizations get them printed but must be affixed with stamp.
    3. Inland Letter for detailed message.
    4. Envelope: It is for detailed message to be written on separate sheets. Also speed post facility available for fast delivery of post. Self printed letters can be used by individuals and business organization, facility of registered letters also for legal, important and commercial documents.
  2. For Sending Articles:
    Costly but light weight articles up to 20 kg by parcel- registered or unregistered. For valuable articles also facility of Insurance at extra charges.
    Book post facility to send magazines, books, sample packet, book patterns at concessional rate.
  3. For sending money through postal order, money order and insured letters.

(b) Means of Speedy Communication

  1. Speed Post helps in fast delivery of letters.
  2. Telephone: Facility to talk, charges as per duration of talk.
  3. Telex: Printed message is sent, useful mainly for newspapers, business organisations etc.
  4. Fax: Transmission of written, printed or pictured message, within a few seconds.
  5. Internet: Internet a network of computers of the world, interconnected to each other. One can send or receive a message, see or talk to the internet connected place.
  6. E-mail: Facility to send message from one computer to any other computer anywhere in the world. This is called Electronic mail.
  7. E- Commerce i.e. trading through Internet.
  8. Video-conferencing- i.e. communication facility between two or more persons at distant places.
  9. Computer-Information Technology.
    1. C.D. ROM:
      In this informations can be stored. No changes can be done in it. C.D can be copies, print, even more than one C.D can be read together.
    2. Multi Media:
      Means informations can be sent by different methods. Former multi médias were- Printing, Radio, Telegraph, Television, etc. but in modern time Multi media are- Television, Satellite, Tape-recorder, VCD, CD and Disk.
      Multimedia in fact combinedly use of reading material, pictures, video, audio, animation. By this user can contact with each other and can create something new.

Question 9.
Write in detail about the service sector.
Answer:
Service field: It can be divided in three parts:
(a) Commercial Services:
Banking, insurance, transport, communication and technology.
(b) Social services:
These activities are done willingly to achieve some social objectives. Such as- upliftment of weaker section of the society, programmes of cleanliness and health, Hygiene in slum areas. Normally these activities are done with social organizations willingly as social service, i.e. without taking any value of such activities in the terms of money. Sometimes a charge is levied to cover the cost. Example, N.G.O and Governmental agencies-Provide services related to health, education and Cleanliness.
(c) Individual Services:
Present time is an era of tough competition or in other word one who is capable can survive. These are those services which can be felt by different consumers or customers in different ways. There is lack of uniformity in them. Beside it depends upon linking and need of customers.
Example-Tourism, restaurants and entertainment services etc.

ADDITIONAL QUESTIONS SOLVED

Multiple Choice Questions (MCQs)

Question 1.
Economic activities are related with:
(a) Earning money
(b) Going to temple
(c) Cooking food
(d) Stealing money
Answer:
(a).

Question 2.
Business includes:
(a) Industry
(b) Trade
(c) Commerce
(d) Industry, Trade and Commerce.
Answer:
(d).

Question 3.
Which of the following is not the profit objective of business:
(a) To earn profit
(b) To provide after sales service
(c) To develop and expand business
(d) To look for new markets
Answer:
(b).

Question 4.
Shooting animals in the forests falls in the category of:
(a) Genetic Industries
(b) Extractive Industries
(c) Assembling Industries
(d) Manufacturing Industries
Answer:
(b).

Question 5.
Which of the following is not one of the auxiliary activities of trade:
(a) Banking
(b) Insurance
(c) Assembling
(d) Warehousing
Answer:
(c).

Question 6.
Transportation helps commerce by removing the obstacle of:
(a) Place
(b) Time
(c) Form
(d) Ownership
Answer:
(a).

Question 7.
Authority utility is created in:
(a) Industry
(b) Trade
(c) Commerce
(d) Business
Answer:
(b).

Question 8.
The name of the central bank of India is:
(a) State Bank of India
(b) Central Bank
(c) Reserve Bank of India
(d) Bank of India
Answer:
(c).

