Author name: Administrator

980. Depreciation is include in costs in case of __________.

Pay back method
Accounting rate
Discounted cash flow
Present value method
✅ The correct answer is B.
Depreciation is include in costs in case of Accounting rate. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.

982. Pre-emptive right of common stockholders are necessarily included in company

laws
purchase chart
corporate charter
selling charter
✅ The correct answer is C.
Pre-emptive right of common stockholders are necessarily included in company corporate charter. A corporate charter sets forth a corporation’s basic information, its location, profit/ nonprofit status, board composition, and ownership structure.

956. Which among the following cannot form the basis for a valid consumer complaint?

Shopkeeper charging a price above the MRP for a product
Shopkeeper not advising the customer on the best product in a category
Allergy warning not provided on a drug bottle
Faulty products
✅ The correct answer is B.
Shopkeeper not advising the customer on the best product in a category cannot form the basis for a valid consumer complaint.

957. Which of the following statements in respect of riders is incorrect?

Rider means the basic death cover of a life insurance policy
A rider is a provision typically added through an endorsement
Riders refer to supplementary benefits in life insurance policies
Riders help customize individual’s preferences
✅ The correct answer is A.
A rider is an add-on cover to the base policy that provides additional benefits. Under this, if death of the policyholder occurs due to an accident then, apart from paying the life insurance benefit promised under the base policy, the policy will also pay an additional sum insured as specified in the rider.

959. Second factor in Fama French three factor model is the

size of industry
size of market
size of company
size of portfolio
✅ The correct answer is C.
Second factor in Fama French three factor model is the size of company. The Fama and French model has three factors: size of firms, book-to-market values and excess return on the market. In other words, the three factors used are SMB (small minus big), HML (high minus low) and the portfolio’s return less the risk free rate of return.
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