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Students can Download Chapter 2 Collection of Data Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 2 Collection of Data

Plus One Economics Collection of Data One Mark Questions and Answers

Question 1.
Which among the following is a method of primary data collection?
(i) Direct personal interview
(ii) Telephonic interview
(iii) Mailed questionnaire method
(iv) All the above
Answer:
(iv) All the above

Question 2.
Identify the random sampling method from the following.
(i) Judgment sampling
(ii) Stratified sampling
(iii) Convenience sampling
(iv) Quota sampling
Answer:
(ii) Stratified sampling

Question 3.
Which among the following is a source of secondary data?
(i) CSO
(ii) NSSO
(iii) RGI
(iv) All the above
Answer:
(iv) All the above

Question 4.
Identify an advantage of sample method.
(i) Less time consuming
(ii) Less cost is needed
(iii) Gives more reliable information
(iv) All the above
Answer:
(iv) All the above

Question 5.
Name the different types of data.
Answer:
Primary data and secondary data

Plus One Economics Collection of Data Two Mark Questions and Answers

Question 1.
Differentiate between census survey and sample survey.
Answer:
Under census method, we collect information from each and every unit of population relating to the problem under investigation. On the other hand, under-sample method, rather than collecting information about all the units of population, we collect information from a few selected items from population.

Question 2.
Name the two important errors related to sampling?
Answer:

1. Sampling error.
2. Non – sampling error.

Question 3.
Give one example of primary data and one example of secondary data.
Answer:
The price of rice collected from a shop is primary data. The price of rice collected from a daily is secondary data.

Question 4.
Do samples provide better results than surveys? Give reasons for your answer.
Answer:
In sample method, we take part of the information. A small number of trained investigators can collect complete data. This information is reliable. In the case of doubt, enquiries can be undertaken for verification. Follow up is made easy in this case. In survey many difficulties are faced when the universe is very large. A large number of investigators are required in surveys. In case of doubts, it is difficult to undertake the enquiry again for verification.

Question 5.
List out the different steps involved in planning the survey.
Answer:

1. Purpose of the survey
2. Scope of the survey
3. Unit of data collection
4. Sources of data
5. Technique of data collection
6. Choice of the frame
7. Degree of accuracy needed
8. Miscellaneous considerations

Question 6.
Point out the advantages of sample method over census method?
Answer:
The advantages of sample method over census method are:

1. Less time consuming
2. Less cost is needed,
3. Gives more reliable information
4. Gives more detailed information.

Question 7.
Suppose you want to select 50 households from a total of 5100 households by giving equal opportunity to all the units. Which method you would prefer for this purpose? Substantiate.
Answer:
Simple random sampling is appropriate for this purpose. It refers to that technique in which each and every unit of population has an equal opportunity of being selected in the sample. The selection depends purely on chance. Random samples may be selected by lottery method.

Plus One Economics Collection of Data Three Mark Questions and Answers

Question 1.
What are the advantages of mailed questionnaire method?
Answer:
Advantages of mailed questionnaire method are the following.

• Least expensive
• The only method to reach remote areas
• No influence on respondents
• Better for sensitive questions

Question 2.
How the non-sampling errors can be controlled?
Answer:
Sampling errors can be controlled by taking the following steps.

1. Sample should be selected with care.
2. Scientific methods of data collection should be used.
3. The investigator should be well trained.
4. A test check should be done.

Question 3.
List out the errors you would expect in the field survey by census method?
Answer:
Some of the errors expected in the field survey by census method are:

1. Errors of measurement
2. Errors due to mishandling of the questionnaire
3. Recording mistakes
4. Errors of non-response
5. Arithmetic errors

Question 4.
Suppose the Wayanad district Panchayat wants to study the literacy of tribal population in the district.

1. Which method would you suggest for data collection? Why?
2. Give a popular instance Is this method suitable in all cases? If not, what are the drawbacks.

Answer:
1. I would suggest census method of data collection to the panchayat authorities in this situation. In this method, we get reliable information from all units of the population for which the study is conducted.

2. A popular instance where this method is used is population census conducted ever 10 years.

3. It is not suitable in all cases because there are some drawbacks – the effort, money and time required will be very high.

Question 5.
Give two examples each of sample, population and variable.
Answer:
1. Examples each of samples:

• A representative group of few individuals taken form a particular locality to study the impact of rise in prices of petroleum products
• A group of students from the school is selected to study average monthly expenditure

2. Examples each of population:

• All individuals residing in a particular locality about . whom the information is to be collected
• All students in a school for whom the information is to be collected.

3. Examples of each of variables:

• Changing price of petrol
• Increase or decrease in the production of rice.

Question 6.
List the demerits of telephone interviews.
Answer:
Demerits of telephone interview are:

• Reactions cannot be watched
• Limited use
• Possibility of influencing respondents.

Question 7.
Point out the precautions to be taken while using secondary data?
Answer:
While using secondary data it should be ensured that the following precautions are taken

1. Ability of the collecting organisation
2. Objective and scope of investigation
3. Method of collection of secondary data
4. Time and conditions of collection of data Definition of the unit, and
5. Accuracy of the data

Question 8.
Point out the advantages of conducting pilot survey.
Answer:
Once the questionnaire is ready, it is advisable to conduct a try out with a small group which is known as Pilot Survey or PreTesting of the questionnaire. The pilot survey helps the investigator in the following ways.

• The pilot survey helps in providing a preliminary idea about the survey.
• It helps in pretesting of the questionnaire, so as to know the shortcomings and drawbacks of the questions.
• Pilot survey also helps in assessing the suitability of questions, clarity of instructions, performance of enumerators and the cost and time involved in the actual survey

Question 9.
Explain the procedure of selecting a random sample of 3 students out of 10 in your class by using random number table.
Answer:
The procedures of selecting a random sample of 3 students out of 10 are as follows

1. Prepare 10 slips of paper of identical size and shape
2. Write the names of students on the slips
3. Place the slips in a box and mix them properly
4. Draw three slips without looking into the box
5. The students, whose names appear on the slips drawn, constitute the required random sample.

Question 10.
Mention the important sources of collecting secondary data.
Answer:
The main sources of secondary data can be classified into two. They are:
A. Published sources

• Government publications
• Semi government publications
• International publications
• Private publications
• Research publications

B. Unpublished sources

• Studies made by scholars
• Studies of various institutions

Question 11.
Prepare a note on NSSO?
Answer:
The National Sample Survey Organisation was established by the Government of India to conduct nationwide surveys on socioeconomic issues. The data collected by NSSO surveys on different socioeconomic subjects are released through reports and its quarterly journal Sarvekshana.

NSSO provides periodic estimates of literacy, school enrolment, utilisaiton of educational services, employment, unemployment, manufacturing and service sector enterprises, morbidity, maternity, child care, utilisation of the public distribution system, etc.

The NSSO also undertakes the fieldwork of annual surveys of industries, conducts crop estimation surveys, collects rural and urban retail prices for complication of consumer price index numbers.

Question 12.
“Non-sampling errors are more serious than sampling errors”. Do you agree? Mention the possible nonsampling errors occur in sampling.
Answer:
Yes, I agree with the statement that non-sampling errors are more serious than sampling errors because a sampling error can be minimized by taking a larger sample. It is difficult to minimize non-sampling error, even by taking a large sample. Even a Census can contain nonsampling errors.
Some of the non-sampling errors are:
1. Errors in Data Acquisition:
This type of error arises from recording of incorrect responses. Suppose, the teacher asks the students to measure the length of the teacher’s table in the classroom. The measurement by the students may differ. The differences may occur due to differences in measuring tape, carelessness of the students, etc.

2. Non-Response Errors:
Non-response occurs if an interviewers unable to contact a person listed in the sample or a person from the sample refuses to respond. In this case, the sample observation may not be representative.

3. Sampling Bias:
Sampling bias occurs when the sampling plan is such that some members of the target population could riot possibly be included in the sample.

Plus One Economics Collection of Data Four Mark Questions and Answers

Question 1.
Prepare a chart showing different methods of sampling.
Answer:

Question 2.
Give the advantages of direct personal interview.
Answer:
Advantages of direct personal interview.

• Highest response rate
• Allows use of all types of questions
• Allow clarification of ambiguous questions
• Better for using open ended questions

Question 3.
“Certain principles should be kept in mind while drafting a questionnaire” explain.
Answer:
The principles that are to be kept in mind while drafting a questionnaire are given below.

1. The questionnaire should not be too long. The number of questions should be as minimum as possible. Long questionnaires discourage people from completing them.

2. The series of questions should move from general to specific. The questionnaire should start from general questions and proceed to more specific ones.

3. The questions should be precise and clear.

4. The questions should not be ambiguous, to enable the respondents to answer quickly, correctly and clearly.

5. The question should not use double negatives. The questions starting with “Wouldn’t you” or “Don’t you” should be avoided, as they may lead to biased responses.

6. The question should not be a leading question, which gives a clue about how the respondent should answer.

7. The question should not indicate alternatives to the answer.

Plus One Economics Collection of Data Five Mark Questions and Answers

Question 1.
State true or false

1. there are many sources of data
2. telephone survey is the most suitable method of collecting data when their population is literate and spread over a large area
3. data collecting by investigator is called secondary data
4. non-sampling errors can be minimized by taking large samples
5. there is a certain bias involved in the non-random selection of samples.

Answer:

1. true
2. true
3. false
4. false
5. true

Plus One Economics Collection of Data Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on the topic “methods of collecting primary data”
Answer:
“Methods of collecting primary data”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “methods of collecting primary data” on 05/08/2017 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic. Each group presented one objective each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
There are three basic ways of collecting data:

1. Personal Interviews,
2. Mailing (questionnaire) Surveys, and
3. Telephone Interviews

1. Personal Interviews:
This method is used when the researcher has access to all the members. The researcher (or investigator) conducts face to face interviews with the respondents. Personal interviews are preferred due to various reasons. Personal contact is made between the respondent and the interviewer.

The interviewer has the opportunity of explaining the study and answering any query of the respondents. The interviewer can request the respondent to expand on answers that are particularly important. Misinterpretation and misunderstanding can be avoided.

Watching the reactions of the respondents can provide supplementary information. Personal interview has some demerits too. It is expensive, as it requires trained interviewers. It takes longer time to complete the survey.

2. Mailing Questionnaire:
When the data in a survey are collected by mail, the questionnaire is sent to each individual by mail with a request to complete and return it by a given date. The advantages of this method are that it is less expensive. It allows the researcher to have access to people in remote areas too, who might be difficult to reach in person or by telephone.

It does not allow influencing of the respondents by the interviewer. It also permits the respondents to take sufficient time to give thoughtful answers to the questions. The disadvantages of mail survey are that there is less opportunity to provide assistance in clarifying instructions, so there is a possibility of misinterpretation of questions. Mailing is also likely to produce low response rates due to certain factors.

3. Telephone Interviews:
In a telephone interview, the investigator asks questions over the telephone. The advantages of telephone interviews are that they are cheaper than personal interviews and can be conducted in a shorter time. They allow the researcher to assist the respondent by clarifying the questions.

Telephone interview is better in the cases where the respondents are reluctant to answer certain questions in personal interviews. The disadvantage of this method is accessible to people, as many people may not own telephones. Telephone Interviews also obstruct visual reactions of the respondents.

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was the question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 3 Organisation of Data Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 3 Organisation of Data

Plus One Economics Organisation of Data One Mark Questions and Answers

Question 1.
Under inclusive method ………….
(a) Upper-class limit is excluded
(b) Lower class limit is excluded
(c) Lower class limit is included
(d) None of the above
Answer:
(c) Lower class limit is included

Question 2.
Which of the following alternatives is true?
The class midpoint is equal to:
(a) The average bf the upper-class limit and the lower class limit.
(b) The product of the upper-class limit and the lower class limit.
(c) The ratio of the upper-class limit and the lower class limit.
(d) None of the above.
Answer:
(a) The average bf the upper-class limit and the lower class limit.

Question 3.
Which of the following alternatives is true?
The frequency distribution of two variables is known as ………
(a) Univariate Distribution
(b) Bivariate Distribution
(c) Multivariate Distribution
(d) None of the above
Answer:
(b) Bivariate Distribution

Question 4.
Which of the following alternatives is true?
Statistical calculations in classified data are based on …………
(a) the actual values of observations
(b) the upper-class limits
(c) the lower class limits
(d) the class midpoints
Answer:
(d) the class midpoints

Question 5.
Which of the following alternatives is true?
Under Exclusive method.
(a) the upper-class limit of a class is excluded in the class interval
(b) the upper-class limit of a class is included in the class interval
(c) the lower class limit of a class is excluded in the class interval
(d) the lower class limit of a class is included in the class interval
Answer:
(a) the upper-class limit of a class is excluded in the class interval

Question 6.
Which of the following alternatives is true?
Range is the ………….
(a) difference between the largest and the smallest observations
(b) difference between the smallest and the largest observations
(c) average of the largest and the smallest observations
(d) ratio of the largest to the smallest observation.
Answer:
(a) difference between the largest and the smallest observations

Plus One Economics Organisation of Data Two Mark Questions and Answers

Question 1.
What is classification?
Answer:
Classification of data is a technique with the help of which data is arranged into different groups or classes according to some common characteristics so as to facilitate the tabulation, analysis, and interpretation.

Question 2.
Distinguish between raw data and classified data.
Answer:
Raw data is the collected information in the form of numerical facts. It is the data collected as it is without any processing. The raw data is summurised and made comprehensible is known as classified data.

Question 3.
Distinguish between frequency table and frequency array.
Answer:
Frequency table is the classification of the data for a continuous variable. Frequency array is the classification of the data for a discrete variable.

Question 4.
Distinguish between univariate frequency distribution and bivariate frequency distribution.
Answer:
The frequency distribution of a single variable is called univariate distribution. The frequency distribution of two variables is known as bivariate frequency distribution.

Question 5.
In a city 45 families were surveyed for the number of domestic appliences they used. Prepare a frequency array based on their replies as recorded below.
1, 3, 2, 2, 2, 2, 1, 2, 2, 3, 3, 3, 3, 2, 4, 2, 7, 2, 0, 3, 1, 3, 3, 2, 3, 2, 2, 6, 1, 6, 2, 1, 5, 1, 5, 3, 4, 2, 4, 3, 4, 3
Answer:

Question 6.
Classification of data is a function similar to that of sorting letters in a post office. Do you agree? Explain.
Answer:
Yes, I do agree with the statement that the classification of data is a function similar to that of sorting letters in a post office.

The process of arranging data in groups or classes according to similarities is technically called classification. The classification is somewhat similar to that of sorting letters in a post office. Letters collected in a post office are sorted into different lots on geographical basis.

They are then put in separate bags. Thus by classification, we are trying to make different groups with similar characteristics. Units having a common characteristic place in one class and the whole data are thus divided into a number of classes.

Question 7.
List examples of variables and attributes in your daily life.
Answer:
1. Variables

• Height
• Weight
• Marks obtained in final examination
• Cricket score

2. Attributes

• Caste religion
• Sex
• Marital status
• Educational qualification

Question 8.
There are some problems in preparing frequency distribution on the basis of class interval’. Do you agree? Justify.
Answer:
Yes, I agree.
The following problems arise in preparing frequency distribution on the basis of class interval.

1. Number of class intervals to be formed
2. Size of class intervals
3. Class limits.

Plus One Economics Organisation of Data Three Mark Questions and Answers

Question 1.
Answer the following

1. To arrange things in appropriate order and to put them into homogenous groups means ………..
2. a variable is continuous when it can be taken within the range ……….
3. Population refers to ……………

Answer:

1. classification
2. any value
3. both frequency and cumulative frequency

Question 2.
Name the three types of series.
Answer:

1. Individual series
2. Discrete series
3. Continuous series

Plus One Economics Organisation of Data Four Mark Questions and Answers

Question 1.
Can there be any advantage in classifying things?
Answer:
The advantage of classification are the following.

• It helps in the comparison of data.
• It helps to understand relationship among variables.
• It makes statistical analysis easier.
• It highlights significant features of data at a glance.

Question 2.
State the meaning and example for the following.

1. Chronological Classification.
2. Spatial Classification
3. Qualitative Classification
4. Quantitative Classification.

Answer:
1. Chronological Classification:
In Chronological classification, data are classified either in ascending or in descending order with reference to time such as years, quarters, months, weeks, etc.
Example: population of India from 1951 to 2011

2. Spatial Classification:
In Spatial Classification the data are classified with reference to geographical locations such as countries, states, cities, districts, etc.
Example: yield of wheat in different states of India.

3. Qualitative Classification:
Attributes can be classified on the basis of either the presence or the absence of a qualitative characteristic. Such a classification of data on attributes is called a Qualitative Classification.
Example: grouping of people on the basis of gender

4. Quantitative Classification:
When the collected data of such characteristics are grouped into classes, the classification is a Quantitative Classification.
Example: marks obtained by students.

Question 3.
What is variable? Distinguish between a discrete and a continuous variable.
Answer:
A simple definition of variable does not tell you how it varies. Different variables vary differently and depending on the way they vary, they are broadly classified into two types:

1. Continuous and
2. Discrete.

A continuous variable can take any numerical value. It may take integral values (1, 2, 3, 4,…) or fractional values(1/2, 2/3, 3/4).

Unlike a continuous variable, a discrete variable can take only certain values. Its value changes only by finite “jumps”. It “jumps” from one value to another but does not take any intermediate value between them.

Question 4.
Differentiate between exclusive method and inclusive method.
Answer:
1. exclusive method, the upper-class limit is excluded but the lower class limit of a class is included in the interval.

2. On the other hand, under the inclusive method, the upper-class limit is included in the class interval.

Plus One Economics Organisation of Data Five Mark Questions and Answers

Question 1.
Differentiate between quantitative classification and qualitative classification.
Answer:
Classification done according to quantitative varieties like marks and wages etc. is termed as quantitative classification. On the other hand, classification according to attributes like honesty and beauty is known as qualitative classification.

Question 2.
Prepare a frequency distribution by inclusive and exclusive method for the following data.
28 27 6 16 15 2 14 5 19 25 19 20 28
32 37 13 15 11 32 4 6 9 3 36 12 8
4 1 8 3 18 12 7 17 15 22 29 21 23
2 9 4 10 5 20 20 33 27 21 27 18 9
31 18 9 7 1 26 24 20
Answer:

Plus One Economics Organisation of Data Eight Mark Questions and Answers

Question 1.
Define and illustrate the inclusive and exclusive method used in classification of data.
Answer:
1. Inclusive Method:
In comparison to the exclusive method, the Inclusive Method does not exclude the upper-class limit in a class interval. It includes the upper class in a class. Thus both class limits are parts of the class interval.
An example for inclusive method of frequency distribution is given below.

2. Exclusive Method:
The classes, by this method, are formed in such a way that the upper-class limit of one class equals the lower class limit of the next class. In this way, the continuity of the data is maintained. That is why this method of classification is most suitable in case of data of a continuous variable. Under the method, the upper-class limit is excluded but the lower class limit of a class is included in the interval.
An example for exclusive method of frequency distribution is given below.

Students can Download Chapter 1 Statistics for Economics Introduction Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 1 Statistics for Economics Introduction

Plus One Economics Statistics for Economics Introduction One Mark Questions and Answers

Question 1.
The word statistics is used as ……………
(a) Singular
(b) Plural
(c) Both (a) and (b)
(d) None of (a) and (b)
Answer:
(c) Both (a) and (b)

Question 2.
Statistics deals with …………..
(a) Qualitative data
(b) Quantitative data
(c) Both (a) and (b)
(d) None of (a) and (b)
Answer:
(b) Quantitative data

Question 3.
The statistical method to analyze the data maybe ……….
(a) Explanatory
(b) Non-explanatory
(c) Both (a) and (b)
(d) None of (a) and (b)
Answer:
(a) Explanatory

Question 4.
Who is known as the father of statistics?
Answer:
Grottfried Achenwale is known as the father of statistics.

Plus One Economics Statistics for Economics Introduction Two Mark Questions and Answers

Question 1.
Distinguish the singular and plural senses of statistics.
Answer:

• singular sense statistics is the science of collecting, classifying and using statistics or a statistical fact.
• In plural sense, it means numerical facts systematically collected or it is data.

Question 2.
Classify the following data into qualitative and quantitative.
Height, weight, marks scored in an exam, truth, honesty, beauty, credibility, income.
Answer:

• Quantitative data: Income, height, weight, marks scored in an exam.
• Qualitative data: Truth, honesty, beauty, credibility.

Question 3.
Mention a few examples each for quantitative and qualitative data.
Answer:
1. Quantitative data

• height
• weight
• marks
• price
• income

Qualitative data

• colour
• intelligence
• attitude
• honesty
• beauty

Question 4.
Write some examples for distrust of statistics.
Answer:
Distrust of statistics means lack of confidence in statistical statements and statistical methods. Examples of such distrust are:

• People keep blind faith in statistics. So they are not careful while accepting statistical figures.
• People manipulate statistical data to present a wrong idea of their interest.

Plus One Economics Statistics for Economics Introduction Three Mark Questions and Answers

Question 1.
Give the limitations of statistics.
Answer:
The limitations of statistics are given below.

• Statistical laws are true only on average.
• Statistics can be misused.
• Statistics deals only with quantitative data.
• Statistical results lack mathematical accuracy.
• Statistical facts are collected for a predetermined purpose.

Question 2.
Identify the data from the following statement.

1. Indian economy grew at an average rate of 7% after the reforms.
2. RBI increased the bank rate to 6.5.
3. The percentage of people below poverty line in India is 26.

Answer:

1. Average growth rate – 7%
2. Bank rate – 6.5
3. Percentage of people below poverty line – 26%

Question 3.
Mark the following statements as true or false

1. statistics can only deal with quantitative data
2. statistics solves economic problems
3. statistics is of no use to economics without data.

Answer:

1. True
2. True
3. True

Question 4.
Explain how statistics is helpful in the formulation of economic planning.
Answer:
Statistics is the most important tool in economic planning. Economic planning is the best use of national resources, both in planning, without statistics is a leap in the dark. Every phase in planning, drawing a plan, execution, and review is based on statistics. The success of plan depends upon sufficient and accurate statistical data available at all the stages.

Question 5.
Make a list of economic activities found in your daily life.
Answer:
Some of the economic activities found in our daily life are:

• Teachers teaching in the school.
• People working in a factory.
• Doctor treating a patient.
• Milkman working in a dairy farm.

Question 6.
‘Statistics plays a vital role in policymaking’. Illustrate with examples.
Answer:
The government and the policymakers use statistical data to formulate suitable policies of economic development. No analysis of a problem would be possible without the availability of data on various factors underlying an economic problem. For example, if the government wants to make policy to solve the problem of unemployment and poverty, reliable data are required for it.

The number of persons who are waiting for a job, unemployed, the number of illiterate people, those living below the poverty line, etc are required. If the government wants to help the people affected by the tsunami earthquakes, the bind flu dangers then the data should be collected and put together about disaster’s cost systematically and correctly.

Modern economists include learning the basic skills involved in making useful studies for measuring poverty, how incomes are distributed, how earning opportunities are related to education, how environmental disasters affect our lives and so on.

Question 7.
Write the important functions of statistics.
Answer:
The important functions of statistics are the following:
1. It enables an economist to present economic facts in a precise and definite form that helps in proper comprehension of what is stated.

2. Statistics also helps in condensing the mass of data into a few numerical measures (such as mean, variance, etc., about which you will learn later). These numerical measures help summarize data.

