Chapter Exam

Chapter 16: Emerging Service Business in India — Online MCQ Test

Q: What is the term used for the contractual relationship between a franchisor and a franchisee?

Answer: A. Franchising — Franchising is a business model where a franchisor grants a franchisee the right to use its brand and business model.

Q: Which of the following is considered the lifeblood of modern commerce and supply chain management?

Answer: B. Logistics — Logistics ensures the efficient flow and storage of goods, services, and information from the point of origin to the point of consumption.

Q: In factoring services, who is responsible for the collection of debts from the customer?

Answer: B. The Factor — A factor is a financial intermediary that purchases accounts receivable from a business and takes responsibility for collecting the debts.

Q: A business sells its invoices to a factor at a discount. If the factor bears the entire risk of non-payment by the customer, this is known as:

Answer: B. Non-Recourse Factoring — In non-recourse factoring, the factor assumes the credit risk of the debtors; if the customer fails to pay, the factor loses the money, not the business.

COMMERCE · CLASS 11th · Tamil Nadu State Board

Practice Chapter 16: Emerging Service Business in India with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 11th COMMERCE. This chapter covers: Exploring modern business models this chapter details franchising factoring third-party logistics outsourcing and e-commerce. Students analyze modern service frameworks transformin.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 16: Emerging Service Business in India — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th COMMERCE — Chapter 16: Emerging Service Business in India, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the term used for the contractual relationship between a franchisor and a franchisee?

A. Franchising ✓
B. Factoring
C. Outsourcing
D. Logistics

Answer: A. Franchising
Franchising is a business model where a franchisor grants a franchisee the right to use its brand and business model.

Which of the following is considered the lifeblood of modern commerce and supply chain management?

A. Outsourcing
B. Logistics ✓
C. Warehousing
D. Retailing

Answer: B. Logistics
Logistics ensures the efficient flow and storage of goods, services, and information from the point of origin to the point of consumption.

In factoring services, who is responsible for the collection of debts from the customer?

A. The Seller
B. The Factor ✓
C. The Government
D. The Bank Auditor

Answer: B. The Factor
A factor is a financial intermediary that purchases accounts receivable from a business and takes responsibility for collecting the debts.

How does 'Factoring' assist a business in improving its liquidity?

A. By increasing the cost of goods sold
B. By converting accounts receivable into immediate cash ✓
C. By reducing the need for marketing
D. By providing long-term equity investment

Answer: B. By converting accounts receivable into immediate cash
Factoring provides immediate cash flow to a business by purchasing its unpaid invoices, thus solving liquidity problems.

A business sells its invoices to a factor at a discount. If the factor bears the entire risk of non-payment by the customer, this is known as:

A. Recourse Factoring
B. Non-Recourse Factoring ✓
C. Maturity Factoring
D. Advance Factoring

Answer: B. Non-Recourse Factoring
In non-recourse factoring, the factor assumes the credit risk of the debtors; if the customer fails to pay, the factor loses the money, not the business.

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