Maharashtra Board 11th OCM Important Questions Chapter 1 Introduction of Commerce and Business

Balbharti Maharashtra State Board 11th OCM Important Questions Chapter 1 Introduction of Commerce and Business Important Questions and Answers.

Maharashtra State Board 11th Commerce OCM Important Questions Chapter 1 Introduction of Commerce and Business

Select the correct option and rewrite the sentence

Question 1.
The difficulty of finance is solved by ……………….
(a) advertising
(b) transport
(c) banks
Answer:
(c) banks

Question 2.
A retailer does not come into direct contact with a …………….
(a) manufacturer
(b) consumer
(c) wholesaler
Answer:
(a) manufacturer

Question 3.
Returns in employment is called …………….
(a) fees
(b) salary
(c) profit
Answer:
(b) salary

Question 4.
Fishing is …………… type of primary industry.
(a) agricultural
(b) extractive
(c) genetic
Answer:
(b) extractive

Question 5.
Mercantile agents are the middlemen who help …………….
(a) trade
(b) industry
(c) employees
Answer:
(a) trade

Question 6.
Business includes …………. and ……………
(a) production
(b) distribution
(c) consumption
Answer:
(a) production

Question 7.
…………….. means buying and selling within the countrv.
(a) Home Trade
(b) Foreign Trade
Answer:
(a) Home Trade

Question 8.
Publicitv creates …………….
(a) value
(b) utility
(c) demand
Answer:
(c) demand

Question 9.
The problem of risk is overcome by ……………
(a)transport
(b) warehousing
(c) insurance
Answer:
(c) insurance

Question 10.
A courier agent is a ………………
(a) professional
(b) businessman
(c) employee
Answer:
(c) employee

Question 11.
The activity that removes difficulty of risk is ………………
(a) insurance
(b) transport
(c) advertising
Answer:
(a) insurance

Question 12.
Building of dams is an activity done under ……………… industry.
(a) primary
(b) secondary
(c) tertiary
Answer:
(b) secondary

Question 13.
Re-export is similar to …………….
(a) import
(b) export
(c) entrepot
Answer:
(c) entrepot

Question 14.
When goods and services are purchased from another country it is called as ………………. trade.
(a) export
(b) import
(c) entrepot
Answer:
(b) import

Match the pairs

Question 1.

Group A	Group B
(a) Non-economic activity	(1) Salary
(b) Business	(2) Gardening
(c) Insurance	(3) Carrying goods
(d) Retail Trade	(4) Export
(e) Secondary Industry	(5) Trade on small scale
	(6) Poultry
	(7) Profit
	(8) Textile industry
	(9) Risk coverage
	(10) Trade on large scale

Answer:

Group A	Group B
(a) Non-economic activity	(2) Gardening
(b) Business	(7) Profit
(c) Insurance	(9) Risk coverage
(d) Retail Trade	(5) Trade on small scale
(e) Secondary Industry	(8) Textile industry

Question 2.

Group A	Group B
(a) Industry	(1) Home trade
(b) Warehousing	(2) Remove difficulties of trade
(c) Import Trade	(3) Link between producer and retailer
(d) Wholesaler	(4) Supply
(e) Auxiliaries to Trade	(5) Creates time utility
	(6) Demand
	(7) Creates place utility
	(8) External trade

Answer:

Group A	Group B
(a) Industry	(4) Supply
(b) Warehousing	(5) Creates time utility
(c) Import Trade	(8) External trade
(d) Wholesaler	(3) Link between producer and retailer
(e) Auxiliaries to Trade	(2) Remove difficulties of trade

Question 3.

Group A	Group B
(a) Banking	(1) Home Trade
(b) Trade	(2) Problem of distance
(c) Industry	(3) Difficulty of place
(d) Insurance	(4) Risks in business
(e) Transport	(5) Production of goods
	(6) Buying and Selling of goods
	(7) Finance
	(8) Marketing
	(9) Export trade
	(10) Import trade

Answer:

Group A	Group B
(a) Banking	(7) Finance
(b) Trade	(6) Buying and Selling of goods
(c) Industry	(5) Production of goods
(d) Insurance	(4) Risks in business
(e) Transport	(3) Difficulty of place

Question 4.