3. Statistics is used in finding relationships between different economic factors. Statistics find economic relationships using data and verifies them.

4. Statistical tools are used in the prediction of future trends. The economist might be interested in predicting the changes in one economic factor due to the changes in another factor.

5. Statistical methods help formulate appropriate economic policies that solve economic problems.

Question 8.
The knowledge of statistics is helpful in several ways. List out the beneficiaries of statistics with examples for each.
Answer:
1. The applications of statistics are so numerous and ever interesting. It can be applied to any field of study whether it be trade, sociology, medicine, etc. Its application in economics, business, research, etc are discussed below.

2. In economics variables like income, consumption, input, saving, etc. are systematically and scientifically analyzed and studied with the tools of statistics. Therefore, it is highly useful in economics.

3. With the help of statistical methods abundant quantitative information can be obtained which can help immensely in formulating suitable policies. Statistics are so important to the state that government in most countries is the biggest collector and user of statistical data.

4. There is hardly any research work today that one can complete without statistical data and statistical methods. The statistical tools are highly needed for research.

5. Thus in this respect, the knowledge of statistics is helpful to society in different ways.

Plus One Economics Statistics for Economics Introduction Four Mark Questions and Answers

Question 1.
List out examples for quantitative data and qualitative data.
Answer:
A. Some examples of quantitative data in daily life are:

1. family income
2. family expenditure
3. monthly saving of a family
4. expenditure on education
5. expenditure on medical treatment
6. marks scored in examination

B. Some examples of qualitative data in daily life are:

1. nationality
2. sex
3. religion
4. caste
5. colour
6. educational qualification

Question 2.
Distinguish between quantitative and qualitative data.
Answer:
1. Quantitative data are those data which can be measured in numerical terms.
Eg: height, weight, etc.

2. On the other hand, qualitative data are those facts that cannot be numerically measured.
Eg: intelligence, beauty, etc.

Students can Download Chapter 3 Private, Public and Global Enterprises Questions and Answers, Plus One Business Studies Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Bussiness Studies Chapter Wise Questions and Answers Chapter 3 Private, Public and Global Enterprises

Plus One Bussiness Studies Private, Public and Global Enterprises One Mark Questions and Answers

Question 1.
Environmental protection can be best done by the efforts of the
(a) Business people
(b) Government
(c) Scientists
(d) All the people
Answer:
(d) All the people

Question 2.
Reconstruction of a sick public sector unit is taken up by
(a) MOFA
(b) MoU
(c) BIFR
(d) NRF
Answer:
(c) BIFR

Question 3.
Disinvestment of PSE’s implies
Answer:
Sale of equity shares to private sector

Question 4.
Enterprises owned and managed by private individuals is known as_________
Answer:
Private enterprises.

Question 5.
The enterprises which are wholly owned and controlled by Government are known as
Answer:
Public enterprises

Question 6.
Enterprises which are partly in the private sector and partly in the public sector are known as__________
Answer:
Joint sector enterprises

Question 7.
Which among the following type of organization is not a public sector enterprise?
(a) Indian Railways
(b) IFCI
(c) SBI
(d) MRF Tyres Ltd.
Answer:
(d)MRF Tyres Ltd.

Question 8.
Which among the following type of organization has no separate legal entity?
(a) Public corporation
(b) Government company
(c) Departmental organization
(d) Private company
Answer:
(c) Departmental organization.

Question 9.
Indian Railway is an example of__________
Answer:
Departmental undertaking

Question 10.
Which of the following is formed by a special Act of parliament?
(a) Bharat Heavy Electricals Ltd
(b) L.G. Electronics India
(c) The East India Company
(d) The Reserve Bank of India
Answer:
(d) The Reserve Bank of India

Question 11.
LlC is an example of one type of govt, organization. Identify its name and give another example.
Answer:
Public corporation. Another example of public corporation is SBI.

Question 12.
_________are the organisations, which are incorporated
under the special Acts of the Parliament/State Legislative Assemblies.
Answer:
Statutory Corporations

Question 13.
A government company is any company in which the paid up capital held by the government is not less than
(a) 49 percent
(b) 51 percent
(c) 50 percent
(d) 25 percent
Answer:
(b) 51 percent

Question 14.
The company which operates in more than one country.
Answer:
MNC

Question 15.
Coco Cola is an example of_________companies
Answer:
MNC

Question 16.
Outright sale of public enterprises is called _________
Answer:
Didinvestment

Plus One Bussiness Studies Private, Public and Global Enterprises Two Mark Questions and Answers

Question 1.
What is meant by public sector and private sector? (2)
Answer:
The economy may be classified into two sectors viz., private sector and public sector.
1. Private Sector:
The private sector consists of business owned by individuals or a group of individuals. The various forms of organization are sole proprietorship, partnership, joint Hindu family, cooperative and company.

2. Public Sector:
The business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises. These are also known as public sector undertakings.

Question 2.
What is a Multinational Company? (2)
Answer:
Global enterprises are huge industrial organizations which extend their industrial and marketing operations through a network of their branches in several countries. Their branches are also called Majority Owned Foreign Affiliates (MOFA).

They are characterized by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world. Eg. Pepsi, Coca Cola, Cadbury, Sony, Susuki etc.

Question 3.
What is Joint venture? (2)
Answer:
When two or more independent firms together establish a new enterprise by pooling their capital, technology and expertise, it is known as a joint venture. The risks and rewards of the business are also shared. The aim of the joint venture is business expansion, development of new products or moving into new markets, particularly in another country. Benefits

1. Increased resources and capacity:
Since two or more firms join together to form a joint venture, there is the availability of increased capital and other resources, able to face market challenges and take advantage of new opportunities.

2. Access to new markets and distribution networks:
A foreign company gains access to the vast Indian market by entering into a joint venture with an Indian Company. They can also take advantage of the established distribution channels.

3. Access to technology:
It provides access to advanced techniques of production which increases efficiency and then helps in a reduction in cost and improvement in the quality of a product.

4. Innovation:
Foreign partners can come up with innovative products because of new ideas and technology.

5. Low cost of production:
Low cost of raw materials, technically qualified workforce, management professionals, excellent manpower etc. helps to reduce the cost of production and it results increased productivity.

Established brand name :
When one party has well established brands and goodwill, the other party gets its benefits.

Question 4.
What do you mean by Disinvestment? (2)
Answer:
The outright sale of Government shares in public sector undertaking is called disinvestment. Eg. Maruthi Udyog Ltd, Indian Petro Chemicals Ltd., etc. Government company

Question 5.
What is meant by Public sector? (2)
Answer:
Business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises. These are also known as public sector undertakings.

Plus One Bussiness Studies Private, Public and Global Enterprises three Mark Questions and Answers

Question 1.
What are the various types of organizations in the private sector? (3)
Answer:
The private sector consists of business owned by individuals or a group of individuals. The various forms of organization are sole proprietorship, partnership, joint Hindu family, cooperative and company.

Plus One Bussiness Studies Private, Public and Global Enterprises Four Mark Questions and Answers

Question 1.
Identify the following public sector enterprises. (4)

1.  Business Organisation established by the government and controlled by the Ministry concerned.
2.  Organizations incorporated under a special Act of Parliament or state legislatur
3.  1t is managed by the government and is subject to budgetary, accounting and audit control
4.  Organisation established by the government and registered under the Companies Act

Answer:

1.  Departmental undertaking
2.  Statutory corporation
3.  Government company

Question 2.
Some organizations are directly attached to a particular ministry of the Central or State Government and are under the direct control of concerned Minister. The business decisions are, thus, influenced by political consideration. (4)

1. (a) State the type of enterprise coming under this category.
2. (b) give four examples of such enterprises.

Answer:

1. Departmental undertaking
2. (b) Railways, Communications, Post & Harbours, Electricity etc.

Question 3.
Match the column ‘A’ with column ‘B’ and ‘C’. (4)

Answer:

Plus One Bussiness Studies Private, Public and Global Enterprises Six Mark Questions and Answers

Question 1.
“Public sector enterprises have been chosen as a means for having a socialistic pattern of society”. Do you think so? If yes, state the reasons. (6)
Answer:
1. Development of infrastructure:
It is the responsibility of the Government to provide infrastructural facilities to the core sector which requires huge capital investment, complex and upgraded technology etc.

2. Regional balance:
The government is responsible for developing all regions and states in a balanced way and removing regional disparities.

3. Economies of scale:
Public sector enterprises are large in size and are, able to avail the advantages of large scale operations.

4. Check over concentration of economic power:
The development of public enterprises prevents concentration of economic power and wealth in the hands of private sector.

5. Employment opportunities:
Public sector enterprises helps to generate a large number of employment opportunities.

6. Import substitution:
It is also necessary for the economic progress of the country that industries which can decrease imports and increase exports are only promoted. Public enterprises also ensure promotion of such industries.

Question 2.
Some organisations are directly attached to a particular ministry of the Central or State Government.
State the type of enterprise comming under this category.
Explain its merits and demerits. (6)
Answer:
This is the oldest and most common form of organization. These are established as departments of the ministry and are financed, managed and controlled by either central govt, or state govt.. They are managed by government employees and work under the control of a minister. Eg. Railways, Post & Telegraph, All India Radio, Doordarshan, Defense undertakings etc.

Features:

1.  The enterprise is financed by annual appropriation from the budget of the Government and all revenue is paid to the treasury.
2.  The enterprise is subject to accounting and audit control.
3.  It is subject to the direct control of the ministry.
4.  Its employees are govt, employees and are recruited and appointed as per govt, rules.
5.  They are accountable to the concerned ministry.

Merits:

1. These undertakings facilitate the Parliament to exercise effective control overtheiroperations;..
2.  These ensure a high degree of public accountability.
3.  The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the Government.
4.  Where national security is concerned, this form is most suitable since it is under the direct control and supervision of the concerned Ministry.

Limitations:

1.  Departmental undertakings lack flexibility because its policies cannot be changed instantly.
2.  The employees are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delay in decision making.
3.  These enterprises are unable to take advantage of business opportunities.
4.  There is red tapism in day-to-day operations.
5.  There is a lot of political interference throughthe ministry. .
6.  These organisations are usually insensitive to consumer needs and do not provide adequate services to them.

Plus One Bussiness Studies Private, Public and Global Enterprises Eight Mark Questions and Answers

Question 1.
Kerala Pharmaceuticals Ltd. registered under the Companies Act of 1956, was started with a paid-up capital of 15 lakhs. 40% of paid-up capital is in the hands of private individuals and the balance is held by the Govt, of Kerala.
(a) Identify the type of enterprise.
(b) Explain its merits and demerits. (8)
Answer:
A Government Company is established under the Indian Companies Act, 1956. According to the Indian. Companies Act 1956, a government company
means any company in which not less than 51percent of the paid up capital is held by the central government, or by any state government or partly
by central government and partly by one or more state governments.

Features:

• It is registered under the Companies Act, 1956.
• It has a separate legal entity. It can sue and be sued, and can acquire property in its own name.
• The management of the company is regulated by the provisions of the Companies Act.
• Employees are recruited and appointed as per the rules and regulations contained in Memorandum and Articles of association.
• These companies are exempted from the accounting and audit rules and procedures.
• The government company obtains its funds from government shareholdings and other private shareholders.

Merits

• It has a separate legal entity, apart from the Govt.
• It enjoys flexibility and autonomy in all management decisions
• These companies by providing goods and services at reasonable prices are able to control the market.
• The formation of a Government company is easy as compared to other forms of Government enterprises.
• It can appoint professional managers on high salaries.

Limitations

• It evades constitutional responsibility as it is not directly answerable to parliament.
• They are autonomous only in name. Company is operated by the controlling ministry.
• The law relating to the companies, in general is meaningless for the government companies, as it requires fulfillment of various formalities.

Question 2.
It is an organisation which is formed by a special Act of Parliament.
(a) Identify the type of organisation.
(b) Explain its merits and demerits. (8)
Answer:
Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. Eg. LIC, IFCI, RBI, SBI, ONGC, UTI, Air India etc.

Features:

1.  Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act.
2.  It is wholly owned by the state.
3.  It has a separate legal entity, i.e it can sue and be sued, enter into contract and acquire property in its own name.
4.  It is usually independently financed.
5.  It is not subject to budget, accounting, and audit laws.
6.  The employees of these enterprises are not government or civil servants.

Merits:

1. They enjoy independence in their functioning and a high degree of operational flexibility
2. It enjoys administrative and financial autonomy
3. Since they are autonomous organizations, they can frame their own policies and procedures
4. A statutory corporation is a valuable instrument for economic development

Limitations:

1. A statutory corporation does not enjoy as much operational flexibility
2. Government and political interference has always been there in major decisions
3. Where there is dealing with public, rampant corruption exists
4. Commercial principles are ignored in the operation of public corporations which leads to inefficiency.

Question 3.
Cyclone Ltd. is a software company established in India, during the year 2002. They extended its operations to UK and USA in May 2005, by establishing corporate offices in these countries.(8)

(a) What type of company is this?
(b) Explain the features of these type of companies?
Answer:
(a)MNC

(b) Global enterprises are huge industrial organisations which extend their industrial and marketing operations through a network of their branches in several countries. Their branches are also called Majority Owned Foreign Affiliates (MOFA). They are characterised by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world. Eg. Pepsi, Coca Cola, Cadbury, Sony, Susuki etc.

Features of MNCs:
1. Huge capital resources:
Multinational companies have the ability to raise huge funds from different sources such as equity shares, debentures, bonds, etc. They can also borrow from financial institutions and international banks.

2. Foreign collaboration:
Global enterprises usually enter into agreements relating to the sale of technology, production of goods, use of brand name, etc. with local firms in the host countries.\

3. Advanced technology:
Multinational companies can possess latest and advanced technology so that they can provide quality products.

4. Product innovation:
Multinational companies are able to conduct sophisticated research so that they can develop new products.

5. Marketing strategies:
They use aggressive marketing strategies in order to increase their sales in a short period. Their advertising and sales promotion techniques are normally very effective.

6. International Market:
They operate through a network of subsidiaries, branches and affiliates in host countries. Due to their giant size, they occupy a dominant position in the market.

7. Centralized control:
They have their headquarters in their home country and exercise control over all branches and subsidiaries.

Question 4.
What are the benefits of entering into Joint ventures? (8)
Answer:
When two or more independent firms together establish a new enterprise by pooling their capital, technology and expertise, it is known as a joint venture. The risks and rewards of the business are also shared. The aim of joint venture is business expansion, development of new products or moving into new markets, particularly in another country.

Benefits:
1. Increased resources and capacity:
Since two or more firms join together to form a joint venture, there is availability of increased capital and other resources, able to face market challenges and take advantage of new opportunities.

2. Access to new markets and distribution networks:
A foreign company gain access to the vast Indian market by entering into a joint venture with Indian Company. They can also take advantage of the established distribution channels.

3. Access to technology:
It provides access to advanced techniques of production which increases efficiency and then helps in reduction in cost and improvement in quality of product.

4. Innovation:
Foreign partners can come up with innovative products because of new ideas and technology.

5. Low cost of production:
Low cost of raw materials, technically qualified workforce, management professionals, excellent manpower, etc. helps to reduce cost of production and it results increased productivity.

Established brand name :
When one party has well-established brands and goodwill, the other party gets its benefits.

Students can Download Chapter 10 Comparative Development Experience of India with its Neighbours Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 10 Comparative Development Experience of India with its Neighbours

Plus One Economics Comparative Development Experience of India with its Neighbours One Mark Questions and Answers

Question 1.
The system in which people collectively cultivated land in China is known as.
Answer:
Commune System.

Question 2.
Which of the following countries has the highest population growth rate?
(i) India
(ii) China
(iii) Pakistan
Answer:
(iii) Pakistan

Question 3.
In which year, China announced its first five-year plan?
(i) 1950
(ii) 1951
(iii) 1952
(iv) 1953
Answer:
(iv) 1953

Question 4.
India introduced economic reforms in _______ .
(i) 1990
(ii) 1991
(iii) 1993
(iv) 1995
Answer:
(ii) 1991

Question 5.
Chinas great leap forward was in the year ______ .
(i) 1953
(ii) 1958
(iii) 1978
(iv) 1991
Answer:
(ii) 1958

Question 6.
Commune system is the feature of
(i) India
(ii) China
(iii) Pakistan
(iv) All the above
Answer:
(ii) China

Question 7.
Reforms in ……………… were introduced in 1978. (China, Pakistan, India)
Answer:
China

Plus One Economics Comparative Development Experience of India with its Neighbours Two Mark Questions and Answers

Question 1.
The table shows the growth of crops domestic product of India China and Pakistan.

State two reasons why Pakistan’s growth rate declined compared to two other countries.
Answer:
Political instability, over-dependence on remittance and foreign aid along with volatile performance of agricultural sector are the reasons for Pakistan’s decline in economic growth.

Question 2.
Write full form of the following.

1. SAARC
2. ASEAN

Answer:

1. SAARC – South Asian Association for Regional Co-operation.
2. ASEAN – Association of Southeast Asian Nations.

Question 3.
Evaluate the various factors that led to rapid economic development in China.
Answer:
Great leap forward, commune system, privalisation, reforms, foreign direct investment, etc were the factors that led to rapid economic development of China.

Question 4.
Name the SAARC nations.
Answer:

• India
• Pakistan
• Napal
• Bhutan
• Bangladesh
• Maldives
• Srilank

Question 5.
Mention some examples of regional and economic grouping.
Answer:
Some regional and economic grouping are:

1. SAARC
2. European Union
3. ASEAN
4. G-8
5. G-20

Plus One Economics Comparative Development Experience of India with its Neighbours Three Mark Questions and Answers

Question 1.
Give the basic feature of an underdeveloped economy.
Answer:
Over-dependence on agriculture, large population growth and low income, large poverty and unemployment are the basic features of underdeveloped economies.

Question 2.
State whether true or false

1. in India, agriculture is the largest contributor to GDP
2. in china, industry is the largest contributor to GDP
3. compared to India and Pakistan, China has the highest rank in HDI.

Answer:

1. False. In India, services sector is the larges contributor to GDP
2. True
3. True

Question 3.
Mention the various indicators of Human Development Index.
Answer:

1. Per capita income
2. Adult literacy
3. Life expectancy

Question 4.
Mention the years when first five-year plan was initiated in India, China, and Pakistan.
Answer:

• China – 1978
• Pakistan – 1989
• India – 1991

Question 5.
Prepare a table showing demographic indicators of India, China and Pakistan.
Answer:

Question 6.
Group the following features pertaining to the economies of India, China, and Pakistan under three heads One child norm, low fertility, high degree of urbanization, mixed economy, very high fertility rate, large population, high density of population, growth due to manufacturing sector, growth due to service.
Answer:
1. Economy of India:

• High density of population
• Growth due to service sector

2. Economy of Pakistan:

• Mixed economy
• Very high fertility rate

3. Economy of China:

• One child norm
• Low fertility
• High degree of urbanization’
• Large population
• Growth due to manufacturing sector

Question 7.
Prepare a note on ‘Great Leap Forward’ of China.
Answer:
The Great Leap Forward (GLF) campaign initiated in 1958 aimed at industrializing the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under the Commune system, people collectively cultivated lands.

In1958, there were 26,000 communes covering almost all the farm population. GLF campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialization process.

Question 8.
Mention the salient demographic indicators of China, Pakistan and India.
Answer:
The population of Pakistan is very small and is about one-tenth of China and India:
Though China is the largest nation among the three, its density is the lowest. Population growth is highest in Pakistan, followed by India and China. Sex ratio is low and biased against females in all the three countries.

The fertility rate is also low in China and very high in Pakistan. Urbanization is high in both Pakistan and China with India having 28 percent of its population living in urban areas.

Question 9.
Give the similarities of the development path India, China and Pakistan.
Answer:
India, China and Pakistan had adopted economic reforms for economic development. Five Year Plans were initiated in these countries as development strategy. Agriculture plays an important role in the economic development in these nations.

Plus One Economics Comparative Development Experience of India with its Neighbours Four Mark Questions and Answers

Question 1.
Match column A with column B

Answer:

Question 2.
China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.
Answer:
Yes, China’s rapid industrial growth can be traced back to its reforms in 1978. this is because reforms in agriculture and establishment of infrastructure in the areas of education and health, land reforms, etc. had been taking place with the introduction of reforms.

In the initial phase, reforms were initiated in agriculture, foreign trade, and investment sectors. In the later phase, reforms were initiated in the industrial sector. Private sector firms and township and village enterprises were allowed to produce goods.

The reform process also involves dual pricing:
It was found that establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralized planning and existence of small enterprises had helped positively in improving the social and income indicators in the post-reform period. In short, it can be concluded that China’s rapid industrial growth can be traced back to its reforms in 1978.

Plus One Economics Comparative Development Experience of India with its Neighbours Five Mark Questions and Answers

Question 1.
Compare and contrast India, China and Pakistan’s sectoral contribution towards GDP in 2003. Draw inferences.

Answer:
The table given above shows the sectoral contribution of India, China, and Pakistan towards GDP. It can be seen from the table that in both India and Pakistan, the contribution of agriculture to GDP is the same, at 23 percent, but the proportion of workforce that works in this sector is more in India. In Pakistan, about 49 percent of people work in agriculture whereas in India it is 60 percent.

The sectoral share of output and employment also shows that in all the three economies, the industry and service sectors have less proportion of workforce but contribute more in terms of output. In China, manufacturing contributes the highest to GDP at 53 percent whereas in India and Pakistan; it is the service sector that contributes the highest. In both these countries, service sector accounts for more than 50 percent of GDP.

In the normal course of development, countries first shift their employment and output from agriculture to manufacturing and then to services. This is what is happening in China as can be seen from Table. In both India and Pakistan, the service sector is emerging as a major player of development. It contributes more to GDP and, at the same time, emerges as a prospective employer.

Question 2.
Compare the development of China, India, and Pakistan with respect to some salient human development indicators.
Answer:
The following table shows some of the salient features of China, India, and Pakistan with respect to human development indicators.

It can be found that the HDI index and value are much better in China compared to India and Pakistan. That is China is ahead of India and Pakistan on many human development indicators. Similarly, the life expectancy rate is higher in China compared to India and Pakistan.

In India and Pakistan, the life expectancy rate is almost similar that is 63 years. Adult literacy rate is very high in China and the infant mortality rate is comparatively lower. Thus China has made a better development in respect of HDI compared to India and Pakistan.

Students can Download Chapter 9 Environment Sustainable Development Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 9 Environment Sustainable Development

Plus One Economics Environment Sustainable Development One Mark Questions and Answers

Question 1.
What is the name of UNCED seminal report?
Answer:
Our Common Future.

Question 2.
Protecting future generations is emphasised by which of the following?
(i) Brundtland commission
(ii) Our common future
(iii) UNCED
(iv) Herman Daly
Answer:
(i) Bmndtland commission

Question 3.
Kyoto protocol was signed in ______ .
(i) 1990
(ii) 1992
(iii) 1997
(iv) 1999
Answer:
(iii) 1997

Question 4.
In which state, Chipko Movement took place?
(i) Karnataka
(ii) Punjab
(iii) Himachal Pradesh
(iv) U.P.
Answer:
(iii) Himachal Pradesh

Question 5.
Identify the strategy for sustainable development.
(i) Wind energy
(ii) Solar energy
(iii) Gobar gas
(iv) All the above
Answer:
(iv) All the above

Plus One Economics Environment Sustainable Development Two Mark Questions and Answers

Question 1.
How does the UNCED define sustainable development?
Answer:
The UNCED defines sustainable development as the development that meets the need of the present generation without compromising the ability of the future generation to meet their own needs.

