Practice Questions on Business Services | Class 11 Business Studies

Try these questions for revision of the chapter. 

1.  State any four features of services.
2. Give differences between a product and a service.
3.  Define business services.
4.  Define banking.
5. List the primary functions of a bank.
6. Why are commercial banks called borrowers as well as lenders of money? 
7. What are the services provided by commercial banks?
8. Raju and Manu are good friends. Can Raju take insurance for Manu's life?

Case Studies 

1. A person sufering from cancer did not disclose the fact while taking a life insurance policy. Name the principle he violated.
2. Rajesh took an insurance policy against his car. But he sold it within a year to his friend Mahesh. The car was stolen. Rajesh made a claim to the insurance company. His claim was rejected on the ground that Rajesh was no longer the owner of the car and had no financial involvement which could be insured.Was Rajesh justfied in making a claim? Which principle of insurance is referred here?
3. Raj got his pen manufacturing factory insured against fire. His factory caught fire and some of his employees took advantage of the situation and stole stock of pens. Raj made a claim of damages caused by fire as well as a theft. The Co. agreed to pay damages caused by fire only. Is Mr. Raj right in including loss due to stolen pens too? Which principle is referred to here? 
4. Mr Kumar got his factory insured against fire. The factory caught fire. Mr. Kumar made a claim for the damages. The insurance company accepted his claim. However, he refused to hand over the damaged property to the Insurance Company. The insurance company filed a case against him. The court favoured Insurance Company. Which principle is followed by the court in favouring the insurance company?
5. X’s factory caught fire due to a short circuit. He did not make any efforts to extinguish fire, assuming that he will recover the amount of loss from the insurance company. Is he liable to get compensation from the insurer? Give reasons and state the underlying principle.
6. Z Ltd took insurance of Rs 2,00,000 from company A and Rs 3,00,000 from company B, for the goods lying in godown. Later goods were damaged due to fire and the loss was estimated at Rs 1,50,000. How much amount will be paid by Company A and Company B? State the underlying principle.
7. Karan insured his house for Rs 30,00,000. A fire took place and the amount of loss was assessed at Rs 20,00,000. Karan is claiming Rs 30,00,000 from the insurance company. But the insurance company wants to pay only Rs 20,00,000. What is the amount payable to Karan? Explain the underlying principle of insurance.

Read the text carefully and answer the questions.

XYZ Bank is a popular private sector bank offering varied services. It offers many types of bank accounts options to its customers. Dheeraj, being a businessman has chosen the type of account in which deposits are the most liquid and there are no limits to the number of transactions in a day. On the other hand, his mother has opened another account where she can conveniently deposit the money she saves. These accounts provide a cheque facility and offer a lot of flexibility for deposits and withdrawal from the accounts. Dheeraj's younger brother Kunal has opened a special kind of account wherein he will deposit Rs. 2000 per month for the next two years. His sister Kavita deposited her savings in an account from where she can't withdraw funds once deposited before the expiry of a certain period of time.

1. Identify the types of bank accounts being used by Dheeraj, Dheeraj's mother, Kunal and Kavita. 
2. Who will get the highest rate of interest on his or her deposits?
3. Who will get the overdraft facility provided by banks?