1

MINIMUM LEARNING MATERIAL

CLASS : 11

SUBJECT : COMMERCE (E.M)

2023 – 2024

BY
PRABHU P
P.G.ASST.,
T.K.M.H.S.S.,
VILLUPURAM.

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CHAPTER - 1 . HISTORICAL BACKGROUND OF COMMERCE IN THE SUB – CONTINENT

I.VERY SHORT ANSWERS.

1. What is meant by Barter System ?
Goods were exchanged for goods.
2.What is meant by Nalangadi ?
Day market was called as Nalangadi.
3.What is meant by Allangadi ?
Night market was called as Allangadi.
II. SHORT ANSWERS.
1.What are the ports developed by Pandya kingdom?
i) Korkai ,
ii) Saliyur,
iii) Kayal,
iv) Marungaur pattinam,
v) Kumari.

CHAPTER - 2 . OBJECTIVES OF BUSINESS

I.VERY SHORT ANSWERS.
1.What is meant by Economic Activities?
Activities undertaken with the object of earning money are called economic activities.
2.What do you mean by Business?
Economic activities performed for earning profits are called Business.
3. What do you mean by Employment ?
Employment refers to the occupation in which people work for others and get
remuneration in the form of wages or salaries.

II. SHORT ANSWERS.

1.What do you mean by human activities ? Explain.
➢ Human activity is an activity performed by a human being to meet his / her needs and
wants
➢ It can be classified in to Economic activities and Non economic activities.

2. Write a short notes on : a)Business b)Profession

a)Business
Economic activities performed for earning profits are called Business.
b)Profession
Professions are those occupations which involve rendering of personal services of a
special and expert nature.
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CHAPTER – 3. CLASSIFICATION OF BUSINESS ACTIVITIES.
I.VERY SHORT ANSWERS.
1.Define Commerce.
According to Evelyn Thomas, “Commercial operations deal with the buying and selling of
goods, the exchange of commodities and the contribution of finished products”.
2. What do you mean by Industry?
Industry refers to economic activities, which are connected with conversion of resources into
useful goods.
3. What it trade ?
The term ‘trade’ is used to denote buying and selling.

II. Short Answer Questions:

1.Write a short note on Transportation.
The medium which moves men and materials from one place to another is called transport.

CHAPTER - 4. SOLE PROPRITORSHIP

I. Very Short Answer Questions

1.What is Sole Trading business ?
Sole Trading business is that form of business organisation which is owned and controlled by
a single individual.
2. What are the Non-Corporate enterprises?
i) Sole Trading Concern
ii) Partnership Firms
iii) Joint Hindu Family Business
3. What are the Corporate enterprises?
i) Government
ii) Private
iii) Cooperative

II. Short Answer Questions

1.How is it possible to maintain secrecy in Sole Proprietorship?
Sole Trader manages all the affairs of the business, the secrecy can be maintained easily.
2. Give some examples of Sole trading business.
I) Medical shop
II) Fruit shop
III) Vegetable shop
IV) Electrical store.
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Chapter – 5. HINDU UNDIVIDED FAMILY AND PARTNERSHIP.
I. Very Short Answer Questions
1. Who is called KARTA?
All the affairs of a Joint Hindu Family are controlled and managed by one person who is known
as ‘Karta’ or ‘Manager’.
2. What are the two schools of Hindu law?
DAYABHAGA
MITAKSHARA
3. Who is called a Partner?
The persons who enter into partnership are individually called ‘Partners’
4. Who is a Sleeping partner?
Sleeping Partner contributes capital and shares in the profits or losses of the firm
but does not take part in the management of the business.
5. How many types of Dissolution?
Two types. They are
a) Dissolution of firm
b) Dissolution of partnership
III. Short Answer Questions
1.What is the minimum and maximum number of members in the partnership concern?
Minimum - two members
Maximum - 50 members

CHAPTER - 6. JOINT STOCK COMPANY

I. Very Short Answer Questions
1. What are the different types of companies?
i) FOREIGN COMPANY
ii) CHARTERED COMPANY
iii) PRIVATE COMPANY
iv) PUBLIC COMPANY
v) GOVERNMENT COMPANY
2. What is meant by Chartered Company?
➢ Chartered companies are established by the King or Queen of a country.
➢ Powers and privileges of chartered company are specified in the charter.
➢ Power to cancel the charter is vested with King/Queen.
II. Short Answer Questions
1.What is meant by Foreign Company?
A foreign company means a company which is incorporated in a country outside
India under the law of that country.
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CHAPTER - 7 COOPERATIVE ORGANISATION.
I. Very Short Answer Questions
1. What do you mean by cooperative organization?
cooperative is a form of business organisation which is owned and controlled by the people
who use its products, supplies or services.
2. Define Cooperatives.
Cooperation is “better farming, better business and better living”

CHAPTER - 8 MULTI NATIONAL CORPORATIONS (MNCs).