Question 9.
Which of the following sends the printed and the illustrated message in the same form?
(a) Telephone
(b) Fax
(c) Telex
(d) Telegram
Answer:
(b).

Question 10.
Insurance contract is based on:
(a) Friendship
(b) Goodwill
(c) Utmost good faith
(d) Amount of premium
Answer:
(c).

Question 11.
Which of the following is not one of the functions of the bank.
(a) Issuing of pay orders
(b) Accepting deposits
(c) Advancing Loans
(d) Discounting of trade-bills
Answer:
(c).

Question 12.
Money is deposited with the bank for a fixed period under the:
(a) Saving bank account
(b) Current account
(c) Recurring deposit account
(d) Fixed Deposit account
Answer:
(a).

Question 13.
Which is the oldest and the cheapest mode of transport?
(a) Roadways
(b) Airways
(c) Waterways
(d) Railways
Answer:
(d).

Question 14.
Which of the following is not one of the bank documents:
(a) Cheque
(b) Bank draft
(c) Inland letter
(d) Pay order
Answer:
(c).

Very Short Answer Type Questions

Question 1.
Give two examples of non-economic activities.
Answer:
Two examples of non-economic activities:

  1. Cooking food for family members.
  2. Going to temple for prayer.

Question 2.
List the types of economic activities.
Answer:
The types of economic activities are:

  1. Profession.
  2. Business.
  3. Service/Employment.

Question 3.
Give the classification of human activities with at least one example in each case.
Answer:
Classification of human activities:

  1. Non-economic activities, e.g. cooking food for the family.
  2. Economic activities: Teaching by a teacher in the school.

Question 4.
What is premium?
Answer:
The amount payable by the insured to the insurer in exchange of promise (assurance) to secure losses.

Question 5.
Which account suits the businessman the best?
Answer:
The current account is the most suitable account for the business man.

Question 6.
How many commercial banks are engaged in public sector?
Answer:
27 commercial banks including State Bank of India are engaged in public sector.

Question 7.
Who is entitled to write a cheque?
Answer:
It is the customer (client) who is entitled to write a cheque.

Question 8.
Which is the name of the facility of sending mail on the computer network?
Answer:
The facility of sending mail on the Computer network is known as Electronic-mail (E-mail).

Question 9.
What river is the best means of water transportation?
Answer:
The river Brahmaputra is the best means of water transportation.

Short Answer Type Questions

Question 1.
Differentiate between economic and non-economic activities.
Answer:
Economic activities are concerned with the production and distribution of goods and services and their objective is to earn money. Non-economic activities are concerned with the fulfillment of physical needs, religious duties, feelings of affection, love and social needs. They are not concerned with any direct economic benefit.

Question 2.
What are the main characteristics of commerce?
Answer:
The main characteristics of com¬merce are:

  1. Commerce acts as a link between the producer and the consumer.
  2. Commerce creates time, place and authority utility.
  3. Commerce removes obstacles from the way of distribution and makes exchange of goods easier.
  4. Commerce is a part of business.
  5. Commerce includes trade and auxiliary activities of trade.

Question 3.
Write the main characteristics of trade.
Answer:
Main characteristics of trade are:

  1. Trade involves purchasing and selling of goods.
  2. The aim of trade is the mutual interest of the buyer and the seller.
  3. Sale of goods can be direct or through mediators.
  4. Through trade authority utility is created.
  5. Trade is part of commerce.

Question 4.
What are the various types of Insurance?
Answer:
Various types of insurance are:

  1. Life Insurance.
  2. Fire Insurance.
  3. Marine Insurance.
  4. Social Insurance
  5. Miscellaneous Insurance as Vehicle insurance, robbery insurance, Crop insurance, live-stock insurance, crime- insurance etc.

Question 5.
Which terms are commonly used in case of Insurance?
Answer:
Commonly used terms in case of Insurance are:

  1. Insurer who promises the insured to compensate for the risks agreed upon.
  2. Insured who is assured by the Insurer to be compensated for losses.
  3. Subject matter of Insurance is life or property.
  4. Sum Assured is the maximum amount to be paid as compensation to the insured by the insurance in case of any event.
  5. Premium is the amount paid in lump sum or in installment by the insured in exchange of promises to secure losses.

