490. Which of the below can be attributed to moral hazard?

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Increased risky behaviour following the purchase of insurance
Increased risky behaviour prior to the purchase of insurance
Decreased risky behaviour following the purchase of insurance
Engaging in criminal acts post being insured
✅ The correct answer is A.
Increased risky behaviour following the purchase of insurance can be attributed to moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.

488. Which of the following item of expenses will not appear in cost accounting.

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Direct material cost
Factory overheads
Selling Expenses
Loss on sale of fixed assets
✅ The correct answer is D.
Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

486. If all conditions or assumptions of regression analysis simple regression can give

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dependent estimation
independent estimation
reliable estimates
unreliable estimates
✅ The correct answer is C.
If all conditions or assumptions of regression analysis simple regression can give reliable estimates. A measure is said to have a high reliability if it produces similar results under consistent conditions.

484. Who among the following is best advised to purchase a term plan?

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An individual who needs money at the end of insurance term
An individual who needs insurance and has a high budget
An individual who needs insurance but has a low budget
An individual who needs an insurance product that gives high returns
✅ The correct answer is C.
An individual who needs insurance but has a low budget is advised to purchase a term plan. Term plans are beneficial for those who want higher coverage at low premium rates, providing financial protection for their family in case they are not around.

482. ___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.

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portfolio management
market timing
momentum strategy
sector rotation
✅ The correct answer is D.
Sector rotation shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas. Sector rotation is a theory of stock market trading patterns. In this context, a sector is understood to mean a group of stocks representing companies in similar lines of business.

471. Method in which company finds other companies considered in same line of business to evaluate divisions is classified as

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pure play method
same play method
division line method
single product method
✅ The correct answer is A.
Method in which company finds other companies considered in same line of business to evaluate divisions is classified as pure play method. Pure play method is an approach used to estimate beta coefficient of a company whose stock is not publicly traded.

507. Which of the following is a cause of an economic problem?

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Scarcity of resources
Alternative uses
Unlimited wants
All of the above
✅ The correct answer is D.
Scarcity of resources, Alternative uses and Unlimited wants are the cause of an economic problem. Factors like production costs and labor affect the cost of scarce items. If the unlimited wants and needs of a particular good can be met by resources, then it is not considered scarce. This would require the resources to be unlimited as well for it to meet unlimited demand.