Explain the characteristics of services ?

Characteristics of services :

1. Intangibility : Services are intangible, they cannot be touched. They are experiential in nature e.g. one cannot taste the lawyer's advice or touch it.

2. Inconsistency : Different customers have different demands and expectations, e.g. telecom services.

3. Inseparability : Services cannot be separated in production and consumption. There is simulation of production and consumption because of which production and consumption services seem to be inseparable e.g. while we can manufacture a scooter today and carry it to be sold after a month, but this is not possible with services that have to be consumed as and when they are produced.

4. Involvement : Customer has direct participation in the service delivered process. A customer has the opportunity to get the services modified according to the specific requirement.

5. Perishability : Services cannot be produced before sale and stored for future demand e.g. an empty seat in an aircraft, a spare birth in train represent a service capacity which is lost forever.

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(V.Imp)
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 Explain the suitability of bonded warehousing facilities to business.

Bonded warehouses are those warehouses which are licenced by the government to accept imported goods for storage before the payment of customs duty by importer of such goods.

By storing their goods in the bonded warehouses importer gain some control over their goods even before they have paid duties on them. They can remove these goods in part, that is in small quantities, as and when they are sold, after making payments of the duty and warehousing charges on only part of the goods which they want to remove.

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Give a short note on Re-insurance.


Re-insurance refers to the arrangement under which an insurer enters into contract with another insurer for the assumption of a part or whole of the risk insured by the first insurer. In another words, the reinsurer undertakes to insure the first insurer against loss from some or all of the risk he has insured. This may be done in several ways. The re-insurer may agrees to cover all losses beyond a specified amount. He may agress to cover a proportion never less or the total of all losses over a specified amount during a given period. A contract of reinsurance like any fire insurance contract, is a contract of indemnity. It also requires utmost good faith.

It has many advantages. Firstly it enables the wider distribution of risk. Secondly, the insurer can contract to indemnify more risks. Thirdly, it stablises income over a period of year.

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“Transport is the life blood of commerce”. Discuss.

Transportation is one of the important activities which removes the hindrance in the movement. It takes goods and persons from one place to another. It promotes economic development, social welfare, and political integration. So the proper development of transport is absolutely necessary for proper exploitation and utilisation of natural resources, increasing intensity of competition in both national and international market for the benefit of customers as well as industries. So it can.be said that transport is the life blood of commerce.
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What do you mean by current account ? Name the books received from bank while opening current accounts.

 It is an account which is generally opened by businessmen. In this account a depositor can withdraw and deposit money any number of times. A depositor can withdraw or issue against the balance in his account without any prior intimation. The bank generally does not allow interest on this account because it has to keep itself always prepared to honour the commitment towards the account holder.

Overdraft facility is the special features on this account. Account holder may arrange with the bank to withdraw more than the deposit. After the account is opened, the bank issues the following three books :

(i) Pass Book,  (ii) Cheque Book,   (iii) Pay-in-slip book

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