Question 2.
Explain the supply-demand reversal of environmental resources.
Answer:
In the initial stages of development, the demand for environmental resources was less than that of supply. But now the world is faced with increased demand for environmental resources, but their supply is limited due to overuse and misuse.

Question 3.
Give two instances of

1. overuse of environmental resources
2. misuse of environmental resources

Answer:
1. Overuse of environmental resources:

• land
• forests

2. Misuse of environmental resources:

• electricity,
• water

Question 4.
Classify the following into renewable and non-renewable resources.
[Coal, Forest resources, Fish, Petrol]
Answer:
1. Renewable

• Forest resources
• Fish

2. Non-renewable

• Coal
• Petrol

Question 5.
A few terms are given below. Make pairs of them.
[Growth, Development, Unidimensional, Multi dimensional]
Answer:

• Unidimensional – Growth
• Multidimensional – Development

Question 6.
Outline the steps involved in attaining sustainable development in India.
Answer:
The steps involved in attaining sustainable development in India are:
1. decreasing the absolute poverty of the poor by providing employment opportunities

2. providing livelihood in such a manner that can minimize resource depletion, environmental degradation, cultural disruption, and social instability.

Question 7.
Two major environmental issues facing the world today are ………. and ……………
Answer:
Ozone depletion and global warming.

Question 8.
What is sustainable development?
Answer:
Sustainable development is a development that meets the needs of the present generation without compromising the ability of the future generation to meet their own needs.

Question 9.
Make a list of items that can be recycled.
Answer:
The following are the things that can be recycled

1. Plastic
2. Papers
3. Polythene
4. Glass, and
5. Certain categories of waste of industries

Question 10.
What happens when the rate of resource extraction exceeds that of their regeneration?
Answer:
If the rate of resource extraction exceeds that of their regeneration, the environment fails to sustain life by providing genetic and biodiversity. This will result in an economic crisis. The rising population in developing countries and the affluent consumption of resources have placed a huge stress on environments.

Question 11.
Give a short narration of ‘Chipko movement’.
Answer:
‘Chipko Movement’ was started in Karnataka to save trees. The word ‘Chipko’ means ‘to hug’. On 8^th September 1983, 160 men, women and children hugged the trees in Salkani forest in Sirsi and forced the woodcutters to leave the ultimate aim of this movement is to save trees.

Plus One Economics Environment Sustainable Development Three Mark Questions and Answers

Question 1.
What are the opportunity costs of negative environmental impacts?
Answer:

1. As the reserves are exhausted huge amount of money should be spent on research to explore new resources.
2. Health cost of degraded environmental quality.
3. Increased financial commitment for the government due to global warming and ozone depletion.

Question 2.
What do you mean by ‘Green net national income’? How is it calculated?
Answer:
Green net national income is the difference between net national income and depreciation of natural capital. It can be calculated using the following formula.
Green net national income = Net national income – depletion of natural resources – environmental degradation.

Question 3.
Match the columns

Answer:

Plus One Economics Environment Sustainable Development Four Mark Questions and Answers

Question 1.
Keeping in view your locality, suggest any four strategies of sustainable development.
Answer:
The following strategies can be adopted for the sustainable development of our locality.

• Use of solar power through photovoltaic cells
• The practice of bio composting
• Generating wind power
• Using bio pest control

Question 2.
Differentiate between natural capital and man made capital?
Answer:
1. Natural capital refers to the sum total of the natural resources and environment available to a country as a free gift of nature.

2. On the other hand, man-made capital refers to the stock of all such things which are produced by man for use as means of production.

Question 3.
Fill in the blanks

1. Coal is a …………… energy
2. Burning of fossil fuel leads to …………
3. Bio composts are used in …………… farming
4. CFCs cause ……………… depletion

Answer:

1. non-renewable
2. global warming
3. organic
4. ozone

Question 4.
List out the functions of the environment.
Answer:
The environment performs four vital functions which
are listed out below:
1. It supplies resources:
resources here include both renewable and nonrenewable resources. Renewable resources are those which can be used without the possibility of the resource becoming depleted or exhausted.

That is, a continuous supply of the resource remains available. Examples of renewable resources are the trees in the forests and the fishes in the ocean. Nonrenewable resources, on the other hand, are those which get exhausted with extraction and use, for example, fossil fuel.

2. It assimilates waste

3. It sustains life by providing genetic and biodiversity and

4. It also provides aesthetic services like scenery etc.

Question 5.
Identify the factors contributing to land degradation in India?
Answer:
The following are the factors responsible for land degradation in India.

1. loss of vegetation occurring due to deforestation.
2. shifting cultivation.
3. forest fires.
4. unsustainable fuelwood extraction.
5. overgrazing.
6. non-adoption of soil conservation measures.

Question 6.
“The environmental crisis is a recent phenomenon”. Do you agree?
Answer:
Yes, environment crisis is a recent phenomenon. In early days, when civilisation just began, before the phenomenal increase in population and growth of industrialisation, the demand for environmental resources was within the carrying capacity of the environment and so the pollution was also within the absorptive capacity, of the environment.

Therefore, environmental problems did not arise. But with the advent of industrialisation and outbreak of population, environmental problems arisen and the resources for both production and consumption proved to be beyond the rate of regeneration of the resources and the absorptive capacity of the environment.

Plus One Economics Environment Sustainable Development Five Mark Questions and Answers

Question 1.
Account for the current environmental crisis.
Answer:
Environment performs four functions, namely, supplies resources, assimilates wastes, sustains life and provides aesthetic services. But the rising population of the developing countries, the affluent consumption and production standards of the developing countries and industrial revolution have brought the situation of environmental crisis i.e., it all had put great pressure on the first two functions of the environment.

Many resources have become extinct and the wastes generated are beyond the absorptive capacity of environment. The crisis has worsened by the drying up of rivers. Besides, the intensive and extensive extraction of both renewable and non-renewable resources has exhausted some of these vital resources and thus we are compelled to spend huge resources on technology and research to explore new resources.

The situation becomes more worsened with the current issues of global warming and ozone depletion. They also put great strain on government’s finite financial resources.

Question 2.
In 2007 Nobel Prize for Peace was awarded to an individual Algore and an institution IPCC, both engaged in creating awareness about the consequences of global warming. Suggest some measures to keep global warming under control.
Answer:
Global warming refers to the increase in the atmosphere temperature. The temperature increases due to the emission of greenhouse gases. Greenhouse gases are emerged from the burning of biomass and from the consumption of petrol, coal, etc, can absorb temperature.
This can be reduced by :

1. Reducing pollution and waste.
2. Using more solar, wind and tidal energy.
3. New technology and eco-friendly means of production.
4. Afforestation
5. Effective rules and its implementation.

Plus One Economics Environment Sustainable Development Eight Mark Questions and Answers

Question 1.
Prepare a Seminar Report on “Strategies for Sustainable Development”
[Hint: A Seminar Report should have a title, Introduction, Content, and conclusion].
Answer:
“Strategies for Sustainable Development”.
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “Strategies for Sustainable Development” on 12/09/ 2017 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into five groups to cover the entire area of the topic. Each group focused on two points each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
Sustainable development is, in this sense, a development that meets the basic needs of all, particularly the poor majority, for employment, food, energy, water, housing, and ensures growth of agriculture, manufacturing, power, and services to meet these needs.

1. Strategies for sustainable development use of non-conventional Sources of Energy:
India, as you know, is hugely dependent on thermal and hydropower plants to meet its power needs. Both of these have adverse environmental impacts. Thermal power plants emit large quantities of carbon dioxide which is a greenhouse gas. It also produces fly ash which, if not used properly, can cause pollution of water bodies, land and other components of the environment.

2. LPG, Gobar Gas in Rural Areas:
Households in rural areas generally use wood, dung cake or other biomass as fuel. This practice has several adverse implications like deforestation, reduction in green cover, wastage of cattle dung and air pollution. To rectify the situation, subsidized LPG is being provided.

In addition, gobar gas plants are being provided through easy loans and subsidy. As far as liquefied petroleum gas (LPG) is concerned, it is a clean fuel it reduces household pollution to a large extent. Also, energy wastage is minimized

3. CNG in Urban Areas:
In Delhi, the use of Compressed Natural Gas (CNG) as fuel in public transport system has significantly lowered air pollution and the air has become cleaner in the last few years.

4. Wind Power:
In areas where speed of wind is usually high, windmills can provide electricity without any adverse impact on the environment. Wind turbines move with the wind and electricity is generated.

5. Solar Power through Photovoltaic Cells:
India is naturally endowed with a large quantity of solar energy in the form of sunlight. With the help of photovoltaic cells, solar energy can be converted into electricity. These cells use special kind of materials to capture solar energy and then convert the energy into electricity.

6. Mini hydel Plants:
In mountainous regions, streams can be found almost everywhere. A large percentage of such streams are perennial. Mini-hydel plants use the energy of such streams to move small turbines.

7. Traditional Knowledge and Practices:
Traditionally, Indian people have been close to their environment. They have been more a component of the environment and not its controller.

If we look back at our agriculture system, health care system, housing, transport, etc., we find that all practices have been environment-friendly. Only recently have we drifted away from the traditional systems and caused large scale damage to the environment and also our rural heritage.

8. Bio-composting:
In our quest to increase agricultural production during the last five decades or so, we almost totally neglected the use of compost and completely switched over to chemical fertilizers.

9. Bio-pest Control:
With the advent of green revolution, the entire country entered into a frenzy to use more and more chemical pesticides for higher yield. Soon, the adverse impacts began to show; food products were contaminated, soil, water bodies, and even groundwater were polluted with pesticides.

Conclusion:
All five groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 8 Infrastructure Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 8 Infrastructure

Plus One Economics Infrastructure One Mark Questions and Answers

Question 1.
Which among the following is an economic infrastructure?
(i) Eduction
(ii) Transport
(iii) Healthcare
(iv) Housing
Answer:
(ii) Transport

Question 2.
Who was the largest consumer of commercial energy in 1953-54 in India?
(i) Household sector
(ii) Industry sector
(iii) Agriculture sector
(iv) Transport
Answer:
(iv) Transport

Question 3.
What is the Contribution of nuclear energy of total energy consumption in India?
(i) 2%
(ii) 13%
(iii) 20%
(iv) 10%
Answer:
(i) 2%

Question 4.
Which of the following nations has lowest Health expenditure as a percentage of GDP?
(i) India
(ii) China
(iii) USA
(iv) Sri Lanka
Answer:
(iv) Sri Lanka

Question 5.
Identify social infrastructure from the following.
(i) Education
(ii) Energy
(iii) Transport
(iv) Communication
Answer:
(i) Education

Question 6.
Find out conventional energy.
(i) Biogas
(ii) Wind energy
(iii) Petroleum
(iv) Solar energy
Answer:
(iii) Petroleum

Question 7.
Infant mortality rate in India in 2012 was ______ .
(i) 40
(ii) 47
(iii) 57
(iv) 60
Answer:
(ii) 47

Question 8.
Write the full form of NTPC.
Answer:
NTPC stands for National Thermal Power Corporation.

Plus One Economics Infrastructure Two Mark Questions and Answers

Question 1.
Write any two features of Indian system of medicine.
Answer:

1. They are very effective
2. They are safe and inexpensive

Question 2
State whether true or false.

1. education comes under social infrastructure
2. solar energy is nonconventional energy
3. Ayurveda is an Indian system of medicine
4. major part power generation in India comes from hydro projects.

Answer:

1. true
2. true
3. true
4. False, major part power generation in India comes from thermal projects

Question 3.
Name some National Health Care Programme.
Answer:

• National Malaria Eradication Programme
• National Filaria Control Programme
• National Family Welfare Programme
• National Diarrhoeal Diseases Control Programme

Plus One Economics Infrastructure Three Mark Questions and Answers

Question 1.
Name three sources of non-conventional energy.
Answer:

1. Solar energy
2. Wind energy
3. Tidal power

Question 2.
Classify the following into commercial energy and non-commercial energy:
Coal, petrol, agricultural waste, dry animal dung, twig of trees, natural gas.
Answer:

Question 3.
Classify the following sources of energy into conventional sources and non-conventional sources.
(Coal, Electricity, Wind energy, Solar energy, Petroleum, Tidal energy)
Answer:
1. Conventional source files

• Coal
• Petroleum
• Electricity

2. Non-conventional sources

• Solar energy
• Tidal energy
• Wind energy

Question 4.
List various non-commercial sources of energy?
Answer:
Various non-commercial source of energy are :

• solar energy
• wind energy
• tidal energy
• energy from firewood
• energy from vegetable waste
• energy from dried dung

Question 5.
What are the three basic sources of generating power?
Answer:

1. Hydroelectricity
2. Thermal electricity
3. Nuclear electricity

Question 6.
List the six system of Indian medicine.
Answer:
Six system of Indian medicine are :

1. Ayurveda
2. Yoga
3. Siddha
4. Unani
5. Homeopathy
6. Naturopathy

Question 7.
Explain the term ‘infrastructure’.
Answer:
Infrastructure is the support system on which the sufficient working of a modern industrial economy depends. It is the physical framework which is essential for giving services to people such as roads, railways, airports, ports, dam, power stations, telecommunication educational and health facilities, etc. Infrastructure consists of services like banking, communication, transport, irrigation, power, etc. These are very essential for production of goods.

Question 8.
Name different types of energy?
Answer:
The different types of energy are:

• Coal
• Petroleum
• Natural gas
• Bioenergy
• Solar energy
• Atomic energy

Question 9.
Categorize the following as elements of economic infrastructure and social infrastructure.
[Canals, Houses, schools and colleges, railways, ships, hospitals, banks, courts, power plants, satellite stations],
Answer:

Question 10.
Justify that energy crisis can be overcome with the use of renewable sources of energy.
Answer:
There are two sources of energy namely, commercial and noncommercial. Noncommercial sources are firewood, agricultural waste, and dried dung. These are noncommercial as they are found in nature. Commercial sources of energy like grass hay, twigs and small branches of a tree, sundried cow dung cakes are generally renewable.

More than 60 percent of Indian households depend on these traditional sources of energy for meeting regular cooking and heating needs. The energy crisis can be overcome with the use of renewable sources of energy.

Plus One Economics Infrastructure Four Mark Questions and Answers

Question 1.
Write the names of four atomic energy plants in India.
Answer:

1. Atomic energy power plant at Tarapur
2. Atomic energy power plant at Narora
3. Atomic energy power plant in Kalapakkam (Chennai)
4. Atomic energy power plant at Rana Pratap Sagar Dam (Kota)

Question 2.
Write a note on ISM.
Answer:
Indian Systems of Medicine (ISM):
It includes six systems: Ayurveda, Yoga, Unani, Siddha, Naturopathy, and Homeopathy (AYUSH). At present, there are 3,004 ISM hospitals, 23,028 dispensaries and as many as 6,11,431 registered practitioners in India. But little has been done to set up a framework standardize education or to promote research.tSM has huge potential and can solve a large part of our health care problems because they are effective, safe and inexpensive.

Question 3.
Kerala is experiencing huge energy crisis. Suggest some measures for solving the problem.
Answer:
More public investment, better research and development efforts, exploration, technological innovation and use of renewable energy sources can ensure solution of energy crisis in Kerala. Though the private sector has made some progress, it is necessary to tap this sector to come forward and produce power on a large scale.

One also has to appreciate the efforts made in this regard. More efforts and encouragement should be given by the government for the widespread use of wind, solar and tidal energy production in the state. Moreover, greater reliance on renewable energy resources offers enormous economic, social and environmental benefits.

Question 4.
Analyze the state of health infrastructure in India citing facts and figures.
Answer:
India has built up a vast health infrastructure and manpower at different levels since independence. At the village level, a variety of hospitals have been set up by the government. India also has a large number of hospitals run by voluntary agencies and the private sector.

These hospitals are manned by professionals and paramedical professionals trained in medical, pharmacy and nursing colleges. Since independence, there has been a significant expansion in the physical provision of health services.

During 1951-2000, the number of hospitals and dispensaries increased from 9,300 to 43,300 and hospital beds from 1, 2 to 7.2 million during 1951 – 99, nursing personnel increased from 0.18 to 8.7 lakh and allopathic doctors from 0.62 to 5.0 lakh. Expansion of health infrastructure has resulted in the eradication of smallpox, guinea worms and the near eradication of polio and leprosy.

Question 5.
Differentiate between commercial and noncommercial sources of energy.
Answer:
Commercial sources of energy:
Commercial sources of energy include coal, petroleum, and electricity. They could be bought and sold. They are generally exhaustible in nature. More than 60 percent of Indian households depend on the traditional source of energy.

Non-commercial sources of energy include firewood, agricultural waste, and dried dung. They are found in nature or forests. Lesser number of persons use these resources.

Question 6.
Point out the connection between consumption of energy and economic growth?
Answer:
The central issue has been whether economic growth stimulates consumption of energy or is energy consumption itself a stimulus for economic growth. But whatever may be the causal relationship between energy consumption and economic growth of a nation, they are both closely related.

Since energy is an essential input of all productive activities, agricultural or industrial, the process of economic development inevitable demands increasing levels of energy consumption. The higher the degree of economic growth, the higher is the consumption of energy and vice versa. Thus energy consumption is an important indicator of economic growth.

Electricity is one of the most critical infrastructures that determines economic development of a country. The growth rate of demand for power is generally higher than GDP growth rate. In order to have an 8 % GDP growth rate per annum, the power supply needs to grow around 12% annually. This shows that the rates of consumption of energy and economic growth are connected.

Plus One Economics Infrastructure Five Mark Questions and Answers

Question 1.
‘Infrastructure facilities boost production’ Do you agree? Substantiate your answers.
Answer:
Infrastructure facilities boost production in the following manner.
1. Infrastructure provides support services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.

2. Infrastructure facilities include roads, railways, ports, airports, dams, power stations, oil and gas pipelines, telecommunication facilities, educational systems, health systems, monetary systems, etc. It is the support system on which depends the efficient working of a modern industrial economy.

3. Modem agriculture largely depends on infrastructure for speedy and large scale transport of seeds, pesticides, fertilizers, and the produce by making use of modem roadways, railways, and shipping facilities.

4. Infrastructure contributes to the economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

Question 2.
“Infrastrucure contribute to the economic development of a country like india” Do you agree? Justify.
Answer:
Yes, I agree with the statement that infrastructure contribute to the economic development of a country like India. The reason why infrastructure is an essential precondition for economic development are pointed out below.

1. Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

2. Inadequate infrastructure can have multiple adverse effects on health. Improvements in water supply and sanitation have a large impact by reducing morbidity from major waterborne diseases and reducing the severity of disease when it occurs.

3. In addition to the obvious linkage between water and sanitation and health, the quality of transport and communication infrastructure can affect access to health care.

4. Infrastructure is in itself a source of employment for the large labour force of developing economies like India.

Question 3.
Suggest the progammes to increase the effectiveness of health care system.
Answer:
The following are the progammes to increase the effectiveness of health care system

• Public health facilities should be decentralized
• People should be educated about the nature, causes, and remedies of general diseases
• People should be made aware about sanitation facilities, cleanliness, immunization, etc.
• Efforts should be taken to develop health infrastructure
• Primary health care facilities should be strengthened
• Private-public participation in health care system should be encouraged

Question 4.
“India’s power sector faces some challenges today”. Do you agree? If yes mention the challenges.
Answer:
agree with the statement that India’s power sector faces some challenges today.
Some of the challenges that India’s power sector faces today are:

1. India’s installed capacity to generate electricity is not sufficient to feed an annual economic growth of 7 percent. In order to meet the growing demand for electricity, between 2000 and 2012, India needs to add 1,00,000 MW of new capacity, whereas, at present, India is able to add only 20,000 MW a year. Even the installed capacity is underutilized because plants are not run properly

2. State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed Rs 500billion. This is due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies. Some scholars also say that distribution of electricity to farmers is the main reason for the losses; electricity is also stolen in different areas which also adds to the woes of SEBs

3. Private sector power generators are yet to play their role in a major way same is the case with foreign investors

4. There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country
Thermal power plants which are the mainstay of. India’s power sector are facing a shortage of raw material and coal supplies.

Question 5.
There are some drawbacks in our health care system. Do you agree? Substantiate.
Answer:
Yes, I agree with these statements
The Indian constitution assign, the state, the responsibility of raising the level of nutrition and the standard of living of its people and the improvement of public health. However, the National Health Policy lacks specific measures to achieve broad state goals. The government expenditure on health sector is 5% of total GDP. This is very low compared to other countries.

At present, less than 0% of the population utilises public health facilities However only 38% of the Public Health Centres (PHCs) have the required number of doctors and only 30% of the PHCs have sufficient stock of medicines. The people living in Rural areas do not have sufficient medical infrastructure.

There is shortage of beds, doctors and basic diagnostic facilities in rural areas. This has led to regional inequality in health services. Thus, it can be concluded that there are some draw-backs in our health care system.

Plus One Economics Infrastructure Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on “energy and health infrastructure”.
Answer:
“Energy and health infrastructure”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “Energy and health infrastructure” on 12/09/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic.

The first group explained the meaning and relevance of infrastructure, the second group explained the energy infrastructure and the third group presented their idea on health infrastructure. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
Infrastructure:
Infrastructure is the support system on which depends the efficient working of a modern industrial economy. Modern agriculture also largely depends on it for speedy and largescale transport of seeds, pesticides, fertilizers, and the products by making use of modern roadways, railways and shipping facilities.

Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

1. Energy:
Energy is a critical aspect of the development process of a nation. It is, of course, essential for industries. Now it is used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides and farm equipment. It is required in houses for cooking, household lighting, and heating.

There are commercial and non-commercial sources of energy. Commercial sources are coal, petroleum, and electricity as they are bought and sold. They account for over 50 percent of all energy sources consumed in India. Noncommercial sources of energy are firewood, agricultural waste, and dried dung.

These are noncommercial as they are found in nature/forests. Both commercial and noncommercial sources of energy are known as conventional sources of energy. There are three other sources of energy which are commonly termed as nonconventional sources solar energy, wind energy, and tidal power.

The most visible form of energy, which is often identified with progress in modern civilization, is power, commonly called electricity; it is one of the most critical components of infrastructure that determines the economic development of a country. The growth rate of demand for power is generally higher than the GDP growth rate.

Studies point that in order to have8 percent GDP growth per annum, power supply needs to grow around 12per cent annually. Electricity is a secondary form of energy produced from primary energy resources including coal, hydrocarbons, hydro energy, nuclear energy, renewable energy, etc. Primary energy consumption takes into account the direct and indirect consumption of fuels.

2. Health:
Health is not only absence of disease but also the ability to realize one’s potential. It is a yardstick of one’s wellbeing. Health is the holistic process related to the overall growth and development of the nation. Development of health infrastructure ensures a country of healthy manpower for production of goods and services.

In recent times, scholars argue that people are entitled to health care facilities. It is the responsibility of the government to ensure the right to healthy living. Health infrastructure includes hospitals, doctors, nurses and other paramedical professionals, beds, equipment required in hospitals and a well developed pharmaceutical industry.

