Business Services

What is the central idea of the chapter "Business Services"?

1. Only manufacturing industries contribute to business success.
2. Business services such as banking, insurance, transportation, warehousing, and communication provide essential support to business activities by reducing risks, improving efficiency, facilitating trade, and promoting economic growth.
3. Business services are useful only for large companies.
4. Business services are optional for modern organizations.

Why are business services important for economic development?

1. They reduce all business risks completely.
2. They facilitate production, trade, communication, finance, and distribution.
3. They replace industries completely.
4. They eliminate competition.

Which characteristic makes services different from physical goods?

1. They can be stored indefinitely.
2. They are intangible.
3. They can always be inspected before purchase.
4. They never vary in quality.

Which business service helps businesses transfer goods from one place to another?

1. Banking
2. Transportation
3. Insurance
4. Warehousing

Which type of insurance protects a person's family after death?

1. Fire Insurance
2. Marine Insurance
3. Life Insurance
4. Motor Insurance

Which institution primarily accepts deposits and provides loans?

1. Warehouse
2. Bank
3. Insurance Company
4. Courier Agency

Which communication service is most commonly used for instant business communication?

1. Postal Mail
2. Email
3. Telegram
4. Courier Only

What is the main objective of warehousing?

1. Manufacturing goods
2. Safe storage of goods until they are needed
3. Advertising products
4. Issuing shares

Which of the following is an example of an e-banking service?

1. Postal Order
2. Internet Banking
3. Warehouse Receipt
4. Bill of Lading

Which banking service allows customers to withdraw more money than the balance available in their account?

1. Fixed Deposit
2. Overdraft Facility
3. Recurring Deposit
4. ATM Service

Which insurance policy protects goods transported by sea?

1. Fire Insurance
2. Marine Insurance
3. Life Insurance
4. Health Insurance

What is the primary function of insurance?

1. Earning interest on deposits
2. Providing protection against financial risks
3. Manufacturing goods
4. Collecting taxes

Which type of bank account is most suitable for business transactions?

1. Savings Account
2. Current Account
3. Fixed Deposit Account
4. Recurring Deposit Account

Which of the following is NOT a characteristic of services?

1. Intangibility
2. Inconsistency
3. Inventory (can be stored like goods)
4. Inseparability

What are business services?

1. Services provided only by the government
2. Services that support business operations and facilitate trade
3. Services provided only to consumers
4. Services related only to manufacturing