I. Very Short Answer Questions
1.Define Multinational Company.
“A multinational corporation owns and manages business in two or more countries.”
2. What is meant by Oligopoly ?
It is a market condition where there are very few sellers in the same product line.
3. Give two examples of MNC’s.
i) BATA CORPORATION
ii) SONY CORPORATION
iii) TVS
iv) TATA
v) BAJAJ
II. Short Answer Questions
1.Write any three Indian MNC’s.
i) BAJAJ
ii) TVS
iii) TATA
iv) BRITANNIA
CHAPTER - 9. GOVERNMENT ORGANISATION
II. Very Short Answer Questions
1.Give two examples of Public Corporation.
i) LIFE INSURANCE CORPORATION OF INDIA – LIC
ii) ONGC
iii) THE INDIAN AIRLINES
2. Give two examples of Departmental Undertaking.
i) INDIAN RAILWAY
ii) ALL INDIA RADIO
iii) TAMIL NADU POLICE DEPARTMENT
3. What is meant by Red-Tapism?
There is too much of procedures which results in delay.
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CHAPTER - 10. RESERVE BANK OF INDIA
I. Very Short Answer Questions
1. What are the services included in Service businesses?
i) EDUCATIONAL
ii) MEDICAL
iii) HOSPITALITY
iv) INSURANCE
2. Briefly explain about Central Bank.
➢ Every nation has one central bank.
➢ It is owned by the Government of the country.
➢ The control over the entire banking system of a country
II. Short Answer Questions
1.Who are the persons involved in RBI administration?
The RBI is governed by a Central Board of Directors.
The 21 member board is appointed by the Government of India.
It consists of;
a. one governor and four deputy governors appointed for a period of four years,
b. ten directors from various fields
c. two Government officials
d. four directors - one each from local boards.
CHAPTER - 11 TYPES OF BANKS.
I.Very Short Answer Questions
1. Give the meaning of Commercial Banks.
Commercial Banks accept deposits from the public and grant loans to traders, individuals,
agriculture, industries, transport, etc. in order to earn profit.
2. What are Foreign Banks?
Banks which have registered office in a foreign country and branches in India are
called foreign banks.
CHAPTER – 12 FUNCTIONS OF COMMERCIAL BANKS.
I. Very Short Answer Questions
1. Write a short notes on Debit card.
ATM card is also called debit card.
This card is more useful in purchase of goods and services anywhere in India
2. Write a short notes on Credit card.
With this card, the holder can purchase goods and services on credit at any shop in India.
3. What do you mean by ATM?
A customer can withdraw money anytime, anywhere in India from the ATM machine using the
ATM card
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CHAPTER - 13 WAREHOUSING
I Very Short Answer Questions
1.What is Warehouse?
It is a place where goods are stored for future use and act as distribution centres.
2. Give a note on FCI.
➢ It provides storage facilities for food grains.
➢ Food Corporation of India also hires storage capacity from other sources.
➢ The FCI was set-up under the Food Corporation Act 1964
II. Short Answer Questions
1.Differentiate the warehouse warrant from the warehouse receipt. (any 3)
warehouse warrant Warehouse Receipt warehouse receipt
1.It is a document of title of goods It is not a document of title of goods
2. It can be transferred to others. It cannot be transferred to others
3. It can be given a collateral security It cannot be given as collateral security.

2. Explain Cold storage warehouse.

➢ These warehouses are used for storing perishable goods like fruits, vegetables, eggs, butter,
fish, meat, etc.
➢ Goods stored in cold storages.
CHAPTER -14. TRANSPORT
I. Very Short Answer Questions
1. Define Transport.
The transport system acts with reference to the area it serves in the same way as a candle
does in a dark room”.
2. State any two services rendered by transport.
➢ Transport helps travelling of people from one place to another place.
➢ Transport helps travelling of goods from one place to another place
3. Write any two advantages of water transport.
➢ It is most suitable for heavy loads.
➢ There is lesser pollution in water transport.
➢ It is considered as the cheapest mode Of transport.
CHAPTER - 15. INSURANCE
I. Very Short Answer Questions
1. List any five important types of policies.
i) Whole Life Policy iv) Health Insurance
ii) Joint Life Policy v) Children’s Endowment Policy.
iii) Fire Insurance

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CHAPTER -18 . BUSINESS ETHICS AND CORPORATE GOVERNANCE
II. Short Answer Questions
1.Why MNC’s in India? (any 3)
i) India has a huge market
ii) It is one of the fastest growing economies in the world.
iii) Favorable policies of the government towards FDI.
iv) Financial liberalization of the country after 1991.
CHAPTER - 19 . SOURCES OF BUSINESS FINANCE
I. Very Short Answer Questions
1. Write a short notes on Debentures.
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.
2. Name any two sources of funds classified under borrowed funds.
i) DEBENTURES ii) LOAN FROM BANKS
iii) PUBLIC DEPOSITS
3. Write any two examples of Post Office Savings Schemes.
i) Post Office Savings Account iii) Public Provident Fund
ii) National Savings Certificates
II. Short Answer Questions
1.Classify the sources of business finance on the basis of period.
i) Short term finance
ii) Medium term finance
iii) Long term finance
Chapter - 20. INTERNATIONAL FINANCE
I. Very Short Answer Questions
1.What is a Global Depository Receipt (GDR)?
GDR is an instrument issued abroad by a company to raise funds in some foreign
Currencies
CHAPTER - 21. MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) AND SELF HELP
GROUPS (SHGs)
I. Very Short Answer Questions
1. Give some examples for micro enterprises.
i) Clay pot making, iv) Cottage industries,
ii) Fruits and Vegetable Vendors, v) Small industries
iii) Transport repair shops,
2. What is the aim of NEEDS?
To encouraging the educated youth to become the first generation entrepreneurs.

