Author name: Administrator

1970. Which of the following input factor takes risk, innovates and coordinates

Capital
Labour
Productivity
Entrepreneur
✅ The correct answer is D.
Entrepreneur input factor takes risk, innovates and coordinates. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

1971. Walters model on dividend policy assumes that.

the firm offers an increasing amount of dividend per share at a given level of price per share
the firm has a finite life
the cost of capital of the firm is variable
equal to current assets plus current liabilities including bank borrowings
✅ The correct answer is D.
Walters model on dividend policy assumes that equal to current assets plus current liabilities including bank borrowings. Walter’s model shows the relevance of dividend policy and its bearing on the value of the share.

1974. _____________is concerned with the interrelationships between security returns.

random diversification
correlating diversification
Friedman diversification
Markowitz diversification
✅ The correct answer is D.
Markowitz diversification is concerned with the interrelationships between security returns. A strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return.

1975. ________________ factors lead to activity of stock market.

Money supply
Per capita income
Unemployment rate
Manufacturing and Trade
✅ The correct answer is A.
Money supply factors lead to activity of stock market. The money supply is the entire stock of currency and other liquid instruments circulating in a country’s economy as of a particular time. The money supply can include cash, coins, and balances held in checking and savings accounts, and other near money substitutes.

1976. Success in life insurance agency career depends on

Self-motivation for accepting challenges in the profession with fire in his belly
Positive self-image with high morale
A spirit of entrepreneurial skill
All of the above
✅ The correct answer is D.
Success in life insurance agency career depends on self-motivation for accepting challenges in the profession with fire in his belly, positive self-image with high morale and a spirit of entrepreneurial skill.

1982. As for the cost of production of an individual farmer, the rent paid by him

Enters into the price of his product
Does not enter into price of his product
Is unjustified
None of the above
✅ The correct answer is A.
As for the cost of production of an individual farmer, the rent paid by him enters into the price of his product. The classical political economists found value to be determined in production; since most of the cost of production could be reduced to labor, this approach was refined into the Labor Theory of Value.

1964. First step in constant gross margin percentage NRV method is to allocate joint to compute

Gross margin percentage
total production cost of each product
allocated joint costs
cost of split off point
✅ The correct answer is A.
First step in constant gross margin percentage NRV method is to allocate joint to compute Gross margin percentage. Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage.
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