The activities which facilitate or assist or support the business activities are called business services.
- Difference between goods and services
|Nature||An activity or process.||A physical object.|
|Inconsistency||Different customers having different requirements.||Different customers having standard requirements.|
|Inseparability||Simultaneous production and consumption||Separation of production and consumption|
- Types of Services
|Business Services||Social Services||Personal Services|
|Used by business enterprises for the conduct of their activities||Provided voluntarily in pursuit of certain social goals||They are experienced differently by different customers|
|Eg. Banking, insurance, transportation||Eg. Health care and education services provided by certain Non-government organisations||Eg. Tourism, recreational services|
|Type of Banks||Functions of commercial banks||E-banking and its benefits|
They accept deposits from public
|Acceptance of deposits||It means banking through internet.|
|Cooperative Banks: They are meant for providing cheap credit to its members.||Lending of funds||Benefits :
· 24 X 7 services
· Transactions from office or house or while travelling
· Financial discipline
· Greater customer satisfaction
· Competitive advantage to bank
· Unlimited network
· Load on the branches reduced
|Specialised Banks: They provide financial aid to industries.||Cheque facility|
|Central bank: It supervises, controls and regulates the activities of all the commercial banks .
|Remittance of funds|
It is a contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event.
|Functions of Insurance||Principles of Insurance||Types of insurance|
|Provides certainity of payment for the risk of loss.||Utmost good faith: It is the duty of the insured
to voluntarily make full, accurate disclosure of all facts
|Life insurance: Provides protection against uncertainity of life.|
|Provides protection from probable chances of loss.||Insurable Interest: The insured must have an insurable interest in the subject matter of insurance.||Fire insurance: Provides protection against risk of fire.|
|The loss is shared by all the persons exposed to it||Indemnity: The insurer undertakes to put the insured, in the event of loss, in the same position that he occupied immediately before the happening of the event.||Marine insurance: Provides protection against marine losses
|Assist in capital formation||Proximate Cause: An insurance policy is designed to provide compensation only
for such losses as are caused by the perils which are stated in the policy.
|Subrogation: It refers to the right of the insurer to stand in the place of the insured, after settlement of a claim.|
|Contribution: It is the right of an insurer who has paid
claim under an insurance, to call upon other liable insurers to contribute for the loss of payment.
|Mitigation: It is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property.|
Communication services are helpful to the business for establishing links with the outside world viz., suppliers, customers, competitors etc.
- Types of communication services
|Financial facilities Eg. PPF, NSCs||Mobile telecom services|
|Mail facilities Eg. Parcel facilities, greeting post etc.||Radio paging services|
It means storing goods for future use.
|Types of warehouses||Functions of warehousing|
|Private warehouses: Owned and managed by big business houses||Facilitates storage|
|Public warehouses: Owned and managed by anybody under the license granted by the govt.||Stabilises prices|
|Cooperative warehouses: Owned , managed and controlled by the cooperative undertakings||Transfers risk|
|Government warehouses: Owned and managed by central or state govt. or public corporation or local authorities.||Facilitates financing|
|Bonded warehouses: Keep the goods in bond before payment of duty. May be owned privately or by govt.||Breaking the bulk|
Business services: Auxiliaries to trade.
Banking: It refers to accepting deposits from the public for the purpose of lending and investment.
Communication services: helps in maintaining a link with the outside world.
E-banking: Banking on the internet.
Insurance: A device by which loss is shared between persons.