Group A	Group B
(a) Morning Walk	(1) Social objective
(b) Genetic Industry	(2) Foreign Trade
(c) Import Trade	(3) Warehousing
(d) Employment Generation	(4) Horticulture
(e) Business Risk	(5) Non-economic activity
	(6) Economic objective
	(7) Internal trade
	(8) Mining
	(9) Insurance
	(10) Banking

Answer:

Group A	Group B
(a) Morning Walk	(5) Non-economic activity
(b) Genetic Industry	(4) Horticulture
(c) Import Trade	(2) Foreign Trade
(d) Employment Generation	(1) Social objective
(e) Business Risk	(9) Insurance

Give one word, phrase or term

Question 1.
An activity that creates form utility
Answer:
Industry

Question 2.
The industry that depends upon primary industry for production.
Answer:
Secondary industry

Question 3.
Part of business that is concerned with the distribution of goods.
Answer:
Commerce

Question 4.
Specialised intermediaries in trade who bring together the buyers and sellers.
Answer:
Mercantile Agents

Question 5.
Monetary returns of a professional.
Answer:
Fees

Question 6.
The industry that depends upon nature.
Answer:
Primary Industry

Question 7.
Trade in which goods are sold to other country.
Answer:
Export

Question 8.
An aid to trade which solves the problem of finance.
Answer:
Banking

Question 9.
An activity which is performed for money consideration.
Answer:
Business

Question 10.
Name the industry which is concerned with reproduction of plants and animals.
Answer:
Genetic

Question 11.
Agencies which help in the smooth conduct of business.
Answer:
Auxiliaries to Trade

Question 12.
Trade transactions between two countries.
Answer:
Foreign Trade

Question 13.
An activity motivated by profit.
Answer:
Business

Question 14.
The type of trade in which goods are sold in large quantities.
Answer:
Wholesale trade

Question 15.
Trade within the country.
Answer:
Internal trade

Question 16.
An occupation in which services are rendered for money.
Answer:
Profession

Question 17.
Human activities conducted for earning money.
Answer:
Business

Question 18.
A type of trade that sells the goods directly to ultimate consumers.
Answer:
Retail Trade

Question 19.
Trade that takes place between the traders of two different countries.
Answer:
External trade

Question 20.
An aspect of business which is concerned with the production of goods.
Answer:
Industry.

State True or False

Question 1.
Advertising is not useful for trade.
Answer:
False

Question 2.
Entrepot trade is a combination of home trade and foreign trade.
Answer:
False

Question 3.
Playing game is a non-economic activity.
Answer:
True

Question 4.
Wholesale trade is a trade done on small scale.
Answer:
False

Question 5.
Business is done with social objectives also.
Answer:
True

Question 6.
Human wants are limited.
Answer:
False

Question 7.
Business includes industry and commerce.
Answer:
True

Question 8.
Commerce is concerned with production of goods.
Answer:
False

Question 9.
Industry is concerned with the supply side of goods.
Answer:
True

Question 10.
Transport creates time utility.
Answer:
False

Question 11.
Business and Commerce have same meaning.
Answer:
False

Question 12.
Industry represents demand side while commerce represents supply side.
Answer:
False

Question 13.
Intermediaries are unavoidable in modern distribution system.
Answer:
True

Question 14.
The scope of commerce is wider than business.
Answer:
False

Question 15.
Industrial developments creates employment opportunities.
Answer:
True

Question 16.
The aim of business is to make profit only.
Answer:
False

Question 17.
The object of business is to earn profit.
Answer:
True

Question 18.
Trade means buying and selling of goods.
Answer:
True

Question 19.
The scope of commerce is limited.
Answer:
False

Question 20.
Profession and Business is one and the same thing.
Answer:
False

Question 21.
Warehousing creates time utility only.
Answer:
False

Question 22.
Transport has place utility.
Answer:
True

Question 23.
Coal mining is a manufacturing industry.
Answer:
False

Question 24.
Commerce is a branch of business.
Answer:
True

Question 25.
Business is a branch of economics.
Answer:
True

Question 26.
Commerce depends more on men than machinery.
Answer:
True

Question 27.
Wholesaler is in direct contact with ultimate consumers.
Answer:
False

Question 28.
Commerce is a wider term than business.
Answer:
False

Question 29.
Risk is inevitable in business activities.
Answer:
True

Question 30.
Tertiary industry depends upon primary and secondary industry.
Answer:
True

