Maharashtra HSC Board :
Organization Of Commerce And Management (51):
(Q.P. SEPTEMBER 2021 with Solution)
Note: (i) All questions are compulsory
(ii) Figures to the right indicate full marks for the questions.
(iii) Figures to the left indicate question numbers.
(iv) Answer to every question must be started on a new page.
Q1 . (A) Select the correct option and rewrite sentence: (5)[20]
(1)The process of contracting business functions to someone else is called as __________ (Ch. 5)
(a) outsourcing
(b) trading
(c) e-business
(2)The President of District Commission is _________ (Ch. 7)
(a) District Judge
(b) High Court Judge
(c) Supreme Court Judge
(3) ________ is regarded as Father of Scientific management. (Ch. 1)
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler
(4) Principle of ________ is not applicable to life insurance. (Ch. 4)
(a) insurable interest
(b) utmost good faith
(c) indemnity
(5) In modern competitive market, consumer is regarded as the ________ (Ch. 7)
(a) king
(b) agent
(c) owner
(B) Match the pairs: (5)
|
Group A |
Group B |
|
(a) Directing
(Ch. 2) |
(1) Tangible
in nature |
|
(b) Business
Services (Ch. 4) |
(2) Exists
everywhere |
|
(c) Digital
cash (Ch. 5) |
(3) It is the
process of instructing guiding, communicating and motivating, |
|
(d)
Responsibility towards investors (Ch. 6) |
(4) Job
security |
|
(e) Digital
marketing (Ch. 8) |
(5) Use of
digital media |
|
|
(6)
Intangible in nature |
|
|
(7) Exists
only in cyberspace |
|
|
(8) Use of
traditional media |
|
|
(9) Return on
investment |
|
|
(10) It is
the process of recruiting, placing and remunerating |
(C) Write a word/phrase/term which can substitute the following statements: (5)
(1) A place where the goods and services are bought and sold. (Ch.8)
Ans: Market
(2) A person who is self employed, an innovator who introduces new combination of means of production. (Ch. 3)
Ans: Entrepreneur
(3) Warehouse in which perishable goods are stored. (Ch. 4)
Ans; cold storage warehouse
(4) The first step in Online transaction. (Ch. 5)
Ans: Registration
(5) Earning foreign exchange is the responsibility of the organisation towards this group. (Ch. 6)
Ans: government
(D) Find and write the odd one among the following: (5)
(1) Endowment policy, Whole life policy, Money back policy, Blanket policy. (Ch. 4)
Ans: Blanket policy
(2) Job security, Health and safety measures, Reasonable profit, Good working condition. (Ch. 6)
Ans: Reasonable profit
(3) District commission, State commission, NGO, National commission. (Ch. 7)
Ans: NGO
(4) Selecting, Training. Co-ordinating, Placing. (Ch. 2)
Ans: Co-ordinating
(5) Price, People, Promotion, Product. (Ch. 8)
Ans: People
Q.2. Explain the following terms/ concepts (Any FOUR): (8)
(1) E-business (Ch. 5)
Ans:
The term 'E-business' i.e electronic business is derived form the terms e-mail and e-commerce.
E- business or electronic business, is the administration of conducting business via the internet.
This would include the buying and selling of goods or services, along with providing technical or customer support through the internet.
The concept of E-business emerged when IBM coined the term in late 90's. The purpose was to provide buyers a platform on the internet to buy and sell goods.
(2) Staffing (Ch. 2)
Staffing is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce. Overall growth and success of every venture is based on appropriateness of staffing function. It is very challenging for organization to focus on best utilization of workforce by using their talents and skills, retaining them and arranging training and development programmes. The function emphasizes managing human and not material or financial resources.
The need of staffing arises since the initial period of organization. Due to promotion, transfer, business expansion, retirement, resignation, accidents, death of employee etc. vacancies are created in organization. In this context, staffing function plays very important role in organization. Right person at right job with right pay is the basic principle of staffing
(3) Outsourcing (Ch. 5)
Ans:
Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry etc. are outsourced by the company. The company makes a formal agreement with the agency.
The agency can send the required manpower to the company. The agency charges the company for their services. With the help of outsourcing, company can focus on their core areas.
Meaning / Concept :
Outsourcing is the process of contracting some business functions to specialised agencies. The company benefits in two ways.
1. It reduces its own cost
2. It uses the expertise of the firm which specialises in a particular kind of service.
Examples of outsourcing - The establishments such as shops, malls, housing societies, offices etc. outsource facilities like canteen, sanitation , security etc. In the same way arrangements for wedding, anniversary, birthday celebration can also be outsourced.