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II. Short Answer Questions
1.List out the products produced by MSME in Tamil Nadu.
Textile, Electronic products,
Engineering products, Jewellery
Leather products, Chemicals,
Plastics, Garments,
2. Explain any three features of Self Help Group.
i) The ideal size of a Self Help Group ranges between 10 and 20 members.
ii) The groups need not be registered.
iii) Each group should have only one member from one single family.
iv) A group is to be formed with only men or only with women.
CHAPTER - 22. TYPES OF TRADE
I. Very Short Answer Questions
1. Give the meaning of Trade.
The buying and selling of goods and services consists of trade.
2. What is International Trade?
International Trade is a trade between a seller and buyer of different countries.
3. What is Import Trade?
Import trade means buying goods from foreign countries.
4. Explain the meaning of Entrepot Trade.
Entrepot trade means importing of goods from one country and exporting the same
to foreign countries.
II. Short Answer Questions
1.Give three examples of India’s Import and Exports items.
Import items: Export items
Gem, precious metals Petroleum products
Electrical machinery Jewelry
Machinery including computers Automobile
Organic chemicals Bio-chemicals
III. Long Answer Questions
1.Explain briefly the different types of Foreign Trade.
Import Trade:
Import trade means buying goods from foreign countries.
Export Trade
Export trade means the sale of goods to foreign countries.
Entrepot Trade:
Entrepot trade means importing of goods from one country and exporting the same
to foreign countries.
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CHAPTER – 23. CHANNELS OF DISTRIBUTION
I. Very Short Answer Questions
1. Who is a middleman?
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.
2.Who is a Broker?
A Broker is one who bargains for another and receives commission for his service.
3.What are the classification of the merchant middlemen?
Wholesaler Retailer
CHAPTER - 24 REAILING
I. Very Short Answer Questions
1.What are Specialty stores?
Speciallity Stores deal in a particular type of product under one product line only.
CHAPTER - 25 INTERNATIONAL BUSINESS
I. Very Short Answer Questions
1.What do you mean by International business?
International business is a business between a seller and buyer of different countries.
2.What is meant by Export Trade?
Export trade means the sale of goods to foreign countries.
3.What is meant by Import Trade?
Import trade means buying goods from a foreign countries.
4.What is meant by Entrepot Trade?
Entrepot trade means importing of goods from one country and exporting the same
to foreign countries.
CHAPTER -26. EXPORT AND IMPORT PROCEDURES
I. Very Short Answer Questions
1.What is meant by Indent?
An Indent is document prepared by importer and sent to the exporter to buy the goods
2.Mention the types of Indent.
Open indent,
Closed indent
Confirmatory indent.
II. Short Answer Questions
1.What are the contents of Indents? (any 3)
i) Quantity of goods sent v) Period of delivery
ii) Design of goods vi) Mode of payment
iii) Price
iv) Nature of packing shipment
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2.What are the documents used in Import Trade? (any 3)
Import License (IEC)
Indent
Letter of Credit
CHAPTER - 29 . ELEMENTS OF CONTRACT
I Very Short Answer Questions
1.What is Law?
Law means a ‘set of rules’ which governs our behaviour and relating in a civilized society.
2. What is meant by Contract?
A contract is an agreement enforceable by law.
3. How many parts of Indian Contract Law are classified?
a. General Contracts
b. Special Contracts
II Short Answer Questions
1.What do you mean by Agreement?
An Agreement is every promise or every set of promises forming consideration
CHAPTER - 30 . PERFORMANCE OF CONTRACT
I Very Short Answer Questions.
1.State the ways of Performing a Contract.
i. Actual Performance
ii. Attempted Performance
II Short Answer Questions
1.Who can demand performance?
Promisee
Legal Representative
Third party
2. Who will perform the contract?
i) Promisor himself
ii) Agent
iii) Representatives
iv) Third Person
v) Joint Promisors

