Author name: Administrator

82. Guarantee for employer for the loss out of employee’s dishonest is__________.

A) Burglary insurance
B) Fidelity insurance
C) third party insurance
D) medical insurance
✅ ANSWER: B
Guarantee for employer for the loss out of employee’s dishonest is Fidelity insurance. A Fidelity Insurance policy covers losses sustained by the employer as a result of an act of forgery, fraud or dishonesty from an employee.

12. Net Profit = Gross Profit minus

A) Operating expenses
B) Product cost
C) Deferred expenses
D) Direct cost
✅ ANSWER: A
Net Profit = Gross Profit minus Operating expenses.

91. A loan-cum revival would mean –

A) Granting a loan
B) Revival of the policy
C) Both A & B
D) None of the above
✅ ANSWER: C
A loan-cum revival would mean Granting a loan and Revival of the policy. If a policy acquires the surrender value, the date of the policy can be revived by a policy loan. The loan amount will be calculated and treated as premiums paid upto the date of the revival. If a loan amount is more than the required revival, the excess will be paid to the policyholder.

94. A materials requirements planning (MRP) system is an example of ______.

A) spot purchasing
B) a multi-tier supply chain
C) a legacy computer system
D) electronic data interchange
✅ ANSWER: C
A materials requirements planning (MRP) system is an example of a legacy computer system. Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.

13. A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?

A) Rs. 1000
B) Rs. 2000
C) Rs. 3000
D) Rs. 5000
✅ ANSWER: A
Cost of the asset = Rs. 6,000
Salvage Value = Rs. 1,000
Total Depreciation Cost = Cost of asset – Salvage Value = 6000 – 1000 = Rs. 5000
Useful life of the asset = 5 years
Thus, annual depreciation cost = (Cost of asset – Salvage Cost)/Useful Life = 5000/5 = Rs. 1000.

72. What is the primary purpose of a life insurance product?

A) Tax rebates
B) Safe investment avenue
C) Protection against the loss of economic value of an individual’s productive abilities
D) Wealth accumulation
✅ ANSWER: C
Protection against the loss of economic value of an individual’s productive abilities is the primary purpose of a life insurance product. The primary purpose for purchasing life insurance is to provide financial stability to beneficiaries in the event of the insured’s death.

75. Time and motion study is conducted by ________.

A) time keeping department
B) personnel department
C) payroll department
D) engineering department
✅ ANSWER: D
Time and motion study is conducted by engineering department. It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods.
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