TN State Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 1.
What is Warehouse?
Answer:
The term “Ware” means products or goods. “Warehousing”, generally means storage place or godowns which is located near a factory to keep the raw materials and finished products. Storage is only a holding place of goods.

Question 2.
List the various types of Warehouses.
Answer:
A. On the Basis of Ownership:

  1. Private Warehouses.
  2. Government Warehouse.
  3. Public Warehouses.
  4. Co-operative Warehouses
  5. Bonded Warehouses.
  6. Institutional Warehouses.
  7. Distribution Centre Warehouses.

On the Basis of Commodities Stored:

  1. General Warehouses.
  2. Special Commodity Warehouses.
  3. Cold Storages or Refrigerated Warehouses.
  4. Climate Controlled Warehouses.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 3.
Give any three functions of Warehouses.
Answer:

  1. Storage.
  2. Price stabilization.
  3. Equalization of Demand and supply.
  4. Businesss, Finance.
  5. Risk bearing.

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 is not only an acknowledgement for the receipt of goods but also gives an authority to get delivery of goods by the owner or by third party.  It is only an acknowledgement for the receipt of goods.
It can be negotiated or transferred to others.  It cannot be transferred to others.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 5.
Give a note on FCI.
Answer:
It provides storage facilities for food grains. Food Corporation of India also hires storage capacity from other sources such as Central Warehousing Corporation, State Warehousing Corporation and private parties.

Question 6.
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 is not only an acknowledgement for the receipt of goods but also gives an authority to get delivery of goods by the owner or by third party.  It is only an acknowledgement for the receipt of goods.
It can be negotiated or transferred to others.  It cannot be transferred to others.
It can be given a collateral security for getting financial assistance.  It cannot be given as collateral security.
Delivery of goods effected by surrendering this warrant with endorsement,  Delivery is effected by surrendering this receipt with letter from depositor.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 7.
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 storages without deterioration in quality, can be made available throughout the year.

Question 8.
Explain the different types of warehouse.
Answer:
A. On the Basis of Ownership:
(i)Private Warehouses:
Private warehouses are built and owned by private business enterprises in order to store the products produced by them. They are exclusively for their use.

(ii) Government Warehouses:
They are created and operated by the Government to implement the programmes of the Government. Their services mostly available to government only.

(iii)Public Warehouse:
It is open for public at large. Most of the business organisations, especially small and medium scale units cannot afford to have their own warehouses. They may be owned by an individual or some agency.

(iv) Co-operative 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. Example, National Co-operative Development Corporation (NCDC).

(v) Bonded Warehouses:
Bonded warehouses are those warehouses, which are licensed by the government to accept storage of imported goods which are not cleared due to nonpayment of customs duty by the importer.

(vi) Institutional Warehouses:
Different institutions and bodies have their own warehouses on account of the nature ofN their operations. For example, Banks, Railways, etc, have their own warehouses for conducting their activities.

(vii) Distribution Center Warehouses:
Goods which need to be temporarily stored for one or two days so that they can be distributed to other offices or customers are stored in Distribution Centers. They are owned by th; manufacturer or wholesalers.

B. On the Basis of Commodities Stored:

(i) General Warehouses:
They are ordinary warehouses which are useful for storing most of the dry food grains, fertilisers, etc.

(ii) Special Commodity Warehouses:
These warehouses are specially constructed for storing specific type of commodities like tobacco, cotton, wool etc. These warehouses reduce loss of quality and quantity to a great extent.

(iii) Cold Storages or Refrigerated Warehouses:
Goods are transported in refrigerated containers and stored in refrigerated warehouses.

(iv) Climate Controlled Warehouses:
The controlled climate environment can reduce the rate of metabolism in fruits and vegetables.

(v) Automated Warehouses:
Automated facilities which can handle several hundreds of kilograms of product at a time. Inside the warehouse premises physical distribution activities are carried out by moving product filled pallets (i.e. platforms that hold large amounts of product). It requires huge investment, latest technology and large turnover of goods.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 9.
Explain the advantages of warehousing functions.
Answer:

  1. It safeguards the stock of the merchants who do not have storing place.
  2. Warehouses reduce 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.
  3. It helps in selection of channel of distribution. The producer will prefer whether to appoint a wholesaler or retailer.
  4. It assists in maintaining the continuous sales and avoids the possibilities of “out of stock” position.
  5. It creates employment opportunities for both skilled and unskilled workers, to improve their standard of living.

Question 10.
The warehouse of the future: How will it impact efficiency?
Answer:
From 2019, new technology could be revolutionary and improving efficiency in warehouse by Warehousing Management System (WMS). Technologies including artificial intelligence, 3D printing and self- driving vehicle could be more widely used in warehouses- everywhere sooner than you think. By 2030, warehouses will be a part of initiative to achieve Zero net energy.

Warehouse buildings will operate 24 × 7 × 365 and be designed with sustain¬ability. By creating strategies, warehouse will save costs and prevent harmful emissions. Solar panels will become the main sources of energy for warehouses. This will assist in running the warehouse lighting and equipment. As well as recharging the electric vehicles that make deliveries. New technologies could be increasing the efficiency of how warehouse are run from as soon 2019.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

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) spiling
Answer:
(c) distribution

Question 3.
_______ can be given as a collateral security for getting financial assistance from bank.
(a) Dock warrant
(b) Warehouse receipt
(c) Dock receipt
(d) Warehouse warrant
Answer:
(d) Warehouse warrant

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

Question 4.
_______ warehouses are licensed by the government and are permitted to accept the goods on bond.
(a) Bonded
(b) Cold Storage
(c) Public
(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
(c) dock warrant
(d) none of these
Answer:
(c) dock warrant

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

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

Samacheer Kalvi 11th Commerce Notes Chapter 13 Warehousing

→ People demand different products at different seasons. There may not be demand for all goods in all seasons. For example woolen clothes are demanded in winter and cotton clothes are demanded in summer. But production of these items has to be started before the season begins. Storage is a palace where goods are stored.

→ After production these goods have to be carefully stored preserved till the time they are demanded warehouse it is located near the market to perform other marketing functions such as grading, standardization blending, mixing, packing etc. therefore we may say that a warehouse center helds goods as a distribution center.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 13 Warehousing

→ Here the question of wastage of goods does not arise. The central warehousing corporation was established in 1957 storage capacity is 6.77 million food corporation of India. Available tonnes storage capacity is 20.33 million tonnes. State warehousing corporation storage capacity is 9.70 million tonnes.

→ Tamil Nadu warehousing corporation storage capacity is 6.3 lakh tonnes. All farmers using this facilities for their agriculture inputs. Wastages of products avoided by the all warehouses.

TN Board 11th Commerce Important Questions

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