CHAPTER - 31. DISCHARGE AND BREACH OF CONTRACT

I.Very Short Answer Questions
1.What are the kinds of consent?
i) Express
ii) Imlied
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2.What are the types of Damages?
i)Ordinary damages
ii) Special damages
iii) Vindictive or exemplary damages and
iv) Nominal damagesi)
II. Short Answer Questions
1.What are the various types of remedies for the injured parties? (any 3)
i) Recission of Contract.
ii) Claim for Specific Performance.
iii) Claim for Injunction.
iv) Claim for Quantum Merit and
v) Claim for Damages.
2.What are the types of cases the court may order injunction?
(a) if the contract is voidable.
(b) if the contract becomes void or
(c) on discovering the contract as void.
CHAPTER - 32. DIRECT TAX
I. Very Short Answer Questions
1.What is Income Tax?
Income tax is a direct tax under which tax is calculated on the income
2. What is meant by Previous year?
The year in which income is earned is called previous year.
3. What is an assessment year?
The year in which tax is paid is called the assessment year.
II. Short Answer Questions
1.List out the five heads of income.
(i) Income from ‘Salaries’
(ii) Income from ‘House Property’
(iii) Income from ‘Profits and Gains of Business or Profession’
(iv) Income from ‘Capital Gains’
(v) Income from ‘Other Sources’
2.Write short notes on: a) Direct tax b) Indirect tax
i.Direct Tax:
If a tax levied on the income or wealth of a person and is paid by that person (or his office) directly to
the Government, it is called direct tax
ii. Indirect Tax:
If tax is levied on the goods or services of a person (seller). It is collected from the buyers and is paid
by seller to the Government. It is called indirect tax.
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3.Who are all included in the term person?
(i) an individual, (ii) a Hindu Undivided Family (HUF),
(iii) a company, (iv) a firm,
(v) an Association Of Persons (vi) a local authority,
(vii) every artificial juridical person
CHAPTER - 33. INDIRECT TAX
I. Very Short Answer Questions
1.What do you mean by Indirect Tax.
If tax is levied on the goods or services of a person (seller). It is collected from the buyers and is
paid by seller to the Government. It is called indirect tax.
2. Give any two examples for indirect taxes levied in India.
GST - Goods and Services Tax,
Excise duty.
3. What do you mean by Goods and Services Taxes?
Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and
services.

CHAPTER - 1 . HISTORICAL BACKGROUND OF COMMERCE IN THE SUB – CONTINENT

1. In pandiyas dynasty the place where goods are sold is_________

a) Angadi c) Nalangadi
b) Market d) Allangadi
2. Hindrance of place is removed by _________
a) Transport c) Salesman
b) Warehouse d) Insurance
3. Who wrote “Arthasasthra”?
a) Kautilya c) Thiruvalluvar
b) Kambar d) Elangovadigal
4. Trade and commerce was common to _______ Dynasty.
a) Pallava c) Panidya
b) Chola d) Chera
5. ___________was first sultan who paved way in the dense forest and helped traders to
move from one market place to others place for their commercial caravans.
a) Balban c )Akbar
b) Vascoda Gama d) Alauddin Khilij

Answer:1.a 2.a 3.a 4.c 5.a

CHAPTER - 2 . OBJECTIVES OF BUSINESS
1. The Primary objective of a business is
a) Making Profit c) Special skill
b) Not Manking Profit d) Non of the above
2. Occupation of a doctor is
a) Employment c) Profession
b) Business d) Sole proprietor
3. The following does not characterize business activity?
a) Production of goods and services c) Sale or exchange of goods and services
b) Presence of Risk d) Salary or wages
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4. Activities undertaken out of love and affection or with social service motive are termed
as:
a) Economic activities c) Non economic activities
b) Monetary activities d) Financial activities

Answers: 1.a 2.c 3.d 4.c

CHAPTER – 3. CLASSIFICATION OF BUSINESS ACTIVITIES.
1. The industries engaged in extraction of iron ore are known as
a) Construction industries c) Extraction industries
b) Manufacturing industries d) Genetic industries
2. Production which involves several stages for manugacturing finished products is known as
a) Analytical Industry c) Processing industry
b) Synthetic industry d) None of the above
3. Normally high level risk involved in
a) Industry c) Trade
b) Commerce d) All of the above

Answer: 1.c 2.c 3.a

CHAPTER - 4. SOLE PROPRITORSHIP
1. Which is the old form of business organization?
a) Sole proprietorship c) Co-operative society
b) Partnership d) Company
2. In which form the owner establisher and manager is only one?
a) Joint enterprise c) Co-operative society
b) Government company d) Sole Proprietor
3. A major disadvantage of sole proprietor ship is___________
a) Limited liability c) Easy formation
b) Unlimited liability d) Quick decision
4. Form the following which one is Non-corporate form of business?
a) Joint stock company c) Government company
b) Sole trading business d) Co-operatives

Answers : 1. a 2. d 3. b 4. b
Chapter – 5. HINDU UNDIVIDED FAMILY AND PARTNERSHIP
1. The firm of Hindu Undivided Family is managed by whom?
a) Owner c) Manager
b) Karta d) Partner
2. In the firm of Hindu Undivided Family how one gets the membership?
a) By Agreement c) By investing capital
b) By birth d) By managing
c)
3. The members in the joint hindu family are called _______________
a) Karta c) Generations
b) Coparceners d) Partners
4. ‘Only the male members in the family get the right of inheritance by birth’
_____________
a) Hindu law c) Dayabhaga law
b) Mitakshara law d) None of these
5. A partnership is formed by ______________
a) Agreement c) The direction of government
b) Relationship among persons d) Friendship

