Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 13 Warehousing Text Book Back Questions and Answers, Notes.
Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 13 Warehousing
11th Commerce Guide Warehousing Text Book Back Questions and Answers
EXERCISE
I Choose the Correct Answer
Question 1.
Warehouses remove the hindrance of ………………….
a) Person
b) Time
c) Risk
d) Knowledge
Answer:
b) Time
Question 2.
A warehouse holds goods as a ………………………………… center.
a) Marketing
b) Sorting
c) Distribution
d) Selling
Answer:
c) Distribution
Question 3.
…………………. can be given as collateral security for getting financial assistance from the bank.
a) Dock warrant
b) Warehouse réceipt
c) Dock receipt
d) Warehouse warrant
Answer:
d) Warehouse warrant
Question 4.
……………………. warehouses are licensed by the government and are permitted to accept the goods on bond.
a) Bonded
b) Cold Storage
c) Públid
d) All the Above
Answer:
a) Bonded
Question 5.
……………………………. warehouses are used for storing perishable goods like fruits, vegetables, etc.
a) Bonded
b) Private
c) Cold storage
d) Co-operative
Answer:
c) Cold storage
Question 6.
The document which authorizes to deliver the goods either in part or full is called …………………
a) Warehouse warrant
b) Dock Receipt
ç) Dock warrant
d) None of these
Answer:
ç) Dock warrant
Question 7.
The Institutional warehouse started with the support of the government is ……………..
a) Bonded Warehouse
b) Public Warehouse
c) Food Corporation of India
d) Custom Bonded
Answer:
c) Food Corporation of India
II. Very Short Answer Questions
Question 1.
What is Warehouse?
Answer:
It is a place where goods are stored for future use and act as distribution centres. Warehouses are designed depending upon the nature of the products to be stored.
Question 2.
List the various types of Warehouses.
Answer:
Warehouses can be classified as follows:
On the basis of Ownership:
- Private Warehouses
- Government Warehouses
- Public Warehouses
- Co-operative Warehouses
- Bonded Warehouses
- Institutional Warehouses
- Distribution Centre Warehouses
On the basis of commodities stored:
- General Warehouses
- Special Commodity Warehouses
- Cold storages or Refrigerated Warehouses
- Climate Controlled Warehouses
Question 3.
Give any three functions of Warehouses.
Answer:
- Storage: The surplus goods are stored properly for the purpose of supplying them at the right place and at the right time.
- Price Stabilization: Warehousing ensures price stabilization by supplying goods as and when demanded.
- Equalization of Demand and Supply: Warehousing equalizes the demand and supply of goods by storing the goods when they are not demanded and releasing them when they are demanded.
Question 4.
Tabulate the three differences between warehouse warrant and warehouse receipt:
Answer:
|
Warehouse Warrant |
Warehouse Receipt |
| It is a document of title of goods. | It is not a document of title of goods. |
| It can be negotiated or transferred to others. | It can not be transferred to others. |
| Delivery of goods effected by surrendering this warrant with endorsement. | Delivery is effected by surrendering this receipt with a letter from the depositor. |
Question 5.
Give a note on FCI:
Answer:
FCI provides storage facilities for good grains. FCI also hires storage capacity from other sources such as CWC, SWC, and private parties.
III Short Answer Questions
Question 1.
Differentiate the warehouse warrant from the warehouse receipt.
Answer:
|
Warehouse Warrant |
Warehouse Receipt |
| It is a document of title of goods. | It is not a document of title of goods. |
| It can be negotiated or transferred to others. | It can not be transferred to others. |
| Delivery of goods effected by surrendering this warrant with endorsement. | Delivery is effected by surrendering this receipt with a letter from the depositor. |
| It also gives an authority to get delivery of goods by the owner or by a third party. | It is only the acknowledgment for the receipt of the goods. |
| It can be given collateral security for getting financial assistance. | It cannot be transferred to others. |
Question 2.
Comment on cold storage warehouse.
Answer:
Goods are transported in refrigerated containers and stored in refrigerated warehouses. These warehouses are used for storing perishable goods like fruits, vegetables, eggs butter, fish, meat, etc. goods stored in cold storage without deterioration in quality, can be made available throughout the year.
IV Long Answer Questions
Question 1.
Explain the different types of warehouses?
Answer:
- Private Warehouses: Private warehouses are built and owned by private business enterprises in order to store the products produced by them.
- Government Warehouses: They are created and operated by the Government to implement the programmes of the Government.
- Public Warehouse: It is open to the public at large. Most business organisations, especially small and medium scale units cannot afford to have their own warehouses.
