957. Which of the following statements in respect of riders is incorrect?

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Rider means the basic death cover of a life insurance policy
A rider is a provision typically added through an endorsement
Riders refer to supplementary benefits in life insurance policies
Riders help customize individual’s preferences
✅ The correct answer is A.
A rider is an add-on cover to the base policy that provides additional benefits. Under this, if death of the policyholder occurs due to an accident then, apart from paying the life insurance benefit promised under the base policy, the policy will also pay an additional sum insured as specified in the rider.

956. Which among the following cannot form the basis for a valid consumer complaint?

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Shopkeeper charging a price above the MRP for a product
Shopkeeper not advising the customer on the best product in a category
Allergy warning not provided on a drug bottle
Faulty products
✅ The correct answer is B.
Shopkeeper not advising the customer on the best product in a category cannot form the basis for a valid consumer complaint.

971. Companies that help to set benchmarks are classified as

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competitive companies
benchmark companies
analytical companies
return companies
✅ The correct answer is B.
Companies that help to set benchmarks are classified as benchmark companies. Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

966. Long -term solvency is indicated by

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Liquidity ratio
Debt-equity ratio
Return coverage ratio
Both a and b
✅ The correct answer is B.
Long -term solvency is indicated by Debt-equity ratio. The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by its shareholder equity. These numbers are available on the balance sheet of a company’s financial statements.

964. If there are implicit costs of production

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Economic profit will be equal to accounting profit
Economic profit will be less than accounting profit
Economic profits will be zero
Economic profit will be more than accounting profit.
✅ The correct answer is B.
If there are implicit costs of production Economic profit will be less than accounting profit. Economic profit is total revenue minus opportunity cost. Accounting profit is total revenue minus explicit cost. Opportunity costs are higher than explicit costs because opportunity costs also include implicit costs.