What went wrong when the king rode under the arch?

It was too low and knocked off his crown

How does the chain of blame unfold in the poem?

Each accused person blames another, ending with the king's own changes

Define services and goods.

Services are intangible activities that satisfy wants without transfer of ownership, while goods are physical products that can be delivered and whose ownership is transferred.

Name the three types of services.

Business services, social services and personal services.

e-Banking is electronic or internet banking that lets customers carry out transactions such as fund transfer, payments and balance enquiry at any time using ATMs, EFT, NEFT, RTGS and cards.

State any two functions of commercial banks.

Acceptance of deposits and lending of funds; banks also provide cheque facility, remittance of funds and allied services.

What is the principle of utmost good faith?

Both parties to an insurance contract must disclose all material facts truthfully and completely.

What is insurable interest?

The insured must have a pecuniary (financial) interest in the subject matter of insurance so that he benefits from its existence and suffers from its loss.

Name the three main types of insurance.

Life insurance, fire insurance and marine insurance.

Name the five types of warehouses.

Private, public, bonded, government and cooperative warehouses.

What hindrance does warehousing remove?

Warehousing removes the hindrance of time by storing goods and making them available as and when required.

Business Services

Q: State the five characteristics of services.

Intangibility, inconsistency, inseparability, inventory (perishability) and involvement of the customer.

Class 11 Business Studies · Business Studies · Chapter 4

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CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

Marks booster + cheatsheet: key concepts in 2 lines each, common traps
20 marks: finance and MSME units
20 marks: internal and international trade
Five comparison tables, insurance to retail
Case cues for each chapter
Common traps, corrected

Page 1 free about 8 min read, Full kit about 55 min read

₹159See the full kit

CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

Marks booster + cheatsheet: key concepts in 2 lines each, common traps
20 marks: finance and MSME units
20 marks: internal and international trade
Five comparison tables, insurance to retail
Case cues for each chapter
Common traps, corrected

Page 1 free about 8 min read, Full kit about 55 min read

₹159See the full kit

View all 44 amazing Marks Booster kits →

Summary

Services are separately identifiable, essentially intangible activities that satisfy wants and are not necessarily linked to the sale of a product, distinguished from goods by their five characteristics — intangibility, inconsistency, inseparability, inventory (perishability) and involvement of the customer. Services are of three types: business services (banking, insurance, transportation, warehousing and communication), social services and personal services. Banking, governed mainly by the Banking Regulation Act 1949, is provided by commercial, cooperative, specialised and central banks; commercial banks accept deposits, lend funds, provide cheque and remittance facilities and offer e-banking services such as ATMs, EFT, NEFT and RTGS. Insurance spreads the loss caused by an uncertain event over many persons exposed to it and rests on principles of utmost good faith, insurable interest, indemnity, proximate cause, subrogation, contribution and mitigation; its main types are life, fire and marine insurance. Communication services link business with the outside world through postal services (financial and mail facilities) and telecom services (cellular, fixed line, cable, VSAT and DTH). Transportation removes the hindrance of place by carrying goods by rail, road, air and sea, while warehousing removes the hindrance of time by storing goods. Warehouses may be private, public, bonded, government or cooperative, and perform functions such as consolidation, breaking bulk, stockpiling, value-added services, price stabilisation and financing.

Nature and characteristics of servicesDifference between services and goodsTypes of servicesBanking — types and functions of commercial bankse-Banking and EFT, NEFT, RTGSInsurance — principles and typesCommunication and transportation servicesWarehousing — types and functions

Key terms

Services

Separately identifiable, essentially intangible activities that provide satisfaction of wants and are not necessarily linked to the sale of a product.

Intangibility

A feature of services meaning they cannot be touched, seen or stored, and are experienced rather than possessed.

e-Banking

Electronic or internet banking that offers services such as ATM, EFT, NEFT, RTGS, credit cards and digital cash at any time and place.

Insurance

A device by which the loss caused by an uncertain event is spread over many persons exposed to it, in return for a premium.

Indemnity

A principle of insurance under which the insured is restored to the position held before the loss, but cannot make a profit (not applicable to life insurance).

Bonded warehouse

A government-licensed warehouse that holds imported goods until customs duty is paid, facilitating entrepot trade.