Question 6.
Name the main documents of a bank. What is Pay order?
Answer:
Main documents of a Bank are:
Cheque, Bank Draft and Pay Order.
Meaning of Pay order: It is one of the bank documents. The bank issues pay orders for local payment after realizing amount and commission from the buyer. The concerned bank pays the money on demand. Pay order and draft are similar in character except the charges or commission of pay order, which is less than that of Bank draft.

Long Answer Type Questions

Question 1.
Discuss the various systems of transportation in brief.
Answer:
Various systems of Transportation:

  1. Land Transportation.
  2. Air Transportation.
  3. Water Transportation.

1. Land Transportation: It is as essential as arteries in the human body and is the back-bone of the prosperity of a nation.
Land Transport can be divided into two parts:

(A) Rail Transport:
Demand for railway transport system has increased in the industrial and agricultural field due to fast economic development. Main efforts done to improve the rail transport:

  1. Increase in the capacity of railways.
  2. Modernization of signal system.
  3. More use of wagons with roller bearings.
  4. Increase in trailing load capacity.
  5. Efforts for the development of uniguage system throughout the country.
  6. Arrangement of special trains.
  7. Extension of railway track.
  8. Development of 500 HP engines for carrying goods.
  9. Extension of railway track.
  10. Electrification of railway lines.

(B) Road Transport:
Agriculture and rural based economy of India has increased the demand for roads. At present 65% goods transport is under road transport. Therefore it is necessary to expand the road transport. During the last 15 years there has been a tremendous improvement in respect of road thickness, road- broadening, in connecting villages to cities, in changing two lane National highways to four lane system, construction of flyovers under the Prime Minister’s Road Plan. The work on the Swarnim Chaturbhuj Pariyojna to connect metropolitan cities and the Corridor Pariyojna to connect north to south and east to west is going on.

2. Air Transportation:
Air, a natural phenomenon, is the medium of Air- transport. Surface obstructions do not affect the air transport. No investment is required in this as in the case of road and railway construction. It is highly developed and most challenging and most revolutionizing system of our economic and cultural life. Air transport is utilized mainly for travelling but since declaration of free space policy in April 1990 by the government of India, Many private firms have bought air cargos. There has been an increase in sending goods by air transport since the government has decontrolled freight rates of air transport. Air taxi service is also being used in air transport. As a result the exporter get cargos timely and they have the facility to choose the freight rates.

3. Water-Transport: In the ancient India the water transport was in the developed state due to our potential shipping industry. In Kautilya’s Arthashastra there is a reference to the water transport available in India. Magasthenese, the Greek traveller, wrote that there were 58 navigable rivers in India.
The Indian Water Transport is divided into two parts:

  • (A) Bhartiya Jahaj Rani (Indian Shipping).
  • (B) Inland water Transport.

(A) Indian Shipping:
Modern Indian shipping transport was started in 1919 by Sindhia Steam Navigation company but it has only 1% share in the world. Jahaj Rani no doubt the Bhartiya Jahaj Rani Company working in the public sector, is one of the largest companies of the world, having, loading capacity of 35 lakh tons. There are five private shipping companies, having loading capacity of more than one lac tons, but for foreign trade we have to use foreign ships. There is a need to develop comprehensive policy for it.

(B) Inland Water Transport:
In the ancient time rivers had been important means of internal water transport, but their importance decreased due to the construction of railway lines and also failure of the government to form a suitable policy for the development of water- transport. Both river transport and canal transport have been extended after the establishment of central water transport corporation. The river Brahmaputra is the best for water transportation. The goods are also transported by boats in the rivers-the Ganga, the Mahanadi, the Godawari, the Krishna etc. The water transport could not progress much due to some obstacles such as floods during rainy season, lack of water during summer and sand in the rivers.

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