Author name: Administrator

2191. In retention growth model, payout ratio is subtracted from one to calculate

present value ratio
future value ratio
retention ratio
growth ratio
✅ The correct answer is C.
In retention growth model, payout ratio is subtracted from one to calculate retention ratio. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends.

2194. The rational expectations model of dividend policy says that ______________.

Since the expectations of the investors are always rational, there will be no effect of dividend policy on the valuation of the firm
If the investors have rational expectations, they will value a dividend paying firm higher than a non-dividend paying firm
If the declared dividend is in line with expectations of the investors, there will be no effect on the valuation of the firm
If the declared dividend is in accordance with the expectations, the change in the firms value will be minimal
✅ The correct answer is D.
The rational expectations model of dividend policy says that If the declared dividend is in accordance with the expectations, the change in the firms value will be minimal.

2195. Which of the following statements is correct

Ethical behavior is impossible while selling insurance
Ethical behavior is not necessary for insurance agents
Ethical behavior helps in developing trust between the agent and the insurer
Ethical behavior is expected from the top management only
✅ The correct answer is C.
Ethical behavior helps in developing trust between the agent and the insurer. In the trusting relationship, the prospect allocates trust insofar as they found the conduct of the agent as credible and reliable.

2180. What is common between nomination and assignment?

Both can be done at the time of taking the policy
Both are done as per Insurance Act, 1938
Both involve transfer of rights under the policy
None of the above
✅ The correct answer is B.
Both are done as per Insurance Act, 1938. The appointment of an individual by the assured to receive the amount secured by the policy, upon the demise of the assured is known as a nomination. On the other hand, assignment refers to cede the right, ownership, and interest in the policy to another person.

2182. Continuous budget is also known as

rolling budget
pin budget
specific budget
past budget
✅ The correct answer is A.
Continuous budget is also known as rolling budget. A rolling budget is continually updated to add a new budget period as the most recent budget period is completed.

2184. Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as

revenue allocation
revenue object
revenue increment
reciprocal revenue
✅ The correct answer is A.
Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue allocation. Revenue allocation can be described as a method of sharing the centrally generated revenue among different tiers of government and how the amount allocated to a particular tier is shared among its components for economic development.
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