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 7 Employment-Growth, Informalisation and Related Issues Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 7 Employment-Growth, Informalisation and Related Issues

Plus One Economics Employment-Growth, Informalisation and Related Issues One Mark Questions and Answers

Question 1.
Some instances of people engaging in economic activity in given below. Identify worker from there.
Answer:
(a) A man who temporarily abstains from work due to illness.
(b) A woman is paid by her employer.
(c) A self-employed farmer.
(d) All the above
Answer:
(d) All the above

Question 2.
Which among the activity?
(a) Trade
(b) Transportation
(c) Construction
(d) Mining
Answer:
(d) Mining

Question 3.
Which organisation is responsible for estimating unemployment in India?
(a) ILO
(b) NSSO
(c) NitiAayog
(d) None of these
Answer:
(b) NSSO

Question 4.
Identify the activity not included in secondary sector.
(a) Quarrying
(b) Manufacturing
(c) Construction
(d) Water supply
Answer:
(a) Quarrying

Question 5.
Choose the correct answer Workforce refers to that part of:
(a) labour force which is employed
(b) population which is employed
(c) population which is forced to work
(d) labour force which is employed
Answer:
(a) labour force which is employed

Question 6.
Name the sector in the main source of employment for the majority of workers in India.
(a) Primary Sector
(b) Secondary Sector
(c) Service Sector
(d) Tertiary sector
Answer:
(a) Primary Sector

Question 7.
Who developed the concept of unemployment in India?
Answer:
National Sample Survey Organisation (NSSO) has developed the concepts of unemployment suitable to Indian conditions.

Question 8.
The newly emerging jobs are found mostly in the …………. sector (Service/agriculture/manufacturing).
Answer:
Service.

Question 9.
Name the main sector providing maximum employment in India?
(a) Agriculture
(b) Industry
(c) Service
(d) None of these
Answer:
(a) Agriculture sector/primary sector.

Plus One Economics Employment-Growth, Informalisation and Related Issues Two Mark Questions and Answers

Question 1.
Meena is a housewife. Besides taking care of household duties, she works in a cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Answer:
Meena’s activities in the cloth shop owned by her husband are not considered as the activity of a worker since she is not paid for her service. If she works in the shop owned by some other person and is paid for her services then she will be considered as a worker.

Question 2.
List any five activities that contribute to national income in India.
Answer:
The activities that contribute to national income in India are:

• farming
• trading
• mining
• treatment of a doctor in hospital
• manufacturing
• forestry

Question 3.
Distinguish between usual status and weekly status?
Answer:
Usual status refers to a situation where a person usually spends majority of his time in work. In India, 183 days of work is a standard cutoff per usual status. On the other hand, if the person is found to be a part of the workforce during the stipulated week, he will be considered as employed by weekly status.

Question 4.
Given below some economic activities. Classify them as primary, secondary and tertiary sector activities. Agriculture, Mining and Quarrying, Manufacturing, Electricity Gas and Water Supply Construction, Trade, Transport and Storage, Services.
Answer:
1. Primary sector

• Agriculture
• Mining and Quarrying

2. Secondary sector

• Manufacturing
• Electricity, Gas and Water Supply
• Construction

3. Tertiary sector

• Trade
• Transport and Storage
• Services

Question 5.
What is a worker-population ratio?
Answer:
Worker population ratio is the percentage of total population engaged in work. When the total number of workers is divided by population and multiplied by 100, we get the worker – population ratio.
Worker population ratio = \(\frac{\text { Total number of workers }}{\text { Population }} \times 100\)

Question 6.
Write a short note on RLEGP.
Answer:
RLEGP stands for Rural Landless Employment Guarantee Programme. It was introduced in August 1983. This programme guarantees employment to at least one members of every landless family up to 100daysin a year.

Plus One Economics Employment-Growth, Informalisation and Related Issues Three Mark Questions and Answers

Question 1.
Match the following

Answer:

Question 2.
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Answer:
Raj, when he is busy in his farm contributes to production but he is not paid for his work. He helps his parents in agricultural jobs. As he is not paid, he is not a paid worker.

Question 3.
Kerala economy is experiencing huge unemployment problems. Similarly, the number of workers from outside Kerala are visiting our states and engaging in different activities. What do you infer from this? Justify your answer.
Answer:
In Kerala there exists problem of unemployment, especially educated unemployment. The educated people are usually unwilling to engage in manual works and therefore prefer white color jobs. They often go outside the state and even abroad to find a suitable job in accordance with their education level. At the same time, the usual works in the state are done by people coming from outside the state.

Plus One Economics Employment-Growth, Informalisation and Related Issues Four Mark Questions and Answers

Question 1.
Name some of the recent employment generation programmes launched by the Govt, of India.
Answer:
Following are some of the recent employment generation programmes launched by the Govt, of India.

• Rural Landless employment Guarantee programme (RLEGP)
• National Rural Employment Guarantee programme (NREGP)
• Bharat Nirman Programme
• Janani Suraksh%JTojana

Question 2.
Distinguish between open unemployment and technical unemployment?
Answer:
When the country’s labour force does not get opportunities for gainful employment, it is termed as open unemployment. On the other hand technical unemployment refers to persons who have been thrown out of work by the introduction of superior technology.

Question 3.
Classify the following into organized sector and unorganized sector.
Street vender, school teacher, business executive, agricultural labourer, mechanic, railway ticket examiner, college professor, software engineer, head load worker, cart puller, washerman.
Answer:
1. Organized sector:

• Schoolteacher
• Business executive
• Mechanic
• Railway ticket examiner
• College professor
• Software engineer

2. Unorganized sector:

• Street vender
• Agricultural labourer
• Head load worker
• Cart puller
• Washerman

Question 4.
Analyze the recent trends in sectoral distribution of workforce in India.
Answer:
Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only 16% of workforce. About 24% of workers are in service sector. More than three – fourth of the workforce in the rural India depends on agriculture and mining. About 10% of the rural workers are working in manufacturing industries, construction and other sectors.

Service sector provides employment to only about 13% of rural workers. About 60% of urban workers are in the service sector. The secondary gives employment to about 30% of the urban workforce. Women workers concentration is very high in primary sector. Men get opportunities in both secondary and services sectors.

Question 5.
Prepare a note on NREGP.
Answer:
The government of India passed an Act in Parliament known as the National Rural Employment Guarantee Act 2005. As a result of this act, the employment generation programme known as National Rural Employment Guarantee Programme (NREGP) came into existence. By 2008, it has been extended to all the districts of the country.

lt promises 10Odays of guaranteed wage employment to all adult members of rural households who volunteer to do unskilled manual work. The families, which are living below poverty line, will be covered under the scheme. This scheme is one of the many measures that the government implements to generate employment for those who are in need of jobs in rural areas.

Plus One Economics Employment-Growth, Informalisation and Related Issues Five Mark Questions and Answers

Question 1.
The following table shows Worker-Population Ratio in India during 1999-2000.

1. Analyze the table
2. Give reasons for the findings

Answer:
1. It shows the different levels of participation of people in economic activities. For every 100 persons, about 40 (by rounding off 39.5) are workers in India. In urban areas, the proportion is about 34 whereas in rural India, the ratio is about 42.

2. People in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. Even if some go, they discontinue in the middle to join the workforce; whereas, in urban areas, a considerable section is able to study in various educational institutions.

Urban people have a variety of employment opportunities. They look for the appropriate job to suit their qualifications and skills. In rural areas, people cannot stay at home as their economic condition may not allow them to do so.

Question 2.
Suggest the measures to be adopted to solve the problem of unemployment in India?
Answer:
Measures to solve the unemployment in India are suggested as follows.

1. Investment in heavy and basic industries and consumer goods industries should be increased. They should provide more employment with the supply consumer goods.
2. Cottage and small scale industries should be developed because they provide more employment by adopting labour intensive technique.
3. Educational System should be changed. Emphasis should be given to vocational education.
4. Means of transport and communication should be developed.
5. Rapidly rising population should be checked by adopting family planning and welfare schemes,
6. Rural work programme should be developed.
7. Youth enterpreneurs should be financed for self-employment.
8. Infrastructure of the economy should be increased.

Question 3.
How far formal sector is differentiated from informal sector? Point out some of the benefits of working in the formal sector. Analyze the informalization found among the Indian workforce.
Answer:
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.

Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers.

There are several benefits enjoyed by the workers in the formal sector. Some of them are :

• Those who are working in the formal sector enjoy social security benefits.
• They earn more than those in the informal sector.
• Developmental planning envisaged that as the economy grows, more and more workers would become formal sector workers and the proportion of workers engaged in the informal sector would dwindle.

We learn that there are about 400 million workers in the country. There are about 28 million workers in the formal sector. That is only about seven per cent (28/400 × 100). Thus, the rest 93 per cent are in the informal sector. Out of 28 million formal sector workers, only 4.8 million, that is, only 17 percent (4.8/28 × 100) are women.

In the informal sector, male workers account for69 per cent of the workforce Since the late 1970s, many developing countries, including India, started paying attention to enterprises and workers in the informal sector as employment in the formal sector is not growing.

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. Workers of this sector live in slums and are squatters.

Question 4.
Discuss causes responsible for unemployment in India.
Answer:
The causes responsible for unemployment in India may be discussed below.
1. Slow economic growth:
The nature of Indian economy is underdeveloped and the rate of economic growth is slow. This causes lower employment opportunities to the rising population.

2. Rapid Growth of Population:
Constant increase in population has been a great problem of India. It is one of the main causes of unemployment. Despite the completion of nine Five Year Plans, the number of unemployed has actually increased inspite of decreasing.

3. Agriculture:
A Seasonal Occupation: Agriculture is so underdeveloped in India that it largely offers seasonal employment. Most of the farmers remain idle for three to four months in a year. The volume of disguised unemployment is estimated to be nearly 15 percent of the total working population in agriculture.

4. Lack of Irrigation Facilities:
Despite the completion of Nine Five Year Plans, irrigation facilities could be provided only to 34 percent of agriculture area. For want of irrigation only one crop is grown in a year on the large part of agricultural land. Consequently, the farmers remain unemployed for quite sometime during the year.

5. Joint Family Systme:
It encourages disguised unemployment. Joint family system is more prevalent in rural areas; hence a high degree of disguised unemployment exists there.

6. Decline of Cottage and Small Industries:
The industrial development policy adopted by the Britishers adversely affected the artisans working in small and cottage industries. The goods previously produced by these industries are now being produced by large scale industries.

These artisans were, therefore, thrown out of employment. After Independence, Government of India has been taken several measures to revive and develop small scale and cottage industries, but still, these continue to be in distress.

7. Low Savings and Investment:
There is shortage of capital in India, and even the scarce capital has not been wisely invested. Bulk of the capital has been invested in large scale industries with high capital-output ratio needing more capital per unit of output.

8. Mobility of Labour:
Mobility of labour in India is very low. Owing to their attachment to the family, people generally do not move out to far off areas even when jobs are available there. Factors like diversity of language, religion and customs also contribute to low mobility. Lesser the mobility, greater the unemployment.

You can Download The Industrial Revolution Questions and Answers, Notes, Plus One History Chapter Wise Questions and Answers Kerala Chapter 9 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One History Chapter Wise Questions and Answers Chapter 9 The Industrial Revolution

Chapter 9 the Industrial Revolution Notes Question 1.
Define Industrial Revolution and describe its main features.
Answer:
The changes that took place in the industry and economy of England between 1780s and 1850s are called the first Industrial Revolution.

The Industrial Revolution was a technological revolution. It was new technology and new machines that brought the Industrial Revolution in England. The progress in technology made large scale production possible.

Industrial Revolution: Main Changes:

1. Change from physical labour to machine work.
2. Movement from the home system to the factory system.
3. Large scale mechanization.
4. Use of energy sources like steam and electricity.
5. Revolutionary changes in travel and communication (Ships, railway).

Question 2.
Make a note of the books and writers that throw light into the Industrial Revolution.
Answer:
The term Industrial Revolution was first used by George Michel of France and Frederick Engels of Germany. In English language, it was used for the first time by Sir Arnold Toynbee (1889-1975) who was a great thinker and economist. He used this term to describe the changes that took place in England between 1760 and 1820. On this subject, he delivered a series of lectures in Oxford University. After his death, these lectures were published in a book form with the title Lectures on the Industrial Revolution in England: Popular Address, Notes, and other Fragments. It was this book that popularised the term Industrial Revolution.

Class 6 History Chapter 9 Questions and Answers Question 3.
Industrial Revolution started in Britain. Why?
Answer:
Industrial Revolution started in Britain. There are many factors that helped Britain to become the first industrial nation.

1. Political stability: As England, Wales and Scotland came together under a single long, there has been political stability in Britain since the 17^th century. The country had common laws and a unified currency system. The market in the country had a national character. Since regional authorities did not impose taxes on goods, there ‘ was no price increase. This kind of political stability helped Britain.

2. Wide use of money: Since the 17^th century, money had been used extensively as a means of transaction. With this, a lot of people began to get cash as wages and salaries instead of goods. By using this cash, people could buy any goods of their choice. This enlarged the market and it helped the Industrial Revolution.

3. The Influence of the Agricultural Revolution: Prior to the Industrial Revolution, there was an agricultural, revolution in Britain. Big landowners bought the small pieces around them and enclosed the fields with fences. Thus there were big estates that helped in the increased production of foodstuff. The people who earned their livelihood by grazing cattle in the open fields could not continue to do so and they became jobless. They went into big cities seeking jobs. By providing raw materials and labour, the agricultural revolution helped the Industrial Revolution.

4. Cities, trade and wealth: The growth of cities and trade and the availability of wealth helped the Industrial Revolution. From the 18^th century, cities have been growing in Europe. Out of the 19 metropolises, 11 were in Britain. London was the biggest. London became a centre of all the markets in the country.

Question 4.
Explaining the discoveries and changes in the manufacturing of coal and iron, describe how they helped the Industrial Revolution.
Answer:
Coal and iron ore were essential for the. manufacture of machines were plenty in England. Materials like black lead, copper and white lead which were extensively used in industries were also plenty in the country. But until the 18^th century, there was a shortage of “usable iron”. Iron was made by melting iron ore into a liquid state and then separating the pure iron from it. To melt iron ore charcoal was used. There were many problems with this. Since charcoal was brittle, it was difficult to transport charcoal to faraway places. Because of the impurities in it, the iron produced this way was not of high quality. Moreover charcoal could not produce high heat. Because of the large scale deforestation, there was a shortage of charcoal.

The solution to this problem was found by the Darby family of Shropshire. In 50 years, three generations of this family (grandfather, father, and son) brought a revolution in the refining of iron.

In 1709, Abraham Darby (1677-1717) developed the first blast furnace which could maintain a very high degree of heat. In it, coke could be used. Coke was made by removing the sulphur and other impurities from coal. With this, there was no need for charcoal. The iron that was made from the blast furnace of Darby was strong and of a higher quality.

Darby II(1711-1768) made cast iron from iron. This would not break easily. Henry Cort (1740-1823) made two important discoveries – the puddling furnace to remove impurities from pig iron and the rolling mill to produce rails. These discoveries helped in producing many different kinds of iron products.

Question 5.
The cotton industry had two special features. Write about them.
Answer:
The cotton industry had two special features.

1. Cotton had to be completely imported. The major portion of the cloth made from this was fully exported. This: helped in maintaining the colonization process. To get raw materials and to’ sell the finished goods, control over the colonies was essential.

2. The cotton industry largely depended on the work of women and children in factories. This showed the cruel face of the early industrialization.

Question 6.
In 1773, John Kay invented the flying shuttle. What were the other inventions related to the cotton industry?.
Answer:
1. In 1773, John Kay invented the flying shuttle. Using this, the speed in weaving clothes was increased. One worker Could now do the work of two. Since spinning (thread-making) was a slow process, enough thread was not available for weaving clothes. This problem was solved by Hargreaves.

2. In 1765 James Hargreaves had invented the, spinning jenny. This jenny could produce many strands of threads at the same time. But the strands were not sufficiently strong.

3. In 1769 Richard Arkwright invented a new spinning machine called water frame. This machine could produce strong threads. The production capacity of the spinners increased 7 times.

4. In 1779, Samuel Crompton invented a machine called mule. With this, a spinner could make 250 strands of thread simultaneously.

5. In 1787 Edmund Cartwright invented power loom. This machine worked with mechanical energy and it drastically increased the speed of weaving. It was easy to work with it. If the thread broke, it would stop automatically. Anything could be woven in this loom.

From the 1830s, importance was given by the cotton industry to increase the productivity of workers and not to inventions.

Chapter 9 the Industrial Revolution Question 7.
For large scale industrialization, steam power was essential. Describe the major inventions in the area.
Answer:
In 1698, Thomas Savery invented a pump that worked on steam power. It was used to drain water from mines. It was called Miner’s Friend. It worked very slowly. Moreover when the pressure increased the boiler burst.

In 1712, Thomas Newcomen invented another steam engine. This helped in draining water from the mines in a better way. But the steaming chamber became cold too soon and thus energy was lost and this was a defect of this machine.

In 1769, James Watt developed his steam engine. Until then all the steam machines were used only in the mines. From mere pumps, James Watt changed steam engines to a driving force. His steam engines were suitable for different industries. In 1775, with the help of his friend Mathew Bouton, James Watt established a factory in Birmingham for producing steam engines. This factory-produced steam engines one after the other. By the end 18^th century, stream energy of Watt replaced water power.

History Plus One Chapter 9 Question 8.
During the period of the Industrial Revolution, There was great progress in the building of canals. Justify.
Answer:
An important thing that took place during the Industrial Revolution was the changes in the modes of travel. These changes were first visible in the construction of canals and railways.

Canals were first made to transport coal to the cities. Taking coal by road was expensive and slow. Since a lot of coal was needed, there was a great need for canals. The most famous of the early canals were Worsley Canal built by James Brindley (1716-72). Transporting coal to the city was its aim. When the canal was completed, the price of coal was reduced to half.

HssLive in History Question 9.
The most surprising change in travel was the development of the railway. Explain.
Answer:
The most surprising change in travel was definitely the development of the railway. George Stevenson started the railway age. In 1814 he built the steam engine called rocket. With this engine, a train could go as fast as 35 miles an hour and this was history. Soon railways became a new means of travel and transport. Rail travel was available throughout the year and it was cheap and fast. People and goods could be easily transported.

Railway travel connected two inventions – rails and steam engines. In the 1760s iron rails replaced wooden rails. At the beginning of the 19th century, steam engines began to be used in railways.

In 1801 Richard Trevithick developed a machine called. Puffing Devil. This machine was useful in dragging trucks around the mines.

In 1814 George Stevenson made a train with the name Blucher. It could climb hills carrying even goods weighing 30 tons. It was Stevenson that built the first rail Connecting Stockton and Darlington. In 1830, Liverpool and Manchester were linked by rail. With the opening of this railway line, the railway age dawned.

Chapter 9 the Industrial Revolution Answers Question 10.
Prepare a seminar paper showing the Changes the Industrial Revolution brought.
Answer:
The Industrial Revolution brought many changes in the life of people. Though it brought ease and comfort to one section of the people, it brought misery and pain to some others.

Rich persons invested money in different industries to reap profits. Their income increased dramatically because of the proper use of goods, services, knowledge, and productivity. But industrialization arid urbanization adversely affected common people. Families were separated, cities became crowded and dirty, and the terrible work conditions in the factories made people suffer.

In 1750, in England, there were only two cities that had more than 50,000 people. By 1850, this increased to 29. The speed of this growth did not reflect on the life of people. They.did not have proper places to live and sanitation facilities. Not even enough drinking water was available. Persons newly coming to the cities were forced to live in the slums in, or close to, the cities. But the rich people built their second homes in villages which were free from pollution.

Workers:
A survey done in 1842 revealed that the longevity of the workers (labourers) in the city was less than those of others. The average life expectancy of workers was 15 years in Birmingham, 17 in Manchester and 21 in Derby. This was because in cities many children died at a very young age. Many died even before they reached 5. The increase in the city population was because of migration from the rural areas and not because of increased birth rates there.

Workers died prematurely mainly because of contagious diseases. Cholera and typhoid that came as the result of water pollution and tuberculosis that spread through the atmosphere killed many. In a cholera epidemic in 1832, more than 31,000 workers died.

Until the end of the 19th century, the municipal authorities ignored these dangerous circumstances. There was also no medical expertise to diagnose and treat these diseases.

Women, Children, and Industrialization:
One of the worst outcomes of industrialization was the exploitation of women and children. Children of poor parents had to work in the fields and also at home. They worked under strict supervision from their parents or relatives. The village women had to work in the field. They grew cattle and gathered wood. They also made thread using looms.

In the factories of the city, women and children were made to work. The work here was quite different from the work in villages. They had to work in factories and mines for long periods without rest and under strict supervision. They were punished severely for any little mistakes they made. The income from the women and children were needed for meeting the expenses of the family as the men earned very little as they had low wages.

Even when the use of machines became widespread, employers preferred women and children to do the work because they had to be paid much less than men. The women and children would not protest against bad working conditions.

In the cotton industries of Lancashire and Yorkshire, plenty of women and children were employed. In silk-making, brocade making and sewing, women were the main workers. In the iron industry at Birmingham also they worked along with children.

Children were made to labour hard. Machines like the spinning jenny were made in such a way that children with small bodies and fast fingers could work them. Since children could move in between the many thickly laid machines in the factory, they were preferred in the cotton mills. Even on Sundays, they had to work cleaning the machines. Thus they were denied rest and even clean air. Accidents were common in the factories. Some even died in factories as they fell on to the machines being tired and sleepy.

The work in the mines was also dangerous. Accidents were usual there. These were caused by the upper portions of the mines crumbling or because of the explosions carried out there. Mine owners employed children to draw the carts filled with coal along the underground rails. Since entrances were narrow and small, children were preferred by the cruel owners. The children carried loads of coal. Working in the mines was looked upon as training for working in the factories. Evidences from the factory records show that there were children of even less than ten years working there.

It is true that the self-confidence and economic situation of the working women were better. But the adverse circumstances in which they worked, the children they lost at birth or infancy, and the dirty slums in which they were forced to live spoiled the little satisfaction they got from the wages they earned.

Plus One History Notes in Malayalam Question 11.
Against the evils of industrialization, there were strong protests. Prepare a seminar paper based on this statement.
Answer:
Against the evils of industrialization, there were strong protests in England as well as in other industrialized societies. The slogans of the French Revolution “Liberty, Equality, and Fraternity” gave these movements impetus. The French Revolution had shown the way for fighting for organizing democratic institutions, controlling the price of essential things like bread and to reduce the sufferings caused by wars.

Political protests against the adverse conditions in the factories of England were getting stronger. Workers also demanded the right to vote. The British government first tried to suppress these movements. It brought hew laws preventing the people from protesting.

Between 1792 and 1815, there were constant wars between England and France. As a result, European trade suffered. Factories had to close down. Unemployment increased. The prices of essential things like bread and meat skyrocketed.

In 1795, the British government passed two Combination Acts. The Combination acts said that any writing or speech against the king, constitution or government is against the law. The Parliament; banned any unpermitted meeting of more than 50 persons. But the protests against government policies continued. The Parliament which included landowners, producers and professionals were against giving voting right to the workers. It also backed the anti-people Corn Laws.

The workers in the factories and cities started expressing their anger in many ways. From 1790 there were many ‘Bread Riots’ throughout Britain. The main food of the poor people was bread. The increase in its price troubled them. People captured hoarded bread and distributed it among people at reasonable prices. This was a big blow to the greedy merchants. The ‘bread riots’ continued until 1840.

The Enclosure Movement started by the rich in the early 1700s increased the misery of the common people. Rich landowners bought pieces of land from small farmers and increased the size of their farms which were protected by enclosures (walls). This also adversely affected poor people. They were forced to work in industries.

