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1419. One of the statements given below provides evidence for the semi-strongly efficient form.

Low P/E ratio effect

The size effect

Effect on the stock split

Weekend effect

✅ The correct answer is C.
One of the statements given below provides evidence for the semi-strongly efficient form effect on the stock split.

1420. Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by

budgeted direct cost rate

budgeted indirect cost rate

expected indirect cost rate

direct budget percentage

✅ The correct answer is B.
Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.

1421. What consists of the identification of risks or threats, the implementation of security measures, and the monitoring of those measures for effectiveness?

Risk management

Risk assessment

Security

None of the above

✅ The correct answer is A.
Risk management consists of the identification of risks or threats, the implementation of security measures, and the monitoring of those measures for effectiveness. Risk management is the process of identifying, assessing and controlling threats to an organization’s capital and earnings.

1422. ______________ is the distribution of the profits of a company among its shareholders.

Interest

Dividend

Commission

✅ The correct answer is C.
Dividend is the distribution of the profits of a company among its shareholders. A dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.

1423. In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate

option return rate

exercise value

option value

stock value

✅ The correct answer is B.
In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate exercise value. The exercise value is the value that an option buyer will get from the option on exercising it.

1424. When is an insurance company put to real test?

At the point of accepting proposal

At the time of payment of claim

At the time of deciding sum insured

At the time of announcement of bonuses

✅ The correct answer is D.
An insurance company put is to real test at the time of announcement of bonuses. Bonus refers to an extra amount of money one receives in addition to the base amount. The same concept also holds true with bonuses payable in a life insurance policy.

1425. Which of the below is not a component of ULIP premiums?

Policy allocation charge

Investment risk premium

Mortality charge

Social security charge

✅ The correct answer is D.
Social security charge is not a component of ULIP premiums. Social security contributions are compulsory payments paid to general government that confer entitlement to receive a (contingent) future social benefit.

1427. The optimum point is an _________ size of a firm.

Ideal

Average

Over

Extra

✅ The correct answer is A.
The optimum point is an Ideal size of a firm. The optimum firm refers to the best or ideal size of the firm. More specifically optimum or best firm is considered as one that has set up a plant with lowest possible cost and is also operating it at its lowest average cost point.

1429. Type of partnership in which liabilities are limited for business owners is classified as

unlimited partnership

limited partnership

joint corporate

joint venture

✅ The correct answer is B.
Type of partnership in which liabilities are limited for business owners is classified as limited partnership. A limited partnership (LP) not to be confused with a limited liability partnership exists when two or more partners unite to conduct a business in which one or more of the partners is liable only up to the amount of their investment.

1431. Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of

information accounting

cost accounting

analyzing accounts

marketing costs

✅ The correct answer is B.
Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of cost accounting. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.

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