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NCERT Solutions for Class 11 Business Studies Chapter 4 Business Services

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Class 11 NCERT Solutions Business Studies - Chapter 4 - Free PDF Download

NCERT Solution for Class 11 Business Studies Chapter 4 CBSE is one of the best study materials for your exams. You can download the solutions and start solving the essential questions from Business Services Chapter 4 Class 11 with the help of our study materials. Expert teachers with years of experience have written the solutions. Hence, they are 100% accurate. You can download the answers to Chapter 4 Business Studies Class 11 in the PDF format from Vedantu. The solutions for Class 11 students are easily understandable. Download our compiled solutions for each subject and learn the shortcut techniques to make studying easier.

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Access NCERT Solutions for Class 11 Business Studies Chapter 4- Business Services

1. Define services and goods.

Ans: Services are intangible activities that need face-to-face interaction between the customer (service purchaser) and the service provider (service seller) at the moment of delivery. There is no requirement that the services entail the manufacture or sale of products. The following two categories are used to categorise services.

  • Business Services: Banking, insurance, and warehousing are examples of business services.

  • Professional Services: Legal services, medical counselling, and tax consulting are examples of professional services.

The phrase 'goods,' in contrast to services, refers to actual and tangible things whose ownership is passed to the customer as soon as the product is purchased. Examples of goods are, plants and machinery etc..


2. What is e-banking? What are the advantages of e-banking?

Ans: E-banking is the use of an electronic medium to execute different banking activities such as money transfers, account checks, and loan applications. Commercial banks provide these services to make it simple for its account holders to perform financial transactions online from any location and at any time.

The following are some of the benefits of e-banking.

  • Availability 24x7: E-banking is available 24 hours a day, 365 days a year. At any moment, a client can log into his or her own bank account and execute financial activities online. Customers benefit from increased flexibility and comfort because they do not have to visit their banks in person.

  • Convenient Access: Transactions may be done on mobile phones and PCs as needed.

  • E-banking Decreases Bank Workload: E-banking reduces bank workload by allowing a substantial part of tasks to be performed electronically.


3. Write a note on various telecom services available for enhancing business.

Ans: The many sorts of telecom services that enable a firm to carry out its activities efficiently are listed below.

  • Cellular Mobile Service: This includes voice and non-voice transmission, as well as data transmission.

  • Radio Paging Service: This is a one-way communication system that sends out information in the form of a tone, numeric, or alphanumeric message.

  • Fixed-Line Service: This type of service entails the installation of fibre optic cables across the nation for the transmission of data, including voice and non-voice communications.

  • Cable Service: This service transmits media-related information to a designated operational region for which a licence has been obtained. The information flow is one-way with this sort of telecom service.

  • VSAT Service: VSAT stands for "Very Small Aperture Terminal" and refers to a satellite-based communication service that allows information to be sent to far-flung and remote locations. As a result, businesses benefit from a broader reach and greater flexibility.

  • DTH Service: DTH stands for Direct-To-Home, and it is a form of telecommunications service provided by DTH providers. Customers receive TV channels through satellites from the corporations. Customers may watch several channels by connecting their television to a tiny dish antenna and a set-top box.


4. Explain briefly the principles of insurance with suitable examples.

Ans: The following are the specific principles of a legal insurance contract:

  • Absolute Good Faith: Both the insurer and the insured must believe in each other and the contract they have signed. For example, if Rahul has a heart condition, he should tell his insurance firm about it while purchasing a life insurance policy.

  • Insurable Interest: The insurable interest requires that the owner of a particular insurance policy has an insurable interest in the subject matter of the insurance policy. For example, a wife having insurable interest in her husband’s life due to financial dependency, a person’s interest in his property etc.

  • Principle of Indemnity: The goal of an insurance contract, according to the indemnity principle, is to restore the insured to the same financial position as before the loss. to he or she For example, if a person loses Rs. 1 lakh in a fire, the insurance company will only accept a claim up to Rs. 1 lakh and not more.

  • Principle of Proximate Cause: The proximate cause insurance principle states that the nearest or closest cause should be considered, and the insurance company will compensate only for the causes that have been mentioned in the insurance contract, or any proximate causes, and not the remote causes of damage. For example, if a person is injured in a fire, this should be included in the contract so that the individual may collect the insurance benefits.