Answer: 1.b 2.b 3.b 4.b 5.a

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CHAPTER - 6. JOINT STOCK COMPANY
1. The relationship between outsiders and the company is defined in ______________
a) Prospectus c) Memorandum of association
b) Articles of association d) Certificate of incorporation
2. Table a of the companies act is a _____________
a) Model minutes book c) Model of AOA
b) Model form of balance sheet d) Modle of MOA
3. Which of the following is create d by a special act of parliament or in state assemblies?
a) Chartered company c) Government company
b) Foreign company d) Statutory company
4. The board of directors of a company is elected by___________
a) Creditors c) Debenture holders
b) Debtors d) Share holders (members)
5. Companies established as a result of a charter granted by the king or queen of a country
is called___________
a) Chartered companies c) Registered companies
b) Statutory companies d) Foreign companies

Answers:1.c 2.c 3.d 4.d 5.a

CHAPTER - 7 COOPERATIVE ORGANISATION.
1. Membership in a cooperative organization is:
a) Not open to all c) Open to all
b) Selective d) None of them
2. Cooperative fails because of
a) Unlimited membership c) Mismanagement
b) Cash trading d) Loss-making
3. All cooperatives are est abolished with
a) Philanthropic motive c) Profit motive
b) Service motive d) Reform motive
4. Consumers co-operation was first successful in_______________
a) England c) Swiss
b) USA d) India
5. Rochdale society of equitable pioneers was started by______
a) Robert owen c) Talmaki
b) H.C.Ca;ven d) Lambert
Answers: 1.c 2.c 3.b 4.a 5.a
CHAPTER - 8 MULTI NATIONAL CORPORATIONS (MNCs).
1. A Multinational corporation can be defined as a firm which
a) Is beyond the control of any government c) Owns companies in more than one country
b) Is one of the top 200 firms in the world d) All the above
2. Centralized control in MNC’s implies control exercised by
a) Branches c) Headquarters
b) Subsidiaries d) Parliament
3. Ente5prises operating in several countries managed from one country is termed as_____
a) Government company c) Private company
b) Multinational company d) Joint venture
4. Dispersal of decision making power to branches/affiliates/subsidiaries by head office represents______
a) Centralization c) Power
b) Decentralisation d) Integration
5. Coca-Cola company is an example of_________
a) MNC c) Joint venture
b) Government company d) Public company
Answers: 1.c 2.c 3.b 4.b 5.a
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CHAPTER - 9. GOVERNMENT ORGANISATION
1. The share capital of the government company must not be less than
a) 75% c) 95%
b) 60% d) 51%
2. The oldest form of organization public sector
a) Public sector undertakings c) Multi national corportions
b) Department undertakings d) Staturory corporation
3. A government company purchases shares in the name of
a) Prime Minister c) Chief Justice of India
b) President d) State Chief Minister
4. The primary objective of the state enterprises is to____________
a) Earn profit c) Serve the People
b) Provide employment d) All the above

Answers: 1.d 2.b 3.b 4.c

CHAPTER - 10. RESERVE BANK OF INDIA
1. Which bank has the power to issue bank notes?
a) Central bank c) Co-operative bank
b) Commercial bank d) Foreign banks
2. The Central bank of india is
a) PNB c) ICICI
b) SBI d) RBI
3. The Reserve Bank of India commenced its operations from April1,
a) 1936 c) 1934
b) 1935 d) 1933
4. Bankers are not only dealers of money but also leaders in
a) Economic development c) Industry development
b) Trade development d) Service development
5. Which of the following is not a function of a central bank?
a) Guiding and regulating the banking system of a country
b) Deal with the general public
c) Acts essentially as Government banker
d) Maintains deposti accounts of all other banks

Answer: 1.a 2.d 3.b 4.a 5.b

CHAPTER - 11 TYPES OF BANKS
1. Which bank is not a Industrial Bank?
a) ICICI c) SIDBI
b) HSBC d) IDBI
2. The Local Area Banks are promoting
a) Rural savings c) Industrial development
b) Business savings d) Agricultural development
3. Foreign banks are begun their operation since
a) 1978 c) 1980
b) 1979 d) 1976

Answers: 1.b 2.a 3.d

CHAPTER – 12 FUNCTIONS OF COMMERCIAL BANKS

1. Electroinc banking can be done through
a) Computers c) ATM
b) Mobile phones d) All of the above

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2. Minimum how much amount can be transferred through RTGS?

a) Any amount c) 2 lakh
b) 50,000 d) 5 lakh
3. The largest commercial bank of India
a) ICICI c) PNB
b) SBI d) RBI
4. In which kind of account, it is compulsory to deposit certain amount at certain time?
a) Saving deposit c) Current deposit
b) Fixed deposit d) Recurring deposit
5. Which of the following is not a type of advance provided by commercial bank?
a) Collecting and supplying business information c) Cash credit
b) Overdraft d) Discounting of bills

