ONLINE CANDIDATES : 13 
NABTEB COMMERCE ANSWER 2019
COMMERCE-OBJ
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Answer Only Five (5)
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(6a)
Internal trade refers to the trade within the borders of the country.
(6b)
(i)Internal trade is known as home or domestic trade whereas external trade is also known as foreign or international trade.
(ii)The trade which is conducted within the political and geographical boundaries of a country is known as internal trade whereas the trade that takes place between two countries is known as external trade.
(iii)Internal trade is further divided into two groups:wholesale trade and retail trade whereas external trade is further divided into two groups:import trade and export trade.
(iv)Trade carried out among traders of Nepalgunj and Pokhara is the example of internal trade whereas trade carried out among traders of Kathmandu and New York is the example of external trade.
(v)Internal trade usually doesn’t have any restrictions on movement inside the country while External Trade is subjected to many restrictions on transfer to certain goods to certain countries.
(vi)Internal Trade generally has fewer transportation costs and risks to transfer the goods. While External Trade involves very high transportation costs and risky situations to transfer goods from one country to another
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(7a)
bill of exchange is a written order once used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date.
(7b)
(i) Convenient: It’s more convenient to carry cheque about than cash
(ii) A proof of payment : Cheque can serve as a receipt and a proof of payment
(iii) Security : It is safer to carry cheque than cash for security reasons
(iv) Easy to stop payment : It is easy for the drawer to stop payment so as to prevent fraud
(v) Helps to Economise : A cheque can help to economise the use of currency notes and coins
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(4a)
(i)clients and suppliers
(ii)its competition and owners
(iii)improvements in technology
(iv)laws and government activities
(v)market social and economic trends.
(4b)
(i)It is always convenient to carry a cheque than carrying bulk cash to make payment to some body.
(ii)When payment is made by cheque, the drawer need not take any receipt for the payments made. It will be reflected in his pass book.
(iii)In case of necessity, the drawer, even after making payment by cheque, can countermand the payment of that particular cheque.
(iv)It is not safe to make bulk payments to others by hard cash. Making payments by cheque would be safer.
(v)Payments by cash may breed corruption as many transactions may not get accounted in the books of account. This will help corruption to grow.
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(3a)
capital is defined as the total amount of money available for running a business.
(3b)
(i)Internal economic capital; This includes financial capital (funds available, including debt and equity finance), and non-financial capital (for example the value of your brand).
(ii)External economic capital; This takes into account the impact an organization has on the financial and non-financial capital of other entities (for example, a new factory may reduce or increase real estate values nearby).
(iii)Natural capital; This includes all natural resources we rely on, as well as ecosystem services such as climate regulation.
(iv)Human capital; This includes knowledge, skills, experience, health, attitudes and motivation of individuals.
(v)Social and relationship capital; This consists of teams, networks and groups of individuals working together, and includes their shared intellectual capital.
(vi)Constructed capital; This consists of material objects, systems or ecosystems created or cultivated by humans.
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(5a)
Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another.
(5b)
(i)Lack of Specialisation: it is associated with a production system where each person is a jack-of-all trades. In other words, a high degree of specialisation is difficult to achieve under the barter system.
(ii)Difficulty in Making Deferred Payments: As payments are made in goods and services, debt contracts are not possible due to disagreements on the part of the two parties
(iii)Difficulty in Storing Value: Anyone wanting to save real capital over a long period would be faced with the difficulty that during the intervening period the stored commodity may become obsolete or deteriorate in value.
(iv)Indivisibility of Certain Goods: It is difficult to fix exchange rates for certain goods which are indivisible. Such indivisible goods pose a real problem, under barter. A person may desire a horse and the other a sheep and both may be willing to trade.
(v)Lack of a Common Measure of Value: lack of a common unit in which the value of goods and services should be measured. Even if the two persons who want each other’s goods meet by coincidence, the problem arises as to the proportion in which the two goods should be exchanged.
(vi)Lack of Double Coincidence of Wants: double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service, but also possesses that good which the former wants.
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(8a)
Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or more people to buy advertised goods and services. In other words is to attract new customers by defining the target market and reaching out to them with an effective ad campaign.
(8b)
(i)It helps to create awareness about a business or product; Advertising helps to create awareness about a product In other words is done over a particular period of time. So, it makes people constantly aware of a product or a business.
(ii)It helps to promote and convince consumers about a company, product or service; Promoting a product is the primary objective of advertising In other Words Letting people know that you have an exciting product to offer. And it can also be used to promote sales and upcoming events in a company.
(iii)It helps consumers to differentiate products; The advertisement is not done by necessarily comparing and differentiating products, but in such a way that it shows the uniqueness and benefits of a particular product and imprint it in consumers mind.
(iv)It helps to draw customers to a business and keep existing customers; The more people are aware of your product, the more they will want to patronise it. When you do a good advertisement, consumers want to try the products. Also, good advertising builds the morale of existing customers to keep using your products.
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Categories: NABTEB