250. Which of the following statements is correct?

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A) The policy document has to be signed by a competent authority, but need not be compulsorily stamped according to the Indian Stamp Act
B) The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act
C) The policy document need not be signed by a competent authority, but should be stamped according to the Indian Stamp Act
D) The policy document neither needs to be signed by a competent authority nor it needs to be compulsorily stamped according to the Indian Stamp Act
✅ ANSWER: B
According to the Indian Stamp Act, the policy document has to be signed by a competent authority as well as stamped. Hence, option (2) is correct.

232. What are the reason(s) for increase in health insurance in India?

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A) Health consciousness
B) Increased longevity
C) Increase in income
D) All of the above
✅ ANSWER: D
Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. Increased income, health consciousness, price liberalization and the introduction of private healthcare financing is bringing the change.

229. Product which requires low amount of resources, but incur high per unit cost is classified as

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A) expected under cost
B) expected over cost
C) product under costing
D) product over costing
✅ ANSWER: D
Product which requires low amount of resources, but incur high per unit cost is classified as product over costing. Product costing is also known as traditional costing. This method seeks to allocate all costs down to individual units of finished product.

217. Bonds issued by corporations and exposed to default risk are classified as

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A) corporation bonds
B) default bonds
C) risk bonds
D) zero risk bonds
✅ ANSWER: A
Bonds issued by corporations and exposed to default risk are classified as corporation bonds. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company’s physical assets may be used as collateral for bonds.

27. Noting charges are paid at the time of

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A) Renewal of the bill
B) Retirement of the bill
C) Dishonor of the bill
D) None of the above
✅ ANSWER: C
Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.

211. Which of these is not a Material control technique:

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A) ABC Analysis
B) Fixation of raw material levels
C) Maintaining stores ledger
D) Control over slow moving and non moving items
✅ ANSWER: C
Maintaining stores ledger is not a Material control technique. A stores ledger is a manual or computer record of the raw materials and production supplies stored in a production facility. It is maintained by the person responsible for these assets, such as the warehouse manager.