397. In options pricing, an exercise price rises from lower to higher which leads to

by
volatile options
option value increases
option value decreases
option value stable
✅ The correct answer is C.
In options pricing, an exercise price rises from lower to higher which leads to option value decreases. Before venturing into the world of trading options, investors should have a good understanding of the factors determining the value of an option. These include the current stock price, the intrinsic value, time to expiration or the time value, volatility, interest rates, and cash dividends paid.

430. When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

by
private placing
bonus issue
rights issue
offer for sale
✅ The correct answer is C.
When an existing company offers its shares for sale to the existing shareholders, it is known as rights issue. A rights issue is a way by which a listed company can raise additional capital. However, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings.

422. Giffen goods are those goods

by
For which demand increases as price increases
That have a high income elasticity of demand
That are in short supply
None of the above
✅ The correct answer is A.
Giffen goods are those goods for which demand increases as price increases. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.

420. “During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

by
Rs. 14
Rs. 1650
Rs. 1750
Rs. 18
✅ The correct answer is A.
Total Cost 4800
Variance was Rs. 600 (A)
As Variance adverse means it is higher than standard cost
So standard cost = 4800 – 600 = 4200
Labour worked 300 hours
Standard cost per labour hour = 4200/300 =14

418. A situation in which an outside group solicit proxies to take control of business is classified as

by
outside group
solicit process
proxy fight
controlled management
✅ The correct answer is C.
A situation in which an outside group solicit proxies to take control of business is classified as proxy fight. A proxy fight is the action of a group of shareholders joining forces, in a bid to gather enough shareholder proxies to win a corporate vote.