(4) Banking (Ch. 4)
The term Bank comes from the French word 'Banco' which means a 'bench'. In earlier days, money-lenders used to display coins of different currencies in big heaps or benches or tables for the purpose of lending or exchanging.
A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers
(5) Lok Adalat (Ch. 7)
Lok adalat is the effective and economical system for quick redressal of the public grievances.
It can also be referred to as 'People's Court'. It is established by the government to settle disputes by compromise.
The aggrieved party can directly approach the adalat with grievance, and issues are discussed on the spot and decisions are taken immediately. Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC, Railway authority, Insurance Companies, Banks etc. organize regular Lok Adalat.
(6) Mental Revolution (Ch. 1)
Taylor introduced the concept of "Mental Revolution". This principle focuses on change in the attitude of employees and management towards each other. Both should realize their equal importance in organization. They should give full cooperation for achieving goal of organization. This will increase productivity and profits.
Q.3. Study the following case/ situation and express your opinion (Any TWO):
(1) Mr. Ram, an emerging entrepreneur has designed a structure of his business organisation by taking into consideration the required resources such as land, money, machinery, workforce, etc. for his new business. He has appointed Mr. Shyam as manager. Mr. Ram has assigned the responsibilities such as recruitment, selection, training and development and to determine the remuneration of the employees to Mr. Shyam. Mr. Ram has also appointed Mr. Shubham to supervise the work done by the employees according to the standards given to the employees. Mr. Shubham also has to suggest the remedies to the employees wherever necessary.
In this context, find out the management functions performed by:
(a) Mr. Ram
(b) Mr. Shyam
(c) Mr. Shubham. (Ch. 2)
(2) An organisation manufacturing paint has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank which has created many health problems for the nearby villages.
(a) Which responsibility is neglected by the paint manufacturing company?
(b) What kind of pollution are they creating?
(c) Mention any one precautionary measure they need to take. (Ch. 6)
(3) Mr. Ved made his payment by cheque. At the same time Mr. Shlok made his payment by fund transfer. In this situation:
(a) Whose payment is faster?
(b) Whose payment is related to traditional business?
(c) Whose payment is related to e-business? (Ch. 5)
(b) Whose payment is related to traditional business?
(c) Whose payment is related to e-business? (Ch. 5)
Q.4 Distinguish between the following (Any THREE): [12]
(1) Planning and Controlling (Ch. 2)
(2) Life Insurance and Fire Insurance. (Ch. 4)
(3) State Commission and National Commission. (Ch. 7)
(4) Commercial Bank and Central Bank. (Ch. 4)
Q.5 Answer in brief (Any TWO):
(1) Explain the characteristics of an Entrepreneur. (Ch. 3)
Entrepreneurs have some special characteristics like creative thinking, imagination, enthusiasm, sincerity etc. The characteristics of an entrepreneur may be briefly stated as follows:
1. Intellectual Capabilities: An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyze business situations. This ability will help him to take proper decisions.
2. Future Vision: The entrepreneur has a good foresight about future market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.
3. Hard Work: An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work for long hours. Many a times he has to handle the main areas of business independently. This will make him successful.
4. Technical Knowledge: An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.
5. Communication Skills: An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc. He must be able to express his ideas and strategies effectively. It is necessary that there is a proper understanding between the sender and the receiver of the message.
6. Highly Optimistic: An entrepreneur has to always think positively. He is always hopeful and confident about the market situations even in failure times. Such positive attitude helps him to run his business successfully.
7. Risk bearing capacity : Successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.
8. Self Confidence: An entrepreneur has self-confidence. He has positive desires to achieve his goals. Such self motivation keeps him strong and confident to face various obstacles.
(2) Explain any four right of consumers. (Ch. 7)
1. Right to Safety: This right protects consumers against products, production processes and services which are hazardous to health or life. It includes concern for consumer's long-term interests as well as their immediate requirements. According to this right, consumer must get full safety and protection to his life and health. This safety should be in relation to medicines, electrical appliances, food etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark etc
2. Right to Information: According to this right, consumer should be provided with adequate information about all aspects of goods and services like price, name of manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety in struction etc. This right also enables consumer to select right product or service. It is applicable to food products, medicines, spare parts or any other consumer products or services
3. Right to Choose: The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast moving consumer goods(FMCG) etc. According to this right, consumer should be given full freedom to select an article as per his requirement, liking and purchasing capacity. The right to choose is related to the concept of free market economy. As per this right, the seller cannot compel consumer to buy particular product and hence monopoly is prevented.