The introduction of machines in the cotton industry j destroyed the livelihood of many. Thousands of J weavers lost their jobs. They became poor. In the 1790s, the weavers began to demand the legal minimum wages. The Parliament was not ready to make such laws. Against this, the weavers started protests. The government dismissed them from their jobs by force. The desperate workers destroyed power looms. They believed that it was the machines that destroyed their means of livelihood. Workers made strong resistance against mechanization in the wool industry at Nottingham. There were also protests in Leicestershire and Derbyshire.

The workers in Yorkshire who traditionally sheared (cut) the wool from sheep destroyed the shearing frames that were brought for this purpose. In the 1830s, workers in the fields protested against the threshing, machines. They destroyed the machines that were a threat to their jobs. 9 of the protesters were hanged. 450 were deported to Australia as criminals.

Luddism was another Movement that was started against industrialization. Workers who thought that machines were the cause of all their troubles started this movement with the plan of destroying them. This Movement was begun under General Nel Ludd. England suppressed this moment by using the army. Luddism was not a movement that merely wanted to destroy machines. The members of this group demanded minimum wages. They also wanted to stop the exploitation of women and children in the factories and other workplaces. They were interested in the formation of labour organizations.

In the initial years of industrialization, workers did not have voting rights. They had no other way of expressing their anger and despair. In August 1819, there was a big meeting at St. Peters Field in which more than 80,000 people came. They demanded democratic rights like the right to call public meetings, to organize political groups and freedom . of the press. Army rushed to the scene and brutally attacked those attending the meeting. This incident is known as Peterloo Massacre. [Rejecting all the demands of the workers, that year itself the Parliament passed “Six Acts”. The Combination Acts of 1795, which prohibited workers from taking part in political activities, were strictly enforced. However, the Peterloo Massacre made some gains:

1. All the liberal political groups approved the idea of increasing the number of representatives in the House of Commons.

2. In 1824, the Combination Acts were repealed.

Question 12.
For improving the condition of workers, the government carried out some legal steps. Based on this statement, write a note on factory laws.
Answer:
In 1819 laws were passed prohibiting the employment of children below the age of 9 in factories. The working time of children between 9 and 16 was fixed as 12 hours per day. But this rule was not effectively implemented.

Workers in the northern regions of England had. carried out intense protests against the existing conditions. As a result, in 1833, the British Parliament passed a factory law. This law prohibited the employment of children below the age of 9 in silk factories and cotton mills. The time of work for the children was fixed at 8 hours per day. There was also a condition to appoint factory inspectors to ensure that the laws were kept.

Marking the end of 3 decades of protests in 1847 the “Ten Hours Bill” was passed. By this law the working time was limited. Men had to work only for 10 hours.

Plus One History Notes Question 13
“The Industrial Revolution can’t be seen as a revolution.” In a classroom discussion Abnijn. expressed this view. Do you agree with him? Justify.
Answer:
It is true that nowadays nobody sees the Industrial Revolution as a revolution. Revolution means radical and sudden changes in the existing situation. Industrialization did not happen suddenly.

In fact, industrialization was a slow process. It was a continuation of the existing situation. Things like concentration of workers in factories and extensive use of money were already in existence in England. Therefore industrialization cannot be seen as a revolution.

Industrialization in England was a regional process. Until the 19^th century, a major portion of England had no factories or mines. Industrialization was centered around a few cities like London, Manchester, Birmingham, and Newcastle. That means industrialization there was a regional affair. It did not happen throughout the country. Therefore using the term industrial revolution is quite inappropriate.

Question 14.
Adding the word ‘industrial’ to the world ‘revolution’ is inappropriate. Why?
Answer:
Adding the word ‘industrial’ to the world ‘revolution’ is quite inappropriate. It is so because the changes happened not only in the economic and industrial spheres but also in the social arena. For example, two classes came up in society – the capitalists (bourgeoisie) and the workers (labour class).

Students can Download Chapter 4 Poverty Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 4 Poverty

Plus One Economics Poverty One Mark Questions and Answers

Question 1.
The estimated minimum calorie intake for a rural person is:
(i) 2000
(ii) 2100
(iii) 2200
(iv) 2400
Answer:
(ii) 2100

Question 2.
Who publishes the official data on poverty in India?
(i) Ministry of finance
(ii) Finance commission
(iii) Planning commission
(iv) World Bank
Answer:
(iii) Planning commission

Question 3.
Identify an anti-poverty programme in India
(i) REGP
(ii) PMRY
(iii) JRY
(iv) All the above
Answer:
(iv) All the above

Question 4.
Complete the following statement.
(i) Inflation is a situation of general price …………. level.
Answer:
Increasing

Question 5.
According to 2001 census, _____ % of people live.below poverty line in India.
Answer:
26.1%

Question 6.
When was NREGP started in India?
Answer:
On 2^ndFebruary 2006.

Question 7.
Give the new name of NREGP?
Answer:
Mahatma Gandhi National Rural Employment Guarantee Programme (MNREGP).

Plus One Economics Poverty Two Mark Questions and Answers

Question 1.
State an example each of self employment in rural and urban areas.
Answer:
Self employment in rural areas: Rural Employment Generation Program.
Self employment in urban areas : Swarna Jayanti Shahari Rozgar Yojana.

Question 2.
Point out the causes of urban poverty, mm
Answer:
In India, poverty exists both in rural and urban areas. The urban poor are largely the overflow of the rural poor who migrated to urban areas in search in employment and livelihood. The modem industries does not absorb all these surplus labour as they are unskilled. Most of the urban poor are either unemployed or face irregular job opportunities.

Question 3.
What is food for work programme ?
Answer:
The ‘food for work’ programme was started in 1970’s. This programme aims at ensuring food for poor instead of money. It provides assurance to the family of the worker to get minimum food to eat and survive well. Then, this programme can solve the problem of malnutrition and poverty to a great extent.

Question 4.
Differentiate between absolute poverty and relative poverty.
Answer:
Absolute poverty is defined as the inability to achieve the minimum requirement of life, health, and efficiency as a result of very low level of income. On the other hand, relative poverty makes a comparison of relative levels of income of different people or groups of population to determine who is poor.

Plus One Economics Poverty Three Mark Questions and Answers

Question 1.
Find the odd one out

1. PDS, ICDS, MDMS, NREGP
2. Rice, wheat, pulses, rubber
3. RLEGP, PMRY, NREGP, NSO

Answer:

1. NREGP. Others are food security programs
2. Rubber. Others are food crops
3. NSO. Others are employment generating programs

Question 2.
Match the following columns

Answer:

Question 3.
Name a few women oriented poverty eradication programmes in India?
Answer:

• Panchadhara Yojana
• Kamdhenu Yojana
• Apni Beti Apni Dhan Yojana
• Kudumbasree

Question 4.
Define poverty line.
Answer:
Poverty line is defined as per capita consumption expenditure which is required to attain a minimum acceptable standard of living.

Plus One Economics Poverty Four Mark Questions and Answers

Question 1.
Suppose you are from a poor family and wish to get help form the government to setup petty shops. Under which scheme, you will apply for the assistance and why?
Answer:
The following are the measures to solve the problem of poverty in a village like that of mine.

1. creating more employment opportunities in rural areas
2. educating the villagers 1
3. encouraging small scale and cottage industries to generate employment
4. spreading awareness regarding health and sanitation
5.  they should be made aware of the different schemes offered to them by the government
6. the government should provide them with basic amenities such as schools, roads, hospitals communication facilities, etc.

Question 2.
List out the causes responsible for poverty in India.
Answer:
Poverty is explained by individual circumstances and/or characteristics of poor people. Some examples are:

1. low levels of education and skills
2. infirmity, ill health, sickness
3. discrimination.

These can be caused as a result of

1. Social, economic and political inequality
2. Social exclusion
3. Unemployment
4. Indebtedness
5. Unequal distribution of wealth.

Aggregate poverty is just the sum of individual poverty. Poverty is also explained by general, economy-wide problems, such as:

1. Low capital formation
2. Lack of infrastructure
3. Lack of demand
4. Pressure of population
5. Lack of social/welfare nets.

Question 3.
Give the year of starting the following programmes.
i) SGSY
ii) RLEGP
iii) NREG Act
iv) SJSRY
Answer:

Question 4.
Critically evaluate the poverty alleviation programmes in India.
Answer:
A. Critical Assessment of Poverty Alleviation Programmes:
Through the policy towards poverty alleviation has evolved in a progressive manner but over the last five and a half decades it has not undergone any radical transformation. Scholars state three major areas of concern which prevent the success implementation of the programs, they are:

1. Unequal distribution of land and other assets due to the benefits have been availed by the non-poor.

2. In comparison to the magnitude of poverty the amount of resources allocated for these programmes is not sufficient,

3. These programs depend mainly on government and bank officials for their implementation since such officials are ill-motivated, inadequately trained, corruption-prone and vulnerable to pres-sure from a variety of local elites, the resources are inefficiently used and wasted.

Plus One Economics Poverty Five Mark Questions and Answers

Question 1.
Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas?
Answer:
The features of rural poverty are :

• Open, under disguised unemployment, are found simultaneously in rural areas
• It is difficult to differentiate between open unemployment and underemployment in rural areas
• No or meager facility of education, employment, social welfare, etc lead to poverty among the masses
• Rural people posses few assets and many are landless

The features of urban poverty are:

• Open unemployment is generally found
• One can differentiate between open and disguised unemployment
• Good facility of education, drinking water, sanitation, etc make the standard of living of urban people high
• Urban people posses many assets Yes, poverty has shifted from rural to urban areas.

This is clear from the fact that in n1973-74 more than 80% of the poor resided in rural areas but in 1999 – 2000, this proportion has reduced to 75%. This means that poverty has shifted from rural to urban areas. In the 1990s the absolute number of the poor in the rural areas has declined whereas the number of poor in urban areas has increased.

Question 2.
Write full form of the following.

1. PMRY
2. SGRY
3. NSSO
4. SJSRY
5. JGSY

Answer:

1. PMRY – Prime Minister’s RozgarYojana.
2. SGRY – Sampoorna Grameena RozgarYojana
3. NSSO – National Sample Survey Organisation
4. SJSRY – Swama Jayanthi Shahari RozgarYojana
5. JGSY – JawaharGramSamridhiYojana

Question 3.
Give the year of starting the following programmes.

1. Mid-day meals scheme
2. Aam Admi Bima Yojana
3. JLNNURM
4. Bharat Nirman
5. VAMBAY.

Answer:

1. 1995
2. 2007
3. 2005
4. 2005
5. 2001

Question 4.
Suppose you are a resident of a village. Suggest a few measures to solve the problem of poverty in your locality.
Answer:
The following are the measures to solve the problem of poverty in a village like that of mine.

1. creating more employment opportunities in rural areas
2. educating the villagers
3. encouraging small scale and cottage industries to generate employment
4. spreading awareness regarding health and sanitation
5. they should be made aware of the different schemes offered to them by the government
6. the government should provide them with basic amenities such as schools, roads, hospital communication facilities, etc.

Question 5.
Govt, of India, has introduced a number of antipoverty programmes. Do you think that these anti-poverty programmes are sufficient for reducing our country’s poverty? Justify your answer.
Answer:
The govt, implement many programmes to reduce poverty. REGP, PMRY, SJSRY, SJSY, MNREGS are few among them. The rate of poverty has been mitigated due to the implementation of these programmes. However, there are a lot of problems associated with these policies. They are given below.

1. The amount of resources allocated for these programmes is not sufficient.
2. The effectiveness of the implementation of these programmes depends mainly on government and bank officials. May such officials are ill-motivated, inadequately trained and corrupt. So the resources reach the hand of the people who do not reserve it.
3. There is non-participation of local-level institutions in programme implementation.
4. The government also failed to address the vast majority of vulnerable people who are living on or just above the poverty line.

Plus One Economics Poverty Eight Mark Questions and Answers

Question 1.
Discuss the various measures taken by the government to solve the problem of poverty in India.
Answer:
The poverty reduction approach of the government near of three dimensions.
a. Growth oriented approach.

b. Income and employment creation specifically for the poor.

c. Providing basic amenities to the people. Growth-oriented approach is based on the expectation that the effects of economic growth-rapid increase in Gross Domestic Income and Per Capita Income – would spread to all sections of society and will trickle down to the poor sections also.

The approach of income and employment creation specifically for the poor initiated from the third five-year plan. The programmes under the approach include food for work (1970) self-employment programmes like RLEGP, PMRY SJSRY. The Khadi and Village Commission implements these programmes. The government also started wage employment programme like national food for work programme, SGSRY, MNREGS, etc.

1. The Rural Landless Employment Guarantee Programme (RLEGP):
This programme was launched on 15th August 1983 to supplement NREP. This is a centrally sponsored scheme with 100 percent fund by the union government.

2. The PMRY:
GA was launched on 1^st April 2000. The programme aims at providing the housing needs of rural people. Providing basic amenities includes Integrated Child Development Scheme, Mid-day Meal Scheme, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramodaya Yojana, ValmikiAmbedkarAvasYojana, etc.

3. Integrated Child Development Schemes (ICDS):
A nutrition programme meant for children below 6 years of age, pregnant and lactating women.

4. Mid-day Meal at School:
Mid-day Meal at School is in operation in several states. The programme was launched in all India level on 15^th August 1995.

Students can Download Chapter 3 Liberalisation, Privatisation and Globalisation -An Appraisa Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 3 Liberalisation, Privatisation and Globalisation -An Appraisal

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal One Mark Questions and Answers

Question 1.
India started economic reforms in:
(i) 1990
(ii) 1991
(iii) 1992
(iv) 1995
Answer:
(ii) 1991

Question 2.
In which year WTO was formed?
(i) 1990
(ii) 1992
(iii) 1995
(iv) 2000
Answer:
(iii) 1995

Question 3.
Which among the following is NOT a pillar of economic reforms
(i) Liberalisation
(ii) Privatisation
(iii) Nationalisation
(iv) Globalisation
Answer:
(iii) Nationalisation

Question 4.
Odd one out and justify.
(Privatisation, Nationalisation, Liberalisation, Globalisation)
Answer:
Nationalization. Others are parts of economic reforms.

Question 5.
How many countries are members of WTO?
Answer:
133 countries are members of WTO (subject to change)

Question 6.
Find the odd one out.
SBI, Punjab National Bank, Andhra Bank, Union Bank of India.
Answer:
Andhra Bank. Others are national banks.

Question 7.
What is BPO?
Answer:
BPO stands for Business Process Outsourcing.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Two Mark Questions and Answers

Question 1.
Point out major factor responsible for the high growth of service sector?
Answer:
The growth rate of service sector was very high in India compared to other sectors. After adopting new economic policy, the growth rate was 8.2%. The liberalisation and privatisation policy are responsible for the fast growth rate in service sector.

Question 2.
What does foreign direct investment mean?
Answer:
if refers to investment directly undertaken by the foreign companies and nationals in various sectors of the economy.

Question 3.
What is the meaning of disinvestment of public sector unit?
Answer:
The sale of part of government shareholding in public sector undertakings to financial institutions, mutual funds, and public is known as disinvestment of PSUs.

Question 4.
State true or false

1. WTO was found in 1995 as successor organisation of G#TT.
2. India signed NEP in 1991.

Answer:

1. True
2. True

Question 5.
Write full form of the following,

1. IBRD
2. Fll
3. IMF
4. GATT

Answer:

1. IBRD – International Bank for Reconstruction and Development.
2. Fll – Foreign Institutional Investment
3. IMF – International Monetary Fund.
4. GATT – General Agreement on Tariff and Trade

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Three Mark Questions and Answers

Question 1.
Match the following columns

Answer:

Question 2.
Give examples for Nationalized bank, Private bank and Private Foreign Bank.
Answer:
Nationalized banks

• BankofBaroda
• Union bank of India
• Punjab National bank

Private banks

• Andhra Bank
• Oriental Bank of Commerce
• Punjab and Sindh Bank

Private Foreign Banks

• Deutsche Bank
• HSBC

Question 3.
The industrial sector has performed poorly during reform period’. Justify.
Answer:
The industrial sector has performed poorly in the re-form period due to the following reasons :

1. The shortage of electricity and raw materials affect the quality of goods produced.
2. NEP has seriously affected local industrial production.

Question 4.
Classify the following as direct tax and indirect tax. (Sales tax, Property tax, VAT, Customs duty, Income tax, Corporate tax)
Answer:

Question 5.
‘NEP has impact on poverty’. Do you agree? Substantiate.
Answer:
Yes, NEP has impact on poverty. NEP cannot solve the problem of poverty. It seems that it will increase the problem of poverty. The reason is that there will be reduction of public expenditure on projects benefiting the poor. It will also reduce subsidy on food and agricultural product. At the same time, the government will raise the prices of essential products used by the poor. Ail will lead to increase in poverty.

Question 6.
At present how many industries are reserved for public sector in India? Which are they?
Answer:
3 industries. They are:

1. Atomic energy
2. Minerals enlisted under schedule of atomic energy.
3. Rail transport.

Question 7.
Mention the monetory reforms under new economic policy?
Answer:

1. Re-constitution of banking system
2. Free determination of interest rate
3. Reduction of liquidity ratio
4. Improvement in banking system.
5. More freedom to banks
6. Abolition of direct credit program.

Question 8.
Do you think that “navaratna policy” of the government helps in improving the performance of Public Sector undertakings in India? Substantiate.
Answer:
In 1996, in order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalized global environment, the government chose nine PSUs and declared them as navaratnas.

They were given greater managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. Greater operational, financial and managerial autonomy had also been granted to 97 other profit-making enterprises referred to as miniratnas.

The granting of navaratna status resulted in better performance of these companies. Gradually the government has decided to help these Navaratnas in becoming independent so that they can expand themselves in the global markets and raise resources by themselves from financial markets.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Four Mark Questions and Answers

Question 1.
State whether true or false

1. ICICI is a public sector bank
2. ONGC is a Navaratna company
3. Quota is a non-tariff barrier
4. India faced balance of payment crisis in 1991

Answer:

1. False. ICICI is a private sector bank
2. True
3. True
4. True

Question 2.
What are the causes of globalisation?
Answer:
The major causes of globalisation are given below:

1. rapid growth of research and development.
2. Improvement in communication facilities.
3. deregulation of money market.
4. removal of artificial barriers.

Question 3.
“Agricultural sector appears to be adversely affected by the reform process” do you agree? Give reasons.
Answer:
Yes, Agricultural sector appears to be adversely affected by the reform process. The agricultural sector has not been able to be benefited by the reform process, rather the growth rate has decelerated. Public investment in agriculture sector has been reduced during the reform period. Further, the removal of fertilizer subsidy severely affected the mall and marginal farmers

Due to commencement of WTO a lot of policies have changed which have adversely affected the Indian farmers. Moreover, because of export oriented policy in agriculture, there has been a shift from production for the domestic market towards production for export market focusing on cash crops instead of food grains. This has resulted in the price rise of food grains. In short India’s agricultural sector is badly affected by the reform process.

Question 4.
“New Economic Policy of 1991 was an inevitable phenomenon”. Do you agree? Justify.
Answer:
Yes, I agree.
India at the time of independence, adopted a mixed economy framework and accordingly rules and laws were framed which aimed at controlling and regulating the economy. However, in the long run, theses ended up hampering the process of growth and development.

In 1991 India faced an acute economic crisis relating to external debt. The government was not able to make repayments on its borrowings from abroad. Foreign exchange reserves dropped at such a level that it was not sufficient for even a fortnight. Prices of essential goods were rising high. All these factors led to the need for reforms to be introduced in India.

Question 5.
Prepare a note on WTO.
Answer:
The WTO was founded in 1995 as the successor organization to the General Agreement on Trade and Tariff (GATT). GATT was established in 1948 with 23 countries as the global trade organization to administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes.

WTO is expected to establish a rule based trading regime in which nations cannot place arbitrary restrictions on trade. In addition, its purpose is also to enlarge production and trade of services, to ensure optimum utilization of world resources and to protect the environment.

The WTO agreements covertrade in goods as well as services to facilitate international trade (bilateral and multilateral) through removal of tariff as well as non-tariff barriers and providing greater market access to all member countries.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Five Mark Questions and Answers

Question 1.
Do you think outsourcing is good for India?
Answer:
Outsourcing is one of the important outcomes of the globalization process. In outsourcing, a company hires regular services from external sources, mostly from other countries, which was previously provided internally or from within the country (like legal advice, computer service, advertisement, security each provided by respective departments of the company).

As a form of economic activity, outsourcing has intensified, in recent times, because of the growth of fast modes of communication, particularly the growth of Information Technology (IT). Most multinational corporations, and even small companies, are outsourcing their services to India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy.

The low wage rates and availability of skilled manpower in India have made it a destination for global outsourcing in the post-reform period. Thus I think in this reform period outsourcing is good for India.

Question 2.
Prepare a note on privatisation of Indian economy?
Answer:
Privatisation means removing strict control over private sector and making them free to take necessary decisions. Since independence, we accorded top priority to the public sector but the desired results could not be achieved with the encouragement of the public sector. Now the new economic policy tries to expand private sector. In order to encourage private sector following measures have been adopted.
Measures to encourage Private Sector in the economy are the following

1. Reduction in the number of reserved public sector industries. The number of Public Sector industries from 17 to 4.
2. Increasing the share of private sector investment.
3. Selling the share of public enterprises.
4. No insistance on conversion. Now the financial corporation can not insist the industries for conversion of their loans into equity shares.

The government has also made attempts to improve the efficiency of PSUs by giving them autonomy in taking managerial decisions.

Plus One Economics Liberalisation, Privatisation and Globalisation -An Appraisal Eight Mark Questions and Answers

Question 1.
Assess the performance of Indian economy during reforms.
Answer:
The growth of GDP measured from 5.6 percent during 1980-91 to .8.2% during 2007-12. The foreign exchange reserve and foreign direct investment increased rapidly. FDI increased from about US $100 million in 1990 -91 to US$ 400 billion in 2010 -11.

Foreign exchange reserve increased from US$6 billion in 1990-91 to US $400 billion 2011 -12. During this period Indian exports of auto parts, engineering goods, IT software and textiles, increased rapidly. But the reform process have been widely criticized on the following grounds.

Even though there has been an increase in GDP, the reform led growth has not generated sufficient employment opportunities Growth rate in agriculture has been decelerating. Public investment in agriculture sector has been reduced in the reform period. Industrial growth also has been decelerated. Disinvestment of PSUs could not reach near the target.

The tax reduction in the reform period, aimed at yielding larger revenue and to cut tax evasion, have not resulted in increase in tax revenue. The process of globalization has produced positive as well as negative results for both India and other countries.

Globalization could be seen as an opportunity is term of greater access to global markets, high technology, etc. Some other economists argue that globalisation is a strategy of the developed countries to expand their markets in other countries.

Question 2.
Many scholars argue that globalization is a threat as it reduces the role of the state in many sectors.
Some counter argue that it is an opportunity as it opens up markets to compete in and capture. Prepare a Debate Report on “Globalization is a threat or blessing”.
Answer:
lips “Globalization is a threat or blessing”.
The plus one commerce batch of (Name of school) conducted a debate on the topic Globalization is a threat or blessing on 16/08/2018 at 10.0 a.m with the ample guidance of our economics teacher. Our class was divided into two groups to cover the entire area of the topic. Each group presented relevant points to support their views.

