Case-Based Questions: Business Services | Business Studies (BST) Class 11 - Commerce PDF Download

Carefully read the following case studies, which present real-world business scenarios, and answer the question(s) that follow each case to test your understanding and application of business studies concepts.

Case 1: Rohan Mishra’s Telecom Venture
Rohan Mishra, after completing his graduation in Telecommunications from a reputed Engineering College, returned to his native town in Bhilwara, Rajasthan. He decided to help his father, who owns a textile mill in Gulabpura, Bhilwara, but found it uninteresting. Instead, he wanted to pursue opportunities in the telecom sector. His father was unfamiliar with such services, so Rohan explained various telecom services available:
(a) Telecom service that utilizes any type of network equipment connected through fiber optic cables laid across the length and breadth of the country.
(b) Type of mobile telecom services including voice and non-voice messages and data service.
(c) Linkages and switched services within a licensed area of operation to operate media services.
(d) Satellite-based media service provided by cellular companies through dish antenna and a set top box.
(e) Satellite-based communication services which can be used to provide innovative applications such as online newspaper, tele-education, etc.

Q1: Which of the following is not an example of telecom services?
(a) Postal services
(b) Mobile services
(c) Cable services
(d) Radio paging services

Correct Answer: Option (a)

Telecommunication means transferring signals over a distance. Services that offer voice, internet, television, networking, and data services over a large area are known as telecom services. They can either be wired or wireless. Postal services are not an example of telecom services.

Q2: Identify the telecom service indicated in point (a) given above.
(a) Cellular mobile services
(b) Fixed-line services
(c) Radio paging services
(d) Cable services

Correct Answer: Option (b)
A fixed-line can be seen as a connection to an end customer, by means of a cable, through which a user can make phone calls or connect to the Internet. Fixed-lines are clearly separate from the mobile phone network, by which end users are connected to the network via wireless transmission technologies.

Q3: “Linkages and switched services within a licensed area of operation to operate media services.” This best suits to which of the following options:
(a) Cellular mobile services
(b) Direct to Home services
(c) Radio paging services
(d) Cable services

Correct Answer: Option (d)
Cable services are referred to in the above paragraph. A subscription television service that uses cables to carry signals between local distribution antennas and the subscriber's location.

Q4: “Satellite based communication services which can be used to provide innovative applications such as online newspaper, tele-education, etc.” This is __________ services.
(a) VSAT services
(b) Direct to Home services
(c) Cellular services
(d) Cable services

Correct Answer: Option (a)
Satellite-based communication services which can be used to provide innovative applications such as online newspapers, tele-education, etc., are VSAT services.

Case 2: Shipra’s Banking Experience
Shipra Oswal is a software professional working at T.K. Industries Ltd. in Kerala. Her parents reside in Agra. Due to a family emergency, her father asked her to send ₹4 lakhs to his SBI savings account urgently. Shipra, who has a Bank of Baroda account but had not opted for digital payment or e-banking services, approached her bank manager, Mr. Vivek Mishra, for help. He informed her about Electronic Fund Transfer options like RTGS and NEFT, advised her to apply for virtual banking services, and activated her mobile banking services that day. Shipra successfully transferred the amount using RTGS.

Q5: ‘...her to apply for virtual banking services.’ Which of the following is not true about Virtual banking?
(a) Banking using electronic media
(b) No face-to-face interaction of customer with bank employees
(c) A customer can transfer funds using Bank Draft
(d) Payment of bills using personal digital assistant

Correct Answer: Option (c)
A customer transferring funds using a Bank Draft is not true about virtual banking. Virtual banking involves electronic transactions, typically through online or mobile platforms, without physical instruments like drafts.

Q6: Which of the following is not a method of digital payment?
(a) Debit card
(b) Credit card
(c) ATM
(d) Cash credit

Correct Answer: Option (d)
Cash credit is not a method of digital payment. It is a short-term working capital loan allowing borrowers to access funds without a credit balance, unlike digital methods like cards or ATMs.

