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Chapter Analysis
Intermediate32 pages • EnglishQuick Summary
The chapter 'Business Services' explores the nature, characteristics, and types of services in a business context. It differentiates services from goods, highlighting the five Is of services: Intangibility, Inconsistency, Inseparability, Inventory (less), and Involvement. The chapter further classifies services into business, social, and personal services, and elaborates on key business services such as banking, insurance, transportation, and warehousing. Emphasis is placed on the significance of these services in facilitating business operations.
Key Topics
- •Characteristics of services
- •Difference between services and goods
- •Types of business services
- •Introduction to e-banking
- •Types of insurance policies
- •Warehouse services
- •Telecom and communication services
- •Functions of commercial banks
Learning Objectives
- ✓State the characteristics of services
- ✓Distinguish services from goods
- ✓Classify different types of business services
- ✓Explain the concept of e-banking
- ✓Identify and classify different types of insurance policies
- ✓Describe different types of warehouses
Questions in Chapter
Define services and goods.
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What is e-banking. What are the advantages of e-banking?
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Write a note on various telecom services available for enhancing business.
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Explain briefly the principles of insurance with suitable examples.
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Explain warehousing and its functions.
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What are services? Explain their distinct characteristics.
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Explain the functions of commercial banks with an example of each.
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Write a detailed note on various facilities offered by Indian Postal Department.
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Describe various types of insurance and examine the nature of risks protected by each type of insurance.
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Explain in detail the warehousing services.
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Additional Practice Questions
How do business services contribute to the economy?
mediumAnswer: Business services such as banking, insurance, and transportation facilitate economic transactions by providing essential support functions. They enable the efficient operation of businesses and help manage risks, hence contributing to economic stability and growth.
What is the role of communication services in business?
mediumAnswer: Communication services enable businesses to establish and maintain contact with suppliers, customers, and competitors. These services support the transmission of ideas and information, which is crucial for decision making and operational efficiency.
Discuss the impact of e-banking on traditional banking services.
mediumAnswer: E-banking offers convenience and accessibility, providing 24/7 service and reducing the need for physical branch visits. It also lowers operational costs for banks, who can handle transactions digitally.
Describe the significance of warehousing in supply chain management.
mediumAnswer: Warehouses facilitate storage, consolidation, and distribution of goods, stabilizing prices by balancing supply and demand fluctuations. They offer value-added services like packaging and labeling, crucial for logistic efficiency.
How does insurance function as a risk management tool?
mediumAnswer: Insurance transfers the risk of large financial losses from individuals to an insurer, spread across many policyholders. It provides financial protection by compensating insured losses, reducing the economic impact of risks.
Explain the concept of the five Is of services.
hardAnswer: The five Is of services include Intangibility, Inconsistency, Inseparability, Inventory (less), and Involvement, which differentiate services from goods. These characteristics affect how services are offered, consumed, and evaluated by consumers.
In what ways do transport services benefit businesses?
easyAnswer: Transport services ensure the physical movement of goods, eliminating place hindrance and making products accessible to consumers. Speed and reliability in transportation are essential for timely business operations.
What are the different types of banking services offered by commercial banks?
mediumAnswer: Commercial banks offer various services including accepting deposits, providing loans and advances, facilitating cheque and draft payments, offering remittance services, and providing other financial utilities like bill payments and locker services.
Discuss the role of postal services in business operations.
mediumAnswer: Postal services provide crucial connectivity and document/parcel delivery options for businesses. They offer financial services and facilitate low-cost communications, supporting business needs both domestically and internationally.
Evaluate the need for specialized business services in today's economy.
hardAnswer: Specialized business services provide expertise and efficiency that allow businesses to focus on core competencies while outsourcing non-core operations, thus enabling better resource management and competitiveness.