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416. In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be

✅ The correct answer is A.
In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be 46.
Disturbance term cost = Predicted cost value – Observed cost value
= 65 – 19 = 46.

418. A situation in which an outside group solicit proxies to take control of business is classified as

outside group

solicit process

proxy fight

controlled management

✅ The correct answer is C.
A situation in which an outside group solicit proxies to take control of business is classified as proxy fight. A proxy fight is the action of a group of shareholders joining forces, in a bid to gather enough shareholder proxies to win a corporate vote.

420. “During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

Rs. 14

Rs. 1650

Rs. 1750

Rs. 18

✅ The correct answer is A.
Total Cost 4800
Variance was Rs. 600 (A)
As Variance adverse means it is higher than standard cost
So standard cost = 4800 – 600 = 4200
Labour worked 300 hours
Standard cost per labour hour = 4200/300 =14

422. Giffen goods are those goods

For which demand increases as price increases

That have a high income elasticity of demand

That are in short supply

None of the above

✅ The correct answer is A.
Giffen goods are those goods for which demand increases as price increases. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.

425. The basic elements of website is.

Home page

Web pages

Links and banners

All the above

✅ The correct answer is D.
The basic elements of website is Home page, Web pages and Links and banners.

430. When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

private placing

bonus issue

rights issue

offer for sale

✅ The correct answer is C.
When an existing company offers its shares for sale to the existing shareholders, it is known as rights issue. A rights issue is a way by which a listed company can raise additional capital. However, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings.

394. Surrender value is a %age of _________

Human life value

Loan value

Paid up value

Monetary value

✅ The correct answer is C.
Surrender value is a %age of Paid up value. Surrender value is the amount payable to the policyholder should he decide to discontinue the policy and encash it. It is payable only after three full years’ premiums have been paid to the insurance company.

397. In options pricing, an exercise price rises from lower to higher which leads to

volatile options

option value increases

option value decreases

option value stable

✅ The correct answer is C.
In options pricing, an exercise price rises from lower to higher which leads to option value decreases. Before venturing into the world of trading options, investors should have a good understanding of the factors determining the value of an option. These include the current stock price, the intrinsic value, time to expiration or the time value, volatility, interest rates, and cash dividends paid.

400. Diversification reduces _________.

Interest rate risk

Market risk

Unique risk

Inflation risk

✅ The correct answer is C.
Diversification reduces Unique risk. Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories.

403. If a firm shuts down temporarily, it will incur loss equal to

AFC

AVC

TFC

TVC

✅ The correct answer is C.
If a firm shuts down temporarily, it will incur loss equal to TFC. The intersection of the average variable cost curve and the marginal cost curve, which shows the price where the firm would lack enough revenue to cover its variable costs, is called the shutdown point. If the perfectly competitive firm can charge a price above the shutdown point, then the firm is at least covering its average variable costs. It is also making enough revenue to cover at least a portion of fixed costs, so it should limp ahead even if it is making losses in the short run, since at least those losses will be smaller than if the firm shuts down immediately and incurs a loss equal to total fixed costs.

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