Q7: What is the full form of RTGS?
(a) Real Time Great Solution
(b) Rupee Transfer Gross Settlement
(c) Real Time Gross Settlement
(d) Regular Transfer Gross Settlement

Correct Answer: Option (c)
RTGS stands for Real Time Gross Settlement, a system for instantaneous fund transfers processed continuously without netting debits and credits.

Q8: The reason why Shipra chose RTGS, not NEFT, is:
(a) Minimum transaction value of NEFT is ₹5 lakhs
(b) In RTGS, payment is not subjected to any waiting period
(c) RTGS operates on deferred Net Settlement
(d) In NEFT, payment is not subjected to any waiting period

Correct Answer: Option (b)
Shipra chose RTGS because payments are processed instantly without a waiting period, unlike NEFT, which involves batch processing and potential delays.

Case 3: Shailesh’s Oil Factory Insurance
Mr. Shailesh owns an oil factory in Rajasthan. Due to his parents’ illness in the UK, he moved there and joined a job, entrusting his friend Mr. Vijay Arora to manage the factory. Vijay took a fire insurance policy from Sokhim Free Insurance Pvt. Ltd. A month before obtaining the policy, he received a notice from the electricity department to repair the factory’s wiring but neither informed the insurance company nor fixed the wiring. Five months later, the factory caught fire due to faulty wiring.

Q9: “Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd....” Which principle of insurance is relevant here?
(a) Insurable interest
(b) Indemnity
(c) Good faith
(d) Contribution

Correct Answer: Option (a)
Insurable interest is relevant, as Vijay, managing the factory, has a financial stake in protecting it from loss, justifying the insurance policy.

Q10: In the above case, at what time the insurable interest must be present?
(a) At the time of taking policy
(b) At the time of loss
(c) Both (a) and (b)
(d) After receiving the claim

Correct Answer: Option (c)
Insurable interest must be present both at the time of taking the policy and at the time of loss to validate the insurance claim.

Q11: “He didn’t inform the insurance company about it.” Identify the principle violated here.
(a) Utmost good faith
(b) Insurable interest
(c) Proximate cause
(d) None of the above

Correct Answer: Option (a)
Vijay violated the principle of utmost good faith by not disclosing the wiring issue, which is critical information the insurer needed to assess risk.

Q12: “He didn’t get the wiring done ...” Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.
(a) Subrogation
(b) Mitigation
(c) Indemnity
(d) Contribution

Correct Answer: Option (b)
Vijay failed to follow the principle of mitigation, which requires taking reasonable steps to minimize loss, such as repairing the faulty wiring.

Case 4: Krishna Kumar’s Banking Strategy
Mr. Krishna Kumar, a businessman dealing in confectionery items, has created a niche market through effective marketing and quality control. He opened a Current Account with PNB, conducting numerous daily transactions, including deposits and withdrawals, sometimes exceeding his account balance. This account earns no interest. Additionally, he opened a Recurring Deposit Account, depositing ₹10,000 monthly, believing money should be invested productively to generate returns.

Q13: “He has opened an account with PNB and every day he makes number of transactions, both deposits and withdrawals.” Identify the bank account stated in the above line.
(a) Savings Account
(b) Fixed Deposit Account
(c) Current Account
(d) Demat Account

Correct Answer: Option (c)
The bank account is a Current Account, designed for frequent transactions, allowing deposits and withdrawals with immediate access, ideal for business needs.

Q14: Which of the following Bank Account is a non-interest-bearing bank account?
(a) Savings Account
(b) R.D. Account
(c) Fixed Deposit Account
(d) Current Account

Correct Answer: Option (d)
A Current Account is non-interest-bearing, typically used for business transactions with low fees and no interest earnings, unlike savings or deposit accounts.

Q15: The Current Account holders enjoy the facility of withdrawing more than balance in their Account. Name the facility mentioned here.
(a) Overdraft facility
(b) Cheque facility
(c) Demand draft facility
(d) None of these

Correct Answer: Option (a)
The facility is an Overdraft facility, allowing Current Account holders to withdraw funds beyond their balance, subject to bank-approved limits and interest charges.