Samacheer Kalvi 11th Commerce Solutions Chapter 29 Elements of Contract

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 29 Elements of Contract Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 29 Elements of Contract

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 29 Elements of Contract. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 29 Elements of Contract Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Elements of Contract Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
An agreement enforceable by law is a ………………
(a) Enforceable acceptance
(b) Accepted offer
(c) Approved promise
(d) Contract
Answer:
(d) Contract

Question 2.
Every promise and every set of promises, forming the consideration for each other, is an ………………
(a) Agreement
(b) Contract
(c) Offer
(d) Acceptance
Answer:
(a) Agreement

Question 3.
Void agreement signifies ………………
(a) Agreement illegal in nature
(b) Agreement not enforceable by law
(c) Agreement violating legal procedure
(d) Agreement against public policy
Answer:
(b) Agreement not enforceable by law

Question 4.
Acceptance to be valid must ………………
(a) Be absolute
(b) Be unqualified
(c) Both be absolute & unqualified
(d) Be conditional
Answer:
(c) Both be absolute & unqualified

Question 5.
A contract with or by a minor is a ………………
(a) Valid contract
(b) Void contract
(c) Voidable contract
(d) Voidable at the option of either party
Answer:
(b) Void contract

II. Very Short Answer Questions

Question 1.
What is law?
Answer:
Law means a ‘set of rules’ which governs our behaviour and relating in a civilized society.

Question 2.
Why should one know law?
Answer:
One to should know the law to which he is subjected to because ignorance of law is no excuse.

Question 3.
Can a minor enter into a Contract?
Answer:
No, a minor cannot enter into contract.

Question 4.
Who can enter into a Contract?
Answer:
The Indian contract Act specifies that every person is competent to contract provided he is of the age of majority according to the Law which he is subject to and who is of sound mind.

Question 5.
Define Contract.
Answer:
Contract 2(h) An agreement enforceable by Law is a Contract.

III. Short Answer Questions

Question 1.
Define Offer.
Answer:
Offer (i.e. Proposal) [section 2(a)]: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal.

Question 2.
What do you mean by Agreement?
Answer:
An “agreement” means ‘a promise or a set of promises’ forming consideration for each other. A promise arises when a proposal is accepted. By implication, an agreement is an accepted proposal. In other words, an agreement consists of an ‘offer’ and its ‘acceptance’.
Agreement = offer / Proposal + Acceptance

Question 3.
Define a Voidable Contract.
Answer:
An agreement which is enforceable by law at’the option of one or more parties but not at the option of the other- or others is a voidable contract. This is the result of coercion, undue influence, fraud and misrepresentation.

Question 4.
What do you mean by Revocation?
Answer:
The Revocation mean the withdrawal of an offer power of attorney.

Question 5.
Who is a promisor, promisee?
Answer:

  1. A promisor – Contract law – a person who makes a promise.
  2. A promisee – Contract law – a person to whom a promise is made.

IV. Long Answer Questions

Question 1.
Explain the essentials of a Valid Contract
Answer:
1. Offer and Acceptance : There must be two parties to an agreement namely one party making the offer and the other party accepting it.

2. Legal Relationship : The parties must have the intention to create legal relationship between them. An agreement of Social or domestic nature is not at all a contract.

3. Lawful Consideration (quid pro quo) : As per Contract Act under Sec.2(d) Consideration means something in return. A contract without consideration becomes invalid.

4. Lawful Object (Section 23) : The object of agreement should be lawful and legal. It must not be immoral, illegal or opposed to public policy.

5. Free Consent (Section 13 & 14) : Consent of the parties must be free and genuine. Consent means agreeing upon same thing in the same sense at the same time i.e. there should be consensus – ad – idem. Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.

6. Capacity of Parties (Section 11) : The parties to a contract must have capacity (legalability) to make valid contract.

7. Certainty of Terms (Section 29) : The agreement should be clear to the parities of the agreement. The agreement must be precise.

8. Possibility of Performance (Section 56) : The terms of the agreement should be capable of performance. An agreement to do an act, impossible in itself cannot be enforced.

9. Not declared Void : The agreement should be such that it should be capable of being enforced by law. Certain agreements have been expressly declared illegal or void by the law.

10. Necessary Legal Formalities : A contract may be oral or in writing. Where a particular type of contract is required by law to be in writing and registered, it must comply with necessary formalities as to writing, registration and attestation.

Question 2.
Difference between Contract and Agreement.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 29 Elements of Contract

Question 3.
Explain the classification of Contract on the basis of the Validity.
Answer:
1. Valid Contract : An agreement which fulfils all the essentials prescribed by law on the basis of its creation. For example S offers to sell his car for Rs.2,00,000 to T. T agrees to buy it. It is a Valid Contract.

2. Void Contract 2(j) : A contract which ceases to be enforceable by law. A contract which does not satisfy any of the essential elements of a valid contract is said to be Void.

3. Voidable Contract 2(i) : An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract.

4. Illegal Contract : It is a contract which is forbidden by law. All illegal agreements are Void but all void agreements or contracts are not necessarily illegal. Contract that is immoral or opposed to public policy are illegal in nature.

5. Unenforceable Contract : Where a contract is unenforceable because of some technical defect i.e. absence in writing barred by imitation etc. If the parties perform the contract it will be valid, but the court will not compel them if they do not.

Question 4.
Explain the classification of Contract on the basis of the Formation.
Answer:
1. Express Contract : A contract made by word spoken or written. According to Section. 9, in so for as the proposal or acceptance of any promise is made in words, the promise is said to be express. For example P says to Q ‘will you buy my bicycle for Rs. 1,000?” Q says to P “Yes”.

2. Implied Contract : The implied contract is one, which is not expressly written but understood by the conduct of parties. Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied. For example A gets into a public bus, there is an implied contract that he will pay the bus fare.

3. Quasi Contract : It is a contract created by law. Actually, there is no contract. It is based on the principle that “a person shall not be allowed to enrich himself unjustly at the expense of the other”. In other words it is an obligation of one party to another imposed by law independent of an agreement between the parties.

4. Tacit Contract : A contract is said to be tacit when it has to be inferred from the conduct of the parties. For example obtaining cash through automatic teller machine, sale by fall of.hammer of an auction sale.

Question 5.
Explain the classification of Contract on the basis of the Performance.
Answer:
1. Executed Contract : A contract in which both the parties have fulfilled their obligations under the contract. For example X contracts to buy a car from Y by paying cash, Y instantly delivers his car.

2. Executory Contract : A contract in which both the parties are yet to fulfil their obligations, it is said to be an executory contract. For example A agrees to buy B’s cycle by promising to pay cash on 15th June. B agrees to deliver the cycle on 20th June.

3. Unilateral Contract : A unilateral contract is a one sided contract in which only one party has performed his promise or obligation, the other party has to perform his promise or obligation.

For example X promises to pay Y a sum of Rs. 10,000 for the goods to be delivered by Y. X paid the money and Y is yet to deliver the goods.

4. Bilateral Contract : A contract in which both the parties commit to perform their respective promises is called a bilateral contract. For example R offers to sell his fiat car to S for Rs. 10,00,000 on acceptance of R’s offer by S, there is a promise by R to Sell the car and there is a promise by S to purchase the car, there are two promises.

For Future Learning

Question 1.
After studying this chapter any one can enter into Valid Contract and can also identify the essentials present in the contract.
Answer:
Anyone can enter into the valid contract but he must attain the age of majority. He should be sound mind.

Question 2.
After understanding this chapter entering into Offer and giving Acceptance becomes easier.
Answer:
Offer – Proposal
Acceptance – Proposal is accepted

Question 3.
After going through this chapter the value of consideration and the requirement for return payment can be understood better.
Answer:
Consideration means something in return.

Question 4.
After reviewing this chapter the parties who are allowed to enter and the parties who are not allowed to enter into a contract can be clearly demarcated.
Answer:
Major can enter into contract with sound mind. Minor cannot enter into contract with unsound mind.

Question 5.
After analysing this chapter an obligation imposed by law – Quasi Contracts are better understood and distinguished from other contracts.
Answer:
It is an obligation of one party to another imposed by law independent of an agreement between the parties.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 29 Elements of Contract Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 27 Facilitators of International Business

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 27 Facilitators of International Business Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 27 Facilitators of International Business

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 27 Facilitators of International Business. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 27 Facilitators of International Business Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Facilitators of International Business Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
General Agreement on Tariff and Trade was signed on ………………
(a) 30 – October – 1947
(b) 29 – October – 1947
(c) 28 – October – 1947
(d) 26 – October – 1947
Answer:
(a) 30 – October – 1947

Question 2.
WTO was established on ………………
(a) 1 – 1 – 1996
(b) 1 – 1 – 1997
(c) 1 – 1 – 1995
(d) 1 – 1 – 1994
Answer:
(c) 1 – 1 – 1995

Question 3.
The headquarter of WTO is located at ………………
(a) New York
(b) London
(c) Geneva
(d) Brazil
Answer:
(c) Geneva

Question 4.
The day to day administration of WTO is entrusted with ………………
(a) Executive Council
(b) General Council
(c) Administrative Council
(d) General Body
Answer:
(b) General Council

Question 5.
World bank is located at ………………
(a) Washington DC
(b) New York
(c) Tokyo
(d) Hongkong
Answer:
(a) Washington DC

II. Very Short Answer Questions

Question 1.
What is WTO?
Answer:
The World Trade Organisation (WTO) was estabilished on 1st January 1995. The GATT was renamed as WTO with some changes.

Question 2.
What do you mean by World Bank?
Answer:
International Bank for Reconstruction and Development (IBRD) International Bank for Reconstruction and Development is commonly known as World Bank.

Question 3.
What is Special Drawing Rights?
Answer:
Special Drawing Rights (SDR) was created by the IMF in the year 1969 as supplementary international reserve asset. It is described as paper gold.

Question 4.
What is SAARC?
Answer:
South Asian Association for Regional Cooperation is the regional inter governmental organization and geo – political union of nations in South Asia.

Question 5.
What is GATT?
Answer:
The General Agreement on Tariffs and Trade. (GATT) was signed at Geneva on 30th October 1947 by 23 countries. It came into effect on 1st January 1948.