  • Principle of Subrogation: Once the compensation is paid, the insurer gains ownership of the damaged item, preventing the insured from profiting from the sale of the damaged property. For example, if a person receives Rs. 1 lakh for a damaged stock, the stock's ownership will be transferred to the insurance company, and the person will no longer have control over the stock.

  • Principle of Contribution: If an individual purchases many insurance policies for the same item, the insurers will pool their resources to reimburse the insured for the real loss. If a person A insures his or her home for Rs. 2 lakh with insurance B and Rs. 1 lakh with another insurer, say C, then in the event of a loss of Rs. 90,000, insurer B and insurer C will pay A Rs. 90,000 in total and no more.

  • Principle of Mitigation: The insured shall treat the insured thing with the same care as he or she would if the insurance were not present. For example, if a person obtains fire insurance, he or she should take all reasonable steps to minimise property damage in the event of a fire, just as he or she would have done if the insurance had not been purchased.


5. Explain warehousing and its functions.

Ans: Warehousing is the process of keeping things in a systematic and orderly way in order to preserve their worth and quality. Warehouses provide not only storage but also logistical services by locating the appropriate amount in the right place at the right time and at the right price. 

  • Storage: Warehouses make it easier to store products and raw materials that aren't needed right away for sale or manufacture, while also protecting them from rotting and damage.

  • Value-added Services: They provide producers with value-added services such as product grading, packaging, and labelling.

  • Financing: The warehouse receipt can be used as collateral to borrow money from banks or other financial organisations by the owner of the products or raw materials kept in the warehouse.

  • Break the Bulk: Warehouses are responsible for dividing large quantities of items received from manufacturing companies into smaller quantities. The small batches are then transported as per the requirements of customers.

  • Consolidation: The warehouses gather and consolidate material/goods from various manufacturing units before dispatching them to a specific consumer via a single transportation package.


6. What are services? Explain their distinct characteristics?

Ans: Services are intangible economic activities that need face-to-face interaction between the customer and the service provider at the point of delivery. Services do not require the manufacture or sale of products and are mostly given to meet the needs of individuals. 

Business services (such as banking, insurance, and warehousing) and professional services are the two types of services (including legal services, medical advice and tax consultancy).

The following are the types of services:

  • Intangible: Because services cannot be seen or touched, they are intangible. They can only be experienced. As a result, the quality of services cannot be determined prior to their use. As a result, it becomes critical for service providers to provide services that meet the needs of the individuals involved.

  • Inseparable: Simultaneous activity of production and consumption makes the production and consumption of services seem to be inseparable. Unlike products, which are manufactured today and sold later, services must be consumed immediately once they are made accessible.

  • Inconsistent: There are no defined standards for services; they must be delivered according to the demand and expectations of service consumers at any given moment. Due to the fact that each service user has distinct interests and preferences, the type and quality of services offered varies per user.

  • Engagement: At the moment of service delivery, the involvement of both the service user and the service provider is required. In a school, for example, the instructor and the pupils are actively involved in the exchange of knowledge-transfer services.

  • Inventory: Services cannot be held in inventory and sold at a later date. They must be made available when service users request them. This is due to the fact that if services are not utilised immediately, they lose their value.


 7. Explain the functions of commercial banks with an example of each.

Ans: Commercial banks are responsible for the following tasks:

  • Deposits: Banks accept and pay interest on a variety of public deposits, including savings account deposits, current account deposits, and fixed account deposits. They owe it to the depositor to refund the money placed by him or her.

  • Funds Lending: Banks provide loans and advances based on the total amount of money they have on hand. Overdrafts, reduced trade bills, cash or consumer credits, and other types of advances are available. Banks make a lot of money from the interest they charge on these loans.

  • Extending the Cheque Facility: Banks collect checks written on other banks, thus acting as a clearing house. Bearer cheques (encashable instantly at bank counters) and crossed checks (only deposited in the payees' accounts) are the two most common forms of cheques.

  • Funds Remittance: Banks assist clients in moving funds from one location to another. Bank draughts and pay orders can be used to make these transfers, and there are no commission fees.

