Administrator, Author at GetMCQs

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.

2100. Which of the following is an industry strategic factor that relates to whether new entrants face a disadvantage when attempting to enter an industry?

barriers to entry

power of suppliers

power of consumers

industry value chain

✅ The correct answer is A.
Barriers to entry is an industry strategic factor that relates to whether new entrants face a disadvantage when attempting to enter an industry.

2101. Contingency products typically address which type of need?

Cash requirements

Against uncertainties

Wealth creation

All of the above

✅ The correct answer is B.
Contingency products typically address against uncertainties. A contingency is a potential negative event that may occur in the future, such as an economic recession, natural disaster, fraudulent activity or a terrorist attack.

2102. If future return on common stock is 19% and rate on T-bonds is 11% then current market risk premium will be

Rs 30.00

30.00%

8.00%

Rs 8.00

✅ The correct answer is C.
Current market risk premium = Return on common stock – Rate on T-bonds
= 19% – 11% = 8%.

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.

202. A document sent to customer when he returns the goods is called

Promissory note

Invoice

Credit note

Debit note

✅ The correct answer is C.
A document sent to customer when he returns the goods is called Credit note. A credit note or credit memo is a commercial document issued by a seller to a buyer.

2110. Flexible budget variance for revenues of company is classified as

selling price variance

investment variance

profit variance

primary variance

✅ The correct answer is A.
Flexible budget variance for revenues of company is classified as selling price variance. Sales price variance measures the change in a company’s total budgeted revenue to the actual revenue earned on a product.

2080. The grace period for renewal beyond expiry date of a health insurance policy is

10 days

15 days

30 days

90 days

✅ The correct answer is C.
The grace period for renewal beyond expiry date of a health insurance policy is 30 days. The policy will lapse if the premium is not paid within the grace period.

2082. Which of the following methods does a firm resort to avoid dividend payments?

Share splitting

Declaring bonus shares

Rights issue

New issue

✅ The correct answer is B.
Declaring bonus shares methods does a firm resort to avoid dividend payments. Bonus shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. to capitalise a part of the company’s retained earnings.

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