III. Short Answer Questions

Question 1.
What is the primary motive of establishment of WTO?
Answer:
GATT achieved many success but various countries felt the need to create a new international body to replace the GATT. The GATT which remained in force from 1948 to 1994 thus came to an end with the establishment of World Trade Organisation (WTO) on 1st January 1995.

Question 2.
Name the affiliate of World Bank.
Answer:

  1. International Development Association (IDA)
  2. International Financial corporation (IFC)
  3. Multinational Investment Guarantee Agency (MIGA)
  4. International Centre for Settlement of Investment Disputes (ICSID)

Question 3.
What are the criticisms of World Bank?
Answer:

  1. Free Trade Benefits Developed Countries more than Developing Countries
  2. Most Favoured Nation Principles
  3. Failure to Reduce Tariffs on Agriculture
  4. Neglect of Farmers Interest in Developing Countries
  5. Neglect Environmental Considerations
  6. Neglect of Cultural and Social Factors
  7. Inability of People in Developing Countries to Buy Life Saving Drugs

Question 4.
How is the value of SDR determined currently?
Answer:
From 1st October 2016 SDR basket consists of US dollar, Euro, the Chinese Renminbi, Japanese Yen and British Pound sterling. The value of SDR is regularly posted daily in IMF website. IMF member can exchange SDR for freely usable currencies by voluntary exchange or as per IMF instructions. Besides members can borrow from IMF at favorable rate of interest to correct imbalance in balance of payments.

Question 5.
Mention the functions of SAARC.
Answer:

  1. Monitoring and co – ordinating the development programme
  2. Determining inter – sectoral priorities
  3. Mobilizing cooperation within and outside the region.
  4. Dealing with modalities of financing

IV. Long Answer Questions

Question 1.
Point out the objectives of WTO.
Answer:

  1. Improving the standard of living of people in member countries
  2. Making optimum utilization of world’s resources for sustainable development of member countries.
  3. Promoting an integrated more viable and durable trading system in the sphere of international business
  4. Expansion of trade in goods and services.
  5. Ensuring full employment and large steady growth volume of real income and effective demand.
  6. Protecting the environment.

Question 2.
Write down the functions of WTO.
Answer:

  1. It is a forum for negotiation and formalization of trade agreement among the member countries.
  2. It settles disputes and grievances relating to trade among the member countries.
  3. It frames commonly acceptable code of conduct in order to reduce trade barriers.
  4. It holds consultations with IMF and World Bank (IBRD) and its affiliates to bring about a greater understanding and co – operation in global economic policy making.
  5. It supervises the operations of agreement relating to General Agreement on Tariffs and Trade(GATT) and Trade-
  6. Related Intellectual Properties Rights (TRIPS)
  7. It regulates trade between participating countries.

Question 3.
Describe the benefits of WTO.
Answer:
1. WTO is promoting international peace and creating a conducive environment for conducting international trade.

2. It settles the trade disputes amicably among the member countries.

3. It promotes the standard of living of people by increasing their income level from free trades.

4. WTO has removed quantitative restrictions and non – tariff barriers. It has facilitated free flow of foreign trade among the member countries. The countries can impose import restrictions only to correct balance of payments difficulties and not otherwise.

5. It stimulates economic growth of developing countries by providing them with much needed capital and giving them preferential treatment in trade related matters.

6. WTO organizes periodical regional and international conference. Thus developing countries get opportunity to learn the technicalities, rules and regulations governing world, trade, technical assistance available globally, trade potentials in member countries and so on.

7. WTO gives people across the world a wider choice of goods and broader range of qualities of goods to choose from by promoting free trade among the member countries.

8. WTO has lowered trade barriers and thereby allowed trade to flourish across the world. The increase in trade contributes to increase in national income and personal income of people

9. WTO provides a platform for member countries to establish trade links with one another. In the absence of WTO member countries may have to enter many multilateral agreement with so many countries across the world. It provides a greater access to all nations under one roof.

10. WTO is committed to protecting free trade. It has framed rules on subsidies and dumping.

Question 4.
Highlights the functions of IBRD.
Answer:

  1. Assisting reconstruction of war – affected countries.
  2. Promoting economic growth and balanced growth of international business.
  3. Promoting infrastructural facilities like energy and transportation, road development, etc. in member countries.
  4. Encouraging agricultural and industrial development in developing countries by providing adequate resources.
  5. Providing resources for promoting sanitation, education, health care and small scale enterprises in member countries.
  6. Improving standard of living of people of member countries by providing assistance by removing poverty, raising productivity, providing technical support and conducting research and development.

Question 5.
Write down the functions of IMF.
Answer:

  1. It acts as short term credit institution at the international level.
  2. It provides machinery for ordinary adjustments of exchange rates.
  3. It has a reservoir of currencies of the member countries from which a borrower can borrow currencies of other nations.
  4. It promotes economic stability and global growth by encouraging countries adopt sound economic and financial policies.
  5. It offers technical assistance and training to help member countries strengthen and implement effective policies. Technical assistance is offered in formulating banking, fiscal, monetary and exchange policies.
  6. It helps member countries correct their imbalance in balance of payment.

Question 6.
Explain how far India has benefited from IMF.
Answer:
Free Convertibility of Indian Rupee:
Indian rupee has become independent after the establishment of IMF. Earlier it was linked with pound sterling. Its value is now determined in terms of Gold. Hence it is freely convertible.

1. Loan For Development Activities : India got several loan facilities from IMF for its several development projects.

2. Ability To Purchase Foreign Currency : Government of India is able to purchase foreign currencies from time to time to meet the ever growing requirement of development activities.

3. Expert Advice : India used to get expert advice from IMF for solving the economic problems. It has given valuable advice to India with regard to financing its 5 year plan.

4. Timely Help : India has received timely help from IMF many a time to eliminate the deficit in its balance of payments. India got help from IMF during 1966 in the aftermath of war with Pakistan. It received assistance from IMF for combating oil shock. Between 1980 and 1983 India got assistance from IMF to manage global economic recession.

5. Financial Assistance during Natural Calamity : India has got a lot of financial assistance from IMF to solve the economic crises arising from natural calamities like, floods, famine, earthquake, aggressions of Chinese and Pakistan etc. It gets technical assistance from IMF.

6. Membership in World Bank : By virtue of its membership in IMF India could become member in the World Bank.

7. Help During 1991 Economic Crisis : During 1990, India faced serious economic crisis. Indian Government was almost nearing bankruptcy. It got assistance from IMF by pledging ‘ its gold reserve with it to solve its balance of payments crisis.

For Own Thinking

Question a.
A vital role played in international business by WTO?
Answer:
The main goal of WTO is to help the trading industry to become smooth, fair, free and predictable.

Question b.
Necessity for world as global village through IMF, IBRD and SAARC?
Answer:

  1. IMR – International Monetary Fund
  2. IBRD – International Bank of Reconstruction and Development
  3. SAARC – South Asian Association for Regional Cooperation.

For Future Learning

Question a.
WTO – new agreements?
Answer:
TFA which entered into force on 22 February, 2017 following its ratification by two – third of the WTO membership.

Question b.
IMF World Bank and SAARC major role in international business?
Answer:

  1. IMF – It works to foster global growth and economic stability by providing policy.
  2. World Bank – Provide long – term loans to developing countries for development.
  3. SAARC – The independence of nations has been increased.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 27 Facilitators of International Business Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 26 Export and Import Procedures

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 26 Export and Import Procedures Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 26 Export and Import Procedures

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 26 Export and Import Procedures. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 26 Export and Import Procedures Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Export and Import Procedures Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
EPC stands for ………………
(a) Export processing commission
(b) Export Promotion Council
(c) Export Carriage council
(d) Export Promotion Congress
Answer:
(b) Export Promotion Council

Question 2.
STC is expansion for ………………
(a) State Training Centre
(c) State Trading Centre
(b) State Training Council
(d) State Trading Corporation
Answer:
(d) State Trading Corporation

Question 3.
An ……………… is document prepared by importer and sent to the exporter to buy the goods.
(a) Invoice
(b) Indent
(c) Enquiry
(d) Charter Party
Answer:
(b) Indent

Question 4.
The ……………… receipt is an acknowledgement of receipt of goods on the ship issued by the Captain.
(a) Shipping Bill
(b) Bill of Lading
(c) Mate’s Receipt
(d) Consular Invoice
Answer:
(b) Bill of Lading

Question 5.
The Exporters appoint the agent to fulfill the customs formalities.
(a) Clearing Agent
(b) Forwarding Agent
(c) Commission Agent
(d) Factor
Answer:
(b) Forwarding Agent

II. Very Short Answer Questions

Question 1.
What is meant by Indent?
Answer:
An indent actually points to an order received from abroad for export of goods, i.e. sale of goods. The indent contains the details in the box.

Question 2.
Write any two export promotion institutions.
Answer:

  1. Department of Commerce
  2. Export Promotion Council (EPC)

Question 3.
Mention the types of Indent.
Answer:

  1. Open Indent
  2. Closed Indent
  3. Confirmatory Indent

Question 4.
What is the Letter of credit?
Answer:
Letter of Credit (LC) is an undertaking by its issuer (importer’s bank) that bills of exchange drawn by the foreign dealer on the importer will be honoured upon its presentation by exporter’s bank up to a specified amount.

III. Short Answer Questions

Question 1.
What are the contents of Indents?
Answer:
Contents of an Indent:

  1. Quantity of goods sent
  2. Design of goods
  3. Price
  4. Nature of packing shipment
  5. Mode of shipment
  6. Period of delivery
  7. Mode of payment

Question 2.
What is meaning of consular invoice?
Answer:
Where the customs duties are charged on the basis of value of goods at import’s port (ad – valorem basis), the customs officers are empowered to open the consignment to calculate duties. In order to avoid this problem exporter obtains consular invoice and sends it over to the importer.

Question 3.
What is meant by Charter Party?
Answer:
A charter party is a formal agreement between ship owner and the exporter under which exporter hires an entire ship or a major part of ship either for a particular voyage or for a specific time period when the shipping is heavy. The hiring of ship for specific voyage is called voyage charter while this hiring of entire ship for a specific time period is called time charter.

