512. Which is a condition for existence of monopoly?

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Big size
Identical product
Absence of government taxes
No close substitute
✅ The correct answer is D.
No close substitute is a condition for existence of monopoly. If a close substitute exists, then the monopoly cannot exist. Remember, a monopoly can only exist when the cross-elasticity of the product that the monopolist produces is zero.

546. Other factors held constant, greater project liquidity is because of

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less project return
greater project return
shorter payback period
greater payback period
✅ The correct answer is C.
Other factors held constant, greater project liquidity is because of shorter payback period. The payback period is the cost of the investment divided by the annual cash flow. The shorter the payback, the more desirable the investment.

543. State the correct option.

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In a policy document, it is now compulsory to indicate the address of the local Ombudsman
Address of the insured is optional in the policy document
The address of the IRDA is also necessarily shown in the policy document
Either the local Ombudsman’s address or that of the IRDA needs to be shown in the policy
✅ The correct answer is A.
In a policy document, it is now compulsory to indicate the address of the local Ombudsman.

541. Surplus is defined as

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Excess value of assets over liabilities
When turnover of the insurer is high
Excess value of liabilities over assets
Excess of liabilities
✅ The correct answer is A.
Surplus is defined as Excess value of assets over liabilities. A surplus is the amount of an asset or resource that exceeds the portion that is utilized. A surplus is used to describe many excess assets including income, profits, capital, and goods.

539. Which of the following statements are correct? i. The sum assured under group insurance is not fixed by the individual member. ii. A person whose proposal is declined under individual scheme can get insurance under group policy.

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Statement i is correct
Statement ii is correct
Both statements are correct
None of the three
✅ The correct answer is A.
If a person’s proposal is declined under individual scheme, he cannot get insured even under the group policy. Hence, only statement A is correct.

534. Number of shares outstanding if it is divided by net income for using to calculate

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earning per share
dividends per share
book value of share
market value of shares
✅ The correct answer is A.
Number of shares outstanding if it is divided by net income for using to calculate earning per share. Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is calculated by dividing the company’s net income with its total number of outstanding shares.

46. Which reserve is not shown in the Balance sheet?

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Secret reserve
General reserve
Capital reserve
All of the above
✅ The correct answer is A.
Secret reserve is not shown in the Balance sheet. The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. It can be said that there is a surplus of assets over liabilities and that surplus is not disclosed or shown by the Balance Sheet.