1. Arguments in favors of Globalization

• As a result of globalization, the growth rate of the economy has gone up. Production of both agricultural and industrial sectors increased
• As a result of globalization, export growth rate has increased, foreign direct investment has risen and the ratio of external debt to GDP has also fallen
• Globalization will create pressures of competition which help in improving efficiency level
• The New Economic Policy has helped to tide over the immediate balance of payments crisis

2. Arguments against Globalization

• Globalization process neglected the agricultural sector compared to other sectors
• More dependence on foreign debt will put India into debt trap
• The globalization process has given more importance to foreign technology. This will hurt indigenous know-how
• The globalization has encouraged the production of comforts and luxuries.

Question 3.
Prepare a seminar report on the topic “New Economic Policy – 1991 ”
Answer:
“New Economic Policy -1991”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “New Economic Policy – 1991” on 16/08/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic. Each group presented one objective each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
LIBERALISATION:
Liberalization was introduced to put an end to these restrictions and open up various sectors of the economy. Though a few liberalization measures were introduced in 1980s in areas of industrial licensing, export-import policy, technology up-gradation, fiscal policy, and foreign investment, reform policies initiated in 1991 were more comprehensive.

Let us study some important areas such as the industrial sector, financial sector, tax reforms, foreign exchange markets and trade and investment sectors which received greater attention in and after 1991.

The features of liberalization are:

• Deregulation of Industrial Sector
• Financial Sector Reforms
• Tax Reforms
• Foreign Exchange Reforms
• Trade and Investment Policy Reforms

PRIVATISATION:
It implies shedding of the ownership or management of a government-owned enterprise. Government companies can be converted into private companies in two ways

1. by withdrawal of the government from ownership and management of public sector companies and or
2. by outright sale of public sector companies. Privatization of the public sector undertakings by selling off part of the equity of PSUs to the public is known as disinvestment.

The purpose of the sale, according to the government, was mainly to improve financial discipline and facilitate modernization. It was also envisaged that private capital and managerial capabilities could be effectively utilized to improve the performance of the PSUs.

GLOBALISATION:
Globalization is the outcome of the policies of liberalization and privatization. Although globalization is generally understood to mean integration of the economy of the country with the world economy, it is a complex phenomenon. It is an outcome of the set of various policies that are aimed at transforming the world towards greater interdependence and integration.

It involves creation of networks and activities transcending economic, social and geographical boundaries. Globalization attempts to establish links in such a way that the happenings in India can be influenced by events happening miles away. It is turning the world into one whole or creating a borderless world

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 2 Indian Economy 1950-1990 Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 2 Indian Economy 1950-1990

Plus One Economics Indian Economy 1950-1990 One Mark Questions and Answers

Question 1.
The Planning Commission was set up on
(i) 1^st January 1950
(ii) 1^st March 1950
(iii) 15^th March 1950
(iv) 1^st April 1950
Answer:
(iii) 15^th March 1950

Question 2.
Who is the architect of Indian planning?
(i) K.N. Raj
(ii) PC. Mahalanobis
(iii) R.C. Desai
(iv) Dadabhai Navoroji
Answer:
(ii) PC. Mahalanobis

Question 3.
India is ____ type of economic system.
(i) Capitalist
(ii) Socialist
(iii) Mixed economy
(iv) None of these
Answer:
(iii) Mixed economy

Question 4.
Green revolution is related to:
(i) Food grain production
(ii) Cash crop production
(iii) Milk production
(iv) All the above
Answer:
(i) Food grain production

Question 5.
Who is considered as the architect of Indian Planning?
Answer:
P C Mahalanobis is considered as the architect of Indian Planning.

Question 6.
White revolution deals with ____.
Answer:
Milk

Question 7.
How many annual plans were implemented in India?
Answer:
6 Annual Plans.

Plus One Economics Indian Economy 1950-1990 Two Mark Questions and Answers

Question 1.
Point out the main objective of industrial licencing.
Answer:
The aim of industrial licencing was establishment, expansion, and ownership of private industries according to priorities of five year plans. It also aims to check the monopoly tendency in industries. Another objective is to remove the regional disparities of growth.

Question 2.
Define economic planning.
Answer:
Economic planning means utilisation of country’s resources into different development activities in accordance with national priorities.

Question 3.
Name the chairman and deputy chairman of NITI AYOG.
Answer:

• Chairman – Narendra Modi (Prime Minister).
• Deputy Chairman – Arvind Panagaria.

Question 4.
Analyze the following table and draw inference.

Answer:
The above table shows the contribution of agriculture, industry and service sectors to India’s GDP. It makes a comparative analysis of 1950-51 and 1990-91. From the data, it is clear that at the time of independence, agriculture was the major contributor to our GDP followed by service sector and industrial sector.

This picture has undergone change by 1990-91. The service sector is the major contributor GDP during 1990-91. The negative significance of agriculture slightly declined which is a good sign of development.

Plus One Economics Indian Economy 1950-1990 Three Mark Questions and Answers

Question 1.
Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
Answer:
Our first seven five year plans gave importance to ‘self reliance’. This means averting imports of those goods which could be produced in India itself. When India becomes self reliant, we can save foreign exchange and can promote exports.

Question 2.
Do you think that Land Reforms were successfully implemented in all the States of India? Substantiate your view.
Answer:
No. Land Reforms were not successfully implemented in all the States of India. Land reforms were successful in Kerala and West Bengal because these states had governments committed to the policy of land to the tiller. Unfortunately, other states did not have the same level of commitment and vast inequality in landholding continues to this day.

Question 3.
Find the odd one out

1. Modernization, growth, equity, imports
2. Chemical fertilizers, HYV seeds, licensing, irrigation
3. Licensing, protection, abolition of intermediaries, reservation for small scale industry.

Answer:

1. Imports. Others are objectives of five year plans
2. Licensing. Others relate to green revolution
3. Abolition of intermediaries. Others relate to industrial policy

Question 4.
Given below are some names of the countries. Classify them into a fable based on the economic system they follow.
(USA, Germany, Cuba, India, China, Srilanka, UK, Venezuela, Pakistan)
Answer:

Question 5.
Match the following columns.

Answer:

Question 6.
‘Growth with equity’ is an objective of Indian planning. Justify.
Answer:
Growth means increase in the country’s capacity to produce the output of goods and services and equity means equality. Growth with equity is an important objective of our planning. By this, we mean that the government should ensure that the benefit of economic growth reaches the poor sections of the society. It also aims that every citizen should be able to meet the basic requirements such as food, shelter, education, health care, etc.

Question 7.
What is the importance of agriculture in Indian economy?
Answer:
Agriculture is considered as the backbone of the Indian economy. It contributes about 25% of national income. Moreover, about 2/3 of our total population depends on agriculture for their living. Therefore, agriculture plays an important role in the economic development of our country.

Question 8.
Give the main objectives of industrial policy 1956?
Answer:
The main objectives of Industrial Policy 1956 are:

• rapid industrial development.
• rapid growth of public sector.
• reduction in inequalities of income and wealth.

Plus One Economics Indian Economy 1950-1990 Four Mark Questions and Answers

Question 1.
“Gross Domestic Product (GDP) is a good indicator of economic growth of a country”. Comment.
Answer:
A steady increase in the Gross Domestic Product is considered a good indicator of economic growth. The gross domestic product is the market value of all goods and services produced in the country during a year. If the value of GDP is more, it will be divided among the number of people. It is necessary to produce more goods and services if people of India are to enjoy a more rich and varied life.

The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector, and the service sector. The contribution m|de by each of these sectors makes up the sectoral composition of the economy.

Question 2.
Explain the need and type of land reforms implemented in the agricultural sector.
Answer:
independence, the land tenure system was dominated by the intermediaries who merely collected rent from the tillers without contributing towards improvements on the farm. This resulted in low production from agriculture and forced India to import food. This called for an urgent need of a land reform system.
The types of land reform implemented are:

• Abolition of intermediaries
• Making the tillers the owners of land
• Land ceiling i.e., fixing the size of landholding.

Question 3.
Prepare a table showing the plans of India and the years of their implementation?
Answer:

Question 4.
Match the following

Answer:

Plus One Economics Indian Economy 1950-1990 Five Mark Questions and Answers

Question 1.
What is green revolution? How did it benefit the farmers?
Answer:
Significant and continuous rise in agricultural production with the use of fertilizers, HYV seeds and irrigation facilities is known as Green Revolution.

In India, green revolution was executed in two phases. The first phase was from 1965-75. This phase concentrated the crop wheat and was confined to affluent states. The second phase was from 1975-85. The phase concentrated on a variety of crops and was implemented in all Indian states.
The benefits of green revolution:

1. Self-sufficiency in food grain.
2. Living standards of farmers increased
3. Large marketable surplus
4. The price of food grain fell down and consumers were benefited.

Question 2
Prepare a debate report on the topic “Is agriculture subsidy necessary”?
Answer:
Arguments in favour of giving subsidies

• Subsidies provide an incentive for adoption of the new technology by farmers in general and small scale farmers in particular
• Subsidies are needed to encourage farmers to test new technology
• Subsidies help small farmers to continue production so that food security of the nation can be ensured

Arguments against giving subsidies

• Subsidies very often do not benefit the target group
• It is a huge burden on the government’s finances
• Subsidies provide an incentive for wasteful use of resources.

Question 3.
Discuss the rationale for import substitution as a foreign trade policy measure?
Answer:
The industrial policy that we adopted was closely related to the trade policy. In the first seven plans, trade was characterized by what is commonly called an inward-looking trade strategy. Technically, this strategy is called import substitution. This policy aimed at replacing or substituting imports with domestic production.

For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. In this policy, the government protected the domestic industries from foreign competition. Protection from imports took two forms: tariffs and quotas.

Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported. The effect of tariffs and quotas is that they restrict imports and, therefore, protect domestic firms from foreign competition.

Question 4.
Small scale industries play a vital role in Indian economy. Give reasons.
Answer:
Small-scale industry’ is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh; at present, the maximum investment allowed is rupees one crore.

It was believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms.

For this purpose, the production of a number of products was reserved for the small-scale industry the criterion of reservation being the ability of these units to manufacture the goods. They were also given concessions such as lower excise duty and bank loans at lower interest rates. Therefore it can be concluded that small scale industries play a vital role in an economy like India.

Plus One Economics Indian Economy 1950-1990 Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on the “Goals of five year plans pursued till 1991”. [Hint: A Seminar report should contain the title, introduction, content, and conclusion].
Answer:
“Goals of five year plans pursued till 1991”.
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic Goals of five year plans pursued till 1991 on 16/08/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into four groups to cover the entire area of the topic. Each group presented one objective each. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
A plan should have some clearly specified goals. The goals of the five-year plans are growth, modernization, self-reliance, and equity.

1. Growth:
It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services like transport and banking, or an increase in the efficiency of productive capital and services.

A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector, and the service sector. The contribution made by each of these sectors makes up the structural composition of the economy.

2. Modernization:
To increase the production of goods and services the producers have to adopt new technology. For example, a farmer can increase the output on the farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new type of machine. Adoption of new technology is called modernization.

However, modernization does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men. In a traditional society, women are supposed to remain at home while men work. Modern society makes use of the talents of women in the workplace in banks, factories, schools, etc. and such a society will be more civilized and prosperous.

3. Self-reliance:
A nation can promote economic growth and modernization using its own resources or by using resources imported from other nations. The first seven five year plans gave importance to self-reliance which means avoiding imports of those goods which could be produced in India itself.

This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is understandable that people who were recently freed from foreign domination should give importance to self-reliance.

4. Equity:
Now growth, modernization, and self-reliance, by themselves, may not improve the kind of life which people are living in A country can have high growth; the most modem technology developed in the country itself, and also has most of its people living in poverty.

It is important to ensure that the benefits of economic prosperity reach the poor sections as well instead of being enjoyed only by the rich. So, in addition to growth, modernization, and self-reliance, equity is also important every Indian should be able to meet his or her basic needs such as food, a decent house, education, and health care and inequality in the distribution of wealth should be reduced.

Conclusion:
All the four groups presented their topics with necessary facts and figures. After the presentation, there was the question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Question 2.
Prepare a note on the achievements and failures of economic planning in India?
Answer:
A. Achievements of Planning:
1. Rise in national income:
These has been significant increase in national income during the plan period. The national income increased by an average of above 4% during economic planning.

2. Increase in per capita income:
Prior to independence, rate of increase in per capita income had been almost zero. But during the period of planning, per capita income increased at the rate of 2% p.a.

3. Increase in rate of capital formation:
Capital formation plays a significant rule in the economic growth of a country. During five year plans rate of capital formation has significantly increased. As the rate of capital formation depends on the rate of saving and investment, there has been considerable increase in the rate of saving and investment.

4. Institutional reforms in agriculture and Green Revolution:
Plans have contributed to the development of agriculture in two ways:

• Land reforms have been introduced in agriculture.
• Since 1966, stress has been given another technological advancement of agriculture. It resulted into Green revolution. During the period of planning, production of food grains has trebled.

5. Development of industries:
Industrial sector has received a lot of encouragement as a result of planning. Basic and capital goods industries like iron and steel, machinery, chemical fertilizers, etc. have developed adequately. During the period of planning, growth rate of industrial production has been around 6.9% per annum industrial production during the First Five Year Plan increased by 8%.

6. Development of Economic Infrastructure :
Economic infrastructure mainly includes transport, means of communication, irrigation facilities and the generation capacity of power, etc. During the period of planning, economic infrastructure has developed considerably.

7. Development of Social Infrastructure:
During the period of planning, country’s social services like education, health, and medical facilities, family planning, etc. also developed appreciably.

8. Employment:
Serious efforts have been made during plans to increase employment opportunities.

B. Failures of Economic Planning:
The following are the main features of economic planning in India.
1. No substantial increase in the Standard of Living:
All the five-year plans of India aimed at raising the standard of living of the people.

2. Rise in Prices:
Price stability has been one of the objectives of each Five Year Plans in India. But almost all the plans witnessed considerable rise in price level. First Plan is the only exception when price level comes down, in all other plans the prices recorded a steep rise.

3. Increase in Unemployment:
Unabated rise in unemployment was witnessed during the period of planning.

4. Less Growth in Production:
In the Five Year Plans, growth rate of production was slow in many states. Priority should have been given to the development of agriculture in all the plans, but it was not done.

5. Inadequate Development of Infrastructure:
Development of infrastructure like electricity, roads, transport, education, etc. ramained inadequate during the period of planning.

6. Inequality in Distribution of Income and Wealth:
The main objective of the Five Year Plan is to minimise inequality in distribution of income and wealth but during the period of planning the problem of inequality further.

7. Inefficient Administration:
An expert team of U.N.O. observed that one of the main shortcomings of Indian planning has been with reference to its implementation.

8. Lack of Strong Foundation:
Despite completion of Nine Five Year Plans, economic base could not acquire strength. Even now use depend heavily on rainfall for agricultural production. Due to the failure of monsoon in 1965-66, 1966 – 67, 1979 – 80 and 1982 – 83, the entire economy was thrown out of gear.

You can Download Political Theory – An Introduction Questions and Answers, Notes, Plus One Political Science Chapter Wise Questions and Answers Kerala Chapter 1 help you to revise complete Syllabus and score more marks in your examinations.

Kerala one Two Political Science Chapter Wise Questions and Answers Chapter 1 Political Theory: An Introduction

Political Theory: An Introduction Questions and Answers

Plus one Political Science Notes in English Question 1
What is Politics?

Answer:
The word politics was first used by Aristotle, who is the Father of Political Science. The Greek ‘polis’ means related to city. It is from this word, ‘politics’ came. It actually means the ideas regarding the administration of the City-States of ancient Greece. In the modern period, politics is a political art.

Question 2.
What do you mean political theory?

Answer:
Political theory or political vision is the ideas regarding the relations between men, the social creature, and the Nation. In Political Theory we learn the following:
a) Studies about Man.
b) Studies regarding administration and government.
c) Studies about political dynamics.
d) Studies about political philosophy.
e) Studies about International Relations.

Plus one Political Science Question .3
Who is the father of political science?

Answer:
Aristotle.

Political Science Plus one Notes Question .4
Point out the advantages of studying Political Theory.

Answer:
There is much importance in the study of Political Theory. The knowledge about politics, which controls a person’s activities even before the start of his life to even after his death is inevitable. Its importance can be given thus:
a) Political theories give a philosophical base for the political activities.
b) Political theories help in placing administration (government), rule of law, dispensation of justice, etc. which are essential features of a nation, in a definite and organized framework.
c) They help in understanding and evaluating past experiences and historical events.
d) It is through political theories that technical terms are interpreted and they are given precision and clarity.
e) Political theories support the building of a political system beyond the consideration of time and terrain to ensure a creative political life.
f) Philosophy is the highest form of human thought and wisdom. Political theories are the essence of constant searches trying to elevate human life to an ideal level of perfection.
g) All the creative and practical human activities need two essential things: the support of moral values and a theoretical base. Political theories make these available.

Question .5
In Political theory, we study several things. Prepare a flow chart showing them.

Answer:

Question 6.
Distinguish between Politics and Political Theory.

Answer:
The word politics was first used by Aristotle, who is the Father of Political Science. The Greek ‘polis’ means related to city. It is from this word, ‘politics’ came. It actually means the ideas regarding the administration of the City-States of ancient Greece. In the modern period, politics is a political art. Political theory or political vision is the ideas regarding the relations between men, the social creature, and the Nation. In Political Theory we learn the following:
f) Studies about Man.
g) Studies regarding administration and government.
h) Studies about political dynamics,
i) Studies about political philosophy.
j) Studies about International Relations.

Question 7.
Prepare a note on the origin and growth of political theory.

Answer:
Origin and Growth of Political Theory: Plato records that discussions regarding Political theories were started by Socrates. Socrates made a start seeking the meaning of justice among the Athenian citizens. Plato’s search was continued by his disciple Aristotle. It is therefore said that political theory started in the Western world with Socrates and Plato. Thinkers from Aristotle to Marx have given significant contributions to the growth of political theory.
In political science the following areas have the most important places:
a) Political theory handles ideas and principles that formulate the Constitution, government and social life.
b) It examines the importance of ideas like Rule of Law, Division of Authority and Judicial Review.
c) It explains the meaning of freedom, equality, democracy, and secularism.

Question 8.
What do we study in political theory?

Answer:
We study the following in political theory:
a) Political theory handles ideas and principles that formulate the Constitution, government and social life.
b) It examines the importance of ideas like Rule of Law, Division of Authority and Judicial Review.
c) It explains the meaning of freedom, equality, democracy, and secularism.
d) It also discusses the origin of government, development, formation, activities, the relations between people and the government and people’s rights and responsibilities.

Question 9.
Every individual is directly or indirectly involved in the politics of a country. Do you agree with this statement? Substantiate.

Answer:
I agree. In our day-to-day lives, our activities are controlled by-laws made by the government. Giving taxes, obeying the law, etc. are fundamental things that each person has to do. We play our role in politics by voting in the election and through our Right to Expression.

Question 10.
Explain how political theory can be put into practice.

Answer:
Political theories are based on political concepts like liberty, equality, citizenship, justice, development, nationality and secularism. Government originated, is existing and its future working, etc. are for putting into practice these political theories. Democratic governments exist to ensure that there is liberty, equality, and fraternity in the society.

Question 11.
Why should we study political theory?

Answer:
The study of political theories is very important. They are essential for all kinds of people like political workers, bureaucrats who make policies, students of political theories, advocates and judges who interpret the Constitution and laws, public workers who expose exploitation and fight for new rights and the students who learn about political concepts. Firstly, all the students will have to choose a profession in the future. The knowledge about political theories is relevant to all professions.

All those who study mathematics will not become mathematicians or engineers. But, obviously, knowledge about mathematics is essential in our everyday lives. Secondly, students of today are also going to be adults with voting rights tomorrow. They will have to take decisions on many issues. Knowledge about political theories and institutions will help them to act responsibly. Thirdly, Political theories motivate them to examine our ideas and emotions regarding political matters. Fourthly, Political theories help them to think systematically about political concepts.

Question 12.
deals with things like Liberty, Equality, and Justice which are values of political life.

Answer:
Political theory

Plus one Politics Notes Question 13.
Who is the person that contributed greatly to the growth of political theory?
a) Socrates
b) Plato
c) Rousseau
d) All of the above

Answer:
All of the above persons

HSSLive Political Science Class 11 Question 14.
Who was the first person to argue that liberty was a fundamental right of all human beings?

Answer:
Rousseau

HSSlive Political Science Notes Question 15.
Who argued that equality is as important as liberty?

Answer:
Marx

You can Download Internal Trade Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 10 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 10 Internal Trade

1 Mark Questions and Answers

Question 1.
…….. is a trade that takes place between the people of the same nation.
Answer:
Internal trade (Home trade).

Question 2.
Buying goods in larger quantities from producers and selling them in smaller quantities to retailers is called.
Answer:
Wholesale trade.

Question 3.
……… is the last link in the channel of distribution of goods and services.
Answer:
Retailers.

Question 4.
…….. have close contact with consumers.
Answer:
Retailers.

Question 5.
…….. traders do not have a fixed place of business.
Answer:
Itinerant traders.

Question 6.
…….. carry goods on wheeled carts or on bicycles.
Answer:
Hawkers.

Question 7.
……. carry the products on the head or in baskets or shoulder bags.
Answer:
Pedlars.

Question 8.
Identify the following types of retailers and state two features for each type.
(a) Mohan sells fish on his bicycle.
(b) Anand sells toys, plastic, utensils, etc. in front of a shop on Sundays.
(c) Rajan sells old film magazines and other periodicals in pavements near a railway station.
Answer:

1. Hawkers
2. Market traders
3. Street traders

Question 9.
Identify the middleman – Manufacturer ………..?………… Retailer
Answer:
Wholesaler

Question 10.
Name the type of business.
Answer:

Hawkers

Question 11.
Wholesaler acts as a link between the manufacturer and …………….
Answer:
Retailers

Question 12.
Trade between Bangalore and Bombay is an example of …………… trade
(a) foreign trade
(b) home trade
(c) wholesale trade.
Answer:
(b) Home trade.

Question 13.
Identify the types of retailing business.
(a) Stores dealing with a particular line of goods like books, toys, etc.
(b) Stores dealing with a variety of goods of a particular brand.
(c) Stores dealing with a variety of goods of daily use.
(d) Selling goods on the pavement of a city.
(e) Stores selling used books or garments at a cheaper price.
Answer:

1. Single line store
2. Specialty store
3. General store or variety store
4. Itinerant retailing
5. Secondhand goods shop

Question 14.
Name the method of distribution in the following cases:
(a) The manufacturer approaches the customers directly.
(b) The marketing representative calls the customs over the telephone.
(c) Sale of goods and services by using the internet.
(d) Sale of goods through machines without any human intervention.
Answer:

1. Direct marketing
2. Telemarketing
3. Internet Marketing
4. Automatic vending machine

Question 15.
The shops which are owned by the same proprietor and located in different parts of the city or country are known as:
(a) Departmental store
(b) Super bazar
(c) Multiple shops
(d) Mail-order business
Answer:
(c) Multiple shops.

Question 16.
Which of the following is not an advantage of mail-order business?
(a) It required less capital.
(b) There is no risk of bad debts.
(c) It is not suitable for illiterates.
(d) Home delivery of goods is possible.
Answer:
(c)It is not suitable for illiterates.

Question 17.
It is a large scale retail organisation consisting of many departments each dealing in one item. Identify the type of organisation mentioned here.
Answer:
Departmental undertakings.