Question 31.
Internal traders handle import and export.
Answer:
False

Question 32.
Business can be expanded with the help of mercantile agent.
Answer:
True

Question 33.
Industrial activities take place after commerce finishes its role.
Answer:
False

Question 34.
Changing fashions is one of the important cause of business risk.
Answer:
True

Question 35.
Available resources should be used to its maximum.
Answer:
True

Find the odd one

Question 1.
Mining, Fishery, Plant nursery, Sugar factory.
Answer:
Sugar factory

Question 2.
Buying, Selling, Reselling, Professional services.
Answer:
Professional services

Question 3.
Wholesaler, Doctor, Retailer, Mercantile agent.
Answer:
Doctor

Question 4.
Business, Profession, Trekking, Employment.
Answer:
Trekking

Question 5.
T.V, Print, Radio, Postal services.
Answer:
Postal services

Question 6.
Cell phones, Rail, Water, Air.
Answer:
Cell phones

Complete the sentences

Question 1.
………………… auxiliary takes care of risks in business.
Answer:
Insurance

Question 2.
Fixed income is received in ………………..
Answer:
employment

Question 3.
Specific education and registration is required for a ………………..
Answer:
professional

Question 4.
Commerce = ……………… + auxiliaries to trade.
Answer:
trade

Question 5.
Economic activities are divided into business, ……………….. and employment.
Answer:
profession.

Select the correct option

Question 1.
(Profit motive, Monetary Exchange, Non-economic activity, Barter Exchange, Economic activity)

Group A	Group B
(i) Cooking by mother	—————
(ii) Worker working in a factory	—————
(iii) ————-	Spine of business
(iv) ————-	Buying note book for cash
(v) Wheat exchanged for rice	—————

Answer:

Group A	Group B
(i) Cooking by mother	Non-economic activity
(ii) Worker working in a factory	Economic activity
(iii) Profit motive	Spine of business
(iv) Buying note book for cash	Monetary exchange
(v) Barter exchange	Wheat exchanged for rice.

Question 2.
(Consumer goods, Capital goods, Profession, Social objective, Employment.)

Group A	Group B
(i) ————–	Tea, Milk, Pencil, etc.
(ii) Doctor, Lawyer, CA.	—————-
(iii) ————-	Employer – employer relationship
(iv) Machinery, Plant, Furniture	—————–
(v) Avoid unfair trade practices	————

Answer:

Group A	Group B
(i) Tea, Milk, Pencil, etc	Tea, Milk, Pencil, etc.
(ii) Doctor, Lawyer, CA.	Profession
(iii) Employment	Employer – employer relationship
(iv) Machinery, Plant, Furniture	Capital goods
(v) Avoid unfair trade practices	Social objectives.

Answer in one sentence

Question 1.
What is the reward for business?
Answer:
Reward for business is profit.

Question 2.
What is the reward for employment?
Answer:
Reward for employment is salary or wages.

Question 3.
What is home trade?
Answer:
When buying and selling of goods and services take place with the geographical boundaries of a country, it is called as home trade or internal trade.

Question 4.
What is foreign trade?
Answer:
When buying and selling of goods and services takes place between different countries, it is called as foreign trade.

Question 5.
What is profession?
Answer:
Profession is that part of an economic activity under which a person uses his knowledge and special skill to give service by charging certain fees.

Question 6.
What is the reward for profession?
Answer:
The reward for profession is called fees.

Question 7.
Who acts as an intermediate in trade ?
Answer:
Mercantile agent acts as an intermediate in trade.

Correct the underlined word and rewrite the following sentences

Question 1.
Warehousing creates place utility.
Answer:
Warehousing creates time utility.

Question 2.
Auxiliaries to trade means buying and selling of goods.
Answer:
Trade means buying and selling of goods.

Question 3.
Advertising acts as the intermediaries in trade.
Answer:
Mercantile agent acts as the intermediaries in trade.

Question 4.
Retail trade is a trade conducted on large scale.
Answer:
Wholesale trade is a trade conducted on large scale.

Question 5.
Secondary industry depends upon tertiary industry for production.
Answer:
Secondary industry depends upon primary industry for production.

Question 6.
Transport covers the risks in the business.
Answer:
Insurance covers the risks in the business.

Question 7.
Formal education is required for a businessman.
Answer:
Formal education is required for a professional.

Question 8.
Tertiary industry is a manufacturing industry.
Answer:
Tertiary industry is a service industry.

