Author name: Administrator

2115. All of the following are elements of a valid contract, except

Offer and acceptance
Capacity to pay premiums
Consideration
Capacity of the parties
✅ The correct answer is B.
All of the following are elements of a valid contract, except Capacity to pay premiums. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year.

2116. Material requisition is meant for ________.

purchase of material
supply of material from stores
sale of material
storage of material
✅ The correct answer is B.
Material requisition is meant for supply of material from stores. A materials requisition form is a source document that the production department uses to request materials for manufacturing process. The production manager usually fills out the materials requisition form and delivers it to the materials or storage department where all of the raw materials are stored.

2117. For estimation of each cost pool for cost function, attention must be paid to

cost object hierarchy
management hierarchy
price hierarchy
cost hierarchy
✅ The correct answer is D.
For estimation of each cost pool for cost function, attention must be paid to cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.

2118. A market structure in which many firms sell products that are similar but not identical is known as

Monopolistic competition
Monopoly
Perfect competition
Oligopoly
✅ The correct answer is A.
A market structure in which many firms sell products that are similar but not identical is known as Monopolistic competition. Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.

2099. The most common form of bonus is

Cash bonus
Compound bonus
Dividend
Reversionary bonus
✅ The correct answer is D.
Reversionary bonus is the bonus declared every year as a percentage of (Guaranteed Maturity Benefit/Sum Assured + Earlier Reversionary Bonuses). It is payable on death of the life assured or maturity of the policy.

2104. The type of Net marketplace characterized by indirect inputs and spot purchasing is called an _______.

industry consortium
independent exchange
e-distributor
e-procurement marketplace
✅ The correct answer is C.
The type of Net marketplace characterized by indirect inputs and spot purchasing is called an e-distributor. E-distribution is a type of distribution that uses purely electronic media. It is often interpreted as the buying or selling of services or goods over a public network without the physical media; this is usually done by downloading from the Internet to the consumer’s electronic device.

2106. In assumptions testing, violation of constant variance is called

heteroscedasticity
heterogeneous
homogenous
homoscedasticity
✅ The correct answer is A.
In assumptions testing, violation of constant variance is called heteroscedasticity. Heteroscedasticity means unequal scatter. In regression analysis, we talk about heteroscedasticity in the context of the residuals or error term. Specifically, heteroscedasticity is a systematic change in the spread of the residuals over the range of measured values.
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