- Cooperative Warehouses: There are warehouses owned and managed by the marketing co-operative societies or agricultural co-operative societies. They are set up to provide warehousing facilities to their members.
- Bonded Warehouses: Bonded warehouses are those warehouses, which are licensed by the government to accept the storage of imported goods which are not cleared due to non-payment of customs duty by the importer.
Question 2.
Explain the advantages of warehousing functions.
Answer:
Meaning: Warehousing is the act or the process of storing large quantities of goods so that they can be sold or used at a later date.
The following are the advantages of Warehousing:
- It safeguards the stock of the merchants who do not have to store place.
- Warehouses reduce the distribution cost of the traders by storing the goods in bulk and allow the trader to take the goods in small lots to his shop.
- It helps in the selection of channels of distribution. The producer will prefer whether to appoint a wholesaler or retailer.
- It assists in maintaining continuous sales and avoids the possibility of an “out of stock” position.
- It creates employment opportunities for both skilled and unskilled workers, to improve their standard of living.
11th Commerce Guide Warehousing Additional Important Questions and Answers
I. Choose the Correct Answer
Question 1.
NCDC is an example of ……………. warehouse.
(a) Private
(b) Government
(c) Public
(d) Cooperative
Answer:
(d) Cooperative
Question 2.
The warehouses where the goods are temporarily stored for one or two days are known as ……………….
a) Co-operative warehouses
b) Public warehouses
c) bonded warehouses
d) Distribution center warehouses
Answer:
d) Distribution center warehouses
Question 3.
CWC was established in
(a) 1964
(b) 1957
(c) 1956
(d) 1956
Answer:
(b) 1957
Question 4.
Food Corporation act was set-up in the year ……………
a) 1964
b) 1946
c) 1955
d) 1978
Answer:
a)1964
Question 5.
The number of warehousing centers across the country under CWC ……………..
a) 500
b) 646
c) 464
d) 201
Answer:
c) 464
II. Very Short Answer Questions:
Question 1.
Give a not on SWC.
Answer:
State Warehousing Corporation (SWC): Every state government is given the power to establish its own Warehousing Corporation after getting approval from the CWC. 50% of the capital is contributed by the CWC and the balance 50% contributed by State Government.
Question 2.
What do you mean by Dock Receipt?
Answer:
Dock Receipt is an acknowledgment of receipt of goods issued by dock authorities to the owner of the goods. It is the right of taking of delivery of goods cannot be transferred.
Question 3.
Write a note on State Warehousing Corporation (SWC)?
Answer:
Every state government is given the power to establish its own Warehousing Corporation after getting approval from the CWC. 50% of the capital is contributed by the CWC and the balance 50% contributed by State Government.
Question 4.
What do you mean by Delivery Order?
Answer:
This is the document through which the depositor directs the warehouse keeper to deliver the specified goods either to the party mentioned in the document or to the bearer.
Question 5.
What do you mean by the word Dock?
Answer:
It is a place in the harbour where the goods are kept for loading into the ship.
III. Short Answer Questions:
Question 1.
Write a note on Tamil Nadu Warehousing Corporation (TNWC):
Answer:
It was established in 1959. The available storage capacity of TNWC is 6.83 Lakh MT with 7 Regional offices and 256 Godowns across the state. It is one of the biggest public warehouses operating in the state, offering logistic sendees to a diverse group of clients.
Question 2.
Differentiate Warehouse and Warehousing:
Answer:
- A warehouse is a place where goods are stored for future use whereas; warehousing is an arrangement of goods.
- The warehouse is to hold goods for storing purposes only. The warehousing object is to present and protect the goods from deterioration.
Question 3.
What are all the value-added services rendered by the warehouses?
Answer:
Warehouses also provide certain value-added services, such as in transit mixing, grading, packaging, and labelling. Sometimes goods are repacked and labelled again at the time of inspection by prospective buyers.
IV. Long Answer Questions
Question 1.
Explain the warehousing in India.
Answer:
India is an agrarian country but the importance of warehousing was not felt till 1950. Agriculture contributes 16 percent of the overall GDP and accounts for the employment of approximately 52 percent of the Indian population. It is estimated that more than 40 percent of our agricultural .productions wasted due to poor storage facilities.
On the recommendation of the All India Rural Credit Survey Committee, the Agricultural Produce (Development and warehousing) Corporation Act enacted in 1956, authorized the Government to set up National Co-operative Development and Warehousing Board to develop agricultural Co-operatives and warehousing.
Question 2.