Question 4.
Write a short note on Mate’s receipt?
Answer:
Mate’s Receipt is the document issued by the captain of the ship acknowledging the receipt of goods on board by him to the port of specified destination. This contains details like quantity of goods shipped, number of packages condition for packing, etc.

Question 5.
What is Bill of Lading?
Answer:
Bill of Lading, refers to a document signed by ship owner or to his agent mentioning that goods, specified have been received and it would be delivered to the importer or his agent at the port of destination if good condition subject to terms and conditions mentioned therein.

IV. Long Answer Questions

Question 1.
What are the procedures relating to Export trade?
Answer:
1. Receiving Trade Enquiry : Exporter receives trade enquiry (written request) from the importer / his agent who intends fir buy the product.

2. Receiving Indent and Sending Confirmation : After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter. The latter may either receive the order directly from the importer or through an agent who acts as an intermediary between the exporter and the importer.

3. Arranging Letter of Credit : Under this stage exporter intends to satisfy himself/herself about the trust worthiness of the importer. In this case the exporter is requested to arrange a letter of credit in his favour.

4. Obtaining Importer Exporter Code (IEC) and RBI Code Number : Exporter has to apply in Ayaat Niryatt Form 2 A (ANF2A) to the Regional Authority of the Director General of Foreign Trade (DGFT) in the region where the registered office of the company is located. Exporter has to mention the number in all the shipping documents.

5. Obtaining Registration cum Membership Certificate (RCMC) from Export Promotion Council/Commodity Board : An Exporter is required to obtain RCMC from Export Promotion Councils/Commodity Board/Development Authority in order to avail himself/herself of export incentives, concessions, and other facilities offered by Government.

6. Manufacturing/Procuring Goods and Packing items : Exporters steps into manufacturing and procuring of goods required by the importer.

7. Export Inspection Certificate : After the goods have been packed as per the specifications of importer, the exporter has to apply to the Export Inspection Agency (EIA).

8. Insurance of Goods : Exporter has to arrange for getting the goods insured to protect them against the various risks like deterioration.

9. Certificate of Origin : Import regulation of foreign countries may require that all this import consignments must accompany a certificate of origin.

10. Consular Invoice : Where the customs duties are charged on the basis of value of goods at import’s port (ad – valorem basis), the customs officers are empowered to open the consignment to calculate duties.

Question 2.
Distinguish between Bill of Lading and Charter Party.
Answer:

Basis Bill of Lading Charter Party
1. Meaning This represents a document acknowledging receipt of goods on board for carrying them over to specified port of destination. It refers to an agreement to hire a whole or major part of ship when the goods take exported is heavy.
2. Transferable It Can be transferred to third party by endorsement and delivery. It cannot be transferred to third party.
3. Loan Loan can be raised against it. Loan cannot be raised against it.
4. Crew Master and crew remain the agent of ship owner. Master and crew become the agent of exporter for a temporary period.
5. Lease It is not a lease of ship. It is a lease of ship.

Question 3.
What are the documents used in Export Trade?
Answer:
1. Documents Related to Goods

  • Indent
  • Certificate of Origin
  • Certificate of Inspection

2. Documents Related to Shipment

  • Mate’s receipt
  • Shipping Bill
  • Shipping Order
  • Bill of Lading
  • Marine Insurance Policy
  • Consular Invoice
  • Railway receipt/Lorry receipt

3. Documents Related to Payment

  • Letter of Credit
  • Commercial Invoice
  • Bills of Exchange
  • Bank Certificate Payment

Question 4.
Explain the various functions of Export Trading Houses.
Answer:
The functions of export house are mentioned below:

  1. Identifying potential market for a product
  2. Finding buyers and their agent and eliciting their response for export proposal.
  3. Establishing product specification in the light of market needs, standards and regulation in accordance with suppliers capabilities.
  4. Determining appropriate mode of transportation and routing keeping in mind the cost, quality of service and security.
  5. Preparing the goods for delivery at destination.
  6. Determining buyer’s creditworthiness.
  7. Negotiating the transactions.
  8. Arranging proper insurance coverage against maritime risks and currency fluctuations.
  9. Financing the transactions and paying for goods and service received.
  10. Preparing document for international trade.
  11. Settling claim.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 26 Export and Import Procedures Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 25 International Business

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 25 International Business Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 25 International Business

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 25 International Business. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 25 International Business Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce International Business Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Movement of goods, services, intellectual property, human assets, technology and so on among the countries ………………
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(a) International Trade

Question 2.
Goods are imported for purpose of re – export to another country is termed as ………………
(a) Import Trade
(b) Export Trade
(c) Entrepot Trade
(d) International trade
Answer:
(c) Entrepot Trade

Question 3.
Movement of goods, services among the countries ………………
(a) International Trade
(b) International business
(c) Entrepot Trade
(d) Internal trade
Answer:
(b) International business

Question 4.
Selling of goods from home country to foreign country is called ………………
(a) Home Trade
(b) Entrepot Trade
(c) Foreign Trade
(d) Joint Venture
Answer:
(c) Foreign Trade

II. Very Short Answer Questions

Question 1.
What do you mean by international business?
Answer:
International business denotes all those business activities which take place beyond the geographical limits of the country.

Question 2.
What is meant by Export Trade?
Answer:
When the firm of country sells goods and services to a firm of another country it is called export trade. Export trade indicates selling of goods and services from the home country to a foreign country.

Question 3.
What is meant by Import Trade?
Answer:
When the business firm of a country purchases goods from the firm of another country it is called import trade. Importing means purchase of foreign products and bringing them into one’s home country.

Question 4.
What is meant by Entrepot Trade?
Answer:
When the firm of country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade.

Question 5.
Give any two reasons for International Business.
Answer:

  1. Unequal Distribution of Natural Resources.
  2. Uneven Availability of Factors of Production.

III. Short Answer Questions

Question 1.
Describe importance of the external trade to an economy.
Answer:
The economic environment of countries involved in international business differs significantly in terms of legal framework, institutional set – up, monetary fiscal and commercial policy, resources availability, production techniques, etc.

Question 2.
What is the necessity for entrepot trade?
Answer:
Entrepot is necessary because of the following reasons:

  1. The country may not have any accessible trade routes connecting the importing country.
  2. The goods imported may require further processing or finishing before exporting, and these facilities may be lacking in the exporting or importing country.
  3. There may not have any bilateral trade agreement between both the countries.

Question 3.
What are the limitations of international business?
Answer:

  1. Economic Dependence : International trade is more likely to make the country too much dependent on imports from foreign countries.
  2. Inhibition of Growth of Home Industries : International business may discourage the growth of indigenous industry.
  3. Import of Harmful Goods : International business may lead to import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well – being of people.

IV. Long Answer Questions

Question 1.
List out the advantages of international trade.
Answer:
1. Geographical Specialization : Countries across the world differ significantly in terms of natural resources, capital equipment, manpower, technology and land and so on.

2. Optimum use of Natural Resources : International business operates on a simple principle that a country which can produce more efficiently and trade the surplus production with other countries has to procure what it cannot produce more efficiently.

3. Economic Development : International business helps the developing countries greatly in achieving rapid economic development by importing machinery, equipment, technology, talent, and so on.

4. Generation of Employment : International business generates employment opportunities by assisting the expansion and growth of agricultural and industrial activities.

5. Higher Standard of Living : On account of international business, the citizens of the country can buy more varieties of goods and services which cannot be produced cost effectively within the home country.

6. Price Equilisation : International business helps to stabilize the prices of various commodities which are fluctuating on a daily basis in the world market.

7. Prospects for Higher Profit : International business helps the firms which produce goods in excess to sell them at relatively higher price to various countries in the international market.

8. Capacity Utilisation : International business enables the firms across the country to sell their goods and services on a large scale in the international market.

9. International Peace : International business makes countries across the world become inter-dependent while these countries are independent in their functioning.

Question 2.
Enumerate the disadvantages of international trade.
Answer:
1. Economic Dependence : International trade is more likely to make the country too much dependent on imports from foreign countries. The former may not take any efforts to produce goods and services indigenously to substitute imported goods and thus becoming self sufficient.

2. Inhibition of Growth of Home Industries : International business may discourage the growth of indigenous industry. Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether.

3. Import of Harmful Goods : International business may lead to import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well – being of people.

4. Shortage of Essential Goods in Home Country : The export of essential commodities out of the greed of earning more foreign exchange may result in absolute shortage of these goods at home country and people may have to buy these commodities at exorbitant price in the local market.

5. Misuse of Natural Resources : Excessive export of scarce natural resources to various countries across the world may lead to faster depletion of the resources in the exporting countries.

6. Political Exploitation : International business may create economic dependence among the countries which may threaten their political independence.

7. Rivalry among the Nations : Acute competition for exports may lead to rivalry among the nations. This may lead to conflict of interest among the countries and end up in wars among them.

8. Invasion of Culture : International business may result in invasion of country’s culture. Younger generation is more likely to imitate foreign culture and buy goods and services beyond their means to gain acceptance in the affluent section of society. This will ruin the conventional lifestyle of the society.

Question 3.
Distinguish between internal and international trade.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 25 International Business

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 25 International Business Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 24 Retailing

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 24 Retailing Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 24 Retailing

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 24 Retailing. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 24 Retailing Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Retailing Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Retailers deal in ……………… quantity of goods.
(a) Small
(b) Large
(c) Medium
(d) Limited
Answer:
(a) Small

Question 2.
Small scale Fixed retailers include ………………
(a) General stores
(b) Pedlars
(c) Cheap Jacks
(d) Hawkers
Answer:
(a) General stores

Question 3.
Small shops which deal in a particular line of products are called as ………………
(a) Market traders
(b) Single line stores
(c) Retailer
(d) Consumers
Answer:
(b) Single line stores

Question 4.
……………… are mobile traders Who deal in low priced articles with no fixed place of business.
(a) Shopping malls
(b) Super markets
(c) Street stalls
(d) Itinerant traders
Answer:
(d) Itinerant traders

II. Very Short Answer Questions

Question 1.
What is Retailing?
Answer:
Retailing is the process of selling the goods and services directly to the ultimate consumers in small quantities.

