@ Business Services Que, What is business service? Ans. Business service means those activities that are used for “the smooth flow of business activities. Such as Banking, Communication, Insurance, Warehousing, Transportation, etc. || Que. Explain the features of business service. Ans. Features of business service are as follows. 1. Intangibility:- Services are intangible that is they can not be touched. They are experiential in nature. le: Doctor's treatments cannot be touched, Lack of or inconsistency:- There is no tan product, service has to be performed exclusively each time production and consumption vary from customer to customer. 3. Inventory Less:- Service has no tangible component, therefore cannot be stored for the future. Nontransferability or inseparability:- Production and _consumption are performed simultaneously so service cannot be transferred.S. Customer participation or involvement:- Without customers, we cannot perform the delivery service to the customers. So customer participation is a must in the case of service. Que, What are the types of business services? Ans. Types of business services are as follows:- 1 Business Service:- Business services are those services that are used by business enterprises for the conduct of their activities. For example:- Banking, Insurance, Transportation, warehousing, and communication service. 2. Social Service:- Social services are those services that are generally provided voluntarily in pursuit of certain social goals. These goals may improve the standard of the weaker section of society. For example:- Providing education, healthcare, etc. 3, Personal Service;- Personal services are those services that [are experienced differently by different customers. Examples:- Tourism, restaurants, saloon service, etc.Que, What is a banking service? Ans. According to “Accepting deposit of money from the public for the purpose of lending or investment. || The bank accepts money for deposits, which is repayable on demand and also earns a margin of profit by lending money. Que. What are the different types of accounts? | Ans, Types of accounts are as follows:- 1. Saving Deposit Accounts: Saving accounts allows you to deposit your money and typically earn a modest amount of interest. 2. Current De| Accounts:- This account is opened by a businessman who has a higher number of regular transactions with the bank. They get a special overdraft and credit facility. 3. Recurring Deposit Account:- A recurring deposit account is a kind of savings account provided by banks and financial organizations that allows the account user to deposit a certain "sum of money on a regular basis, usually monthly, for a predetermined length of time. For a predetermined amount of time, the account holder must make a fixed deposit every || month, At the end of the term, the account holder will get the whole amount contributed plus interest gained on the installments.4, Fixed Deposit Account:- 4 fixed deposit account is a type of savings account offered by banks and financial institutions where the account holder deposits a lump sum of money for a fixed period of time, which can range from a few months to several years, During the term of the deposit, the money earns a fixed rate of interest which is higher than the interest rate offered on a regular savings account. S. Multiple Option Deposit Account:- This account offers multiple options to depositors. This account can be combined with a savings account or current account. Que, larite important services provided by banks. Ans. Important service provided by banks are as follows:- 1 Bank draft:- A bank draft, also known as a banker's draft, is a check that is drawn by a bank on its own funds, rather than the funds of a customer, It is a secure and guaranteed form of payment. When a bank draft is issued, the bank takes the money from the customer's account and holds it in its own account. The bank then issues a draft, which is a check that is drawn on the bank's own funds, and gives it to the customer. The customer can then use the bank draft to make a payment to a third party.2. Banker's chegue[ Pay Order J:- A bank will issue checks on its own behalf. These checks are referred to as banker's or cashier's checks. A banker's cheque, as opposed to a personal cheque, is guaranteed by the bank because the money is deducted from the bank's account rather than from an individual's account. 3, Overdraft:- When a bank account holder withdraws more ‘money from their account than is available, leaving a negative balance, this is known as an overdraft. In simple terms, it indicates that the account holder has borrowed money from the bank up to a predetermined amount and will be required to pay interest on it. 4, Cash Credit:- Banks offer cash credit, a specific kind of short-term loan, to companies that require quick access to cash to cover operational costs or urgent capital requirements. Usually, the collateral or security given by the borrower, such as inventory, receivables, or other assets, secures this kind of credit. S$. Short, Medium, Long Term loan:- 4 loan is a lump sum advance repayable on expiry of the specified period. It may be secured or unsecured. The loan may be paid to the bank by the borrower in installments.Que. What is E-Banking? || Ans. Internet banking means any user with a personal || computer and a browser can get perform any of the bank websites to perform any of the virtual banking Functions and avail of any bank's service. Que, What are E-Banking benefits to customers? | Ans. The benefits of E-Banking to customers are as follows:- 1. Digital Payment and Transparency: E-banking facilitates ital payments and promotes transparency in financial __ statements. 