Briefly explain the method of Warehousing in India:
Answer:
India is an agrarian country but the importance of warehousing was not felt till 1950. Agriculture contributes 16 percent of the overall GDP and accounts for the employment of approximately 52 percent of the Indian population. It is estimated that more than 40 percent of our agricultural productions wasted due to poor storage facilities.
On the recommendation of the All India Rural Credit Survey Committee, the Agricultural Produce(Development and warehousing) Corporation Act enacted in 1956 authorized the Government to set up National Co-operative Development and Warehousing Board to develop agricultural Co-operatives and warehousing.
Question 3.
What are all the documents used in the process of warehousing?
Answer:
The following are used in connection with the warehousing:
Warehouse Warrants:
It is a document issued in favour of the owner or depositor of goods by the warehouse keeper. This is a document of the title of goods and can be transferred by simple endorsement and delivery. To transfer all the goods the warehouse warrant is sufficient. If only a part of the goods is to be transferred then a delivery order is needed. The delivery order is to be accompanied by the warehouse warrant.
Warehouse Keeper’s Receipt:
It is a document issued by the warehouse keeper, which acknowledges the receipt of goods from the depositor of goods. It also shows the existence of an agreement to keep the goods in the warehouse subject to certain conditions. This is not a document of title of goods and is not transferable.
Dock Warrant:
A dock is a place in the harbor where the goods are kept for loading into the ship. A dock warrant is a document of title of goods issued by dock authorities. This document certifies that the dock authorities hold the goods. To take delivery of the goods this certificate should be given back to dock authorities. The right of getting delivery of goods can be assigned to third parties too.
Dock Receipt:
Dock receipt is an acknowledgment of receipt of goods issued by dock authorities to the owner of the goods. It is not a document of the title of goods. Therefore, the right of taking of delivery of goods cannot be transferred.
Delivery Order:
This is a document through which the depositor directs the warehouse keeper to deliver the specified goods either to the party mentioned in the document or to the bearer. The warehouse keeper delivers the goods as per the instruction. Transfer of ownership takes place through this document.
Question 4.
What are all the drawbacks of Warehousing?
Answer:
Warehousing is not effective because of the following reasons:
- There are no adequate transport facilities between the place of production and warehouses.
- Lack of sufficient storage facilities for different commodities such as perishable and non-perishable commodities.
- Complicated formalities are to be fulfilled at the warehouses. The illiterate and innocent farmers are not able to cope with these procedures.
- The unavoidable delay in obtaining financial assistance may cause loss to the owner of goods.
Question 5.
Explain the functions of Warehouse: (Any Five)
Answer:
The following are the functions of warehouses:
Storage:
There is a time gap between the time of production and the time of consumption and a gap between demand and supply. The surplus goods are stored properly for the purpose of supplying them at the right place and at the right time.
Price Stabilization:
Warehousing ensures .price stabilization by supplying goods as and when demanded. It acts as a cushion to absorb price fluctuations and supplies the goods at more or less uniform prices throughout the year.
Equalization of Demand and Supply:
Warehousing equalizes the demand and supply of goods by storing the goods when they are not demanded and releasing them when there is a demand. Thus the consumers get the commodities regularly even during the off¬season periods.
Business Finance:
Based on the goods deposited in a warehouse, the depositor can get finance from banks and other financial institutions by showing the receipt issued by the warehouse keeper.
Risk bearing:
In case of damage to the goods, the warehouse keeper compensates for the loss caused to the owner of the goods. Thus, warehouses bear the loss of risk involved in the storage of goods.
Question 6.
What are all the needs for Warehousing?
Answer:
Mass production:
Production is based on the anticipated demand for goods. Mass production of goods takes place by establishing big factories and modem production. The market for such goods is spread all over the country. Therefore, warehouses are to be built at different places to store these products and provide prompt supplies when demanded.
Nature of commodities:
Some goods are perishable in nature and therefore it should be consumed in time to avoid deterioration. Storing them in cold storage can extend the life of the goods.
Seasonal production but regular consumption:
The farm products such as wheat, sugar, , pulses, etc. are produced only in seasons. But the consumption of these products is evenly spread throughout the year. If proper storage facilities are not provided, the quality of these goods deteriorates and may become not usable.
Regular production but seasonal consumption:
Certain goods are produced regularly throughout the year. Be they are demanded in seasons only. For example, rain-coats, blankets, umbrellas, etc. require storage for a whole year. They can be released in large quantities to meet the heavy demand in the rainy and winter seasons.
Proximity to production centres:
Productions of goods at specific centers need to be supplied in time and without interruption to consumers throughout the country. For this purpose, goods are regularly fed to the warehouses situated in different market areas.