4. Right to be heard: Every business organization should listen and solve the complaints of consumers. According to this right, consumers have opportunity to voice their complaint to the consumer forum. Consumers also give suggestions to manufacturer or trader on certain matters such as quality, quantity, price, packaging etc. Now a days, consumers can file online complaints through portal or mobile applications.
5. Right to Consumer Education: Every consumer has the right to know about consumer rights and solutions to their problems. This right creates consumer awareness. An aware consumer can make rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern. It is necessary to give education and training regarding prevailing acts and legal process es. The government, media and NGOs play vital roles in this regard. E.g. 'Jago Grahak Jago' campaign.
6. Right to Represent: The act provides an opportunity to individuals and consumer groups to represent consumer’s interest before consumer forum. The act allows the consumer to be rep resented by a person who is not a professional advocate. This provision is in recognition of consumer's right to represent.
7. Right to Redress: Along with the right to represent, right of redressal is also given. Only filing of complaint is not enough to give justice to consumers, so this right implies fair settlement of claims. This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services. According to consumer protection Act, three tier quasi judicial consumer dispute redressal machinery is established for settlement of claims such as District Commission at District level, State Commission at state level and National Commission at national level. Consumers are protected from business malpractices.
8. Right to Healthy Environment: All consumers have a right to healthy and clean environment. According to this right, consumer can demand actions against the pollution causing business organisations. All consumers have the right to healthy and clean environment in present and future
9. Right to Protect from unfair business practices: As per this right all consumers are protect ed against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration etc.
10) Right against spurious goods: This right is against the marketing of goods which are hazardous to health, spurious and pose a danger to life itself.
(3) State social responsibilities of business towards employees. (Ch. 6)
Employees are human resource to the organisation. They must be treated with dignity and respect. The management and employees should develop mutual understanding and trust. Government has passed various labour laws to safeguard the interest of employees. Business has following responsibility towards employees
1. Job security: Security of job provides mental peace and employees can work with full dedication and concentration. Commitment with the work will raise their morale and loyalty towards the organisation.
2. Fair Remuneration: The business should pay attractive salaries to all their employees. Other incentives like bonus, overtime allowance etc. should be given to them. Remuneration should be fixed according to the nature of work. Suitable wage plans providing increments and revision of wages is also essential.
3. Health and safety Measures: Business should protect health and hygiene of employees. Canteen facilities, medical facilities and proper sanitation must be provided to the workers. Proper maintenance of machines and premises must be done to prevent accidents and to control pollution. Safety equipment like hand gloves, safety shoes, helmets, goggle, masks etc. should be provided to concerned employees.
4. Good Working Condition: The employees should be provided with good working conditions such as adequate lighting, ventilation, drinking water etc. Necessary steps should be taken to avoid air, water and sound pollution. There should be proper working hours with lunch breaks and rest pauses etc.
5. Recognition of Trade Unions: It is the responsibility of business organisation to maintain industrial peace. Employer must recognize the workers' right to join trade union. Employer should not restrict employees from forming trade union. 'Divide and Rule' policy should not be followed. Management should sort out various problems of workers by holding talks or negotiations with such unions. Management and union should agree to ban strikes and lockouts to protect interest of both the parties.
6. Education and Training: Organisation should make every possible attempt to educate employees. Guidance and methods of training depend on the nature of job. 'Introduction Training', 'Refresher Training' is conducted to keep employees updated on the latest development. Training makes employees confident and also it increases their efficiency
7. Workers Participation in Management: The workers must be encouraged to take part in management by forming workers committee. Suggestion schemes, profit sharing can be encouraged by management. It will raise their morale and give them a sense of belonging
8. Promotion and Career Opportunities. Business should offer adequate opportunities of promotion to their talented employees. They should give proper information about qualifications, skills and experience required to obtain promotion. It will increase awareness among employees and they will also be motivated to take efforts.
9. Proper Grievance Procedure: There should be proper grievance procedure to handle employees' complaints. All queries should be sorted quickly. The employees must feel satisfied. Investigations and necessary actions should be taken to settle their grievances.
Q.6. Justify the following statements (Any TWO):
(1) Principle of management are flexible in nature. (Ch. 1)
Management principles are flexible in nature. It means they can be changed or modified according to the situation. Managers can be flexible while implementing principles to suit the requirement. The business situations keep on changing. Management principles can be adjusted or modified and can be used in the organisation according to its need.