  • Provision of Ancillary Services: In addition to their core duties, banks offer services such as lockers, underwriting, and bill payment. They also handle things like purchasing and selling stocks and debentures on behalf of their clients.


 8. Write a detailed note on various facilities offered by the Indian Postal Department.

Ans: The Indian Postal Department offers the services listed below.

  • Financial Facilities: 

Post offices provide a range of savings options to the general public.These facilities are provided through the post office's savings schemes like:

  • Public Provident Fund (PPF)

  • Kisan Vikas Patra

  • National Saving Certificate (NSC)

  • Recurring Deposit Scheme

  • Fixed Deposit Scheme 

  • Mail Facilities: 

Mail services include:

  • Parcel Facilities: They make it easier to transport an item from one location to another.

  • Registration Services: These services ensure that the article being sent is secure.

  • Insurance Facilities: These cover the risks associated with postal transmission.

The following are some of the mail services supplied by banks:

  • Postcards: This is the least expensive method of mail delivery.

  • Letter: It is enclosed in an envelope and guarantees the confidentiality of the information communicated.

  • Registered Mail: Registered mail ensures that the mail sent to the recipient is delivered or returned to the sender if it is not.

  • Additional Services

Greeting cards, media mail, international money transfers, speed mail, passport services, and e-billing services are also offered by these departments.


9. Describe various types of insurance and examine the nature of risks protected by each type of insurance.

Ans: The following three forms of insurance are available:

  1. Life Insurance:

  • It is a contract between the insurer and the insured in which the insurer promises to pay the insured a predetermined sum in the event of the insured's death or the insurance contract's maturity, whichever happens first. 

  • That is, if the insured person dies before the contract's maturity date, the promised sum is paid to his or her family. If the insured lives to the end of the contract's term, he or she will be paid the agreed-upon amount. 

  • The insured pays a certain amount to the insurer as a premium in exchange for this guarantee. Life's uncertainties necessitate the purchase of a life insurance policy.

  • Risk Covered: Life insurance plans protect us against two sorts of risks:

    • Risk of dying too early

    • Risk of dying too late

  1. Fire Insurance:

  • In exchange for the premium paid, the insurer guarantees to make good any loss or damage caused by fire over a specified period of time, up to the amount specified in the policy.

  • The fire insurance policy is usually for a year and must be renewed on a regular basis.

  • A claim for fire damage must meet the following two requirements:

    • There must be a monetary loss.

    • Fire must be unintended and accidental.

  1. Marine Insurance:

  • A marine insurance contract is an arrangement in which the insurer agrees to indemnify the insured against maritime losses in the way and to the extent agreed upon.

  • Risk Covered: Marine insurance protects against losses caused by marine perils, often known as sea perils. There are three factors to consider:

    • Hull Insurance: Because the ship is exposed to several dangers at sea, this insurance policy is designed to compensate the insured for losses incurred as a result of ship damage.

    • Cargo Insurance: Cargo or the goods in the ship is exposed to numerous dangers while being transported by ship, this insurance covers the risk of voyage.

    • Freight Insurance: If the cargo is damaged or lost in transit, the shipping business is not reimbursed for the freight payments, hence to avoid this scenario, the shipping company takes up this insurance policy.


10. Explain in detail the warehousing services.

Ans: Warehousing was once thought of as a static unit for keeping and storing goods in a scientific and systematic manner in order to preserve their original quality, value, and utility, but it is now thought of as a logistical service that makes the right quantity, at the right place, at the right time available. The following are the different warehousing services:

  • Storage: Warehouses make it easier to store products and raw materials that aren't needed right away for sale or manufacture, while also protecting them from rotting and damage.

  • Value-Ddded Services: They provide producers with value-added services such as product grading, packaging, and labelling.

  • Financing: The warehouse receipt can be used as collateral to borrow money from banks or other financial organisations by the owner of the products or raw materials kept in the warehouse.

  • Break the Bulk: Warehouses are responsible for dividing large quantities of items received from manufacturing companies into smaller quantities. The smaller quantities are then transported according to the requirements of clients to their places of business

  • Consolidation: The warehouses gather and consolidate material/goods from various manufacturing units before dispatching them to a specific consumer via a single transportation package.

  • Stockpiling: The seasonal storing of commodities for certain businesses is the next role of warehousing. Raw materials, which are not required immediately for sale or manufacturing, are stored in warehouses. They are made available to enterprises according to the number of consumers they have.

