Justify the following statement

1) Air transport is the
fastest mode of transport?
Solution: 

(1) The mode of transport which is operated above the
surface of the earth i.e. in the sky through airways is called air transport.
For carrying passengers and goods, air transport uses different aircrafts such
as passenger’s aircrafts, cargo aircraft, helicopters, etc.

(2) Among the means of transport available at present,
air transport is the fastest and the quickest means of transport. It uses
natural ways and no separate construction of routes is required. It is also due
to use of modern and advanced technology and highly qualified and professional
technician. Thick forests, high mountains, vast deserts and oceans cannot
obstruct its speed and air routes.

(3) Air transport adopt shortest route to reach
destination. It has faster speed without any disturbance of observing signal
system speed. Air transport is useful to provide valuable services in hilly and
mountainous areas, in situations like war and areas affected by natural
calamities such as floods, cyclones, earthquakes, etc.

2) Communication is essential for the growth of the
business
Solution: 

(1) Exchange of ideas, facts, information etc. from one
person to another is called communication. It is a process of transfer of
information from one place to another or from one person to another with the
help of some medium. Means of communication comprise magazines, newspapers,
post and telegraphs, radio and television, telephone, internet, e-mail, etc.
Communication is essential for growth of business, which include industry,
commerce, trade, etc.

(2) The difficulty of distance is effectively solved by
various means of communication. Communication helps to transmit business
information more quickly among the businessmen. Effective communication
facilitates carrying required raw materials and other requirements from the
place of their origin or market to the place of their production to facilitate
large scale production. The communication also helps to carry finished products
from the place of production to the places of consumption as well as market.

(3) Communication helps to make goods and services
available wherever they are demanded. It helps to widen the market. Effective
communications facilitates the development and growth of domestic and
international market and bring prosperity to the country.

(4) Effective communication facilitates the reduction in
the cost of production and distribution of goods at low prices which increase
their demand and widen market. Increase in demand in turn leads to large scale
production and supply. Thus, communication is essential for growth of business.

3) Principle of subrogation is
applicable to all contracts of indemnity.
Solution: 

(1) The principle of subrogation is a colliery to the
principle of indemnity. According to the principle of subrogation, after the
insured is fully compensated for the total loss of the property or goods
insured by him, all the rights in such property or goods pass on to the
insurer.

(2) Insured person cannot claim any right in the property
saved from the damage or loss, once he is fully compensated by the insurer.
This is necessary because, if part of the goods or property saved from the
fire, accident, damage, floods or cyclone, etc. could fetch any price, the same
cannot be retained by the policyholder or insured. In that case he would
realise more than the actual loss, which is against the principle of indemnity.

(3) As like the principle of indemnity, the principle of
subrogation is applicable to all insurance policies except life insurance
policies. In life insurance contracts, the question of indemnity and
subrogation does not arise. The insurer cannot indemnify the insured because
the loss due to death cannot be determined exactly in terms of money.

(4) In all insurance contracts, except life insurance
contract, principle of indemnity and principle of subrogation is applicable. On
indemnifying the insured, the insurer can sell the remains of the property
damaged and reduce his loss. However, this principle is applicable only if the
damaged property has any value after the happening of the event.

4) Warehousing is important.
Solution: 

(1) The term ‘warehousing is generally used to denote all
those activities which are concerned with the storage of goods in a godown or
warehouse. In modern days, these is a time gap between production of goods and
their distribution. Warehousing is essential to hold the stock of goods till
they have suitable demand.

(2) Agricultural goods such as rice, wheat, sugar,
spices, etc. are produced seasonally but consumed throughout the year. It is
necessary to store them in large quantity. Some goods may be required to be
stored for conditioning, canning or processing, e.g, oil seeds, first, fruits,
etc. Some perishable goods such as eggs, meat, butter, fruits, vegetables,
medicines, etc. are preserved in cold storage so that their quality remains as
it is.

(3) Warehousing plays an important role in price
stabilisation. It helps to protect the goods from theft, deterioration, i.e.
future risks. Warehouses nowadays provide facilities like packing, processing,
grading, etc. Warehousing is necessary to facilitate dispersion of goods from
production centre to different markets.

5) Cash can be withdrawn from ATM at any time.
Solution: 

(1) ATM is the abbreviation of Automated Teller Machine.
It is popularly known as All Time Money or Any Time Money. ATM is an electronic
cash dispensing machine. It is free standing self-service terminal. There is no
specific time limit for withdrawals of cash from ATM.

(2) ATM is one of important facilities provided by the
bank to its savings account holder. To avail of this facility, bank installs
ATM terminals at the places of public utility such as railway stations,
shopping malls, airports, post offices, busy streets, etc.

(3) For withdrawal of cash from ATM, every accountholder
is given specific code number. By operating this system, the account holder can
withdraw the cash up to a specific limit or the quantum of amount available in
the account whichever is less. ATM also provides other information like cash
deposits, withdrawals, balance in the account, etc.

(4) Under this system, the account holder has cent per
cent liquidity of banking funds. ATM avails twenty four hours of service.
Hence, the accountholder can withdraw cash any time, i.e. even after banking
hours, on holidays, Sundays or in the case of emergency by operating ATM. This
facility is available in different parts of the country as well as outside the
country.