(2) Planning is the basic function of management. (Ch. 2)
Planning is the basic function of management. Every function of management is based on planning. It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision making. It focuses on organization's objectives and develops various courses of action. Designing a proper planning and implementing accordingly is the key of achieving the objectives of an organization.
Planning is the basic function of management. It is a process of decision making which involves promotion of innovative ideas after critical thinking. Ultimately, these innovative plans result into attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the organization.
(3) The Consumer Protection Act was passed in the interest of consumers. (Ch. 7)
1. Good Quality Products:
The organization should produce quality goods. Every organization should have its quality control department so inferior and substandard products can be rejected. International Stand ard Organization (ISO), is the latest trend towards quality control. This ensures customers about quality product.
2. Fair Prices:
The consumers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Fair prices convert a one time consumer into permanent consumer. Maximum Retail Price (M.R.P.) inclusive of all taxes should be printed on every packet. Re tailer should not charge any extra amount.
3. Customer's Safety:
The business must ensure that the product supplied will not adversely affect the life and health of the customers. Unsafe products should not be marketed. Consumer should be warned of any unsafe goods.
4. Honest Advertising:
The consumers want to know the facts, features, advantages, side-effects etc. of the products. The advertisement conveys this information. So the organization must be sure that the advertisement is not being misleading. False, misleading and vulgar advertisement should be avoided. Consumers will appreciate only honest advertisements in the long run.
5. After Sales Service:
The organization is expected to provide after sales service for maintenance of goods during the period of warranty. Efficient and effective after sale service helps to establish good relation between the consumers and the organisation.
6. Research and Development:
Organization should conduct research and development to improve the quality of goods and to reduce the cost of production. This will minimize final prices charged to consumers. It must provide quality standards such as BIS or AGMARK on respective products.
(4) Marketing is significant to the consumers. (Ch. 8)
1/ Promotes Product Awareness:
Through different marketing activities companies promote their products and services. This helps consumers to know about different products and services available in the market. It helps the consumer in making buying decision. It also creates awareness among the consumers about different brands and features of the product available in the market. Consumer can com pare product features, price, availability and other essentials because of marketing. Marketing helps to improve the quality of life of the consumer.
2. Provides Quality Products
There is increasing competition in the market. Consumers are getting easy access to the infor mation about the products and services available in the market. It creates moral pressure on the businesses to provide quality goods to the consumers. Supplying defective products may create negative image of the business which affects the consumer's loyalty.
3. Provides Variety of Products
Marketing creates awareness among the consumers about the product. At the same time, it attracts the consumers to buy the same. With the customer population and preferences becoming wider, and the competitive options becoming more available, market segmentation has become critical in any business or marketing plan. In fact, business launch products keeping the market segmentation in mind. Businessman needs to provide variety of goods to cater to the needs of the different market segments of the consumers. Variety may change according to the price, size and quality of the product.
4. Helps in Selection
Variety of products with different brands are available in the competitive markets. Market ing helps the consumer to choose the best products and services from the different options available.
5. Consumer Satisfaction
The first and foremost objective of any sound marketing policy is to satisfy the consumers by assurance of good quality product. When an offering meets the customer's expectations, the customer is satisfied. Marketing leads to consumer satisfaction through honest advertising, assurance of quality products and availability of innovative products. Thus, marketing takes every effort to satisfy the consumer.
6. Regular supply of goods:
Through efficient distribution channel of marketing regular supply of goods is possible. It helps to maintain the balance between demand and supply. It results into stable prices
Q.7. Attempt the following (Any TWO): [10]
(1) Explain any five principles of management given by Henry Fayol. (Ch. 1)
1. Principle of Division of Work:
According to this principle, the work is divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. It is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity level.
2. Principle of Authority and Responsibility:
Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authorities to take managerial decision on his own in respect to the goal.
3. Principle of Discipline:
According to Fayol, discipline is the most essential thing in the organisation. Employees must obey and respect the rules that govern the organisation. Discipline helps to achieve the goals in the organisation. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organisation's rules. Basic discipline should be observed at all levels of management.
4. Principle of Unity of Command:
Each member of organization should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and will not be able to take decision about whose orders should be followed. This is wrong approach. For this organizational hierarchy should be well defined. Each em ployee should know his immediate superior and should receive orders from him only.
5. Principle of Unity of Direction:
This principle states that 'there should be one head and one plan' in every organization. Each group in the organization should have the same objective and the group should be directed by one manager using single plan.