Explain the following terms/concepts

Question 1.
Industry.
Answer:

1. Industry relates to economic activities which are associated with the conversion of resources into goods. E.g. Processing of goods, mining, breeding and rearing of animals.
2. Industry creates form utility.

Question 2.
Genetic Industry.
Answer:
Industry engaged in reproduction and multiplication of plants and animals is called as genetic industry. E.g. Mangoes provided by primary industry are used for making mango pulp.

Question 3.
Construction industry.
Answer:
Industry engaged in construction of buildings, dams, bridges, roads, etc. is called constructions industry. It creates immovable wealth for a nation.

Question 4.
Tertiary industry.
Answer:
Industry providing supportive services to primary and secondary industries is called tertiary industry. E.g transport, banking, hotel industry, tourism industry, entertainment industry, etc.

Question 5.
Commerce.
Answer:

1. It is that part of business which is related to distribution of goods and services produced by industry.
2. It involves all activities which maintain free flow of goods. It bridges the gap between producers and consumers.

Study the following case/situation and express your opinion.

1. Mr. Utsav is a lawyer. He practice at Mumbai High Court, Mrs. Kruti has disputes with her employer, M/s Shah & Co. for which she approach Mr. Utsav, who advice her to file a petition at Mumbai High Court for which she paid fees of? 10,000 to Mr. Utsav.

Question 1.
Who is Mr. Utsav?
Answer:
Mr. Utsav – a person providing service of lawyer. He is a lawyer by profession.

Question 2.
Who is Client?
Answer:
Mrs. Kruti is a client.

Question 3.
Who is accused?
Answer:
Mr. Shah & Co. is an accused in above case.

2. Globally Local Event company run by Mr. Sneh, conducts a wedding event for Mr. Suresh Jha at Dubai and charged him professional fees Rs 5,00,000/-.

Question 1.
What kind of business the company is doing?
Answer:
Globally Local Event Company is doing a profession of Wedding planner i.e. event organizer.

Question 2.
What is return to professions?
Answer:
The return to profession is called a fees.

Question 3.
Who is client?
Answer:
Mr. Suresh Jha is a client of the company.

3. Neeta Tours conducting tours and travels abroad, Doshi and family booked their tour to America and paid Rs 10,000/- for total tour.

Question 1.
What kind of business done by Neeta Tours?
Answer:
Neeta Tour is doing a business of Tourism – a tour organizer.

Question 2.
What currency is used?
Answer:
Currency used in the above case is Dollar.

Question 3.
Who is Travelers?
Answer:
Neeta Tours.

4. Mr. Bhardwaj an Indian businessman purchased goods from Mr. Chen Tsiany of Rs 1,20,000/ A and sold the same goods to Mr. Thomsan in Britain for Rs 1,50,000/-.

Question 1.
Who is Mr. Bhardwaj?
Answer:
Indian exporter and importer.

Question 2.
What kind of Trade is done by Mr. Bhardwaj?
Answer:
Entrepot Trade.

Question 3.
Who is Mr. Thomsan?
Answer:
Importer

Distinguish between the following

Question 1.
Commerce and Trade.
Answer:

	Commerce	Trade
(1) Meaning	Commerce is a part of business which looks after the distribution of goods and services.	Trade is buying and selling of goods and services.
(2) Scope	Commerce includes trade and auxiliaries to trade.	Trade includes home trade and foreign trade.
(3) Size	Commerce is wider than trade as it includes trade plus auxiliaries to trade.	Trade is narrower than commerce.
(4) Part of	Commerce is a part of business.	Trade is a part of commerce.
(5) Coverage	Commerce covers wider activities as it includes buying and selling as well as support services which help trade.	Trade is confined only to buying and selling. Thus it is more near to buyers.

Question 2.
Trade and Auxiliaries to Trade
Answer:

	Trade	Auxiliaries to Trade
(1) Meaning	It is buying and selling of goods.	These are the agencies or services which facilitate trade.
(2) Objective	To earn profit.	To remove difficulties in trade.
(3) Scope	Trade covers home trade and foreign trade.	It covers banking, insurance, transport, warehousing, etc.
(4) Parties	Basically two parties are involved i.e. buyer and seller.	Number of institutions are involved.
(5) Importance	It is an important part of commerce.	They play subsidiary role in commerce.