Business Studies

Right answer because the hindrance of knowledge is removed by advertising and publicity. Advertising and publicity inform about various types of products and services available in the market. Thus it removes hindrance of knowledge and creates demand.

When the subject matter is completely lost or destroyed, it ceases to be a thing of its kind insured, it is known as actual total loss. The insured is deprived of its possession. Thus capture of ship by enemy is actual total loss, as the insured is deprived of its possession and it is completely lost.

Right answer because Assignment can be made by a separate instrument in writing as well as by endorsement. In assignment, all the rights and liabilities are transferred to the assignee, so it can be made by transferring in the name of assignee on the policy itself, or by a seperate instrument in writing. 

It means that the insurer is liable to compensate for the loss only when the nearest or immediate cause of loss is covered by the insurance policy. If the risk insured is the outcome of a remote cause which is not insured against, the insurer is not liable to pay the compensation. For instance, a ship is insured against rats and rats makes a hole in the ship and water starts entering into it. The ship is anchored at a port for repairs, and cargo is unloaded for it. In the process of unloading the cargo is partly damaged due to careless handling and the loss of cargo is not covered by marine insurance policy. It is not insured, and it is the proximate cause of loss, the insurer is not liable to pay any compensation.

External risk is not a type of pure risk as there is chance of gain also along with the loss. External risks are the risk which result from forces outside the business. For instance changes in market conditions, political changes, technological conditions etc are external risks. If there are changes in market conditions and the price is increased of the product, due to increase in demand it would result in profits or gain or vice versa.

The commercial value of life insurance policy implies that it can be used as a collateral security to raise loans. It improves the continuity and credit-worthiness of business. A businessman can get a life policy on the life of his debtor to ensure repayment of his debt, or replacement of assets in the form of sinking fund policy.

It is not included in intinerants. Second-hand goods shop have a shop at fixed place and do not move from place to place to sell their products as itinerants move from one place to another. These shops deal in second-hand goods or used artciles such as books, utensils, furnitures etc and cater to the needs of poor people.

Wholesale trade is not a type of foriegn or international trade, but of home  or internal trade. In wholesale trade the goods are purchased from manufacturer and sold to the retailer, within the geographical boundaries of country, in large quantities. In wholesale trade both the buyer and purchaser are of same country. For instance sale of plastic products by a merchant from Patna to a merchant from Agra in large quantity is a wholesale trade.

In this policy, the insurer himself reserves the right to replace the property destroyed or damaged by fire.In this the property is replaced and cash is not paid as compensation. It is also called replacement policy so it is the right answer here.

Regularity in dealings is not an essential element of security of e-commerce transactions. It is not essential that there must be dealings on a regular  or continous basis between buyer and seller for its security.  There may be only one transaction between buyer and seller and it may be secured if it is authentic, confidential ( privacy of transaction ), integrated. 

It is a dynamic risk, as changes in consumer fashion are due to change in economy. It is a result of misallocation of resources. They are a source of gain to society in the long run and cannot be predicted and do not tend to occur regularly.

Hindrance of exchange  is removed by money and bankings services. There is exchange of goods and services through money. or cash. For instance five kilos rice is purchased for Rs 200, and money is paid for it. For a  convenient and safe mode of payment, required to settle the transactions, banking services can be taken for it. The money can be transferred by cheques, drafts from one place to another which is safe mode and money is not required to be carried.

Insurance is a method of dividing risk. As insurance is based on the law of large numbers, it is a method of sharing risks. A large number of persons exposed to a risk contribute to a fund which is utilised to compensate the very few who actually suffer the loss from the insured risk.

.<span style="FONT-SIZE:" 12pt;="" font-family:="" arial;="" mso-fareast-font-family:="" 'times="" new="" roman';="" mso-ansi-language:="" en-us;="" mso-fareast-language:="" mso-bidi-language:="" ar-sa="">Bata Stores in <?xml:namespace prefix = st1 />st1:country-regionst1:place<span style="FONT-SIZE:" 12pt;="" font-family:="" arial;="" mso-fareast-font-family:="" 'times="" new="" roman';="" mso-ansi-language:="" en-us;="" mso-fareast-language:="" mso-bidi-language:="" ar-sa="">India<span style="FONT-SIZE:" 12pt;="" font-family:="" arial;="" mso-fareast-font-family:="" 'times="" new="" roman';="" mso-ansi-language:="" en-us;="" mso-fareast-language:="" mso-bidi-language:="" ar-sa=""> is an example of Chain Stores. Chain Stores or multiple shops are a group of branches dealing in same line of goods under single ownership and centralized management. Bata Stores deal in one line of products that is footwears under single ownership and centralized management

It is not the responsibilty towards government, but towards consumers. As the consumers purchase the products and pay the price for it, it is the responsiblity of business to provide the goods of good and standard quality at reasonable prices to its consumers.

Bells and horns is an example of oral communication, as oral communication are those which are heard. Bells and horns are also heard. It is a method used in commercial organisation to locate staff. For example, bell is used to call the peon for some work or to call the entire staff. Bells, buzzers, whistles, horns etc. are examples of oral communication.

This is the right answer because it is the warehouse in which the storage facilities are provided for the imported goods before payment of customes duty, by the importer of such goods. These warehouses are owned by dock authorities. These warehouse work under supervision of the custom authorities.

The term Charter Party agreement is used when the quantity of goods to be exported is large and the exporter hires the full ship. The agreement is known as charter party.

A firm is dissolved by contingent dissolution on the death of a partner as the death of a partner is happening of an event. Contingent dissolution is used to dissolve the firm in case of happening of an event like death of a partner, partner becoming insolvent etc.

A Bill of Lading is a receipt containing details of the goods shipped by the exporter. It is an official acknowledgement, issued by a shipping company of the fact that the goods therein have been loaded on the specified ship. 

Right answer because it is known as entrepot trade in which goods are imported from foreign countries not for domestic consumption, but for exporting them to a foreign country. For instance gems and jewellery is imported from America and exported to Sri Lanka.

Imprecise communication means that it is not exactly communicated or not clearly understood. People usually take less care when speaking than when writing. Thus oral communication or spoken words tend to be imprecise than written communication. Often the exact point is lost in the mass of words. Thus, imprecise communication means that it is not exactly communicated.

Right answer because industry refers to the production of goods through the utlilisation of various resources. It is not auxillary to trade. But in industry, goods are produced. In trade those goods are distributed ( sale and purchase ) of goods.

When the same risk is insured with two or more insurers, it is known as double insurance.Double Insurance is not applied to life insurance. As a contract of life is not a contract of indemnity and, therefore, double insurance is not applied to life insurance. A person can take any number of policies on his life and recover the full amount. For instance A takes policy of life insurance of Rs 50,000 and Rs 1,00,000 from S and T Companies respectively. On expiry of a fixed period, A can recover Rs 50,000 and Rs 1,00,000 from both the S and T Companies so it is right answer here.

Right answer because under Certificate of Posting implies that the post office certifies or confirms that the letter has been posted. For this purpose a prescribed form available with the post office has to be filled and submitted with the letter to the post office. The post office puts a seal on the stamp certifying that the letter has been posted.It is very economical when the same letter is to be sent to a large number of persons.