59. In case of perfect competition in the market

A) Marginal revenue curve always slopes upward
B) Marginal revenue curve always slopes downwards
C) Marginal revenue is always equal to average revenue
D) Marginal revenue is always less than average revenue
✅ ANSWER: C
In case of perfect competition in the market marginal revenue is always equal to average revenue. They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition.

46. Identify the correct statement

A) Bonus is not allowed on surrender of a policy
B) In compound reversionary bonus it is a percentage of basic benefit and already attached bonus
C) Terminal bonus and compound bonus are one and the same
D) Persistence bonus is allowed by the insurer at its discretion in certain cases
✅ ANSWER: B
In compound reversionary bonus it is a percentage of basic benefit and already attached bonus. Compound reversionary bonuses are a percentage rate, which apply to the sum assured in respect of the basic policy benefit, and to the reversionary bonuses already attached to the policy. The difference is in the way the bonuses are accrued.

25. Which of the below option is correct with regards to a term insurance plan?

A) Term insurance plans come with life-long renewability option
B) All term insurance plans come with a built-in disability rider
C) Term insurance can be bought as a stand-alone policy as well as a rider with another policy
D) There is no provision in a term insurance plans to convert it into a whole life insurance plan
✅ ANSWER: C
Term insurance can be bought as a stand-alone policy as well as a rider with another policy. Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.

22. Procedure of assigning direct cost to any cost abject is classified as

A) sales allocation
B) cost tracing
C) cost allocation
D) sales tracing
✅ ANSWER: C
Procedure of assigning direct cost to any cost abject is classified as cost allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

19. Which among the following is not a Day Care procedure?

A) Byepass surgery
B) Cataract
C) Lithotripsy
D) Piles
✅ ANSWER: A
Byepass surgery is not a Day Care procedure. A day care procedure is a surgery or medical procedure that formerly required a prolonged stay in hospital but can now be completed in less than 24 hours.

16. Insufficient working capital results in __________.

A) Block of cash
B) Loosing interests
C) Lack of production
D) Lack of smooth flow of production
✅ ANSWER: D
Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.

10. Labour turnover is ______.

A) productivity of labour
B) efficiency of the labour
C) change in labour force
D) total cost of the labour
✅ ANSWER: C
Labour turnover is change in labour force. Labour turnover may be defined as the number of workers replaced during a given period relative to the average labour force during the period. It is the number of workers who left the job during a period relative to the average labour force during the period.

8. The expected return on an investment in stock is___________.

A) the expected dividend payments
B) the anticipated capital gains
C) the sum of expected dividends and capital gains
D) less than the realized return
✅ ANSWER: C
The expected return on an investment in stock is the sum of expected dividends and capital gains. The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.

5. Static budget amount is subtracted from flexible budget amount to calculate the

A) sales budget variance
B) cost budget variance
C) resultant budget variance
D) static budget variance
✅ ANSWER: A
Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance. A sales budget is management’s estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements.