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546. Other factors held constant, greater project liquidity is because of

less project return

greater project return

shorter payback period

greater payback period

✅ The correct answer is C.
Other factors held constant, greater project liquidity is because of shorter payback period. The payback period is the cost of the investment divided by the annual cash flow. The shorter the payback, the more desirable the investment.

510. Correct measure of risk of stock is called

alpha

beta

variance

market relevance

✅ The correct answer is B.
Correct measure of risk of stock is called beta. The beta of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.

512. Which is a condition for existence of monopoly?

Big size

Identical product

Absence of government taxes

No close substitute

✅ The correct answer is D.
No close substitute is a condition for existence of monopoly. If a close substitute exists, then the monopoly cannot exist. Remember, a monopoly can only exist when the cross-elasticity of the product that the monopolist produces is zero.

514. For an insurance policy nomination is allowed under _________ of the Insurance Act, 1938.

Section 10

Section 38

Section 39

Section 45

✅ The correct answer is C.
For an insurance policy nomination is allowed under Section 39 of the Insurance Act, 1938.

517. Securities with less predictable prices and have longer maturity time is considered as

cash equivalents

long-term investments

inventories

short-term investments

✅ The correct answer is D.
Securities with less predictable prices and have longer maturity time is considered as short-term investments. Short-term investments are designed to provide considerable returns in a short period of time, which could be a few months or even a year.

520. For ____ goods, increase in income leads to increase in demand.

Abnormal

Normal

Inferior

Superior

✅ The correct answer is B.
For normal goods, increase in income leads to increase in demand. Rising incomes lead to a rise in the number of goods demanded by consumers.

523. Cost of abnormal wastage is:

Charged to the product cost

Charged to the profit & loss account

charged partly to the product and partly profit & loss account

not charged at all

✅ The correct answer is B.
Cost of abnormal wastage is charged to the profit & loss account. It is in excess of the standard percentage of wastage set up to account for the normal wastage. The cost of abnormal waste should be excluded from the total cost and charged to Costing Profit and Loss Account. If any value is realized from the waste, the Process Account concerned may be credited.

526. Effective cost of debentures is _________ as compared to shares.

higher

lower

equal

medium

✅ The correct answer is B.
Effective cost of debentures is lower as compared to shares. Cost of debt refers to the effective rate a company pays on its current debt.

529. Which one is an offline payment mode?

Cash on delivery

Cash before delivery

Credit card

Both a and b

✅ The correct answer is D.
Both Cash on delivery and Cash before delivery are offline payment mode.

532. Which among the following is true regarding life insurance contracts?

They are verbal contracts not legally enforceable

They are verbal which are legally enforceable

They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872

They are similar to wager contracts

✅ The correct answer is C.
They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872 is true about life insurance contracts.

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