Answers: 1.d 2.c 3.b 4.d 5.a

CHAPTER - 13 WAREHOUSING
1. Warehouses remove the hindrance of __________________
a) Person c) Risk
b) Time d) Knowledge
2. A warehouse holds goods as a ___________ centre.
a) Marketing c) Distribution
b) Sorting d) Selling
3. ________can be given as a collateral security for getting financial assistance from bank.
a) Dock warrant c) Dock receipt
b) Warehouse receipt d) Warehouse warrant
4. ____warehouse are licensed by the government and are permitted to accept the good on
bond.
a) Bonded c) Public
b) Cold storage d) All the Above

5. ______warehouses are used for storing perishable goods like fruits, vegetables etc.
a) Bonded b) Private
c) Cold storage d) Co-operative

Answer: 1.b 2.c 3.d 4.a 5.c

CHAPTER -14. TRANSPORT
1. Transport removes the hindrance of
a) Time c) Person
b) Place d) Knowledge
2. Air consignment note is prepared in _________ forms
a) One c)Three
b) Two d) Four
3. ____________is a document acknowledging the receipt do good by a carrier
a) Waybill c) Charter party
b) Consignment note d) Bill of lading
4. Which is the fastest means of transport?
a) Rail c) Sea
b) Road d) Air

Answers: 1.b 2.c 3.a 4.d

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CHAPTER - 15. INSURANCE
1. The basic principle of insurance is ___________
a) Insurable Interest c) Subrogation
b) Co-operation d) Proximate causa
2. ______________ is not a type of general insurance
a) Marine Insurance c) Fidelity Insurance
b) Life Insurance d) Fire Insurance

3. Which of the following in not applicable in insurance contract?

a) Unilateral contract c) Indemnity contract
b) Conditional contract d) Contribution
4. Which one of the following is a type of marine insurance?
a) Money Back Policy c) Hull Insurance
b) Cargo Insurance d) Both b & c

Answers: 1.a 2.b 3.c 4.d

Chapter-16 Emerging Service Business in India
1. A continuing relationship which provides a licence privilegestraining, merchandising for
a consideration is called____________
a) Franchising c) Supply Chain Management
b) Factoring d) Exchange
2. Buying and selling of goods through electronic network is known as___________
a) E-commerce c) Website
b) Internt d) Trade
3. An organization carrying out activities to move goods from producer to consumer is
a) Transport c) Channels
b) Logistics d) Marketing
4. The main benefit of Logistics is
a) Productivity c) Profitability
b) Cost Minimisation d) Storage
5. The main benefit of outsourcing is
a) Productivity c) Skills
b) Cost reduction d) Units

Answer: 1.a 2.c 3.a 4.b 5.b

Chapter-17 Social responsibility of business
1. Which type of Responsibility gives the benefit to the society out of its profits earned?
a) Legal c) Moral
b) Ethical d) Economic
2. The Stakeholders of socially Responsible business units are except
a) Share Holders c) Government
b) Employees d) Company
3. Assuming Social Reponsibility of business helps the enterprise in
a) Increase profit c) Sustainability
b) Decrease profit d) Equilibrium
4. Socially Responsible business provides goods at
a) High price c) Reasonable price
b) Low price d) Moderate price
5. Social Responsibility towards employees represents the following except
a) Reasonable remuneration c) Social security
b) Proper facilities d) Exploitation

Answers: 1.c 2.d 3.c 4.c 5.d

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Chapter-18 Business Ethics and Corporate Governance
1. Which of the following helps in maximizing sale of goods to society?
a) Business success c) Ethics
b) Laws and regulations d) Professional management
2. Ethics is important for
a) Top management c)Non managerial employees
b) Middle level managers d) All of them
3. Which of the following does not ensure effective ethical practices in a business
enterprise
a) Publication of a code c) Establishment of compliance mechanisms
b) Involvement of employees d) None of them
4. The role of top management is to guide the entire organization towards
a) General behavior c) Ethically upright behavior
b) Organisavtion behavior d) Individual behavior
5. The ethical conduct of employees leading to standard practices results in
a) Good behavior c) Ethical behavior
b) Bad behavior d) Correct decision making

Answers: 1.c 2.d 3.a 4.c 5.d

Chapter-19 Sources of Business Finance
1. What is defined as the provision of money at the time when it is required?
a) Finance c) Cash management
b) Bank d) None of above
2. Internal sources of capital are those that are_________________
a) Generated through outside such as supplies
b) Generated through loans from commercial banks
c) Generated through issue of shares
d) Generated within the business
3. Debenture holders are entitled to a fixed rate of ___________
a) Dividend c) Interest
b) Profits d) Rations
4. Public deposit are the deposit which are raised directly from______________
a) The public c) The auditors
b) The directors d) The owners
5. Equity shareholders are the ______________________ of a company
a) Creditors c) Debtors
b) Owners d) Employees

Answers: 1.a 2.d 3.c 4.a 5.b

Chapter-20 International Finance
1. An instrument representing ownership interest in securities of a foreign issuer is
called_____________
a) An ownership certificate c) An ownership receipt
b) A depositary receipt d) None of the above
2. Issuance of DRs is based on the increase of demand in the
a) International market c) Existing shareholders
b) Local market d) All of the above
3. ADRs are issued in
a) Canada c) India
b) China d) USA
4. Depositary receipt that are traded in an international market other than the United States
are called
a) Global Depositary Receipts c) Open Market Depositary Receipts
b) International Depositary Receipts d) Special Drawing Rights
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5. ______________ bond is a special type of bond issued in the currency other than the
home currency.
a) Government Bonds c) Corporate Bonds
b) Foreign Currency Convertible Bond d) Investment Bonds