Question 2.
State the meaning of multiple shops.
Answer:
A number of identical retail shops with similar appearance normally deal in standardised and branded consumer products established in different localities owned and operated by manufacturers or intermediaries are called as Chain stores or Multiple shops.

Question 3.
Mention any two benefits of Vending machines.
Answer:
Automatic vending machine is a new form of direct selling. It is a machine operated by coins or tokens.

Question 4.
What are specialty stores?
Answer:
Speciality S tores deal in a particular type of product under one product line only. For example, Sweets shop specialised in Tirunelveli Halwa, Bengali Sweets, etc.

III. Short Answer Questions

Question 1.
Explain the features of general stores.
Answer:
General Stores sell a wide variety of products under one roof, most commonly found in a local market and residential areas to satisfy the day – to – day needs of the customers residing in nearby localities. They remain open for long hours at convenient timings and often provide credit facilities to their regular customers.

Question 2.
Give any four points of distinction between hire purchase system and installment system of selling.
Answer:
Hire Purchase System:

  • It is a system by which the seller agrees to sell the articles to the buyer on condition that the payment of the article will be made in a fixed number of instalments till the sale price is paid.
  • Though the buyer gets possession of the goods immediately on signing the contract the ownership does not pass on till the payment of last instalment.
  • The buyer prefers to pay a lump sum or a part of the price initially i.e., down payment and the balance in instalments as per the contract.
  • The seller continues to be the owner of the article till then.

Installment System:

  • Instalment system is a type of purchase in which the price amount of the product is not paid initially but in instalments.
  • Title or ownership of articles as well as possession is passed on to the buyer as soon as the first instalment is paid.
  • It is also called as deferred payment system.
  • On default of payment, the seller cannot seize the article but recover the dues through court.

Question 3.
Explain the characteristics of super markets.
Answer:

  1. Supermarkets are generally situated at the main shopping centres.
  2. The goods kept on racks with clearly labelled price and quality tags in such stores.
  3. The customers move into the store to pickup goods of their requirements, bring them to the cash counter, make payment and take home delivery.

Question 4.
What is meant by ‘mail order retailing’?
Answer:
Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

IV. Long Answer Questions

Question 1.
State the features of Departmental stores.
Answer:

  1. Large Size: A department is a large scale retail showroom requiring a large capital investment by forming a joint stock company managed by a board of directors.
  2. Wide Choice: It acts as a universal provider of a wide range of products from low priced to very expensive goods (Pin to Car) to satisfy all the expected human needs under one roof.
  3. Departmentajly organised: Goods offered for sale are classified into various departments.
  4. Facilities provided: It provides a number of facilities and services to the customers such as restaurant, rest rooms, recreation, packing, free home delivery, parking, etc.
  5. Centralised puchasing: All the purchases are made centrally and directly from the manufacturers and operate separate warehouses whereas sales are decentralised in different departments.

Question 2.
What is meant by Consumer Cooperative Store? Explain its merits in brief.
Answer:
A consumers cooperative store is a retail organisation owned, managed and controlled by the consumers themselves to obtain products of daily use at reasonable low prices. Its objective is to eliminate profits to middlemen by establishing a direct contact with the manufacturers.

People belonging to middle and low income groups, at least 25 persons have to come together 1 to form a voluntary association, and get it registered under the Cooperative Societies Act. The capital of a cooperative store is raised by issuing shares to members. The management of the store is democratic and entrusted to an elected managing committee, where “one man one vote” is the rule.

The cooperative stores are very famous in Tamil Nadu. For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.

Question 3.
Describe the role of chambers of commerce in promotion of internal trade.
Answer:
1. Transportation or inter – state movement of goods:
The Chambers facilitate registration of vehicles, surface transport policies, construction of highways and roads in promoting interstate movement of goods.

2. Harmonisation CGST and SGST structure.

3. Marketing of agro products and related issues:
The associations of agriculturists and other federations interact with farming cooperatives to streamline local subsidies and formulate marketing policies for selling agro products.

4. Weights and measures and prevention of duplication of brands:
They help the Government in formulation and implementation of uniform policies in weights and measures and prevention of duplication of brands.

5. Promoting sound infrastructure:
They interact with Government to construct roads, ports, electricity, railways, etc.

6. Labour legislation:
They interact with the Government on regular basis and the issues related to labour laws, retrenchments, compensation, etc., so that the industry can run efficiently, generate employment and achieve maximum productivity.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 24 Retailing Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 23 Channels of Distribution

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 23 Channels of Distribution Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 23 Channels of Distribution

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 23 Channels of Distribution. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 23 Channels of Distribution Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Channels of Distribution Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Trade middleman who acts as a link between wholesaler and customers refers to a ……………..
(a) Producer
(b) Broker
(c) Retailer
(d) Customer
Answer:
(c) Retailer

Question 2.
Who is the first middleman in the channel of distribution?
(a) Wholesaler
(b) Producer
(c) Retailer
(d) Customer
Answer:
(a) Wholesaler

Question 3.
…………….. buy the goods from the producer and sell it to the retailers.
(a) Manufacturer
(b) Wholesaler
(c) Retailer
(d) Consumers
Answer:
(b) Wholesaler

Question 4.
………………. are agents who merely bring the buyer and the seller into contact.
(a) Broker
(b) Commission agent
(c) Selling agent
(d) Stockist
Answer:
(a) Broker

Question 5.
Merchant middlemen can be classified into …………….. categories.
(a) Three
(b) Two
(c) Five
(d) Four
Answer:
(b) Two

Question 6.
Wholesalers deal in …………….. quantity of goods.
(a) Small
(b) Large
(c) Medium
(d) Limited
Answer:
(b) Large

Question 7.
A is a mercantile agent to whom goods are entrusted for sale by a principal and takes physical possession of the goods, but does not obtain ownership.
(a) Broker
(b) Factor
(c) Warehouse – keeper
(d) Commission agent
Answer:
(b) Factor

II. Very Short Answer Questions

Question 1.
Who is a middleman?
Answer:
The term ‘Middlemen’ refers to all those who are in the link between the primary producer and the ultimate consumer in the exchange of goods or service.

Question 2.
Define Wholesaler.
Answer:
According to Cundiff and Still “wholesaler buys from the producer and sells merchandise to the retailers and other merchants and not to the consumers.

Question 3.
Define Retailer.
Answer:
According to S. Evelyn Thomas “the retailer is the last of the many links in the economic chain whereby the consumer’s wants are satisfied smoothly and efficiently by retailers”.

Question 4.
Who is a broker?
Answer:
A Broker is one who bargains for another and receives commission for his service. He is paid ‘brokerage’ for his services. He brings buyer and the seller to the negotiating process and arranges for finalising contracts between them.

Question 5.
What are the classifications of the merchant middlemen?
Answer:
Merchant middleman can be further sub – divided into:

  1. Wholesaler
  2. Retailer

Question 6.
Who are the mercantile agents?
Answer:
Mercantile Agents are also called functional middlemen. A businessman appoints a person to buy and sell goods on his behalf and gives him the right to borrow money on the security of goods. He is known as mercantile agent.

III. Short Answer Questions

Question 1.
What do you understand by channels of distribution?
Answer:
A channel is the route through which the goods are passed on to the ultimate consumer. There are direct channels or routes of distribution without middlemen. Indirect channel consists of one or more middlemen performing different functions. Middlemen help in the flow of goods towards the lakhs or crores of consumers.

Question 2.
Who is a factor?
Answer:
A factor is a mercantile agent to whom goods are entrusted for sale by a principal. He takes physical possession of the goods, though he does not obtain ownership of the goods. A factor sells goods in his own name without revealing the name of his principal.

Question 3.
Explain the types of mercantile agents.
Answer:
Kinds of Mercantile Agents or Agent Middlemen:

  1. Brokers
  2. Factors
  3. Commission Agents
  4. Del – credere Agents
  5. Auctioneers
  6. Warehouse keepers.

Question 4.
Explain any three characteristics of wholesalers.
Answer:

  1. Wholesalers buy goods directly from producers or manufacturers.
  2. Wholesalers buy goods in large quantities and sell in relatively smaller quantities.
  3. Wholesalers sell different varieties of a particular variety of product.

Question 5.
What are the services rendered by the wholesalers to the manufacturers?
Answer:
Services to Producers or Manufacturers:

  1. Economies in Large Scale
  2. Assistance in Distribution
  3. Warehousing Facility
  4. Forecasting of Demand
  5. Publicity of Goods
  6. Financial Assistance
  7. Risk – bearer
  8. Link

IV. Long Answer Questions

Question 1.
What are the characteristics of retailers?
Answer:
Following are the characteristics of retail traders:

  1. Retailer generally involves dealing in a variety of items. A retailer makes purchases from producers or wholesalers in bulk for sale to the end consumers in small quantities.
  2. Retail trade is normally carried on in or near the main market area.
  3. Generally, retailers involve buying on credit from wholesalers and selling for cash to consumers.
  4. A retailer has indirect relation with the manufacturer (through wholesalers) but a direct link with the consumers.

Question 2.
What are the functions of Wholesalers?
Answer:
Following are the functions of wholesalers:

  1. Collection of Goods : Wholesaler collects the goods from manufacturers or producers in bulk.
  2. Storage of Goods : Wholesaler collects and stores them safely in warehouses, till they are sold out.
  3. Distribution : Wholesaler sells goods to different retailers. Thus he performs the function of distribution.
  4. Financing : Wholesalers provide financial support to producers and manufacturers by providing money in advance to them.
  5. Risk Taking : Wholesaler buys finished goods from the producer and keeps them in the warehouses till the time they are sold and assumes the risk arising from price, spoilage of goods, and changes in demand.
  6. Grading Packing and Packaging : Wholesaler classifies the goods into different categories.
  7. Providing Information : Wholesalers provide valuable information to retailers and producers.
  8. Transportation : A wholesaler arranges for the transport of goods from producers to his warehouse and from the warehouse to retailer.

