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1290. Which of the following is the largest online travel service?

Travelocity
Orbitz
Priceline
Expedia
✅ The correct answer is D.
Expedia is the largest online travel service. Expedia is one of the fastest growing online travel portals in Asia, offering travellers an extensive selection of hotels, activities and travel services to meet every budget and activities of every kind at competitive rates.

1291. Altering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.

net income approach
traditional approach
modern approach
net operating income approach
✅ The correct answer is D.
Net Operating Income Approach was also suggested by Durand. This approach is of the opposite view of Net Income approach. This approach suggests that the capital structure decision of a firm is irrelevant and that any change in the leverage or debt will not result in a change in the total value of the firm as well as the market price of its shares. This approach also says that the overall cost of capital is independent of the degree of leverage.

1293. Insurance is based on the principle of _______.

Co-operation
Democracy
Equality
Welfare
✅ The correct answer is A.
Insurance is based on the principle of economic co-operation. It is a pooling of risks and spreading over a number of persons. It is the basic principle of insurance. The premium is collected from a number of persons, and an insurance fund is created. From this fund, the compensation is given to the contributors who suffer contingent loss. In modern days, it is now a specialized branch of commerce. Today, insurance covers a wide range of risks. It now closely related to the day-to-day life of individuals as well as of the nation. It also plays a prominent role in the national economy.

1294. A project, which may not add to the existing profits, should be financed by __________.

debentures
preference share capital
equity capital
public deposits
✅ The correct answer is B.
A project, which may not add to the existing profits, should be financed by preference share capital. Preference shares are shares in a company that are owned by people who have the right to receive part of the company’s profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close.

1296. Providing fair returns to investors.

Social objectives
National objectives
Economic objectives
Human objectives
✅ The correct answer is A.
Providing fair returns to investors is Social objectives. Fair return on investment means a reasonable return on the investment of a public utility, determinable only by the exercise of sound judgment and common sense, being a matter of fair approximation, not capable of exact mathematical demonstration.

115. Which of the following is/are fixed asset(s)?

Closing inventory
Fixed deposit in a bank
Patents
Prepaid expenses
✅ The correct answer is C.
Patents are fixed assets. The accounting process for patents is similar to other fixed assets. Companies allocate or amortize the costs over the life of the patent.

1281. Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?

treasury bills
certificates of deposit
financial futures
savings accounts
✅ The correct answer is C.
Financial futures short term securities is inappropriate for an individual, desiring funds for financial emergencies. Futures contract to buy or sell a specific financial instrument (such as treasury bills, certificates of deposit, or foreign currencies) at a specific future date and at a specified price. The market value of these contracts generally moves in a direction opposite to that of the interest rates.
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