1.

(a) On the basis of ownership, distinguish between a Product and a Service. (b) Explain in brief the term ‘Parity Princing’. (c) How does the Central Bank control credit through Statutory Liquidity Ratio. (d) Explain the terms Surplus and Deficit in an Income and Expenditure Account. (e) With reference to the Bhopal Gas Tragedy: (i) Name the company responsible for the tragedy. (ii) Identify the poisonous gas that caused this ghastly man made disaster.

Answer»
ProductService
Ownership of a product is transferable.
e.g- When a T.V is bought, the ownership  is transferred from the seller to a buyer		Ownership of service is not transferable 
e.g - Taking house on a rent, won't transferred to ownership from the seller to you.

(b) Parity Pricing: Parity Pricing concept that the selling price of a product or produce should.go up in the same account as the peices of the inputs used in product. It means adjustment of price according to the competitors. It is best suitable for a highly competitive market. 

(c) Statutory Liquidity Ratio (SLR): Statutory liquidity ratio refer amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to the customers. SLR is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit. 

(d) Surplus: If the income of a non-trading concern exceeds over its expenditure, it is known as surplus. 

Deficit: If the expenditure exceeds the income, it is known as deficit. 

(e) (i) The company responsible for the Bhopal Gas Tragedy – Union Carbide India Limited. 

(ii) Methyl Isocyanate (MIC).


Discussion

No Comment Found

Related InterviewSolutions