  • Price Stabilisation: Warehousing provides the role of price stabilisation by adapting the supply of products to the demand condition.


11. Identify a list of various services you use on a regular basis and identify their distinct characteristics. 

Ans: The various services that we use on regular basis are:

  • Communication services 

  • Transportation services

  • Banking services 

  • Education services

  • Health care services

  • Tourism

  • Services of carpenter, plumber, electrician etc.

Service characteristics include:

  • Intangible: Because services cannot be seen or touched, they are intangible. They can only be experienced. As a result, the quality of services cannot be determined prior to their use. As a result, it becomes critical for service providers to provide services that meet the needs of the individuals involved.

  • Inseparable: Simultaneous activity of production and consumption makes the production and consumption of services seem to be inseparable. Unlike products, which are manufactured today and sold later, services must be consumed immediately once they are made accessible.

  • Inconsistent: There are no defined standards for services; they must be delivered according to the demand and expectations of service consumers at any given moment. Due to the fact that each service user has distinct interests and preferences, the type and quality of services offered varies per user.

  • Engagement: At the moment of service delivery, the involvement of both the service user and the service provider is required. In a school, for example, the instructor and the pupils are actively involved in the exchange of knowledge-transfer services.

  • Inventory: Services cannot be held in inventory and sold at a later date. They must be made available when service users request them. This is due to the fact that if services are not utilised immediately, they lose their value. Services cannot be generated in advance of sale and saved for future need; for example, a vacant seat on an aeroplane or a spare berth on a train indicate service capacity that will be lost forever.


12. Do a project on banking services. Approach a nearby bank and collect information about various services offered by them and also collect leaflets about salient features of different schemes. Compile and suggest what extra services you may like to propose.

Ans: A bank is a money-handling financial entity. The Indian Banking Regulation Act of 1945 governs it. A commercial bank institution is defined as one that accepts money from the public for the purpose of lending or investing. Commercial banks are divided into two categories. Banks in both the public and private sectors.

I had approached a government-owned bank. A public bank is one in which the government owns a significant part and which operates on the premise of public good rather than profit.

The following are the services provided by the bank:

  1. Deposits: A bank's primary function is to accept public deposits. There are three different kinds of deposits:

    1. Current Account Deposit: These are deposits that can be withdrawn at any moment up to the amount of the balance.

    2. Savings Account: The main goal of this sort of account is to encourage people to save more. On deposits held in these banks, the bank pays a rate of interest. The country's central bank determines this rate of interest. There are limits on the number of withdrawals and the amount of withdrawals that can be made in a given time period

    3. Fixed Account Deposit: Because they are for a specific length of time, these deposits are also known as time deposits. The bank pays a larger rate of interest on this sort of deposit account than on a savings account.

  2. Lending Fund: The central bank uses the deposits it has gathered to make loans and advances. Overdrafts, cash credits, discounting trade bills, term loans, consumer credits, and other miscellaneous advances are all examples of this.

  3. Cheque Facility: The cheque is the most developed tool for withdrawing deposits and is a unique characteristic of banks. It is a very practical and cost-effective form of exchange. There are two sorts of checks: paper checks and electronic checks.

    1. Bearer Cheques: These cheques can be cashed right away at a bank.

    2. Crossed Checks: These checks must be deposited solely in the account of the payee.

  4. Funds Remittance: Due to the interconnectedness of branches, banks offer the ability to move funds from one location to another. On a commission basis, this is done by bank draughts, pay orders, and mail transfers.

  5. Auxiliary: Bill payment, locker facility, underwriting service, buying and selling of shares and debentures, dividend collecting, and insurance premium payment are examples of linked services.

There are no other services that I want to propose which the bank should provide.


13. Visit a nearby bank branch in your locality and collect information about various types of account available for customers to open as per their requirement. 

In the second part of the activity match the information given in column A with the information given in Column B

S. No

Column A

Column B

1.

Multiple Option Deposit

It is a temporary pass through account held by a third party during the process of a transaction between two parties unless the transaction is completed.

2.

