Business Services

Topics in this chapter

• Business Services Overview
• Commercial Banking Services
• Digital Banking And Payments
• Insurance Principles And Types
• Transport And Communication Services
• Warehousing And Storage Services

Cheat sheet

Practice questions

1. Question 1Q-DE5E50

   Which characteristic of services implies that they cannot be stored for future use or separated from the service provider?

   1. A.Intangibility
   2. B.Inseparability
   3. C.Inconsistency
   4. D.Inventory (Loss)
   See the answer and solution
2. Question 2Q-D9FFB7

   A business takes an insurance policy for its stock against fire. Which fundamental principle of insurance is violated if the business insures the same stock with two different insurers for more than its actual value with the intention of making a profit?

   1. A.Principle of Insurable Interest
   2. B.Principle of Indemnity
   3. C.Principle of Subrogation
   4. D.Principle of Mitigation
   See the answer and solution
3. Question 3Q-3C7B1A

   Which type of bank account is most suitable for business firms that make and receive large numbers of transactions daily, as it offers no restriction on the number or amount of transactions and provides overdraft facilities?

   1. A.Savings Account
   2. B.Fixed Deposit Account
   3. C.Current Account
   4. D.Recurring Deposit Account
   See the answer and solution
4. Question 4Q-E6233D

   Which of the following services is NOT included under the broad category of business services?

   1. A.Banking
   2. B.Warehousing
   3. C.Retail Selling of Goods
   4. D.Insurance
   See the answer and solution
5. Question 5Q-42FCDD

   Mr. Sharma insured his house against fire for Rs 5,00,000. A fire broke out, causing a damage worth Rs 2,00,000. How much compensation can Mr. Sharma claim from the insurance company?

   1. A.Rs 5,00,000
   2. B.Rs 2,00,000
   3. C.Rs 3,50,000
   4. D.Nothing, as insurance does not cover property damage
   See the answer and solution