6. Principle of Subordination of Individual Interest to Organisational Interest:
According to this principle the interest of an individual must be given less importance than the interest of the organisation. While taking decision in the organisation the manager should always consider the interest of the whole group rather than the interest of a single employee. Similarly the employee should protect the interest of the organisation first and his personal interest should be subordinated. For example, in every game, the players are always thinking about winning the match as a team rather than their individual records.
7. Principle of Centralization:
Centralization refers to the concentration of powers and authorities. In some organisations this power is vested in one hand or few hands. This situation occurs in the small organisations. But, if the size of organisation is large then there is a decentralization of the power or authority. According to this principle there must be a proper balance between centralization and decentralization in the organisation. This is to be done according to the size of the organisation, nature of the activity etc.
8. Principle of Remuneration:
Appropriate remuneration to staff or employees is the principle to keep them satisfied financially as well as retain them for long span of time within the organization. The fair remuneration affects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organization etc.
9. Principle of Scalar Chain:
Scalar chain means the hierarchy of authority from the top level to the lower level for the purpose of communication. This helps to ensure the orderly flow of information and communication. Traditionally, organizations used to frame large scalar chain which is time consuming. For example, a General Manager informs the decision to respective Functional Manager, then Functional Manager will pass it to supervisor, the supervisor will inform it to Foreman and so on according to level of authority. For avoiding this longer chain and to take speedy decisions cross communication or direct communication is followed by various organizations which is known as Gang Plank. For direct communication, proper permission of the authorities is necessary.
In the above diagram, the communication between 'D' and 'G' should flow through proper hierarchy. But to avoid delay or in emergency situation there will be direct communication. It is termed as Gang Plank.
10, Principle of Order:
This principle is based on 'A place for everything and everything in its place'. Human resources and materials should be in the right place at the right time for maximum efficiency. Human resources should be placed at right place and on right job. The principle focuses on the proper utilization of physical and human resources.
11. Principle of Equity:
Management should be fair as well as friendly to the subordinates. While dividing the work, delegating the authorities, deciding the monetary terms etc.. there should not be any discrimination between the employees. It is also suggested that the remuneration should not depend on the department but at the level on which subordinates are working. The employees working on the same level but in different departments should be paid same wages. This equity will help in avoiding conflicts in the organisation.
12. Principle of Stability of Tenure:
At the time of recruitment of employees, the management should assure them about stability of tenure or job security. It plays very important role in creating sense of belongingness among the employees. Insecurity in job always affect the efficiency of employees adversely whereas job security minimizes employee turnover ratio
13. Principle of Initiative:
Initiative refers to volunteering to do the work in an innovative way. The freedom to think and work on new ideas encourages employees to take initiative while working on given task. This initiative should be welcomed by the manager through discussion on the new ideas. It also helps in creating healthy organizational culture.
14. Principle of Esprit de corps: (Team work)
Henry Fayol has given emphasis on team work. Esprit de corps means union is strength. Running any organization is a group activity and human resources are the valuable asset of the organization. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore, as a leader, manager should create a spirit of team work and understanding among employees to achieve organizational goal easily.
(2) Explain the importance of marketing towards the society. (Ch. 8)
(3) State the functions of warehouses. (Ch.4)
Meaning:
Warehousing refers to storage of goods and consists of all those activities which are connected with storage and preserving of goods. It is a means of storing the goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production till the time of consumption.
Definition:
A warehouse is defined as "an establishment for the storage or accumulation of goods."
Functions of Warehouses:
1) Storage:
This is the basic function of warehousing. Surplus commodities which are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.
2) Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. In warehouses, usually large stock of goods is kept.
Whenever, there is shortage in the market, goods can be immediately supplied through warehouses, which helps in price stabilization to avoid rise in price due to demand and supply difference.
3) Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, fire etc. Warehouses are constructed in such a way that they minimise these risks. A warehouse keeper has to take the reasonable care of the goods and safeguard them against various risks. For any loss or damage sustained by goods, warehouse keeper shall be liable to the owner of the goods.
4) Financing:
Loans can be raised from the warehouse keeper or from financial institutions against the goods stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.
5) Grading and Packing:
Warehouses now-a-days provide the facilities of packing, processing and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.
6) Transportation:
Warehouses can provide transportation facility to bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on the request of the owner.
7) Time and Place Utility:
Warehouses create time utility by preserving the goods till they are demanded. It also creates place utility by providing the goods at the place, where they are required.
8) Processing:
Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. e.g. Paddy is polished, fruits are ripened etc. Sometimes warehouses undertake such activities on behalf of the owners.
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: (Q.P. SEPTEMBER 2021 with Solution)){kind=link}
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