Savings Account 

A kind of deposit scheme introduced by different banks, where the excess amount in the savings bank account is transferred to fixed deposit account and the account holder earns more rate of interest. If the bank receives a cheque for this account and the balance is not sufficient, the amount will be transferred from fixed deposit account to savings bank account to clear the cheque. In short, it gives the account holder the interest of a term deposit with the flexibility of partial withdrawal, whereas, the remaining cash will get better interest. 

3.

Current Account

It is also called cumulative deposit scheme. Any resident, individual, association, club, institution/ agency is eligible to open this account in single/joint names. The account can be opened for any period ranging from 6 months to 120 months, in multiple of 1 month for monthly installment. The amount selected for installment at the start of the scheme is payable every month and the number of installments once fixed, cannot be changed. The rate of interest is compounded quarterly and the final amount is paid on maturity.

4.

Fixed Deposit Account

Any resident, individual, association, club, etc., is eligible for this account. It is a kind of modest credit option available to the depositor. Two free cheque books will be issued each year. Internet banking facility will be provided without any charge. Balance enquiry, NEFT, bill payment, mobile recharge, etc., are provided through mobile phones. Students can open this account with zero balance by providing the required documents.

5.

Demat Account

This account can be opened by any resident, individual, association, limited company, religious institution, educational institution, charitable institution, club, etc. Payments can be done unlimited number of times. Funds can be remitted from any part of the country to the corresponding account. Overdraft facility and Internet banking facility are available.

6.

Escrow Account

It is classified as short deposit receipt and fixed deposit receipt 

  1. Short Deposit Receipt 

  • Banks accept deposits from customers varying from 7 days to a maximum of 10 years. 

  • The period for ‘short deposits’ can vary from 7 days to 179 days. 

  • The minimum amount that can be deposited under this scheme is Rs. 5 lakh for a period of 7-14 days. 

  1. Fixed Deposit Receipt 

  • Any resident, individual, association, minor, society, club, etc., is eligible for this account.

  • The minimum FDR in metro and Urban branches is Rs. 10,000 and in rural and semiurban and for senior citizens is Rs. 5000.

  • Interest rate differs from bank to bank depending upon the tenure of the deposits and as bank changes the rate. 

  • Additional interest of 0.50% is offered to senior citizens on deposits placed for a year and above

7.

Recurring Deposit Account

  1. This account offers stress-free transactions on the shares. 

  2. An individual, Non-Resident Indian, foreign institutional investor, foreign national, corporate, trusts, clearing houses, financial institution, clearing member, mutual funds, banks and other depository account. 

  3. For opening this account, an applicant requires to fill a form, submit his/her photo along with a photocopy of Voter ID/Passport /Aadhar Card/ Driving Licence and a Demat account number will be provided to the applicant immediately after the completion of processing of the application.


Ans:  Various types of accounts available: 

  • Current Account Deposit: These are deposits that can be withdrawn at any moment up to the amount of the balance.

  • Savings Account: The main goal of this sort of account is to encourage people to save more. On deposits held in these banks, the bank pays a rate of interest. The country's central bank determines this rate of interest. There are limits on the number of withdrawals and the amount of withdrawals that can be made in a given time period

  • Fixed Deposit Account: Because they are for a specific length of time, these deposits are also known as time deposits. The bank pays a larger rate of interest on this sort of deposit account than on a savings account.


Match the Columns:

S. No

Column A

Column B

1.

Multiple Option Deposit

A kind of deposit scheme introduced by different banks, where the excess amount in the savings bank account is transferred to fixed deposit account and the account holder earns more rate of interest. If the bank receives a cheque for this account and the balance is not sufficient, the amount will be transferred from fixed deposit account to savings bank account to clear the cheque. In short, it gives the account holder the interest of a term deposit with the flexibility of partial withdrawal, whereas, the remaining cash will get better interest. 

2.

Savings Account 

Any resident, individual, association, club, etc., is eligible for this account. It is a kind of modest credit option available to the depositor. Two free cheque books will be issued each year. Internet banking facility will be provided without any charge. Balance enquiry, NEFT, bill payment, mobile recharge, etc., are provided through mobile phones. Students can open this account with zero balance by providing the required documents.

3.

Current Account

This account can be opened by any resident, individual, association, limited company, religious institution, educational institution, charitable institution, club, etc. Payments can be done unlimited number of times. Funds can be remitted from any part of the country to the corresponding account. Overdraft facility and Internet banking facility are available.

