Administrator, Author at GetMCQs

1070. Small scale firms are ____________ flexible in their functioning.

not

less

none of the above

✅ The correct answer is A.
Small scale firms are more flexible in their functioning. These units are more adaptable to their changing business environment.

1071. Third step in developing operating budget is

analysis of batches

analysis of products

making predictions about future

✅ The correct answer is D.
Third step in developing operating budget is making predictions about future. An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts.

1072. Section 45 of Insurance Act, 1938 safeguards the interests of –

Insurers

Policyholders

Assignees

Nominees

✅ The correct answer is B.
Section 45 of Insurance Act, 1938 safeguards the interests of Policyholders. It also takes due care of the interest of both Insurers and Insured.

1073. A technique of lowering risk for multinational companies and globally designed portfolios is classified as

national diversification

behavioral diversification

global diversification

behavioral finance

✅ The correct answer is C.
A technique of lowering risk for multinational companies and globally designed portfolios is classified as global diversification. Today, asset allocation has evolved beyond domestic stocks, bonds and cash to include global diversification across equities, fixed income and nontraditional investments. Global diversification can help in managing risk and positioning your portfolio for long-term growth.

1074. Financial analysts, working capital means the same thing as __________.

total assets

fixed assets

current assets

current assets minus current Liabilities

✅ The correct answer is D.
Financial analysts, working capital means the same thing as current assets minus current Liabilities. Financial analyst is one of the most coveted roles in the financial services industry.

1075. If the policyholder dies within grace period –

Claim will be rejected

Claim will be paid subject to policy conditions

Claim is payable after deducting the prem

None of the above

✅ The correct answer is C.
If the policyholder dies within grace period claim is payable after deducting the premium. As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured. But after deducting the the unpaid premium for the current year.

1076. Which one of the following is the condition of equilibrium for the monopolist?

MR=MC

MC=AR

MR=MC=Price

AC=AR

✅ The correct answer is A.
MR=MC is the condition of equilibrium for the monopolist. The conditions for Equilibrium in Monopoly are the same as those under perfect competition. The marginal cost (MC) is equal to the marginal revenue (MR).

1078. In production, variables such as level of activity or volume of company activity are known as

cost drivers

timed drivers

variable drivers

fixed drivers

✅ The correct answer is A.
In production, variables such as level of activity or volume of company activity are known as cost drivers. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred.

1080. Special situation in which large projects are financed by with and securities claims on project’s cash flow is classified as

claimed securities

project financing

stock financing

interest cost

✅ The correct answer is B.
Special situation in which large projects are financed by with and securities claims on project’s cash flow is classified as project financing. Project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary collateral. Project finance is especially attractive to the private sector because companies can fund major projects off-balance sheet.

95. Debit note is the basis for recording a transaction in which of the following journals?

General journal

Cash journal

Purchase journal

Purchase return journal

✅ The correct answer is D.
Debit note is the basis for recording a transaction in Purchase return journal. The source document for recording entries in the purchases return journal is generally a debit note.

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