2.24 * 7 Service:- E-banking provides 24-hour, 365-day-a-year services to the customers of the bank. | 3. Comvenience:- Customers can make some of the permitted |_ transactions from the office or house or while traveling via ‘mobile telephone. | 4, Financial Discipline;-It inculcates a sense of financial || discipline by recording each and every transaction. $. Unlimited Access:- E-Bankingleads to greater customer satisfaction by offering unlimited access to banking not limited by the walls of the branch. 6, Less Riski- There is greater security for the customers as they can avoid traveling with cash.Que, What are the benefits of E-Banking to Banks? Ans. The benefits of E-banking to Banks are as follows:- 1 Competitive Advantage:- E-Banking provides a competitive advantage to the bank. 2. Unlimited Network:- E-banking provides an unlimited network to the bank and is not limited to the number of branches. 3. Reduced load on branches:- Load on branches can be considerably reduced by establishing a centralized database and by taking over some of the accounting Functions. Que, What is a Debit Card? Ans, Debit cards are plastic payment cards that give you access to the money in your bank account so you may make purchases or cash out. You must have sufficient money in your account to pay the transaction when using a debit card because the cost of the purchase is automatically subtracted from it, Que. What is Credit Card? Ans. # credit card is a type of payment card that enables you to make purchases while borrowing money from a financial institution with a promise to repay the loan plus interest later. Credit cards enable you to buy purchases on credit and make the payment later, unlike debit cards, which use your own money.Que. What is National Electronic Funds Transfer? Ans. National Electronic Funds Transfer (NEFT) is an electronic payment system used for transferring funds from one bank account to another in India, It can take some time for the funds to be credited to the recipient's account because.NEFT transactions are normally processed throughout the day in batches. Que. What is Real Time Gross Settlement? Ans, Real Time Gross Settlement (RTGS) is an electronic payment system used for transferring large amounts of money between banks in India. RTGS transactions are processed on a real-time basis, and the funds are transferred to the recipient's bank account immediately, without any delay. Que. What is Automated Teller Machine? Ans. An automated teller machine (ATM) is a type of electronic banking Facility that removes the requirement For a human teller or bank representative in order to conduct a number of financial operations. ATMs provide a simple and secure means to access financial services and are frequently located in banks, retail establishments, and other public places. Que, What is digital payment? Ans. 4 digital payment sometimes called an electronic payment, is the transfer from one payment account to another account using a digital device such as a mobile phone.Que, What is insurance? ‘Ans. Insurance is thus a device by which the loss likely to be caused by an uncertain event is spread over a number of persons who are exposed to it and who prepare to insure themselves against such an event. It is a contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make a loss, damage, or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event. Que, What are the important terms of insurance? Ans Important terms of insurance are as follows:- 1, Insurer: It is an insurance company that agrees to compensate. 2,_Insured:- It is the person who gets compensation for a loss. 3. Happening of the event:- It refers to the subject matter of policy 4, Premium:- It refers to an amount paid quarterly, half-yearly, or annually by the insured for getting compensation at the time of loss.Que, What are the principles of insurance? faith: A contract of insurance @ contract found in utmost surer and the insured should display good faith towards each other in regard to the contract. 2 Principal Insurable Interest. The insured must have an insurable interest in the subject matter of insurance Insurable || interest means some pecuniary interest in the subject matter of the insurance contract. The insured must have an interest in the preservation of the thing or life insured so that he/she will suffer financially on the happening of the event against |_ which he/she is insured. 3. Principle of Indemnity:- According to it, the insurer undertakes to put the insured, in the event of loss, in the same position that he occupied immediately before the || happening of the event insured against. In other words, the || insurer undertakes to compensate the insured for the loss caused to him/her due to damage or destruction of the property insured. | 4. Principle of Contribution: As per this principle it is the right of an insurer who has paid a claim under insurance, to call upon other liable insurers to contribute for the loss of payment. It implies, that in the case of double insurance, the insurers are to share the losses in proportion to the amount assured by each of them.S. Principle of subrogation:- According to this principle, After the insured is compensated for the loss or damage to the property insured by him/her the right of ownership of the such property passes on to the insurer. &. Principle of Causa Proxima:- According to this principle, an insurance policy is designed to provide compensation only for such losses as are caused by the perils which are stated in the policy. 