Author name: Administrator

1094. The general need for a pension policy results from the existence of what key problem?

Anticipated fall in income
Lack of employment opportunities
Likely deterioration in health
Uncertainty over investment performance
✅ The correct answer is A.
The general need for a pension policy results from the existence of anticipated fall in income. Anticipated Income is the amount of income the applicant can reasonably be expected to receive during the calendar year.

1096. Two alternative expected returns are compared with help of

coefficient of variation
coefficient of deviation
coefficient of standard
coefficient of return
✅ The correct answer is A.
Two alternative expected returns are compared with help of coefficient of variation. The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean.

1097. The sum assured under keyman insurance policy is generally linked to which of the following?

Keyman income
Business profitability
Business history
Business history
✅ The correct answer is B.
The sum assured under keyman insurance policy is generally linked to Business profitability. Keyman is a term insurance policy where the sum assured is linked to the profitability of the company rather than the key person’s own income. The premium is paid by the company. This is tax efficient as the entire premium is treated as business expense. In case the key person dies, the benefit is paid to the company.

1098. Activities related to coordinating, controlling and planning flow of inventory are classified as

decisional management
throughput management
inventory management
manufacturing management
✅ The correct answer is C.
Activities related to coordinating, controlling and planning flow of inventory are classified as inventory management. Inventory management refers to the process of ordering, storing, and using a company’s inventory. These include the management of raw materials, components, and finished products, as well as warehousing and processing such items.

1101. Which of the following is CORRECT with respect to resources?

Money is a capital good
Human skills are a labour input
Entrepreneur is part of the labour input
Natural resources include human input
✅ The correct answer is B.
Human skills are a labour input is correct with respect to resources. The human or the interpersonal skills are the skills that present the managers’ ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results.

1103. First step in determining an efficient portfolio is to consider

set of attainable portfolios
set of unattainable portfolios
set of attributable portfolios
set of attributable portfolios
✅ The correct answer is A.
First step in determining an efficient portfolio is to consider set of attainable portfolios. The feasible, or attainable, set represents all portfolios that can be constructed from a given set of stocks. This set is only efficient for part of its combinations. An efficient portfolio is that portfolio which provides the highest expected return for any degree of risk.

1105. Other factors held constant, but lesser project liquidity is because of

shorter payback period
greater payback period
less project return
greater project return
✅ The correct answer is B.
Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.
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