Question 3.
What are functions of Retailers?
Answer:

  1. Buying : A retailer buys a wide variety of goods from different wholesalers after estimating customer’s demand.
  2. Storage : A retailer maintains a ready stock of goods and displays them in the shop.
  3. Selling : The retailer sells the goods in small quantities according to the demand taste and preference of consumers.
  4. Grading and Packing : The retailer grades the goods which are not graded by manufacturers and wholesalers.
  5. Risk – bearing : A retailer always keeps stock of goods in anticipation of demand and bears the risk of loss due to fire, theft, spoilage, price fluctuations, etc.
  6. Transportation : Retailers often carry goods from manufacturers to their retail outlets.
  7. Financing : Some retailers grant credit facilities to his customers and provide the facility of return or exchange of goods.

Question 4.
Explain the services rendered by wholesalers to retailers.
Answer:

  1. Financial Assistance : Wholesalers provide financial assistance to retailers by selling goods on credit.
  2. Meeting the Requirements : Due to limited capital and lack of space in his facility a retailer cannot hold large variety of products.
  3. Introduction of New Products : Wholesalers bring new products and their uses to the notice of retailers.
  4. Price Stability : Wholesalers reduce price fluctuations by adjusting supply and demand and save the retailers from loss arising from price fluctuations.
  5. Economy in Transport : A wholesaler often delivers goods at the door steps of retailers and save their time and cost of transport.
  6. Regular Supply : Wholesalers keep large stock of varieties of goods and provide a regular supply of goods as per the retailer’s need.

Question 5.
What are the services rendered by retailers to wholesalers?
Answer:

  1. Help in Distribution Retailers relieve the manufacturers and wholesalers of the burden of collecting and executing a large number of small orders from various consumers.
  2. Market Information Retailer supply valuable information to wholesalers about changes in tastes, preferences, fashion etc. of consumers
  3. Large Scale Operation The manufacturers and wholesalers are freed from the trouble of making individual sales to consumers in small quantities.
  4. Help in Promotion Retailers participate in the promotional activities carried by manufacturers and wholesalers such as short time offers, coupons, free gifts, sales contests, etc.
  5. Personal Attention The retailer is able to provide more personal attention to his customers than the wholesaler is, He gives special services on the spot when the articles require minor repairs.

Question 6.
Explain the services rendered to consumers by Retailers.
Answer:

  1. Regular Supply of Goods : Retailers maintain a ready stock of various products of different manufacturers for sale to consumers.
  2. New Products Information: The retailers provide important information about the new arrival of products through their personal.
  3. Credit Facilities: Sometimes retailers provide credit facilities to their customers and enable them to increase their level of consumption.
  4. Wide Selection: Retailers generally keep stock of a variety of products of different manufacturers.
  5. Miscellaneous Services:
    • Retailers provide free door delivery services to the customers.
    • They provide after sale service to customers.
    • They allow cash discounts on their sales.

Question 7.
What are the factors affecting a channel of distribution?
Answer:
The factors affecting a channel of distribution are as follows:

  1. Product Characteristics : Seasonal products are distributed through less layer of middlemen. Non standardized products that are made according to customer specifications may be delivered directly.
  2.  Market Characteristics : The size of the market for the goods is a major factor while selecting the route for distribution of products.
  3. Number of Consumers : Large purchases made by few consumers require centralised distribution.
  4. Middlemen factor : Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product.
  5. Capacity of the Manufacturer : A financially strong producer may select a high technology oriented channel which will reduce cost in the long run.
  6. Cost and Time Involved in the Channel of Distribution : The channel cost should go along with the quality of service provided by middlemen.
  7. Services Required along with the Product :Machinery or equipment which need to be installed and demonstrated should be sold with shorter channel.
  8. Life Cycle of the Product : An established product can select an ordinary channel. But a new product entering into the market should be carefully promoted by experienced middlemen.

Case Study

A Rama industry was established to manufacturer fashion shoes. Since they were new in the market, they decided to sell their product through wholesalers. They appointed one wholesaler in each district and promised them verbally that they will remain the exclusive wholesalers in the area. After three years during one of the review meetings the sales manager informed that if company sells directly to retailers, they will be able to offer competitive prices, which will increase sales volume and eventually profits. He was directly supporting elimination of wholesalers.
a. Should the company follow sales manager’s suggestion and start direct business with retailers?
b. What values would the company ignore if they by – pass wholesalers to earn extra profit?
Answer:
Question a.
No, I don’t think that company should follow sales manager’s suggestion and start direct business with retailers, because it is the wholesalers who have put in all the effort to establish sales network and prepared a market for new product. The company has though verbally promised wholesalers the exclusivity to sell, so it may not send good signals about the company in the market. The wholesalers may sell the competitors’ product more aggressively, which may affect the company’s sales adversely.

Question b.
Values ignored are:

  1. Mutual trust
  2. Integrity
  3. Importance to relationships

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 23 Channels of Distribution Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 22 Types of Trade

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 22 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 22 Types of Trade

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 22 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs). Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 22 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Types of Trade Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The purchase of goods from a foreign country is called ………………
(a) Import
(b) Export
(c) Entrepot
(d) Re – export
Answer:
(a) Import

Question 2.
When goods are imported for the purpose of export it is called as ………………
(a) Foreign Trade
(b) Home Trade
(c) Entrepot
(d) Trade
Answer:
(c) Entrepot

Question 3.
……………… acts as a connective link between the producer and the consumer.
(a) Trade
(b) Industry
(c) Commerce
(d) Business
Answer:
(a) Trade

Question 4.
The aim of home trade is ………………
(a) To raise the standard of living
(b) To provide the essential goods and services economically
(c) To raise the national income
(d) To obtain all types of goods
Answer:
(b) To provide the essential goods and services economically

Question 5.
Internal trade can be classified into ……………… categories
(a) Three
(b) Four
(c) Two
(d) Five
Answer:
(c) Two

II. Very Short Answer Questions

Question 1.
Give the meaning of Trade?
Answer:
The buying and selling of goods and services consists of trade. Trade is conducted in order to earn profit.

Question 2.
What is Internal Trade?
Answer:
Buying and selling of goods and services within the boundaries of a nation are called internal trade. Internal trade is also called domestic trade or home trade.

Question 3.
Mr. Vikram who runs a textile industry regularly procures cotton from Germany. Name the type of trade he is engaged in.
Answer:
This is Import trade because Mr. Vikram procures (purchases) cotton from Germany Import means buying of goods from a foreign country for domestic use.

Question 4.
When Vikram of India sells cotton shirts to Amal of England, what type of trade he is engaged in?
Answer:
Vikram of India sells cotton shirts to Amal of England. So he is engaged in Export trade. Export trade means the sale of domestic goods to foreign countries.

Question 5.
How do you classify Trade?
Answer:
On the basis of geographical location of buyers and sellers, trade can be broadly classified into two categories (i) Internal trade and (ii) External trade

Question 6.
What are the classifications of internal trade?
Answer:
Type of International trade : Home trade consists of two main sub – divisions namely (i) Wholesale trade and (ii) Retail trade.

Question 7.
What is import trade?
Answer:
Import trade mean’s buying goods from a foreign country for domestic use. Example. India imports petroleum products from Gulf Countries.

Question 8.
Explain the meaning of Entrepot trade.
Answer:
Entrepot tiade means importing of goods from one country and exporting the same to foreign countries. It is also known as ‘Re – export trade’.

Question 9.
TVS is selling motor bikes in Europe. Under which type of trade can this be classified?
Answer:
TVS is selling motor bikes in Europe. This trade can be classified under Foreign trade.

Question 10.
What is the currency used in India in internal trade?
Answer:
INR (Indian Rupee) is used in India in internal trade. Payment of goods and services is made in the currency of home country.

III. Short Answer Questions

Question 1.
What is the classification of Foreign trade?
Answer:
Types of Foreign Trade

  1. Import Trade : Import trade means buying goods from a foreign country for domestic use.
  2. Export Trade : Export trade means the sale of domestic goods to foreign countries.
  3. Entrepot Trade : Entrepot trade means importing of goods from one country and exporting the same to foreign countries.

Question 2.
Give two examples of Entrepot trade.
Answer:

  1. Indian diamond merchants in Surat import uncut raw diamonds from South Africa. They cut and polish the diamonds in their units in India and re – export them to the International Diamond Market in Amsterdam.
  2. Singapore, Dubai, Hongkong are the largest entrepot trade centres in the world.

Question 3.
What do you mean by Export trade?
Answer:
Export trade means the sale of domestic goods to foreign countries. Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment and to increase Government revenue.

Question 4.
What is Wholesale trade?
Answer:
“Purchase of goods in bulk from the manufacturers and selling them in smaller quantities to other intermediaries” is known wholesale trade.

Question 5.
State the meaning of Retail trade.
Answer:
Retail trade deals with the distribution of goods in small quantities to the consumers.

Question 6.
Name any three retail traders in your locality.
Answer:

  1. Nilgiris Super Market
  2. Reliance Fresh
  3. A.N.S. Pandian Stores

Question 7.
State the main aim of trade.
Answer:
The essence of trade is to make goods and services available to those persons who need them and are able and willing to pay for them. Trade is conducted in order to earn profit.

IV. Long Answer Questions

Question 1.
What are the features of Internal trade?
Answer:

  1. The buying and selling of goods takes place within the boundaries of the same country.
  2. Payment for goods and services is made in the currency of the home country.
  3. It involves transactions between the producers, consumers and the middlemen.
  4. It consists of a distribution network of middlemen and agencies engaged in exchange of goods and services.
  5. In home trade the risk of transportation is very less when compared to the foreign trade.
  6. In home trade the laws prevailing in that country only have to be followed.
  7. The aim of home trade is to provide the goods and services economically.
  8. The goods must be a part of domestic production.
  9. Goods must be purchased from an individual or a firm established within a country.
  10. Goods can be delivered using locally available modes of transport.
  11. It does not involve any custom/import duty, but buyers need to pay the taxes to the Government.

Question 2.
Explain briefly the different types of Foreign trade?
Answer:
A. Import Trade:
Import trade means buying goods from a foreign country for domestic use. Example. India imports petroleum products from Gulf Countries. India imports machinery, equipment, materials etc. It is necessary to speed-up industrialization, to meet consumer demands and to improve standard of living.

