1614. The emergence of which of the following necessitates insurance as a form of security?

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Joint family system
Nuclear family system
Both A & B
None of the above
✅ The correct answer is B.
Nuclear family system necessitates insurance as a form of security. Nuclear family system is a family structure that consists of two parents living with their children, also known as an immediate family.

1613. Which one is increasing function of price?

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Demand
Utility
Supply
Consumption
✅ The correct answer is C.
Supply is increasing function of price. The higher the price of a good, the more a firm is willing to produce and offer, hence, the supply function is upward sloping. In fact, in the perfect competition market, the supply curve is the marginal cost curve. Increasing production is only profitable if the good can be sold at a higher price.

1612. Decentralization of authority means _________.

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giving permission to the subordinate to do his work
conveying what the subordinate is expected to do
delegating responsibility
departmentalizing activities
✅ The correct answer is D.
Decentralization of authority means departmentalizing activities. Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments’ specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations.

1630. Investment bankers perform the following role ___________.

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market new stock and bond issues for firms
provide advice to the firms as to market conditions, price, etc
design securities with desirable properties
all of the above
✅ The correct answer is D.
Investment bankers perform the following role market new stock and bond issues for firms B. provide advice to the firms as to market conditions, price, etc C. design securities with desirable properties. An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.

149. Which of the following will affect the agreement of a trial balance?

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Complete omission of a transaction
Partial omission of a transaction
Error of principle
Compensating errors
✅ The correct answer is B.
Partial omission of a transaction will affect the agreement of a trial balance. When only one aspect of a transaction is posted to the ledger, it is called as error of partial omission.

1626. In capital asset pricing model, investors assume that buying and selling activity will

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affect stock prices
not affect stock prices
have high taxes
high transaction cost
✅ The correct answer is B.
In capital asset pricing model, investors assume that buying and selling activity will not affect stock prices. The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. CAPM is widely used throughout finance for pricing risky securities and generating expected returns for assets given the risk of those assets and cost of capital.