Category: HOTs for Class 11

Question. What is Insurance?Answer : Insurance is a contract, embodied by policy, in which an individual or entity receives financial security or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured. Question. What is Banking?Answer : A bank is a financial institution authorized to receive deposits […]

Question. Risk capital is defined as which type of capital?Answer : Risk capital is defined as equity share capital. Question. Give one feature of retained earnings that the other source of finance does not have.Answer : Retained earnings save a portion of the net incomes for future use is retained earnings. The retained earnings have the ability […]

Question. Name the entry mode in which domestic manufacturer gives the right to access to the trademark, technology, and trade secret to a manufacturer is a foreign land.Answer : Licensing is the entry mode or a contractual arrangement when a domestic manufacturer gives the right to access to its trademark, technology, and trade secret to a […]

Question. Note down two categories of trade.Answer : The two categories of trade are.• Wholesale trade• Retail trade Question. Define shops that deal with a specific line product.Answer : Specific line product shops refer to the shops that sell only one specific and not different type of items. These types of shop are located in […]

Question. If a manufacturing company invested Rs.24 lakhs and now wants to invest more. What type of small business will it become?Answer : It will become a small type company of small business. Question. Give two advantages of small scale industries in trade export in India.Answer : The two advantages of small scale industries in trade export […]

Question. What are the different types of economic activities?Answer : There are various types of economic activities. Namely,• Profession• Business• Employment Question. Name one economic pursuit, in which expertise is required.Answer :Profession is an economic pursuit, in which expertise is required. Question. Can fishing be contemplated as a primary industry? Answer : Yes. Question. Sort […]

Question. Define e-commerce.Answer : E-commerce, also called as electronic commerce or internet commerce, refers to the purchasing and selling of commodities or services utilising the internet and the transfer of money and data to perform these transactions. Question. State a significant feature of outsourcing.Answer : An important feature of outsourcing is:• The activities that are […]

Question. State the three stages in the formation of a company.Answer : The three stages in the formation of a company are.• Promotion• Incorporation• Subscription of a company Question. In a company, who is known to be the first directors of the company? Answer : In a company, the promoter decides who will sign the […]

HOTs Question. Mention 2 necessary conditions that form a Joint Hindu Family business.Answer : • At least 2 members in a family• Ancestral property to be inherited by him or her Question. Who regulates a Joint Hindu Family business?Answer : Karta Question. What is an unlimited liability?Answer : Unlimited liability involves general partners and sole proprietors who are fairly effective for […]

HOTs Question. Mention the types of business enterprise which operates in more than one nation.Answer : Companies that operate business in more than one nation are called as Multinational Companies (MNCs). However, such companies have their headquarters in one country where all the primary business activities take place. For instance, Capgemini, Amazon, etc., Question. Provide […]