Question 18.
Find the odd one? Hawkers, cheap tacks, multiple shops, Street Traders.
Answer:
multiple shop.

Question 19.
“Absence of Salesman is one of the most important features of this shop”. Identify the shop and state it features.
Answer:
Supermarket.

Question 20.
“Post office is the channel through which a type of business is conducted”. Identify the business.
Answer:
Mail order business

Question 21.
Multiple shops are also known as ……………
Answer:
Chain stores.

Question 22.
Bata Shoe Company is an example of …………..
Answer:
Chain stores.

Question 23.
Supermarkets are also known as …………
Answer:
Self Service store

Question 24.
Bulky and perishable goods are not suitable for …………..
Answer:
Mail Order business.

Question 25.
Mail-order business is also known as …………….
Answer:
Shopping by post.

Question 26.
VPP means ……………..
Answer:
Value Payable Post.

Question 27.
“This is an agreement between the parent company and owner of an individual business unit”. Identify the category of retailers from the statement.
Answer:
Franchise.

2 Mark Questions and Answers

Question 1.
“Only the retailers know the pulse of the market” Do you agree? Justify your answer.
Answer:
Yes. Retailers have direct contact with consumers. So they can know the tastes and preferences of consumers. So a retailer occupies an important position in the distribution system.

Question 2.
a) Identify the following types of retailers.
b) State two features of such types of retailers.

1. Chandran is a street fruit seller.
2. Samuel sells vegetables in a wheeled cart.
3. Amar sells mangoes on Sundays at a weekly market.
4. Muneer sells goods by frequently changing the shop.

Answer:
a) Street traders
Features of street traders

1. These traders display their articles on busy streets, bus stand, railway stations, etc.
2. They sell low priced articles like pens, books, magazines, handkerchiefs, etc.

b) Hawkers
Features of Hawkers

1. Hawkers are traders who carry their products in wheeled carts or bicycles.
2. They deal with cheap and light articles like vegetables, fruits, toys, sweets, etc.

c) Market traders
Features of Market traders

1. These traders sell their articles on fixed days in different places.
2. They sell all kinds of goods like vegetables, ready-made garments, stationery, etc.

d) Cheap jacks
Features of Cheap jacks

1. They do not stick to a particular place of business.
2. They hire small shops located in residential areas and sell consumer items like fruits, vegetables, etc.

3 Mark Questions and Answers

Question 1.
Classify the following features under two heads departmental stores and multiple shops.
(a) Each shop deals with the same type of goods.
(b) A wide variety of products is available under one roof.
(c) There is uniformity in the shop’s design and layout.
(d) It aims at the elimination of middlemen.
(e) The products are arranged in separate departments.
(f) It deals in one or two lines of products.

4 Mark Questions and Answers

Question 1.
“These traders have no fixed place of business, but deal in articles of small value having high mobility”. Identify the category of traders and explain two types of such traders.
Itinerant traders.
a) Hawkers and Pedlars:
They deal in light and cheap consumer goods of regular use. Hawkers are traders who carry their products in wheeled carts or bicycles. But pedlars carry their products on their back or head or in shoulder bags. They deal in vegetables, fruits, sweets, toys, etc.

b) Market Traders:
These traders sell their articles on fixed days in different places. They sell all kinds of goods like vegetables, ready-made garments, stationery, etc.

Question 2.
“Such traders do not have fixed place of business”. Identify the type of retailers. Also, explain types of such retailers.
Answer:
Itinerant Retailers:
The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.

Characteristics of itinerant retailers.

1. They are small traders having limited resources.
2. They generally deal with consumer products of daily use.
3. They emphasize on providing greater customer services.
4. They do not have any fixed place to operate from.

Types of itinerant retailers

1. Peddlers and hawkers:
They can the products on a bicycle, a hand cart, a cycle-rickshaw or on their heads, and move from place to place to sell their products at the doorstep of the customers. They generally deal with non-standardised and low- value products such as toys, vegetables, fruits, etc.

2. Market traders:
They are the small retailer who open their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These trader deals in a single line of goods such as toys, ready-made garment crockery, etc.

3. Street traders:
These traders display their articles on busy streets, bus stand, railway stations, etc. They sell low priced articles like pens, books, magazines, handkerchiefs, etc. They do not change their place of business frequently.

4. Cheap jacks:
They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another but not very frequently. They deal with consumer items such as repair of watches, shoes, buckets, etc.

2. Fixed Shop Retailers:
Retailers who maintain permanent establishment to sell their goods are called fixed shop retailers. Following are the main characteristics of fixed shop retailers:

1. They have greater resources and operate on a relatively large scale.
2. They deal in durable as well as non-durable goods.
3. They provide greater services to the customers such as home delivery, repairs, credit facilities, etc.

Types of Fixed Shop Retailers
The fixed-shop retailers can be classified into two. They are:
(a) Small shop-keepers
(b) Large retailers

Question 3.

Answer:
Wholesaler
Functions of wholesalers :
(a) Wholesalers purchase, goods in large quantity from manufactures and sells them to retailers in small quantities.
(b) They store goods in their own warehouses
(c) They provide financial assistance to producers and retailers
(d) They make arrangements for the transportation of goods to the retailer’s shop
(e) They maintain a regular supply of goods. It stabilized the price.
(f) They give valuable information to producers and retailers regarding the product and market.

Question 4.
Explain the role of the Chamber of Commerce and Industry in the promotion of internal trade.
Answer:
Role of Chambers of Commerce and Industry in Promotion of Internal Trade.

Association of business and industrial houses are formed to promote and protect their common interest and goals. They undertake the following functions.

1. The chamber of commerce and Industry help in the inter-state movement of goods through various activities.
2. They ensure that the imposition of octroi and other local taxes do not affect trade adversely.
3. They also undertake marketing of agro products and related issues.
4. They interact with the Government to make laws relating to weights and measures and protection of brands.
5. They discuss with the government to get sound infrastructure so that business activities could be undertaken easily.

6 Mark Questions and Answers

Question 1.
A commerce teacher, while going through the topic, internal trade, cites the example of Bata shoe company, having its headquarters in Bombay has its showrooms at different locations of the city as well as various cities all over India. The products of the company carry the same price in all these showrooms.
b) Explain the features of these types of shops.
Answer:
Chain Stores or Multiple Shops
Multiple shop is a system of branch shops operated under centralised management and dealing in a similar line of goods. Branches are located throughout the nation.

Features of multiple shops

1. It deals in one or two lines of products.
2. All branches are dealing in similar goods
3. It has centralized management and a unified system of control
4. It eliminates middlemen.
5. It works on cash and carry the principle
6. It has centralized buying and decentralized selling.
7. There is uniformity in operation in all branches.
8. It deals with goods of daily use and durables.

Advantages

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
2. There is no risk of bad debts because all sales are on a cash basis.
3. The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
4. Multiple shops are located in towns and cities. They attract a large number of customers.
5. All branches of multiple shops are uniform in style, design, and display of goods.
6. All the branches sell quality goods at uniform prices. It creates public confidence.
7. The economy in large scale buying, centralized management, etc. reduces the cost of operations.
8. Products having no demand in one branch can be transferred to another branch. It reduces business risk.
9. Multiple shops enjoy the benefits of quick turn over because of countrywide location.

Limitations

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.
2. They will not provide any credit facilities to consumers.
3. There is a lack of personal touch between the company and consumers because branches are managed by salaried managers.
4. The branch manager is only a salaried employee. He has no initiative to increase profits.
5. As these shops deal in a limited line of goods, a fall in demand will affect the business.

Question 2.
Alexander wants to deal with a particular commodity alone. He wants to have branches all over the country. Explain to him the suitable type of selling and also state its merits.
Answer:
Chain Stores or Multiple Shops
Multiple shop is a system of branch shops operated under centralised management and dealing in a similar line of goods. Branches are located throughout the nation.

Features of multiple shops

1. It deals in one or two lines of products.
2. All branches are dealing in similar goods
3. It has centralized management and a unified system of control
4. It eliminates middlemen.
5. It works on cash and carry the principle
6. It has centralized buying and decentralized selling.
7. There is uniformity in operation in all branches.
8. It deals with goods of daily use and durables.

Advantages

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
2. There is no risk of bad debts because all sales are on a cash basis.
3. The advertisements for all branches are done by the head office. So there is an economy in the advertisement.
4. Multiple shops are located in towns and cities. They attract a large number of customers.
5. All branches of multiple shops are uniform in style, design, and display of goods.
6. All the branches sell quality goods at uniform prices. It creates public confidence.
7. The economy in large scale buying, centralized management, etc. reduces the cost of operations.
8. Products having no demand in one branch can be transferred to another branch. It reduces business risk.
9. Multiple shops enjoy the benefits of quick turn over because of countrywide location.

Limitations

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.
2. They will not provide any credit facilities to consumers.
3. There is a lack of personal touch between the company and consumers because branches are managed by salaried managers.
4. The branch manager is only a salaried employee. He has no initiative to increase profits.
5. As these shops deal in a limited line of goods, a fall in demand will affect the business.

Question 3.
“Post office is the channel through which a type of business is conducted”.
(a) Identify the business. Explain.
(b) State its features, advantages and disadvantages.
Answer:
Mail Order Houses/shopping by Post

Mail-order business is a form of retailing where the business transactions are done through post or mail. Under this system orders for goods, delivery of goods and payment is made through VPP (Value Payable Post). Under this arrangement, the goods are delivered to the customers only on making full payment for the same. There is generally no direct personal contact between the buyers and the sellers in this type of trading.

This type of business is suitable for products that can be:

1. graded and standardised,
2. easily transported at low cost,
3. have ready demand in the market,
4. are available in large quantity throughout the year,
5. involve the least possible competition in the market.
6. can be described through pictures.

Bulky, heavy and perishable products are not suitable for this type of business.

Advantages

1. It needs only limited capital because there is no need for building and other infrastructural facilities.
2. Unnecessary middlemen between the buyers and sellers are eliminated.
3. Since the mail-order houses do not extend credit facilities to the customers, there are no chances of any bad debt.
4. Under this system, goods are delivered at the doorstep of the customers. This results in great convenience to the customers.
5. There is a wider scope for business.
6. It helps to avoid overstocking of goods as goods are collected only when the orders are received.

Disadvantages

1. It has to spend a large amount of advertisement.
2. There is no direct personal contact between the buyer and the seller.
3. The buyer cannot inspect the goods personally before purchasing.
4. They are not suitable for heavy and perishable goods.
5. They do not provide credit facilities to customers.
6. There may be a delay in getting goods.

Question. 4
Distinguish between Wholesalers and Retailers.
Answer:

Types of Retail Trade
Retail trade can be classified into the following two categories on the basis of whether or not they have a fixed place of business.
1. Itinerant Retailers
2.Fixed shop Retailers

Question 5.
Draw a chart showing the types of Retail Trade.
Answer:

8 Mark Questions and Answers

Question 1.
Raja Agencies of Trivandrum buys Honey Biscuits from a company located in Tamil Nadu and supply it to various shops in the district.
(a) You are required to trace out the nature of trade engaged in by the Raja Agencies.
(b) Discuss the various functions performed by them?
Answer:
Wholesale Trade:
Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers act as an important link between manufacturers and retailers.

Functions of Wholesaler
1. Buying and assembling:
The wholesalers buy goods from different producers and keep them in a central place.

2. Warehousing:
The goods are to be kept in the I warehouses till they are sold to retailers.

3. Grading and packing:
The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages.

4. Pricing:
The wholesaler fixes the price of products.

5. Transportation:
The wholesalers move the goods from the production centre to the retail shop.

6. Risk bearing:
They assume the risk like change in demand, spoilage, theft during transportation, etc.

7. Financing:
Wholesalers purchase goods on a cash basis from manufacturers and sell them to the retailers on a credit basis.

8. Market information:
Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly.

Services of Wholesalers to Manufacturers
1. Facilitating large scale production:
As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantage of economies of scale.

2. Risk bearing:
Wholesaler deals in goods in their own name and bears a variety of risks such as the risk of falls in prices, theft, pilferage spoilage, fire, etc.

3. Financial assistance:
Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.

4. Expert advice:
Wholesaler provides various useful information regarding customer preference, market conditions, etc to the manufacturer.

5. Help in marketing function:
As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.

6. Storage facilities:
Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.

7. Facilitate production continuity:
The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced.

Services of Wholesalers to Retailers
1. Availability of goods:
The wholesalers make the products of various manufacturers readily available to the retailers.

2. Marketing support:
They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.

3. Grant of credit:
The wholesalers generally provide credit facilities to the retailers.

4. Specialised knowledge:
Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.

5. Risk sharing:
Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices, etc.

Question 2.
Explain the functions of Retailers.
Answer:
Retail Trade
Buying goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.

Functions of Retailers

1. A retailer collects different varieties of goods. So he can satisfy different types of customers.
2. A retailer provides market information to wholesalers and manufacturers.
3. A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
4. Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
5. The retailers provide credit facilities to the consumers.
6. Retailers provide after-sales services to attract consumers.

Services of Retailers to Manufacturers and Wholesalers

1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
2. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
3. Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
4. As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
5. Retailers participate in various sales promotional activities conducted by producers and wholesalers.

Services Retailers to Consumers

1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enables customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after-sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to the customers.
6. Retailers keep ready stock of the products needed by the consumers.

Question 3.
Explain the services rendered by retailers to consumers.
Answer:
Retail Trade
Buying goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.

Functions of Retailers

1. A retailer collects different varieties of goods. So he can satisfy different types of customers.
2. A retailer provides market information to wholesalers and manufacturers.
3. A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
4. Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
5. The retailers provide credit facilities to the consumers.
6. Retailers provide after-sales services to attract consumers.

Services of Retailers to Manufacturers and Wholesalers

1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.
2. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.
3. Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking the distribution of goods.
4. As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences, and attitudes, etc. of consumers to the producers.
5. Retailers participate in various sales promotional activities conducted by producers and wholesalers.

Services Retailers to Consumers

1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enables customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after-sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to the customers.
6. Retailers keep ready stock of the products needed by the consumers.

Question 4.
Explain the features, advantages, and disadvantages of departmental stores.
Answer:
Departmental stores:
A departmental store is a large scale retail shop selling a wide variety of goods in different departments under one and management. Each department deals in a separate line of goods like stationery, books, furniture, clothing, etc. Consumers can purchase all goods from the departmental store.

Features of a departmental store

1. It is a large scale retail organization.
2. A number of retail shops in the same building.
3. It offers a wide variety of products under one roof.
4. It is located at central places of the city
5. The products are arranged in separate departments
6. Sales, control, and management are centralized
7. It offers various services and facilities like free home delivery etc.

Advantages
1. Central locations:
As these stores are usually located in central places they attract a large number of customers.

2. Convenience in buying:
By offering a large variety of goods under one roof, the departmental stores provide great convenience to customers in buying almost all goods of their requirements in one place.

3. Attractive services:
A departmental store aims at providing maximum services to the customers.

4. Economy of large-scale operations:
As these stores are organised in a very large-scale, the benefits of large-scale operations are available to them.

5. Mutual advertisement:
All the departments are under one roof, so there is an economy in advertising.

6. Risk distribution:
If there is a loss in one department, it may be compensated for the profit of other departments.

7. Increased sales:
Central location, mutual advertisement, etc. will help a departmental store to increase its sales.

Limitations
1. Lack of personal attention:
Because of the large- scale operations, it is very difficult to provide adequate personal attention to the customers in these stores.

2. Inconvenient location:
As a departmental store is generally situated at a central location, it is not convenient for the consumers who reside away from town.

3. High price:
A departmental store charges a high price for the products because of high operating costs.

4. High operating cost:
As these stores give more emphasis on providing services, their operating costs tend to be high.

5. High advertisement cost:
The success and prosperity of a departmental store depends on advertisement. Therefore, it should spend a large amount on the advertisement.

6. Lack of effective control:
Departmental store works through a large number of departments. It creates so many problems.

7. High risk:
A departmental store keeps a large stock of goods. So changes in fashion, taste, price, etc will affect the profitability of the business.

Question 5.
Explain the features, advantages, and disadvantages of Consumers Co-operative store.
Answer:
Consumer Cooperative Store:
It is a retail store formed by the consumers on the basis of principles of co-operation. These stores are owned and managed by consumers. They deal all types of consumer goods.

Features of Consumers Co-operative

1. It is a voluntary association of consumers.
2. The liability of members is limited.
3. Consumers can purchase quality goods at the lowest cost from these stores.
4. Democratic control is exercised.
5. It eliminates middlemen.

Advantages

1. Consumers can purchase quality goods at the lowest cost from consumers’ co-operative store.
2. There are no bad debts as goods are sold on a cash basis.
3. Economies of large scale purchasing can be enjoyed.
4. Less advertisement expenses are required.
5. It restricts the monopoly and wasteful competition.

Disadvantages

1. A consumer co-operative store can collect low capital. So they cannot start a business on a large scale.
2. The management of a consumer co-operative store is inefficient.
3. It lacks proper warehousing facilities.
4. It will not attract consumers because of no credit facilities.

Question 6.
“Absence of salesman is one of the most important features of this shop”.
a) Identify the shop. Explain
b) State its features, advantages, and disadvantages.
Answer:
Super Markets / Super Bazaar:
Supermarket is a large scale retail organisation selling a wide variety of consumer goods. The important feature of the supermarket is the absence of a salesman to help consumers in selecting goods. Hence the supermarket is also called ‘ Self Service Store’.

Features of Super Market

1. They are located in the center of the town.
2. They sell goods on a cash basis only.
3. They deal with a wide variety of goods.
4. There is no salesman to help consumers.

Advantages

1. Consumers can purchase everything from supermarket
2. There is no bad debt as sales are on a cash basis only.
3. They are located in the centre of the town.
4. It attracts a large number of consumers.
5. Consumers can select goods according to their tastes and preferences.
6. A variety of goods is available in a supermarket.

Disadvantages

1. Large premises at a central location are not available easily.
2. It lacks personal advice of salesman
3. They do not provide credit facilities to customers.
4. The employees in a supermarket do not take initiative to increase sales.
5. It requires a huge capital investment.
6. It is not suitable for products which require personal selling.
7. There is no personal contact with consumers.

You can Download Forms of Business Organisation Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 2 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 2 Forms of Business Organisation

1 Mark Questions and Answers

Question 1.
The structure in which there is a separation of ownership and management is called
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business
Answer:
(c) Company

Question 2.
Write the name of the form of business organisation found only in India.
Answer:
Hindu Undivided Family

Question 3.
Name the type of Co. which must have a minimum paid-up capital of 5 lacs.
Answer:
Public Company

Question 4.
…… is the oldest and popular form of business organisation.
Answer:
Sole proprietorship

Question 5.
Profits do not have to be shared. This statement refers to ………
(a) Partnership
(b) Joint Hindu family business
(c) Sole proprietorship
(d) Company
Answer:
(c) Sole proprietorship

Question 6.
Quick decision, prompt action and business secrecy are the major features of this form of business. Name it.
Answer:
Sole proprietorship.

Question 7.
Mrs.Anupama is running a bookstall in the high school junction. She is the owner, manager and labourer of her business. She gives personal attention to each and every customer and attracts more customers and earns high profits. Identify the form of organization owned and operated by Mrs Anupama
Answer:
Sole proprietorship

Question 8.
The liability of a sole trader is ………
Answer:
Unlimited.

Question 9.
The maximum number of partners allowed in the banking business is:
(a) Twenty
(b) Ten
(c) No limit
(d) Two
Answer:
(b) Ten

Question 10.
The minimum number of partners required to form a partnership business is
(a) Twenty
(b) Ten
(c) No limit
(d) Two
Answer:
(d) Two

Question 11.
A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner
Answer:
(d) Secret partner

Question 12.
Mr Isaac contributes capital to partnership business, but not takes part in business, what kind of partner he is?
Answer:
Sleeping partner

Question 13.
Identify the type of partners in the following situation:

1.  The liability of Sridhar, a 25 years old partner is limited to the extent of his capital contribution.
2. Madan has neither contributed any capital nor shares the profits of the firm though he is treated as a partner.
3. Sunita has been admitted to the benefits of the firm at the age of 15.
4. Sudhir had contributed to capital and shares the profit and loss of the firm. But he does not take part in the day-to-day activities.
5.  A firm declares that Sachin is a partner of their firm. Knowing the declaration Sachin did not disclaim it.

Answer:

1. Limited partner
2. Nominal Partner
3.  Minor partner
4. Sleeping Partner/dormant partner
5. Partner by holding out.

Question 14.
M, N and P are the partnership firm. In this firm ‘P’ contributes capital and take active part in business, while ‘R’ lends only his name and reputation. What type of partners are they?
Answer:
‘P’ is an active partner, ‘R’ is a nominal partner

Question 15.
Name the partner who shares the profits of the business without being liable for the losses.
Answer:
Partner in profit only

Question 16.
The maximum number of partners in a partnership firm except banking business is ……..
Answer:
20

Question 17.
The liability of partners in a partnership business is ………
Answer:
Unlimited

Question 18.
The written agreement of partnership is called ………..
Answer:
Partnership Deed

Question 19.
Partnership formed for the accomplishment of a particular project or for a specified time period is called ………
Answer:
Particular partnership.

Question 20.
Registration of a partnership is ………
Answer:
Optional

Question 21.
The Head of the joint Hindu family business is called
(a) Proprietor
(b) Director
(c) Karta
(d) Manager
Answer:
(c) Karta

Question 22.
The Karta in Joint Hindu family business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Answer:
(b) Unlimited liability

Question 23.
It is not formed by an agreement or by a contract. But it comes into existence by the operation of Hindu law. Name the type of business organisation.
Answer:
Hindu Undivided Family (HUF)

Question 24.
The members of a Joint Hindu Family business is known as …….
Answer:
Co-parceners.

Question 25.
The liability of all members in H.U.F is ……..
Answer:
Limited

Question 26.
In a Co-operative society, the principle followed is
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes
Answer:
(b) One man one vote

Question 27.
The main aim of this organization is self-help through mutual help. Identify the type of organizations.
Answer:
Co-operative Society

Question 28.
“Each for All and All for Each” is a basic motto of a form of business organization. Identify the organization.
Answer:
Co-operative society

Question 29.
Voting right in a cooperative society is based on the principle of …………
Answer:
One man one vote

Question 30.
The minimum number of persons to form a co-operative society is ……..
Answer:
10

Question 31.
The membership of a co-operative society is ……….
Answer:
Voluntary.

Question 32.
Registration of a Co-operative society is …….
Answer:
Compulsory

Question 33.
The liability of the members of a cooperative society is ………
Answer:
Limited

Question 34.
The capital of a company is divided into a number of parts each one of which is called …………
(a) Dividend
(b) Profit
(c) Interest
(d) Share
Answer:
(d) Share

Question 35.
Name the following in reference to a joint-stock company

1. The smallest unit into which the capital of the company is divided.
2. The Act that governs the joint-stock companies in India.
3. The sum total of the money contributed by the members of a joint-stock company.
4. The official signature of a joint-stock company.
5. The elected representatives of the members who manage the day to day affairs of the joint-stock company.

Answer:

1. Share
2. Companies Act 1956
3. Share capital
4. Common seal
5. Directors

2 Mark Questions and Answers

Question 1.
Compare the status of a minor in a Joint Hindu Family Business with that in a partnership.
Answer:
The basis of membership in the HUF business is birth in the family. Hence, minors can also be members of the business. His liability is limited. In a partnership firm, a minor can be admitted to the benefits of a partnership firm with the mutual consent of all other partners. In such cases, his liability will be limited to the extent of the capital contributed by him.

