Author name: Administrator

1645. Pick out the incorrect statement from the below mentioned statements.

Insurance agent represents his client in the first place
Insurance agent represents his company in the first place and always
There is a difference between an agent and a broker
Broker represents his client unlike an agent
✅ The correct answer is A.
Insurance agent does not represents his client in the first place. Insurance Agents enter into a contract to represent an insurer.

1647. First step in process costing system is to

summarize flow of output
compute output in units
summarize total costs
compute cost for each equivalent unit
✅ The correct answer is A.
First step in process costing system is to summarize flow of output. Flow is more inline with the concept of a function, that is, a Flow has both input and output parameters.

1648. The per-product price consumers are willing to pay for a bundle ____________ as the number of goods in the bundle increases.

decreases
increases
varies from product to product
stays the same
✅ The correct answer is B.
The per-product price consumers are willing to pay for a bundle increases as the number of goods in the bundle increases. The willingness of consumers to pay can, at times, be quite volatile. With bundle pricing, the seller lowers the variance on this willingness to pay and increases its profit by selling bundles of products instead of selling all products separately.

1649. Who is the person that arranges for a customer to get the necessary insurance?

An agent
A retailer
A broker
An intermediary
✅ The correct answer is A.
An agent is the person that arranges for a customer to get the necessary insurance. An agent is a person who represents an insurance firm and sells insurance policies on its behalf. Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance. These are independent agents and captive or exclusive agents.

1650. An under allocated indirect cost is also called

under applied indirect cost
under absorbed indirect cost
absorbed indirect cost
both a and b
✅ The correct answer is D.
An under allocated indirect cost is also called under applied indirect cost and under absorbed indirect cost.

1651. Prospecting in an insurance sale is

Gathering the names of people who may be interested in insurance
Preparing a list of all the persons in a city
Enlisting all the policyholders of a branch office
Preparing a list of all the agents in a neighborhood
✅ The correct answer is A.
Prospecting in an insurance sale is gathering the names of people who may be interested in insurance.Prospecting is the process of gathering names of people who can be approached for a sales interview.

1637. ___________ is a substitute for a companys signature.

Director signature
Manager Signature
Common Seal
Managing Director Signature
✅ The correct answer is C.
Common Seal is a substitute for a companys signature. Common Seal is the official signature of the company and each company shall have only one seal, on its incorporation. It is to be used in the manner prescribed in the Articles of Association and the Companies Act, 2013.
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