B. Export Trade:
Export trade means the sale of domestic goods to foreign countries.

Examples:

  1. Export of Iron ore from India to Japan
  2. Selling of Tea from India to England.
  3. Export of jasmine flowers from Madurai to Singapore

Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment and to increase Government revenue

C. Entrepot Trade:
Entrepot trade means importing of goods from one country and exporting the same to foreign countries. lt is also known as “Re – export trade’.

Example Indian diamond merchants in Surat import uncut raw diamonds from South Africa. They cut and polish the diamonds in their units in India and re – export them to the International Diamond Market in Amsterdam.

Samacheer Kalvi 11th Commerce Types of Trade Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
……………… trade is a trade between a seller and buyer of different countries.
(a) Foreign
(b) Export
(c) Enterpot
(d) Home
Answer:
(a) Foreign

Question 2.
……………… trade deals with the distribution of goods in small quantities to the consumers.
(a) Retail
(b) Wholesale
(c) Home
(d) Foreign
Answer:
(a) Retail

Question 3.
Selling of Tea from India to England – What type of trade is this?
Answer:
(a) Export
(b) Import
(c) Enterpot
(d) Home
Answer:
(a) Export

Question 4.
Re – export trade is otherwise called as ……………… trade.
(a) Enterpot
(b) Export
(c) Import
(d) Foreign
Answer:
(a) Enterpot

Question 5.
Hero pens produced in China and sold in India is an example for ……………… trade.
(a) Foreign
(b) Home
(c) Export
(d) Enterpot
Answer:
(a) Foreign

Case Study

Question 1.
Mr. Kovalan completed his M.Com. degree and proposed to start a business dealing powerloom machines. After a complete analysis, it was found that it is better to buy from foreign countries than to buy from domestic manufacturers. So what is your opinion whether to purchase from foreign countries or from domestic manufacturers.
Answer:
In my opinion, if he purchases from foreign countries, it will be a quality one. It will work a long time. First of all he should get the quotation from all countries. He can choose which is the low cost and high quality machines. A very good brand also can be chosen.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 22 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs). Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
MSMED Act was enacted in the year ………………
(a) 2004
(b) 2007
(c) 2006
(d) 2008
Answer:
(c) 2006

Question 2.
MSMEs are important for the nation’s economy because they significantly contribute to ………………
(a) industrial production
(b) exports
(c) employment
(d) all the above
Answer:
(d) all the above

Question 3.
Self help groups convert the savings into a common fund known as ………………
(a) Common fund
(b) Group corpus fund
(c) Group fund
(d) none of the above
Answer:
(b) Group corpus fund

Question 4.
There are ……………… distinct modes of credit to Self Help Groups.
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(c) 3

Question 5.
Investment limit of a micro enterprise under manufacturing sector does not exceed ……………… lakhs.
(a) 10
(b) 20
(c) 25
(d) 50
Answer:
(c) 25

II. Very Short Answer Questions

Question 1.
What do you understand by the manufacturing enterprises?
Answer:
Manufacturing Enterprises refer to the enterprises engaged in the manufacturing or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951. The manufacturing enterprises are defined in terms of investment in plant and machinery.

Question 2.
Give some examples for micro enterprises.
Answer:
Micro enterprises are engaged in low scale activities such as clay pot making, fruits and vegetable vendors, transport (three wheeler tempos and autos), repair shops, cottage industries, small industries, handlooms, handicraft works etc.

Question 3.
What is the aim of NEEDS?
Answer:
Government of Tamil Nadu launched “New Entrepreneur – cum – Enterprise Development Scheme (NEEDS)” with a View to encouraging the educated youth to become the first generation entrepreneurs. The Scheme usages providing entrepreneurship development training to educated young entrepreneurs, preparing business plans and helping them to tie up with financial institutions to set up new business ventures besides linking them with major industrial clients.

Question 4.
What is a Self Help Group?
Answer:
Rural development is one of the main pillars of progress of India. It has lagged behind in many aspects of development even after six decades of the independence of India. Self Help Group has emerged as a new model for combating poverty.

Question 5.
State the investment limit for small enterprise in manufacturing and service sector.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

III. Short Answer Questions

Question 1.
State the investment limit for medium enterprise engaged in Manufacturing and service sector.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Question 2.
List out the products produced by MSME in Tamil Nadu?
Answer:
In Tamil Nadu MSMEs sector produces a wide variety of products in almost all fields. The prominent among them are the textile, electronic products, engineering products, auto ancillaries, leather products, chemicals, plastics, garments, jewellery etc.

Question 3.
What is the role and significance of MSMEs in Indian Economy?
Answer:
Entrepreneurship is the key for economic development of any country. By empowering entrepreneur, MSME sector provides more employment opportunity to the people of India. It helps towards the industrialization of rural and backward areas. This sector reduces regional imbalance. It provides equality distribution of national’ income and wealth.

Question 4.
Explain any three features of Self Help Group.
Answer:

  1. The motto of every group members should be “saving first – credit latter”
  2. Self Help Group is homogeneous in terms of economic status.
  3. The ideal size of a Self Help Group ranges between 10 and 20 members.

Question 5.
What are the different ways in which banks fund Self Help Groups?
Answer:
There are three distinct modes of credit to SHGs. Under the first mode, banks lend directly to the SHGs. In the second mode, banks provide loans to the NGOs for onward lending to the SHGs and ultimately to micro entrepreneurs. Under the third mode, banks extend credit to the SHGs with the NGOs serving as facilitators. Out of these three methods, the last method of direct lending by bank with NGOs facilitation is widely practised.

IV. Long Answer Questions

Question 1.
What is the definition of MSME?
Answer:
In accordance with the provisions of Micro, Small and Medium Enterprises Development Act 2006, the micro, small and medium enterprises are classified into two classes. Entrepreneurship is the key for economic development of any country By empowering entrepreneurs, MSME sector provides more employment opportunities to the people of India. It helps towards the industrialization of rural and backward areas. This sector reduces regional imbalances. It provides equitable distribution of national income and wealth.

A. Manufacturing Enterprises:
They refer to the enterprises engaged in the manufacturing or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951. The manufacturing enterprises are defined in terms of investment in plant and machinery.

B. Service Enterprises:
They refer to the enterprises engaged in providing or rendering of services.

Question 2.
Explain the advantages of MSMEs?
Answer:

  1. Employment Potential : MSMEs generate more employment opportunities than large business concerns.
  2. Low Production Cost : MSMEs do not require skilled labourers or professionals to run the organisation. It employs cheap labour and thus minimizes the overhead.
  3. Low Investment : MSMEs do not require a huge capital to start the unit. It can employ locally available resources within the reach of the owner.
  4. Quick Decision Making : MSMEs need not hire professional managers to run the management on a day to day basis.
  5. Supplementary Role : MSMEs play a complementary role to serve as.a feeder to large scale industries.
  6. Establishment of Socialistic Pattern of Society : MSME sector contributes towards the establishment of socialistic, pattern of society by reducing the concentration of income and wealth.
  7. Balanced Regional Development : By encouraging MSMEs in industrially backward areas of India, balanced development can be achieved across all regions.
  8. Promotion of Self Employment and Self Reliance Spirit : MSMEs help to a great deal in developing a class of entrepreneurs.
  9. Higher Contribution to Manufacturing and Export : MSMEs contribute 45% to the total manufacturing output and 40% to the exports from the country. It helps in earning precious foreign exchange in various countries across the world.

Question 3.
What are the objectives of SHCs?
Answer:

  1. Focusing on empowerment of women.
  2. Saving people from the clutches of money lenders
  3. Building capacity of women and to enable them to participate in generating activities.
  4. Creating the habit of saving in the minds of the people who are economically backward.
  5. Promoting entrepreneurship skills among women.
  6. Creating awareness about the importance of credit circle or revolving credit and the payment of the circle.
  7. Elevating the economic standard of the member’s families.
  8. Developing skills and facilitating credit linkages for eventual economic empowerment.
  9. Promoting awareness among the members about finding solutions for their economic problems.
  10. Identifying the common interest of the group members and carrying out their operations in the most efficient and economic way.
  11. Enabling the members to overcome all social and economic barriers.
  12. Promising and ensuring human rights to women at all stages of their life cycle.

Question 4.
Explain the advantages of MSME?
Answer:
The MSME Sector contributes about 8% to Gross Domestic Product (GDP) besides 45% to the total manufacturing output and 40% to the exports from the country on the production of more than 6000 products. This Sector consists of 36 million units and provides employment to over 8 crore peopte.
Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Samacheer Kalvi 11th Commerce Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
Tamil Nadu Corporation for Development of Women Limited (TNCDW) was established in the year …………….
(a) 1983
(b) 1984
(c) 1985
(d) 1995
Answer:
(a) 1983

Question 2.
“Mahalir Thittam” project was launched during …………….
(a) 1997 – 98
(b)1999 – 99
(c) 1999 – 2000
(d) 2000 – 2001
Answer:
(a) 1997 – 98

II. Very Short Answer Questions

Question 1.
State the investment limit for micro enterprise in manufacturing and service sector.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs)

Question 2.
Give examples for Public Sector Banks.
Answer:
State Bank of India, Indian Bank, Indian Overseas Bank, Canara Bank.

For Future Learning

Question a.
World Association of Small & Medium enterprises (WASME)
Answer:
WASME is a global non-profit organization. Headquarters is at Noida.

Question b.
Ministry of MSME and its functions.
Answer:
MSME – Micro, Small, Medium Enterprises.

Ministry : Ministry of MSME, a branch of the Government of India, is the apex body for the formulation and administration of rules, regulations and laws relating to MSME in India.