4.

Fixed Deposit Account

It is classified as short deposit receipt and fixed deposit receipt 

  1. Short Deposit Receipt 

  • Banks accept deposits from customers varying from 7 days to a maximum of 10 years. 

  • The period for ‘short deposits’ can vary from 7 days to 179 days. 

  • The minimum amount that can be deposited under this scheme is Rs. 5 lakh for a period of 7-14 days. 

  1. Fixed Deposit Receipt 

  • Any resident, individual, association, minor, society, club, etc., is eligible for this account.

  • The minimum FDR in metro and Urban branches is Rs. 10,000 and in rural and semiurban and for senior citizens is Rs. 5000.

  • Interest rate differs from bank to bank depending upon the tenure of the deposits and as bank changes the rate. 

  • Additional interest of 0.50% is offered to senior citizens on deposits placed for a year and above

5.

Demat Account

  1. This account offers stress-free transactions on the shares. 

  2. An individual, Non-Resident Indian, foreign institutional investor, foreign national, corporate, trusts, clearing houses, financial institution, clearing member, mutual funds, banks and other depository account. 

  3. For opening this account, an applicant requires to fill a form, submit his/her photo along with a photocopy of Voter ID/Passport /Aadhar Card/ Driving Licence and a Demat account number will be provided to the applicant immediately after the completion of processing of the application


6.

Escrow Account

It is a temporary pass through account held by a third party during the process of a transaction between two parties unless the transaction is completed.

7.

Recurring Deposit Account

It is also called cumulative deposit scheme. Any resident, individual, association, club, institution/ agency is eligible to open this account in single/joint names. The account can be opened for any period ranging from 6 months to 120 months, in multiple of 1 month for monthly installment. The amount selected for installment at the start of the scheme is payable every month and the number of installments once fixed, cannot be changed. The rate of interest is compounded quarterly and the final amount is paid on maturity.


NCERT Solutions for Class 11 Business Studies Chapter 4 Business Services - Benefits for the Students

Studying the chapter Business Services Chapter 4 Class 11 from home, without any proper guidance, is difficult. Hence, Vedantu offers to ease the process and guide you on a step-by-step path. The benefits provided with the help of this study material are as follows:

  • It is difficult for students to comprehend the text by themselves with difficult questions and concepts. Thus, these NCERT Solutions will definitely help the students to understand the same in a lucid manner.  

  • Our in-house expert teachers, who have years of experience, have prepared the summary of all the chapters so that we can guide students through the chapters, thus it is of utmost reliability. 

  • Business Studies Chapter 4 Class 11 solutions contain simplified versions of all the intext questions and many more. These solutions will be helpful for you to understand and frame the answers. They will undoubtedly help you to prepare for your upcoming exams. 

  • With the help of NCERT solutions, one will know what type of questions will come in the exam. 

  • NCERT Solutions will help the students to understand how the answers are to be written. They will have a perfect demonstration of the expected good answers. 

  • Studying with NCERT Solutions will boost their confidence, and along with this, the students will also gain adequate knowledge of this chapter. 


NCERT Solutions for Class 11 Business Studies - Chapter 4 - Topic Coverage 

The following is the topic coverage of Chapter 4:

  1. Functions of Banks

  2. Nature of Business Services

  3. Primary and Secondary Functions of Banks

  4. Electronic Banking Services

  5. Benefits of E-Banking

  6. Types of Life Insurance Policy

  7. Other Insurances


How to Grasp the Chapter? - Preparation Tips 

Business Chapter 4 Class 11 contains a variety of exercise questions that are essential for your examinations. Thus, below are some preparation tips which might help you in your Business Studies exam:

  • Students are requested to read the text thoroughly multiple times. If you follow this technique, you can easily comprehend the topics, even the problematic portions quickly. 

  • If you wish to go through the entire text quickly, you can refer to the solutions on Vedantu.com since it covers all the necessary items. 

  • Teachers have written the solutions is simple language according to the guideline mentioned by CBSE. Hence, you will get much higher marks if you study the format of the answers from Vedantu. 

  • You can also print the solutions in PDF formats and go through them before your exams. 