2. Principle of mitigation of loss:- This principle states that it is the duty of the insured to take reasonable steps to ‘minimize the loss or damage to the insured property. If reasonable care is not taken like any prudent person then the claim from the insurance company may be lost. Que, What is Life Insurance? Ans. Life insurance is defined as a contract in which the insurer in consideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay to the assured, or to the person for whose benefit the policy is taken, the assured sum of money, on the happening of a specified event contingent on the human life or at the expiry of a certain period.Que, What is Fire insurance? Ans. Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period up to the amount specified in the policy. Normally, the fire insurance policy is for a period of one year after which it is to be renewed from time to time. Que, What is marine insurance? ‘Ans. # marine insurance contract is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. Que. What are the types of Marine Insurance? Ans. Types of Marine insurance are as follows:- 1 Cargo insurance; The cargo while being transported by ship is subject to many risks. These may be at port ie,, risk of theft, lost goods, or on a voyage, etc. Thus, an insurance policy can be issued to cover such risks to cargo. 2. Hull insurance; Since the ship is exposed to many dangers at sea, the insurance policy is for indemnifying the insured for losses caused by damage to the ship. 3. Freight insurance: If the cargo does not reach the destination due to damage or loss in transit, the shipping company is not paid freight charges. Freight insurance is for reimbursing the loss of freight to the shipping company.Que, What is Communication? Ans. Communication services are helpful to the business for establishing links with the outside world that is suppliers, customers, competitors, etc. Que, What is Postal Service? Ans. Indian Post and Telegraph Departments provide various postal services across India. The various facilities provided by the postal department are Nows:: 1. Financial facilities: These facilities are provided through the post office’s savings schemes like Public Provident Fund CPPF), Kisan Vikas Patra, and National Saving Certificates in addition to normal retail banking functions of monthly income schemes, recurring deposits, savings account, time deposits, and money order facility. | {| 2. Mail Facilities:- Mail services consist of parcel facilities that are the transmission of articles from one place to another; registration facility to provide security of the transmitted articles and insurance facility to provide insurance cover for all risks in the course of transmission by post.1. Under Postal Offered Certificate [ UPC]:- This service is now rarely used whereas this service was frequently used before the courier service. UPC will deliver the parcel or letter by ordinary post at a specified counter of the post office at an extra nominal cost say IRs. For 3 envelopes and have proof of posted letters. 2. Registered Post:- Here additional stamps are affixed and the sender obtains a receipt at the post office. The parcel or letter is delivered to the address only which may not be under UPC. 3. Parcel Posti- it is used to send parcels across the country or internationally. 4. Speed Post:- Used to send mail as fast as possible. The charges are higher than normal mail service. S. Courier Service:- It is provided by private post office desk- to-desk service. They are faster and more reliable and cheaper than a post office. Que. What is Telecom Service? Ans. It is an exchange of information over a significant distance by electronic means. 1. Cellular Mobile Phones:- These are all types of mobile telecom services including voice and nonvoice messages, data services, and PCO services utilizing any type of network equipment within their service area.2. Radio Paging Service:- It is an affordable means of communication, It transmits information to a person even when they are mobile, It is a way of information broadcasting solution, 3. Fixed Line:- These are all types of fixed services including voice and non-voice messages and data services to establish linkages for long-distance traffic. These utilize any type of network equipment primarily connected through fiber optic cables laid across the length and breadth of the country. 4. Cable Service:-These are linkages and switched services within a licensed area of operation to operate media services, which are essentially oneway entertainment-related services. Two-way communication including voice, data, and information services through cable networks would emerge significantly in the future. S. VSAT Service:-VSAT Wery Small Aperture Terminal) is a satellite-based communications service, It offers businesses and government agencies a highly flexible and reliable communication solution in both urban and rural areas. Compared to land-based services, VSAT offers the assurance of reliable and uninterrupted service that is equal to or better than land-based service. 6. DTH Seice:- DTH (Direct to Home) is again a satellite- based media service provided by cellular companies. One can receive media services directly through a satellite with the help of a small dish antenna and a set-top box, The service provider of DTH services provides a bouquet of multiple channels.