Answer: 1.b 2.a 3.d 4.a 5.b

Chapter-21 Micro, Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs)

1. MSMED Act was enacted in the year

a) 2004 c) 2006
b) 2007 d) 2008
2. MSMEs are important for the nation’s economy because they significantly contribute to
a) Industrial production c) Employment
b) Exports d) All the above
3. Self help groups convert the savings into a common fund known as
a) Common fund c) Group fund
b) Group corpus fund d) None of the above
4. There are _____________ distinct modes of credit to Self Help Groups.
a) 1 b) 2 c) 3 d) 4
5. Investment limit of a micro enterprise under manufacturing sector does not exceed
___________ lakhs
a) 10 b) 20 c) 25 d) 50

Answers : 1.c 2.d 3.b 4.c 5.c

Chapter-22 Types of Trade
1. The purchase of goods from a foreign country is called_____________________
a) Import c) Entrepot
b) Export d) Re export
2. When goods are imported for the purpose of export it is called as_________
a) Foreign Trade c) Entrepot
b) Home Trade d) Trade
3. ___________ acts as a connective link between the producer and the consumer.
a) Trade c) Commerce
b) Industry d) Business
4. The aim of home trade is________________
a) To raise the standard of living
b) To provide the essential goods and services ecnonomically
c) To raise the national income d) To obtain all types of goods.
5. Internal trade can be classified into___________ categories
a) Three c) Two
b) Four d) Five

Answers: 1.a 2.c 3.a 4.b 5.c

Chapter-23 Channels of Distribution
1. Trade middleman who acts as a link between wholesaler and customers refers to a_____
a) Producer c) Retailer
b) Broker d) Customer
2. Who is the first middleman in the channel of distribution?
a) Wholesaler c) Retailer
b) Producer d) Customer
3. _______________buy the goods from the producer and sell it to the retailers.
a) Manufacturer c) Retailer
b) Wholesaler d) Consumers
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4. ________________ are agents who merely bring the buyer and the seller into contact.
a) Broker c) Selling agent
b) Commission agent d) Stockiest
5. Merchant middlemen can be classified into__________ categories.
a) Three c) Five
b) Two d) Four

Answers: 1.c 2.a 3.b 4.a 5.b

Chapter-24 Retailing
1. Retailers deal in________________ quantity of goods
a) Small c) Medium
b) Large d) Limited
2. Small scale Fixed retailers include________________
a) General stores c) Cheap Jack
b) Pedlars d) Hawkers
3. Small shops which deal in a particular line of product are called as_____________
a) Market traders c) Sugar market
b) Single line stores d) Street stalls
4. _____are mobile traders who deal in low priced articles with no fixed place of business.
a) Shopping malls c) Street stalls
b) Super markets d) Itinerant traders

Answers: 1.a 2.a 3.b 4.d

Chapter-25 International Business
1. Movement of goods, services, intellectual property, human assets, technology and so on
among the countries.
a) International Trade b) Entrepot Trade
b) International business d) Internal trade
2. Goods are imported for purpose of re-export to another country is termed as________.
a) Import Trade c) Entrepot Trade
b) Export Trade d) International Trade
3. Movement of goods, services among the countries.
a) International Trade c) Entrepot Trade
b) International business d) Internal trade
4. Selling of goods from home country to foreign country is called
a) Home Trade c) Foreign Trade
b) Entrepot Trade d) Joint Venture

Answers: 1.a 2.c 3.b 4.c

Chapter-26 Export and Import Procedures
1. EPC stands for
a) Export processing commission c) Export Carriage Council
b) Export Promotion Council d) Export Promotion Congress
2. STC is expansion for
a) State Training Centre c) State Training Centre
b) State Training Council d) State Training Corporation
3. An_______is document prepared by importer an sent to the exporter to by the goods
a) Invoice c) Enquiry
b) Indent d) Charter Party
4. The________receipt is an acknowledgement of receipt of goods on the ship issued by
the Captain
a) Shipping Bill c) Mate’s Receipt
b) Bill of Lasing d) Consular Invoice
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5. The Exporters appoint the_____________ agent to fulfill the customs formalities
a) Clearing Agent c) Commission Agent
b) Forwarding Agent d) Factor

Answers: 1.b 2.d 3.b 4.b 5.b

Chapter-27 Facilitators of International Business
1. General Agreement on Tariff and Trade was signed on
a) 30-October-1947 c) 28-October-1947
b) 29-October-1947 d) 26-October-1947
2. WTO was estabilished on
a) 1-1-1996 b) 1-1-1997 c) 1-1-1995 d) 1-1-1994
3. The headquarter of WTO is located at
a) New York c) Geneva
b) London d) Brazil
4. The day to day administration of WTO is entrusted with
a) Executive Council c) Administrative council
b) General Council d) General Body
5. World bank is locataed at
a) Washington DC c) Tokyo
b) New York d) Hongkong