Question 2.
Sunny Joseph wants to start a private business. Tell him the different forms in which a private business can be organized.
Answer:
There are five forms of business enterprises in the private sector.They are:

1. Sole proprietorship
2. Joint Hindu Family Business
3. Partnership
4. Joint Stock Company
5. Co-operative Society

Question 3.
Name the form of business organisation where membership is acquired by birth. Explain any two features of such an organisation.
Answer:

1. Joint Hindu Family Business
2. Joint Hindu Family Business (HUF)

It refers to a form of organisation were in the business is owned and carried on by the members of a joint Hindu family. It is also known as Hindu Undivided Family Business (H.U.F). It is governed by the Hindu Succession Act, 1956. It is found only in India. The business is controlled by the head of the family who is the eldest member and is called Karta. All members have equal ownership right over the property of an ancestor and they are known as co-parceners.

Features

1. Formation:
For a Joint Hindu family business, there should be at least two members in the family and some ancestral property to be inherited by them.

2. Membership:
Membership by virtue of birth in the family.

3. Liability:
The Karta has unlimited liability. Every other coparcener has a limited liability up to his share in the HUF property.

4. Control:
The control of the family business lies with the Karta. He takes all the decisions and is authorised to manage the business.

5. Continuity:
The business is not affected by the death of the Karta as in such cases the next senior male member becomes the Karta.

6. Minor Members:
The basis of membership in the business is birth in the family. Hence, minors can also be members of the business.

Merits

1. Effective control:
The Karta has absolute decision making power. This avoids conflicts among members.

2. Continuity of business:
The death of the Karta will not affect the business as the next eldest member will then take up the position.

3. Limited liability of members:
The liability of all the co-parceners except the Karta is limited to their share in the business.

4. Increased loyalty:
Members are likely to work with dedication, loyalty and care because the work involves the family name.

Limitation

1. Limited capital:
The capital of HUF is limited since the ancestral property only can be used for the business. This reduces the scope for business growth.

2. Unlimited liability:
The liability of Karta is unlimited. His personal property can be used to repay business debts.

3. Dominance of Karta:
There is a possibility of differences of opinion among the members of the Joint Family. It may affect the stability of the business.

4. Limited managerial skills:
The Karta may not be an expert in all areas of management. It may affect the profitability of the business.

Question 4.
What is a Private Company?
Answer:
Private Company:-
A private company means a company which:

1. restricts the right of members to transfer its shares
2. has a minimum of 2 and a maximum of 50 members
3. does not invite public to subscribe to its share capital
4. must have a minimum paid-up capital of Rs.1 lakh It is necessary for a private company to use the word private limited after its name.

Question 5.
What is Public Company?
Answer:
Public Company
A public company means a company which is not a private company. As per the Indian Companies Act, a public company is one which:

1. has a minimum paid-up capital of Rs. 5 lakhs
2. has a minimum of 7 members and no limit on maximum members
3. can transfer its shares
4. can invite the public to subscribe to its shares. A private company which is a subsidiary of a public company is also treated as a public company. A public company must use the word limited after its name.

3 Mark Questions and Answers

Question 1.
Tristar Traders’ is a real estate partnership firm having partners viz. Haridas, Balakrishnan and Venny. They are equal partners. Due to ill health, Mr.Balakrishnan wants to retire from the business and he asks other partners to admit his 17-year-old son Mr.Renjith into partnership. Mr.Haridas and Mr.Venny agree to admit Mr.Renjith into the partnership.

1. Is it possible to admit Mr.Renjith into the partnership? Substantiate.
2. What type of partner is Renjith?

Answer:

1. Yes. It is possible to admit Renjith into partnership with the consent of all other partners.
2. Minor partner.

Question 2.
Explain the status of a minor in a partnership firm.
Answer:
A minor can be admitted to the benefits of a partnership firm with the mutual consent of all. other partners. In such cases, his liability will be limited to the extent of the capital contributed by him in the firm. He will not be eligible to take an active part in the management of the firm. A minor can share only the profits. He can inspect the accounts of the firm.

Question 3.
Mr. Unnikrishnan, a senior member, who looks after the family business, convened a meeting of the family members. He told that the firm is unable to pay its debts. So the personal property of all members must be made available for repaying the debts. All the members disagreed with the suggestion. As a commerce student what will be your opinion?
Answer:
The HUF business is governed by the law of succession. Here Mr. Unnikrishnan, a senior male member of the family runs the business. He is called Karta. The liability of the Karta is unlimited. But the liability of all other co-partners is limited. Only the personal property of the Karta can be used for the payment of business debts.

Question 4.
Distinguish between Private limited company and Public limited company.
Answer:
Difference between a public company and private company

4 Mark Questions and Answers

Question 1.
Mr.Jayan, still an unemployed youth, after two years of his post-graduation, decided to start a restaurant. In order to meet the capital requirements, he seeks his father’s help. His father agreed to give sufficient capital but asks him what prompted him to start this sort of a business. Jayan explains the essential factors he has considered for starting the restaurant.

1. Identify the business.
2. Explain the merits of the proposed business.

Answer:

1. Sole Proprietorship
2. Advantages of Sole Proprietorship

Sole proprietorship:
Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is the most common form of business organization.

Features

1. The sole trader is the single owner and manager of the business.
2. The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.
3. The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay the business liabilities.
4. The entire profit of the sole trading business goes to the sole proprietor. If there is any loss it is also to be borne by the sole proprietor alone.
5. The sole trader has full control over the affairs of the business. So he can take quick decisions.
6. A sole trading concern has no legal existence separate from its owner.
7. The death, insolvency etc. of a sole trader causes discontinuity of business.

Merits
1. Easy formation:-
The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.

2. Quick Decision:
The sole trader has full control over the affairs of the business. So he can take quick decisions and prompt actions in all business matters.

3. Motivation:
The entire profit of the sole trading business goes to the sole proprietor. It motivates him to work hard.

4. Secrecy:
A sole trader can keep all the information related to business operations and he is not bound to publish the firm’s accounts.

5. Close Personal Relation :
The sole proprietor can maintain good personal contact with the customers and employees and thus, business runs smoothly.

Limitations
1. Limited capital:
A sole trader can start business only on a small scale because of limited capital.

2. Lack of Continuity:
Death, insolvency or illness of a proprietor affects the business and can lead to its closure.

3. Limited managerial ability:
A sole proprietor may not be an expert in every aspect of management.

4. Unlimited liability:
The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay off the business liabilities.

5. Suitability:
Sole proprietorship is suitable in the following cases.

• Where the market is limited, localized and customers demand personalized services. Eg. tailoring, beauty parlour etc.
• Where goods are unstandardised like artistic jewellery.
• Where lower capital, limited risk & limited managerial skills are required as in case of retail store.

Question 2.
I am on the look for a few persons who are ready to invest both their skills and money because I believe collective efforts are more fruitful and least bothered about the extent of liability.

(a) What type of business organization is suitable for me?

(b) Explain the procedure in the formation of this business.

Answer:

(a) Partnership

(b) Registration of partnership

According to Indian Partnership Act 1932, registration of a partnership is not compulsory, it is optional. However, they can register with the Registrar of firms of the state in which the firm is situated.

Procedure for Registration:
1. Submission of application in the prescribed form to the Registrar of firms. The application should contain the following particulars:

• Name of the firm
• Location of the firm
• Names of other places where the firm carries on business
• The date when each partner joined the firm
• Names and addresses of the partners
• Duration of partnership.

This application should be signed by all the partners.
2. Deposit of required fees with the Registrar of Firms.

3. The Registrar after approval will make an entry in the register of firms and will subsequently issue a certificate of registration.

The consequences of non-registration of a firm are as follows : –

1. A partner of an unregistered firm cannot file suit against the firm or other partner.
2. The firm cannot file a suit against the third party.
3. The firm cannot file a case against its partner.

Question 3.
Certain companies cannot issue an invitation to the public to subscribe to its shares. The maximum shareholders of the company is limited to 50. The transfer of shares of the company is restricted.

(a) Identify the type of company.

(b) Explain the privileges enjoyed by these types of companies.

Answer:
(a) Private Company

(b) Privileges of a private company

1. A private company can be formed by only two members.
2. There is no need to issue a prospectus
3. Allotment of shares can be done without receiving the minimum subscription.
4. A private company can start business as soon . as it receives the certificate of incorporation.
5. A private company needs to have only two directors.
6. A private company is not required to keep an index of members.
7. There is no restriction on the amount of loans to directors in a private company.

5 Mark Questions and Answers

Question 1.
Arun, Nisha and Lekshmi, entered into an agreement for starting a supermarket – ‘Mythri’. The other terms and conditions of the business were. mentioned in their deed. While having an official meeting of the partners, Nisha and Lekshmi suggested that the firm should be registered. But Arun contented that, it is not essential to register Mythri. The other two partners disagreed with Arun and maintained that it is essential because they don’t want to bear the consequences. As an expert in this topic,
(a) Whom do you favour? Specify your reasons in support of your judgement.

(b) In your opinion, is there any consequences, if Mythri is not registered. Explain.

Answer:
a) Arun. It is not compulsory to register a partnership firm,

(b) Registration of partnership
According to Indian Partnership Act 1932, registration of a partnership is not compulsory, it is optional. However, they can register with the Registrar of firms of the state in which the firm is situated.

Procedure for Registration:

1. Submission of application in the prescribed form to the Registrar of firms. The application should contain the following particulars:

• Name of the firm
• Location of the firm
• Names of other places where the firm carries on business
• The date when each partner joined the firm
• Names and addresses of the partners
• Duration of partnership.

This application should be signed by all the partners.
2. Deposit of required fees with the Registrar of Firms.

3. The Registrar after approval will make an entry in the register of firms and will subsequently issue a certificate of registration.

The consequences of non-registration of a firm are as follows : –

1. A partner of an unregistered firm cannot file suit against the firm or other partner.
2. The firm cannot file a suit against the third party.
3. The firm cannot file a case against its partner.

Question 2.
Name the following in reference to a joint-stock company.

1. The smallest unit into which the capital of the company is divided.
2. The Act that governs the joint-stock companies in India.
3. The sum total of the money contributed by the members of a joint-stock company.
4. The official signature of a joint-stock company.
5. The elected representatives of the members who manage the day to day affairs of the joint-stock company.

Answer:

1. Share
2. Companies Act 1956
3. Share capital
4. Common seal
5. Directors

6 Mark Questions and Answers

Question 1.
Distinguish between Joint Stock Company and Partnership.
Answer:

Partnership Firm Joint Stock Company
1. Formed by an agreement Formed by registration
2. Governed by Partnership Act 1932 Governed by the Companies Act 1956
3. Registration is optional Registration is compulsory
4. It has no separate legal existence It has separate legal existence
5. It does not possess continuous existence It has perpetual existence
6. Minimum number of persons required is two Minimum number of persons required is seven (2 in Private company)
7. The liability of partners is unlimited The liability of shareholders is limited
8. All partners can take part in the management All shareholders cannot take part in the management

Question 2.
Discuss the factors that determine the choice of form of organisation.
Answer:
Choice of business organisation
The important factors determining the choice of organization are:-

1. Cost and Ease of formation:-
From the point of view of cost, sole proprietorship is the preferred form as it involves least expenditure and the legal requirements are minimum. Company form of organisation is more complex and involves greater costs.

2. Liability:-
In case of sole proprietorship and partnership firms, the liability of the owners/ partners is unlimited. In cooperative societies and companies, the liability is limited. Hence, from the point of view of investors, the company form of organisation is more suitable as the risk involved is limited.

3. Continuity:
The continuity of sole proprietorship and partnership firms is affected by death, insolvency or insanity of the owners. However, such factors do not affect the continuity of cooperative societies and companies. In case the business needs a permanent structure, company form is more suitable.

4. Management ability:
If the organisation’s operations are complex in nature and require professionalized management, company form of organisation is a better alternative.

5. Capital:
If the scale of operations is large, company form may be suitable whereas for medium and small-sized business one can opt for partnership or sole proprietorship.

6. Degree of control:
If direct control over business and decision making power is required, proprietorship may be preferred. But if the owners do not mind sharing control and decision making, partnership or company form of organisation can be adopted.

7. Nature of business:
If direct personal contact is needed with the customers, Sole proprietorship may be more suitable. Otherwise, the company form of organisation may be adopted.

8 Mark Questions and Answers

Question 1.
Prepare a seminar report on the merits of the Joint Stock Company form of business.
Answer:
Joint Stock company
A company may be defined as a voluntary association of persons having a separate legal entity, with perpetual succession and a common seal. It is an artificial person created by law. The companies in India are governed by the Indian. Companies Act, 1956.

The capital of the company is divided into smaller parts called ‘shares’ which can be transferred freely, (except in a private company). The shareholders are the owners of the company. The company is managed by Board of Directors, elected by shareholders.

Features
1. Incorporated association:
A company is an incorporated association, i.e. Registration of a company is compulsory under the Indian Companies Act, 1956.

2. Separate legal entity:-
A company is an artificial person created by law. Company has a separate legal entity apart from its members. It can enter into contracts, own property, sue and be sued, borrow and lend money etc.

3. Formation:-
The formation of a company is a time consuming, expensive and complicated process.

4. Perpetual succession:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders. Members may come and go, but the company continues to exist.

5. Control:-
The management and control of the affairs of the company is in the hands of Board of directors who are elected the representatives of the shareholders.

6. Liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them.

7. Common seal:
The Company being an artificial person acts through its Board of Directors. All documents issued by the company must be authenticated by the company seal.

8. Transferability of shares:-
Shares of a joint-stock company are freely transferable except in case of a private company.

Merits

1. Limited liability:- The liability of the shareholders is limited to the extent of the face value of shares held by them. This reduces the degree of risk borne by an investor.
2. Transferability of shares:- Shares of a public company are freely transferable. It provides liquidity to the investor.z
3. Perpetual existence:- A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders.
4. Scope for expansion:- A company has large financial resources. So it can start business on a large scale.
5. Professional management: A company can afford to pay higher salaries to specialists and professionals. This leads to greater efficiency in the company’s operations.
6. Public confidence:- A company must publish its audited annual accounts. So it enjoys public confidence.

Limitations

1. Difficulty information:-
The formation of a company is very difficult. It requires greater time, effort and extensive knowledge of legal requirements.

2. Lack of secrecy:-
It is very difficult to maintain secrecy in case of a public company, a  company is required to publish its annual accounts and reports.

3. Impersonal work:-
It is difficult for the owners and top management to maintain personal contact with the employees, customers and creditors.

4. Numerous regulations:-
The functioning of a company is subject to many legal provisions and compulsions. This reduces the freedom of operations of a company.

5 Delay in decision making:-
A company takes important decisions by holding company meetings. It requires a lot of time.

6. Oligarchic management:-
Theoretically a company is democratically managed but actually it is managed by few people, i.e board of directors. The Board of Directors enjoy considerable freedom in exercising their power which they sometimes ignore the interest of the shareholders.

7. Conflict in interests:-
There may be a conflict of interest amongst various stakeholders of a company. It affects the smooth functioning of the company.

8. Lack of motivation:-
The company is managed by a board of directors. They have little interest to protect the interest of the company.

Types of Companies
A company can be either a private or a public company.

Question 2.
Mrs.Sheela is running a Ladies Beauty Parlour in Calicut City. She is the owner, manager and labourer of her business.
a) What form of organisation Mrs.Sheela owns.

b) State its merits and demerits.
Answer:
a) Sole Proprietorship

(b) Sole proprietorship:
Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is the most common form of business organization.

Features

1. The sole trader is the single owner and manager of the business.
2. The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.
3. The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay the business liabilities.
4. The entire profit of the sole trading business goes to the sole proprietor. If there is any loss it is also to be borne by the sole proprietor alone.
5. The sole trader has full control over the affairs of the business. So he can take quick decisions.
6. A sole trading concern has no legal existence separate from its owner.
7. The death, insolvency etc. of a sole trader causes discontinuity of business.

Merits

1. Easy formation:-
The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.

2. Quick Decision:
The sole trader has full control over the affairs of the business. So he can take quick decisions and prompt actions in all business matters.

3. Motivation:
The entire profit of the sole trading business goes to the sole proprietor. It motivates him to work hard.

4. Secrecy:
A sole trader can keep all the information related to business operations and he is not bound to publish the firm’s accounts.

5. Close Personal Relation :
The sole proprietor can maintain good personal contact with the customers and employees and thus, business runs smoothly.

Limitations
1. Limited capital:
A sole trader can start business only on a small scale because of limited capital.

2. Lack of Continuity:
Death, insolvency or illness of a proprietor affects the business and can lead to its closure.

3. Limited managerial ability:
A sole proprietor may not be an expert in every aspect of management.

4. Unlimited liability:
The liability of a sole trader is unlimited, i.e. in case of loss, his personal properties can be used to pay off the business liabilities.

5. Suitability:
Sole proprietorship is suitable in the following cases.

• Where the market is limited, localized and customers demand personalized services. Eg. tailoring, beauty parlour etc.
• Where goods are unstandardised like artistic jewellery.
• Where lower capital, limited risk & limited managerial skills are required as in case of retail store.

Question 3.
Mr.Firoz, a graduate wants to start a business but on certain conditions –

1. He does not want to go through a lot of legal formalities.
2. He does not care to have unlimited liability.
3. He does not bother admitting partners in his business.

• Considering these factors, suggest a form of business suitable to Mr.Firoz.
• Explain its merits and demerits.

Answer:

1. Partnership
2. Partnership
   The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Features
1. Formation:-
For the formation of a partnership, agreement between partners is essential.

2. Liability:-
The partners of a firm have unlimited liability. The partners are jointly and individually liable for the payment of debts.

3. Risk bearing:
The profit or loss shall be shared among the partners equally or in agreed ratio.

4. Decision making and control:-
The activities of a partnership firm are managed through the joint efforts of all the partners.

5. Lack of Continuity:-
The retirement, death, insolvency, insanity etc of any partner brings the firm to an end.

6. Membership:-
There must be at least two persons to form a partnership. The maximum number of persons is ten in the banking business and twenty in non-banking business.

7. Mutual agency:-
In partnership, every partner is both an agent and a principal.

Merits of Partnership

1. Easy formation and closure:-
A partnership firm can be formed and closed easily without any legal formalities.

2. Balanced decision making:-
In partnership, decisions are taken by all partners. So they can take better decisions regarding their business.

3. Division of labour:-
Division of labour is possible in partnership firm. Duties can be assigned to different partners according to their ability.

4. Large funds:-
In a partnership, the capital is contributed by a number of partners. So they can start business on a large scale.

5. Sharing of risk:-
The risks involved in running a partnership firm are shared by all the partners. This reduces the anxiety, burden and stress on individual partners.

6. Secrecy:-
A partnership firm is not legally required to publish its accounts and submit its reports. Hence it can maintain confidentiality of information relating to its operations.

Limitations of Partnership

1. Unlimited liability:-
The partners of a firm have unlimited liability. The partners are jointly and individually liable for the payment of debts.

2. Limited resources:-
There is a restriction on the number of partners. Hence capital contributed by them is also limited.

3. Possibility of conflicts:-
Lack of mutual understanding and co-operation among partners may affect the smooth working of the partnership business.

4. Lack of continuity:-
The retirement, death, insolvency, insanity etc of any partner brings the firm to an end.

5. Lack of public confidence:-
A partnership firm is not legally required to publish its financial reports. As a result, the confidence of the public in partnership firms is generally low.

Question 4.
“A Company is an artificial person created by law”. Based on the above statement, explain the features of a Joint Stock Company.
Answer:
Joint Stock company
A company may be defined as a voluntary association of persons having a separate legal entity, with perpetual succession and a common seal. It is an artificial person created by law. The companies in India are governed by the Indian. Companies Act, 1956.

The capital of the company is divided into smaller parts called ‘shares’ which can be transferred freely, (except in a private company). The shareholders are the owners of the company. The company is managed by Board of Directors, elected by shareholders.

Features
1. Incorporated association:
A company is an incorporated association, i.e. Registration of a company is compulsory under the Indian Companies Act, 1956.

2. Separate legal entity:-
A company is an artificial person created by law. Company has a separate legal entity apart from its members. It can enter into contracts, own property, sue and be sued, borrow and lend money etc.

3. Formation:-
The formation of a company is a time consuming, expensive and complicated process.

4. Perpetual succession:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders. Members may come and go, but the company continues to exist.

5. Control:-
The management and control of the affairs of the company is in the hands of Board of directors who are elected the representatives of the shareholders.

6. Liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them.

7. Common seal:
The Company being an artificial person acts through its Board of Directors. All documents issued by the company must be authenticated by the company seal.

8. Transferability of shares:-
Shares of a joint-stock company are freely transferable except in case of a private company.

Merits

1. Limited liability:-
The liability of the shareholders is limited to the extent of the face value of shares held by them. This reduces the degree of risk borne by an investor.

2. Transferability of shares:-
Shares of a public company are freely transferable. It provides liquidity to the investor.

3. Perpetual existence:-
A company has a continuous existence. Its existence not affected by death, insolvency or insanity of shareholders.

4. Scope for expansion:-
A company has large financial resources. So it can start business on a large scale.

5. Professional management:
A company can afford to pay higher salaries to specialists and professionals. This leads to greater efficiency in the company’s operations.

6. Public confidence:-
A company must publish its audited annual accounts. So it enjoys public confidence.

Limitations

1. Difficulty information:-
The formation of a company is very difficult. It requires greater time, effort and extensive knowledge of legal requirements.

2. Lack of secrecy:-
It is very difficult to maintain secrecy in case of public company, as a company is required to publish its annual accounts and reports.

3. Impersonal work:-
It is difficult for the owners and top management to maintain personal contact with the employees, customers and creditors.

4. Numerous regulations:-
The functioning of a company is subject to many legal provisions and compulsions. This reduces the freedom of operations of a company.

5 Delay in decision making:-
A company takes important decisions by holding company meetings. It requires a lot of time.

6. Oligarchic management:-
Theoretically a company is democratically managed but actually it is managed by few people, i.e board of directors. The Board of Directors enjoy considerable freedom in exercising their power which they sometimes ignore the interest of the shareholders.

7. Conflict in interests:-
There may be a conflict of interest amongst various stakeholders of a company. It affects the smooth functioning of the company.

8. Lack of motivation:-
The company is managed by a board of directors. They have little interest to protect the interest of the company.

Types of Companies
A company can be either a private or a public company.

Question 5.
Briefly, explain different types of co-operative society.
Answer:
Types of co-operative society
1. Consumer’s cooperative societies:-
The consumer cooperative societies are formed to protect the interests of consumers. The society aims at eliminating middlemen to achieve economy in operations. It purchases goods in bulk directly from the wholesalers and sells goods to the members at the lowest price.

2. Producer’s cooperative societies:-
These societies are set up to protect the interest of small producers. It supplies raw materials, equipment and other inputs to the members and also buys their output for sale.

3. Marketing cooperative societies:-
Such societies are established to help small producers in selling their Products. It collects the output of individual members and sell them at the best possible price. Profits are distributed to members.

4. Farmer’s cooperative societies:-
These societies . are established to protect the interests of farmers by providing better inputs at a reasonable cost. Such societies provide better quality seeds, fertilisers, machinery and other modern techniques for use in the cultivation of crops.

5. Credit cooperative societies:-
Credit cooperative societies are established for providing easy credit on reasonable terms to the members. Such societies provide loans to members at low rates of interest.