NCERT Solutions for Class 11 Business Studies - Chapter 4 - Business Services - Extra Questions and Answers (Solved)

1. What Are the Services and Goods?

Answer: Services are the separately identifiable, mostly intangible activities that provide satisfaction to the customers which are not necessarily linked to the sale of a product or any other service. The purchase of any service does not result in the ownership of any physical item. Services involve interaction between the service provider and the customer to realise the requirement of the consumer. Example of services is- DTH service, Internet service, etc. Goods, on the other hand, are physical products which can be transferred to the purchaser by the seller. The transfer involves ownership of the product by the customer. Goods can also refer to the commodities or products of various types, except services, involved in trade or commerce. 

Example of goods is- food items, any physically tangible item. 


2. What Do You Mean by Telecom Services Available for Enhancing Business?

Answer: Various telecom services can enhance business. Some of them are- 

  • Cellular Mobile Service - These services are the types of mobile telecom services like voice, and text messages, data services and PCO services, which helps for any network equipment within the service area.

  • Radio Paging Service - It is an affordable service through which business operators can transmit information in the form of a tone or numeric or alphanumeric messages.

  • Fixed-Line Service - It consists of the types of fixed services like voice and non-voice messages or data services that help to establish linkages for long-distance traffic.

  • Cable Service - it is used to transmit media information for a definite area for which a licence is required. In such a telecom service, the flow of data is unidirectional. 

  • VSAT Service - It is a satellite communication service. It offers services to the business and governmental agencies a highly flexible and reliable communication method in the urban and rural area. Hence, it has a broader reach and flexibility for businesses. 

DTH Service - DTH or Direct to Home service is a type of telecom service that is provided by the DTH Companies.


3. What Are the Types of Insurance Policy?

Answer. The types of Insurance Policy are as follows:

  • Whole Life Policy

  • Endowment Life Insurance Policy

  • Joint Life Policy

  • Annuity Policy

  • Children’s Endowment Policy


Important Study Material Links for Chapter 4: Business Services

S. No

Important Study Material Links for Chapter 4 Business Services 

1.

Class 11 Business Services Important Questions

2.

Class 11 Business Services Revision Notes


Conclusion

We are hopeful that the NCERT Solutions for Class 11 Business Studies - Chapter 4 - Business Services will be of great help to the students for preparing the NCERT-based questions and answers. Along with this, we hope students must have understood how important these questions and answers are for a student. The answers have been prepared by expert teachers in accordance with the latest NCERT textbook and CBSE exam answering pattern. Refer to them to score the maximum marks in your terminal exams and ace the subject.


You can download the same by clicking ‘Download Pdf’ which is absolutely free. Happy learning!


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FAQs on NCERT Solutions for Class 11 Business Studies Chapter 4 Business Services

1. What are NCERT Solutions for Class 11 Business Studies Chapter 4 and how are they helpful as per the CBSE 2025–26 syllabus?

NCERT Solutions for Class 11 Business Studies Chapter 4 provide step-by-step, syllabus-aligned answers to textbook exercises, ensuring clarity on key topics like business services, banking, insurance, and warehousing. They help students understand exam-oriented answer structures, clarify concepts, and offer model responses prepared by subject experts, making them highly useful for CBSE 2025–26 exam preparation.

2. How should a student approach solving NCERT questions in Business Studies Chapter 4 for best results?

To excel in solving NCERT questions for Business Studies Chapter 4, students should:

  • Read the theory from the official textbook thoroughly
  • Use NCERT Solutions for structured answers and logic
  • Practice writing answers in the CBSE-recommended format
  • Understand rather than memorize definitions and distinctions
  • Revise using end-chapter exercises and extra solved examples for full conceptual grasp

3. What are the main business services explained in NCERT Solutions for Class 11 Business Studies Chapter 4?

The main business services covered include:

  • Banking – explaining types of accounts, e-banking, and functions
  • Insurance – types, key principles (e.g., indemnity, proximate cause)
  • Warehousing – functions like storage, consolidation, and value addition
  • Telecom services – their role in supporting business operations

4. What are the core differences between goods and services as outlined in the NCERT Solutions for Chapter 4?

Goods are tangible, can be owned and stored, and their ownership transfers on sale. Services are intangible, inseparable from consumption, inconsistent, cannot be inventoried, and require active customer-provider engagement at the point of delivery.