Functions:
MSME : consequent to the increased globalization of the Indian economy and changed industrial environment. MSME is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to MSME.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 21 Micro, Small and Medium Enterprises (MSME) and Self Help Groups (SHGs) Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 20 International Finance

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 20 International Finance Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 20 International Finance

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 20 International Finance. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 20 International Finance Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce International Finance Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
An instrument representing ownership interest in securities of a foreign issuer is called …………….
(a) an ownership certificate
(b) a depositary receipt
(c) an ownership receipt
(d) None of the above
Answer:
(b) a depositary receipt

Question 2.
Issuance of DRs is based on the increase of demand in the ……………
(a) International market
(b) Local market
(c) Existing shareholders
(d) All of the above
Answer:
(a) International market

Question 3.
ADRs are issued in …………….
(a) Canada
(b) China
(c) India
(d) The USA
Answer:
(d) The USA

Question 4.
Depositary receipts that are traded in an international market other than the United States are called …………….
(a) Global Depositary Receipts
(b) International Depositary Receipts
(c) Open Market Depositary Receipts
(d) Special Drawing Rights
Answer:
(a) Global Depositary Receipts

Question 5.
……………. bond is a special type of bond issued in the currency other than the home currency.
(a) Government Bonds
(b) Foreign Currency Convertible Bond
(c) Corporate Bonds
(d) Investment Bonds
Answer:
(b) Foreign Currency Convertible Bond

II. Very Short Answer Questions

Question 1.
Who are Foreign Institutional Investors?
Answer:
The Foreign Institutional Investors (FI1) can be defined as an investment made by a Non – resident in equity of domestic company without intention of acquiring management control.

Question 2.
What is a Depository Receipt?
Answer:
A depository receipt is a negotiable financial instrument issued by a bank to represent a foreign company’s equity shares or securities. They are issued to attract a greater amount of investment from other countries.

Question 3.
What is a GDR (Global Depository Receipt)?
Answer:
GDR is an instrument issued abroad by a company to raise funds in some foreign currencies and is listed and traded on a foreign stock exchange.

Question 4.
What is an American Depositary Receipt (ADR)?
Answer:
ADR is a dollar denominated negotiable certificate representing a non-US company in US market which allows the US citizens to invest in overseas securities.

Question 5.
What is a Foreign Currency Convertible Bond?
Answer:
Foreign currency convertible bond is a special type of bond issued in the currency other than the home currency. In other words, companies issue foreign currency convertible bonds to raise money in foreign currency

III. Short Answer Questions

Question 1.
Explain the importance of international finance.
Answer:

  1. International finance helps in calculating exchange rates of various currencies of nations and the relative worth of each and every nation in terms thereof.
  2. It helps in comparing the inflation rates and getting an idea about investing in international debt securities.
  3. It helps in ascertaining the.economic status of the various countries and in judging the foreign market.

Question 2.
What are Foreign Currency Convertible Bonds?
Answer:
Foreign currency convertible bond is a special type of bond issued in the currency other than the home currency. In other words, companies issue foreign currency convertible bonds to raise money in foreign currency.

Question 3.
Explain any three disadvantages of FDI.
Answer:
1. Exploiting Natural Resources : The FDI Companies deplete natural resources like water, forest, mines etc. As a result such resources are not available for the usage of common man in the host country.

2. Heavy Outflow of capital : Foreign companies are said to take away huge tunes in the form of dividend, royalty fees etc. This causes a huge outflow of capital from the host country.

3. Not Transferring Technology : Some foreign enterprises do not transfer the technology to developing countries. They mostly transfer second hand technology to the host country.

Question 4.
State any three features of ADR.
Answer:

  1. ADRs are denominated only in US dollars.
  2. They are issued only to investors who are American residents.
  3. The depository bank should be located in US.

Question 5.
State any three features of GDR.
Answer:

  1. It is a negotiable instrument and can be traded freely like any other security.
  2. GDRs are issued to investors across the country. It is denominated in any acceptable freely convertible currency.
  3. GDR is denominated in any foreign currency but the underlying shares would be denominated in local currency of the issuer.

IV. Long Answer Questions

Question 1.
Describe the importance of international finance?
Answer:

  1. International finance helps in calculating exchange rates of various currencies of nations and the relative worth of each and every nation in terms thereof
  2. It helps in comparing the inflation rates and getting an idea about investing in international debt securities.
  3. It helps in ascertaining the economic status of the various countries and in judging the foreign market.
  4. International Financial Reporting System (IFRS) facilitates comparison of financial statements made by various countries.
  5. It helps in understanding the basics of international organisations and maintaining the balance among them.

Question 2.
Distinguish between GDR and ADR.
Answer:
Samacheer Kalvi 11th Commerce Solutions Chapter 20 International Finance

Question 3.
State any five features of FCCB.
Answer:

  1. FCCB is issued by an Indian company in foreign currency.
  2. These are listed and traded in foreign stock exchange and similar to the debenture.
  3. It is a convertible debt instrument. It carries interest coupon. It is unsecured.
  4. It gives its holders the right to convert for a fixed numbers of shares at a pre – determined price.
  5. It can be converted into equity or depository receipt after a certain period.

Question 4.
Explain any five advantages of FDI.
Answer:
1. Achieving Higher Growth in National Income Developing countries get much needed capital through FDI to achieve higher rate of growth in national income.
International Finance

2. Help in Addressing BOP Crisis FDI provides inflow of foreign exchange resources into a country. This helps the country to solve adverse balance of payment position.

3. Faster Economic Development FDI brings technology, management and marketing skills along with it. These are crucial for achieving faster economic development of developing countries.

4. Generating Employment Opportunities: FDI generates a lot of employment opportunities in developing countries, especially in high skill areas.

5. Encouraging Competition in Host Countries Entry of FDI into developing country promotes healthy competition therein. This leads to enterprise in developing countries operating efficiently and effectively in the market. Consumers get a variety of products of good quality at market determined price which usually benefits the customers.

Samacheer Kalvi 11th Commerce International Finance Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
…………….. is a section of financial economics that deals with the monetary interactions that occur between two or more countries.
(a) International finance
(b) Business finance
(c) DR
(d) GDR
Answer:
(a) International finance

Question 2.
From …………….., Foreign International Investors have been allowed to invest in all securities traded on the primary and secondary markets.
(a) 1992
(b) 1991
(c) 1995
(d) 1996
Answer:
(a) 1992

Question 3.
………………. is an instrument issued abroad by a company to raise funds in some foreign currencies and is listed and traded on a foreign stock exchange.
(a) GDR
(b) DR
(c) FDI
(d) FII
Answer:
(a) GDR

II. Very Short Answer Questions

Question 1.
Define Foreign Direct Investment (FDI).
Answer:
Foreign direct investment (FDI) is an investment made by a company or an individual in one country with business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

Question 2.
What are Commercial Banks?
Answer:
Most of the commercial banks extend foreign currency loans for promoting business opportunities. The loans and services of various types, provided by banks differ from country to country.

Question 3.
What is International capital markets?
Answer:
Modem organisations including multinational companies depend upon sizeable borrowings in rupees as well as in foreign currencies. Prominent financial instruments used for this purpose are Depository Receipts.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 20 International Finance Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.

Samacheer Kalvi 11th Commerce Solutions Chapter 19 Sources of Business Finance

Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 19 Sources of Business Finance Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 19 Sources of Business Finance

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 19 Sources of Business Finance. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 19 Sources of Business Finance Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Sources of Business Finance Textbook Exercise Questions and Answers

I. Choose the Correct Answer
Question 1.
What is defined as the provision of money at the time when it is required?
(a) Finance
(b) Bank
(c) Cash management
(d) None of these
Answer:
(a) Finance

Question 2.
Internal sources of capital are those that are ……………..
(a) a generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business
Answer:
(d) generated within the business

Question 3.
Debenture holders are entitled to a fixed rate of ……………..
(a) Dividend
(b) Profits
(c) Interest
(d) Ratios
Answer:
(c) Interest

Question 4.
Public deposits are the deposits which are raised directly from ……………..
(a) the public
(b) the directors
(c) the auditors
(d) the owners
Answer:
(a) the public

Question 5.
Equity shareholders are the …………….. of a company.
(a) Creditors
(b) Owners
(c) Debtors
(d) Employees
Answer:
(b) Owners

Question 6.
Funds required for purchasing current assets is an example for ……………..
(a) Fixed Capital Requirement
(b) Ploughing Back of Profits
(c) Working Capital Requirement
(d) Lease Financing
Answer:
(c) Working Capital Requirement

Question 7.
Which of the following holder is given voting right?
(a) Debentures
(b) Preference Shares
(c) Equity shares
(d) Bonds
Answer:
(c) Equity shares

Question 8.
It may be wise to finance fixed assets through ………………
(a) Creditors
(b) Long term debts
(c) Bank Overdraft
(d) Bills Discounting
Answer:
(b) Long term debts

II. Very Short Answer Questions

Question 1.
Write a short notes on debentures.
Answer:
Debentures are an important instrument for raising long term debt capital. A company can raise funds through issue of debentures which bear a fixed rate of interest.

Question 2.
What do you mean by public deposits?
Answer:
Debentures are an important instrument for raising long term debt capital. A company can raise funds through issue of debentures which bear a fixed rate of interest.

Question 3.
Name any two sources of funds classified under borrowed funds.
Answer:

  1. Debentures
  2. Loan from banks

Question 4.
Name any two internal sources of business finance.
Answer:

  1. Retained earnings
  2. Collections form receivables

Question 5.
State any two factors that affect the choice of source of finance.
Answer:

  1. Cost
  2. Financial capacity to the firms

III. Short Answer Questions

Question 1.
Define Business finance.
Answer:
“Finance is that business activity which is concerned with the acquisition and conservation of capital fund in meeting the financial needs and overall objectives of business enterprises.” – B.O. Wheeler

Question 2.
What is pledge?
Answer:
A customer transfers the possession of an article with the creditor (banker) and receives loan. Till the repayment of loan, the article is under the custody of the borrower. If the debtor fails to refund the loan, creditor (banker) will auction the article pawned and adjust the outstanding loan from the sale proceeds.

Question 3.
List sources of raising long – term and short – term finance.
Answer:
Sources of Short Term Finance:

  1. Loans and Advances
  2. Bank Overdraft
  3. Discounting Bills of Exchange
  4. Trade Credit
  5. Pledge
  6. Hypothecation
  7. Mortgage
  8. Loans Against the Securities
  9. Clean Loan
  10. Commercial Paper (CP)
  11. Hire Purchase Finance
  12. Factoring

Sources of Long Term Finance:

  1. Shares (i) Equity Shares (ii) Preference Shares
  2. Debentures
  3. Retained Earnings
  4. Public Deposits
  5. Long Term Loan from Commercial Banks
  6. The Loans from Financial Institutions

Question 4.
For which purpose fixed capital is needed in business?
Answer:
Business enterprises need finance for fixed and working capital requirement. Fixed capital requirements include purchase of plant, machinery, furniture, fixtures, vehicles, and so on.