Answers: 1.a 2.c 3.c 4.b 5.a

Chapter-28 Balance of Trade and Balance of Payments
1. The Statement which discloses a record of transactions between the resident of one
country and residents of foreign country.
a) Balance of Payment c) Statement of Receipts and Payment
b) Balance of Trade d) Accounting Statement
2. The Balance of Payments councils consist of
a) Current Account c) Receipt and Payments Account
b) Capital Account d) Both Current Account and Capital Account
3. Foreign capital long-term loan and foreign currency reserve are recorded under
a) Official Capital c) Banking Capital
b) Private Capital d) Both Private and Official Capital
4. The term official capital includes
a) RBI holdings of foreign currencies c) Both A and b
b) Special Drawing Rights held by the Government d) Foreign Investment
5. Balance of payment surplus indicates
a) Export are more than the Imports c) Exports and Imports are at Equilibrium
b) Imports are more than Exports d) Exports and Imports are above

Answers: 1.a 2.d 3.b 4.c 5.a

Chapter-29 Elements of Contract
1. An agreement enforceable by law is a
a) Enforceable acceptance c) Approved promise
b) Accepted offer d) Contract
2. Every promise and every set of promises, forming the consideration for each other, is an
a) Agreement c) Offer
b) Contract d) Acceptance
3. Void agreement signifies
a) Agreement illegal in nature c) Agreement violating legal procedure
b) Agreement not enforceable by law d) Agreement against public policy

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4. Acceptance to be valid must
a) Be absolute c) Both be absolute & unqualified
b) Be unqualified d) Be conditional
5. A contract with or by a minor is a
a) Valid contract c) Voidable contract
b) Void contract d) Voidable at the option of either party

Answers: 1.d 2.a 3.b 4.c 5.b

Chapter-30 Performance of Contract
1. On the valid performance of the contractual obligations by the parties the contract
a) Is discharged c) Become void
b) Become enforceable d) Become legal
2. Which of the following persons can perform the contract?
a) Promisor alone c) Agent the promisor
b) Legal representatives of promisor d) All the above
3. A, B, C, jointly promised pay 50,000 to D. Before performance of the contract, C dies.
Here, the contract
a) Becomes void on C’s death
b) Should be performed by A and B along with C’s legal representatives.
c) Should be performed by A and B alone.
d) Should be renewed between A, B and D.
4. Which of these parties cannot demand performance of promise?
a) Promise
b) Any of the Joint Promisess
c) One the death of a Promisee, his Legal Representative.
d) Stranger to the Contract
5. A person is said to be a third person if he is not a
a) Promisor c) Agent
b) Promise d) Legal Representative

Answers: 1.a 2.d 3.b 4.d 5.c

Chapter-31 Discharge and Breach of a Contract
1. On the valid performance of the contractual obligation by the parties, the contract
a) Is discharged c) Become void
b) Becomes enforceable d) None of these
2. An agreement to do an act impossible in itself under section 56 is
a) Void re c) Voidable
b) Valid d) Unenforceable
3. Any agreement which becomes impossible to perform under various circumstances
a) Voidable c) Valid
b) Void d) None of these
4. Discharge by mutual agreement may involve
a) Novation c) Alteration
b) Rescission d) All of the above
5. The compensation given for breach of contract is
a) Damage c) Money
b) Remuneration d) Cheque
Answers: 1.a 2.a 3.b 4.d 5.a
Chapter-32 Direct Taxes
1. Income Tax is
a) A business tax c) An indirect tax
b) A direct tax d) None of these
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2. Period of assessment year is
a) 1st April to 31st March c) 1st July to 30th June
b) 1st March to 28th Feb d) 1st Jan. to 31st Dec.
3. The year in which income is earned is known as
a) Assessment Year c) Light Year
b) Previous Year d) Calendar Year
4. The aggregate income under five heads is termed as
a) Gross Total Income c) Salary Income
b) Total Income d) Business Income
5. Agricultural income earned in India is
a) Fully Taxable c) Not Considered for Income
b) Fully Exempted d) None of the above

Answers: 1.b 2.a 3.b 4.b 5.b

Chapter-33 Indirect Taxation

1. Who is the chairman of the GST council?
a) RBI Governor c) Prime Minister
b) Finance Minister d) President of India
2. GST Stands for
a) Goods and Supply Tax c) Goods and Services Tax
b) Government Sales Tax d) General Sales Tax
3. What kind of Tax the GST is?
a) Direct Tax c) Dependence on the Type of Goods and Services
b) Indirect Tax d) All Business Organisations
4. What is IGST?
a) Integrated Goods and Service Tax c) Initial Goods and service Tax
b) Indian Goods and Service Tax d) All the above
5. In India GST become effective form?
a) 1st April, 2017 c) 1st July, 2017
st
b) 1 January, 2017 d) 1st March, 2017

Answers: 1.b 2.c 3.b 4.a 5.c

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