5. What is e-banking according to CBSE Class 11 Business Studies Chapter 4, and what are its advantages?

E-banking refers to electronic banking services that allow customers to conduct banking transactions online, including transfers, checking balances, and bill payments. Advantages include 24x7 access, reduced need for branch visits, increased convenience, real-time transactions, and reduced workload for banks.

6. How do NCERT Solutions for Chapter 4 explain the principles of insurance with examples?

The principles of insurance explained include:

  • Utmost Good Faith (disclosing all material facts)
  • Insurable Interest (having a stake in the insured item)
  • Indemnity (restoring to original financial position)
  • Proximate Cause (compensation for insured perils only)
  • Subrogation and Contribution (avoid profit from multiple claims)
  • Mitigation (duty to minimize loss)
Each is illustrated with business-relevant examples.

7. In what ways do warehousing services add value to businesses, as per NCERT Solutions?

Warehousing services add value by:

  • Scientific storage and preservation of goods
  • Offering value-added services such as packaging, labeling, and grading
  • Serving as collateral for financing
  • Breaking bulk to meet customer requirements
  • Assisting with price stabilization by managing seasonal supplies

8. What are the types of bank accounts described in Class 11 Business Studies NCERT Solutions, and what distinguishes them?

Types of bank accounts include:

  • Savings Account – for personal savings, with interest
  • Current Account – for frequent transactions, ideal for businesses, no interest
  • Fixed Deposit Account – time-bound deposits with higher interest
  • Recurring Deposit Account – fixed monthly installments and interest
  • Demat Account – electronic holdings for shares
  • Escrow Account – temporary holding for third-party transactions
Each serves distinct customer and business needs.

9. Compare the features of e-banking with traditional banking as discussed in the NCERT Solutions for Class 11 Business Studies Chapter 4.

E-banking offers online, 24x7 access, quicker transactions, and paperless processes. Traditional banking requires physical presence, limited to branch hours, and involves manual paperwork. E-banking also reduces bank staff workload and allows customers to transact from anywhere, while traditional banking is limited by geography and time.

10. Why is understanding the difference between goods and services crucial for business studies students, as per CBSE guidelines?

Grasping the difference between goods and services helps students understand key business models, marketing strategies, and management principles, as products and services require different approaches to pricing, customer experience, and legal treatment. This foundational distinction is emphasized in CBSE's 2025–26 Business Studies curriculum.

11. What higher-order thinking (HOT) question might CBSE ask from Business Studies Chapter 4 relating to insurance principles?

A sample HOTS question:

  • "Explain how the principle of indemnity prevents moral hazard in insurance, using a practical business scenario."

This requires analyzing how indemnity limits compensation to actual loss, discouraging fraudulent claims, and thus protecting both insurer and policyholder interests.

12. What are the distinct characteristics of services described in NCERT Solutions for Chapter 4? Why do these characteristics matter to businesses?

Services are intangible, inseparable, variable (inconsistent), perishable (no inventory), and require simultaneous production and consumption. These features mean businesses must focus on quality assurance at the point of delivery, personalize offerings, and train staff to handle real-time customer needs effectively.

13. How do telecom services support business operations as per the updated NCERT Solutions for Class 11 Business Studies?

Telecom services such as mobile, fixed-line, cable, VSAT, and DTH enable businesses to communicate efficiently, access real-time data, reach remote areas, and manage transactions, thus making business processes more flexible, reliable, and geographically scalable.

14. What are some common misconceptions students have regarding warehousing, and how do NCERT Solutions clarify them?

Common misconceptions include thinking warehousing is only about storage. The NCERT Solutions clarify that modern warehousing includes consolidation, break-bulk, value addition, financing support, and price stabilization functions, expanding the traditional view of warehouses as static storage units.

15. What is the correct exam pattern for answering NCERT-based questions in Business Studies Chapter 4, as suggested by experts?

Expert advice for answering involves:

  • Defining key terms clearly and concisely
  • Using examples where possible
  • Structuring answers with pointwise or stepwise details as per question demand
  • Focusing on CBSE-marking keywords and prescribed formats
  • Relating explanations to current business scenarios for HOTS