Administrator, Author at GetMCQs

12. Consumer’s surplus left with the consumer under price discrimination is

A) Maximum

B) Minimum

C) Zero

D) Not predictable

✅ ANSWER: C
Consumer’s surplus left with the consumer under price discrimination is Zero.

15. When output of earlier process is transferred at a profit to the subsequent process, it is ________.

A) inter departmental profit

B) abnormal gain

C) inter process profit

D) manufacturing profit

✅ ANSWER: C
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.

18. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

A) 2.09%

B) -6.00%

C) 17.50%

D) 6.00%

✅ ANSWER: D
Constant growth rate = Expected rate of return – Expected dividend yield
= 11.5% – 5.5% = 6.00%

21. Use of variables to signal whether strategies are effective or ineffective is classified as

A) evaluating strategy

B) performing strategy

C) warned strategy

D) weighted strategy

✅ ANSWER: A
Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy. Strategy evaluation means collecting information about how well the strategic plan is progressing.

24. Under Immediate annuity, the premium has to be paid

A) In regular instalments

B) In lumpsum

C) Both A & B

D) None of the above

✅ ANSWER: B
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.

5. Carriage inwards refers to the cost of transportation for

A) Purchase of materials

B) Sale of products

C) Returns outward

D) Return of unsold goods

✅ ANSWER: A
Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset’s cost is defined as all costs that are necessary to get the asset in place and ready for use.

Author name: Administrator