Business Services Class 11 Notes: CBSE 11th Business Studies Chapter 4, Download PDF

CBSE Class 11 Business Services Notes: This article hands out handwritten revision notes for CBSE Class 11 Business Studies Chapter 4, Business Services. It has been prepared as per the updated CBSE Syllabus 2023-2024.

Business Services Class 11 Notes: Jagran Josh brings to you handwritten revision notes for CBSE Class 11 Business Studies Chapter 4, Business Services. A PDF download link has also been attached here, for the same. Students can also find important resources for the preparation for the annual examinations in 2024. These revision notes have been prepared as per the updated CBSE Syllabus 2023-2024, updated Sample paper, and fresh guidelines.

Revision notes are prepared to make revision easy and less time-consuming. Making revision notes also helps students remember the knowledge gained for a longer duration of time. At the same time, it also creates less panic and reduces stress during examinations. Experts advise students to make notes while studying. Preparing notes as per your understanding can help you revise quickly and gather information in a lot easier way, especially during examinations. But, given the busy and scheduled life that people follow nowadays, students don’t get much time to prepare revision notes for every chapter of the subject. Thus, to assist you in your academic journey, we have brought to you revision notes for all chapters of Business Studies, references to which are presented below.

Related:

Revision Notes for CBSE Class 11 Business Studies Chapter 1

Revision Notes for CBSE Class 11 Business Studies Chapter 2

Revision Notes for CBSE Class 11 Business Studies Chapter 3

Mind Maps for CBSE Class 11 Business Studies 2023-2024(PDF)

MCQs for CBSE Class 11 Business Studies 2023-2024(PDF)

Revision Notes for CBSE Class 11 Business Studies Chapter 4 are presented below:

What is a Service?

Services are intangible economic activities performed to achieve certain needs and do not necessarily have to be associated with the selling of a product. Example: receiving advice from doctors.

Nature of Services

• Services are intangible, they can’t be touched.
• Services are inconsistent since they are intangible, they have to be exclusively performed for people as per their needs.
• It is inseparable from production and consumption because it takes place unknowingly.
• Since they are intangible they can’t be stored for long enough and thus possess less inventory.
• High involvement of the customer.

Differences between goods and services

 Types of Services

• Business Services- Services used by businesses for the conduct of their activities are business services. For example, banking, insurance, transportation, warehousing, and communication services.
• Social Services– Services offered in pursuit of social goals are called social services. For example, health care and education services are provided by certain Non-government Organisations (NGOs) and government agencies.
• Personal Services– These services are different in the nature of the experience of their customers.For example, tourism, recreational services, restaurants

 What is Banking?

Banking means accepting, for the purpose of lending and investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheques, draft, order, or otherwise. A bank accepts money on deposits, is repayable on demand, and also earns a margin of profit by lending money.

Types of Banks

Banks can be classified into four types:

• Commercial Banks– They are institutions that deal in money. For them, banking means accepting deposits from people and lending on investment. They are governed by the Indian Banking Regulation Act, of 1949. There are two types of commercial banks: public sector and private sector.
• Cooperative Banks– They are governed by the provisions of the State Cooperative Societies Act and are meant essentially for providing cheap credit to their members.
• Specialised Banks– These banks provide financial aid to industries, heavy turnkey projects, and foreign trade. Banks such as foreign exchange banks, industrial banks, development banks, and export-import banks cater to the specific needs of these unique activities.
• Central Bank– The Central bank of any country supervises, controls, and regulates the activities of all the commercial banks of that country. RBI is the central bank in India.

Functions of Commercial Banks

• Acceptance of deposits
• Lending of funds
• Cheque facility
• Remittance of funds
• Allied services

What is e-banking?

Performing any virtual banking functions and availing any of the bank’s services by connecting to the bank’s website via an internet browser is called e-banking.

Benefits of e-banking:

• Facilitates digital payments and promotes transparency in financial statements.
• Provides service at any time of the day and is available for 365 days.
• Easy transactions via traveling
• Maintains financial discipline since every transaction goes into a transparent record.
• Greater customer satisfaction

 What is insurance?

Insurance is thus a device by which the loss likely to be caused by an uncertain event is spread over a number of persons who are exposed to it and who prepare to insure themselves against such an event.

Functions of Insurance

• Providing certainty
• Protection
• Risk sharing
• Assist in capital formation

Principles of insurance

• Utmost good faith
• Insurable interest
• Indemnity
• Proximate cause
• Subrogation
• Contribution
• Mitigation

Types of Insurance

• Life insurance– A life insurance policy was introduced as a protection against the uncertainty of life. The insurance company undertakes to insure the life of a person in exchange for a sum of money called the premium.
• Fire insurance– Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period up to the amount specified in the policy. Fire insurance can be claimed only when: there is an actual loss and the fire incident was accidental and non-intentional.
• Marine insurance-A marine insurance contract is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. Marine insurance provides protection against loss by marine perils or perils of the sea.

Types of life insurance policies

• Whole-life policy– In this kind of policy, the amount payable to the insured will not be paid before the death of the assured.
• Endowment Life Assurance Policy– The insurer (Insurance Company) undertakes to pay a specified sum when the insured attains a particular age or on his death whichever is earlier.
• Joint Life Policy– This policy is taken up by two or more persons. The premium is paid jointly or by either of them in installments or lump sum.
• Annuity Policy– Under this policy, the assured sum or policy money is payable after the assured attains a certain age in monthly, quarterly, half-yearly, or annual installments.
• Children’s Endowment Policy-This policy is taken by a person for his/her children to meet the expenses of their education or marriage.

Types of Marine Insurance Policies

• Ship or hull insurance– This insurance policy is for indemnifying the insured for losses caused by damage to the ship.
• Cargo insurance-The cargo while being transported by ship is subject to many risks. Thus, an insurance policy can be issued to cover such risks to cargo.
• Freight insurance– Freight insurance is for reimbursing the loss of freight to the shipping company i.e., the insured.

For complete Revision notes of Class 11 Business Studies Chapter 4, click on the link below.

Also find:

CBSE Class 11 Syllabus 2023-24 (All Subjects)

CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)

NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)