Question 5.
What do you mean by working capital requirement of business?
Answer:
Working capital requirements include purchase of raw materials, payment of salary and. wages, incurring operating expenses like telephone bills, carriage inward and outward, electricity charges, premium, stationery, etc.

IV. Long Answer Questions

Question 1.
List out the various sources of financing.
Answer:
The various sources of business finance can be classified into three categories on the basis of
(i) period basis
(ii) ownership basis
(iii) source of generation basis.

On the basis of period:

  1. Short term finance
  2. Medium term finance
  3. Long term finance

Sources of Short Term Finance:

  1. Loans and Advances
  2. Bank Overdraft
  3. Discounting Bills of Exchange
  4. Trade Credit
  5. Pledge
  6. Hypothecation
  7. Mortgage
  8. Loans Against the Securities
  9. Clean Loan
  10. Commercial Paper (CP)
  11. Hire Purchase Finance
  12. Factoring

Sources of Medium Term Finance:

  1. Loans from Banks
  2. Loan from Financial Institutions
  3. Lease Financing

Sources of Long Term Finance:

  1. Shares (i) Equity Shares (ii) Preference Shares
  2. Debentures
  3. Retained Earnings
  4. Public Deposits
  5. Long Term Loan from Commercial Banks
  6. The Loans from Financial Institutions

On the Basis of Ownership:

  1. Owner’s Funds
  2. Borrowed Funds

On the Basis of Generation of Funds:

  1. Internal Sources
  2. External Sources

Question 2.
What are the different types of short term finances given by commercial banks?
Answer:
1. Loans and Advances:
Loan is a direct advance made in lump sum which is credited to a separate loan account in the name of borrower. The borrower can withdraw the entire amount in cash immediately.

2. Bank Overdraft:
Bank overdraft refers to an arrangement whereby the bank allows the customers to overdraw the required amount from its current deposit account within a specified limit.

3. Discounting Bills of Exchange:
When goods are sold on credit, the suppliers generally draw bills of exchange upon customers who are required to accept it.

4. Trade Credit:
Trade credit is the credit extended by one trader to another for the purpose of purchasing goods and sendees. Purchaser need not pay money immediately after the purchase.

5. Pledge:
A customer transfers the possession of an article with the creditor (banker) and receives loan. Till the repayment of loan, the article is under the custody of the borrower. If the debtor fails to refund the loan, creditor (banker) will auction the article pawned and adjust the outstanding loan from the sale proceeds.

6. Hypothecation:
This is loan taken by depositing document of title to the property with the banker. Of course the physical possession of asset property is with the borrower. If the borrower fails to repay the loan amount, the article hypothecated will be sold in auction by the banker concerned.

Question 3.
Write short notes on

  1. Retained Earnings
  2. Lease financing

Answer:
1. Retained Earnings:
Retained earnings refer to the process of retaining a part of net profit year after year and reinvesting them in the business. It is also termed as ploughing back of profit. An individual would like to save a portion of his/her income for meeting the contingencies and growth needs.

Similarly profit making company would retain a portion of the net profit in order to finance its growth and expansion in near future. It is described to be the most convenient and economical method of finance.

2. Lease Financing:
Lease financing denotes procurement of assets through lease. For many small and medium enterprises, acquisition of plant and equipment and other permanent assets will be difficult in the initial stages. In such a situation Leasing is helping them to a greater extent.

Leasing here refers to the owning of an asset by any individual or a corporate body which will be given for use to another needy business enterprise on a rental basis. The firm which owns the asset is called ‘Lessor’ and the business enterprise which hires the asset is called ‘Lessee’.

The contract is called ‘Lease’. The lessee pays a fixed rent on agreed basis to the lessor for the use of the asset. The terms and conditions like lease period, rent fixed, mode of payment and allocation of maintenance, are mentioned in the lease contract.

At the end of the lease period, the asset goes back to the lessor. Alternatively lessee can own the asset taken on lease by paying the balance of price of asset concerned to lessor. Hence lease finance is a popular method of medium term business finance.

Question 4.
Write short notes on

  1. Owner’s funds
  2. Borrowed funds

Answer:
1. Owner’s Funds:
Owner’s funds mean funds which are provided by the owner of the enterprises who may be an individual, or partners or shareholders of a company. The profits reinvested in the business (ploughing back of profit or retained earnings) come under owner’s funds.

These funds are not required to be refunded during the life time of business enterprise. It provides the owner the right to control the management of the enterprise.

2. Borrowed Funds:
The term ‘borrowed funds’ denotes the funds raised through loans or borrowings. For example debentures, loans from banks and financial institutions, public deposits, trade credit, lease financing, commercial papers, factoring, etc., represent borrowed funds.

These borrowed sources of funds provide specific period before which the fund is to be returned. Borrower is under legal obligation to pay interest at given rate at regular intervals to the lender. Generally borrowed funds are obtained on the security of certain assets like bonds, land, building, stock, vehicles, machinery, documents of title to the goods, and the like.

Question 5.
Explain any four personal investment avenues.
Answer:
1. Public Provident Fund (PPF):
It is the safest long – term investment option for the investors in India. It is totally tax – free. PPF account can be opened in bank or post office. The money deposited cannot be withdrawn before 15 years and an investor can earn compound interest from this account.

However the investor can extend the time frame for the next five years if the investor does not opt to withdraw the amount matured for payment at maturity date. PPF investor can take loan against PPF account when he/she experiences financial difficulties.

2. Mutual Funds:
An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund. Systematic investment plan is one of the best investment options in India.

3. Direct Equity or Share Purchase:
An individual can opt for investment in shares. But he has to analyse the market price of various shares traded in stock exchange, reputation of the company, consistency in the payment of dividend, the nature of the project undertaken by the company, growth prospects of industry in which a company is operating, before investing in shares. If the investment is made for a long time, it may yield good return.

4. Real Estate Investment:
Real estate is one of the fastest growing sectors in India. Buying, a flat or plot is supposed to be the best decision amongst the investment options. The value of the real asset may increase substantially depending upon the area of location and other support facilities available therein.

Samacheer Kalvi 11th Commerce Sources of Business Finance Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
Long term finance ………………
(a) more than 5 years
(b) above I year but below 5 years
(c) more than one year but below 3 years
(d) within one year
Answer:
(a) more than 5 years

Question 2.
The various sources of business finance can be classified into ………………
(a) three
(b) two
(c) four
(d) five
Answer:
(a) three

Question 3.
Business people hypothecate goods or equipment to get ……………… type of loan. It is a loan taken on the security of movable asset.
(a) Hypothecation
(b) Pledge
(c) Trade credit
(d) Bank overdraft
Answer:
(a) Hypothecation

Question 4.
……………… is a type of loan taken form the bank by lodging with the bank title deeds of immovable assets like land and building.
(a) Hypothecation
(b) Mortgage
(c) Clean loan
(d) Factoring
Answer:
(b) Mortgage

Question 5.
Source of Medium Term Finance is ………………
(a) share
(b) debentures
(c) Bank overdraft
(d) lease finance
Answer:
(d) lease finance

Question 6.
Which one is the internal source?
(a) Retained earnings
(b) Shares
(c) Debentures
(d) Public deposits
Answer:
(a) Retained earnings

Question 7.
Which one is the owner’s funds?
(a) Debentures
(b) Loan from banks
(c) Equity shares
(d) Commercial papers
Answer:
(c) Equity shares

II. Very Short Answer Questions

Question 1.
What do you mean by Bonds?
Answer:
Bonds are one of the ideal investment options for those investors who would like to invest their hard earned money safely. Bonds are issued both by government and public and private sector companies and financial institutions.

Question 2.
What is Mutual Funds?
Answer:
An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund.

Question 3.
What is Commercial Paper (CP)?
Answer:
Commercial paper (CP) is an unsecured money market instrument in the form of a promissory note. It was introduced in India in 1990 under Section 45 W of the Reserve Bank of India Act.

III. Short Answer Questions

Question 1.
Mention any three significance of business finance.
Answer:

  1. A firm with adequate business finance can easily start any business venture.
  2. Business finance helps the business organisation to purchase raw materials from the supplier easily to produce goods.
  3. The business firm can meet financial liabilities like prompt payment of salary and wages, expenses, etc., in time with the help of sound financial support.

Question 2.
What is meant by preference shares?
Answer:
The fund raised by issue of preference shares is called preference share capital. Preference shares are those shares which enjoy priority regarding payment of dividend at a fixed rate out of the net profits of the company. They will get their dividend every year before any dividend is paid to equity shareholders.

They will have a right to get their settlement before the claims of equity shareholder are settled at the time of liquidation of company. However they do not have voting rights.

Case Study

Gokul Steel Ltd is a large and creditworthy company that manufactures steel for the Indian market. It now wants to cater the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap money market.
(a) Name and explain the money – market instrument the company can use for the above purpose.
(b) What is the duration for which the company can get funds through the instrument?
(c) State any other purpose for which this instrument can be used.
Answer:
The company can issue equity shares with premium. If the shares issue at premium value, the share can be subsided easily because the company has already created a credit worthy less. So it can easily raise their capital and get more funds and solve the huge requirement of funds.

(a) NSE (National Stock Exchange) – Gokul Steel Ltd.
BSE (Business Stock Exchange) – Equity shares

(b) Equity share capital for long term source of the company. One year, two years or life time of the company.

(c) In the future the shares can be used to change the value of shares. In the future this investment can be surrendered and get back the cash also with dividends.

Share this Tamilnadu State Board Solutions for 11th Commerce Chapter 19 Sources of Business Finance Questions and Answers with your friends to help them to overcome the issues in exams. Keep visiting this site Tamilnadu State Board Solutions frequently to get the latest information on different subjects. Clarify your doubts by posting the comments and get the answers in an easy manner.