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3251. __________ is a social device for eliminating or reducing the loss of society from certain risk.

Premium

Policy

Insurance

Contract

✅ The correct answer is C.
Insurance is a social device for eliminating or reducing the loss of society from certain risk. Insurance is a social device for division of financial losses which may fall on an individual or his family on the happening of some unforeseen events. When insured, the loss arising out of the events are shared by all the insured in the form of premium. Therefore the risk is transferred from one individual to a group.

3252. In quantitative analysis to estimate cost function, fourth step is to

write a liner function

write price function

write manufacturing function

plot data

✅ The correct answer is D.
In quantitative analysis to estimate cost function, fourth step is to plot data.

3253. Labour turnover means:

Turnover generated by labour

Rate of change in composition of labour force during a specified period

Either of the above

Both of the above

✅ The correct answer is B.
Labour turnover is defined as the rate of change of labour force in an organization during a specified period.

313. Which of the following is a biological asset?

Land

Building

Environment

Living plants and animals

✅ The correct answer is D.
Living plants and animals is a biological asset. Biological asset is any living plant or animals owned by the business, and are typically measured at fair value minus selling costs.

3257. In cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through

price index

cost index

profit index

cost driver index

✅ The correct answer is A.
In cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through price index. A price index is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a given region, during a given interval of time.

3259. If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, to whom will be paid the claim amount?

Srikant’s wife

Nominee in Srikant’s policy

Srikant’s widow and children

Ramesh

✅ The correct answer is D.
If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, Ramesh will be paid the claim amount.

3247. A stock which is issued to meet specific needs of company is considered as

classified stock

specific stock

needed stock

meeting stock

✅ The correct answer is A.
A stock which is issued to meet specific needs of company is considered as classified stock. Classified stock is a type of common stock that has special privileges, such as enhanced voting rights or dividend rights.

3248. Capital budgeting decisions are analyzed with help of weighted average and for this purpose

component cost is used

common stock value is used

cost of capital is used

asset valuation is used

✅ The correct answer is C.
Capital budgeting decisions are analyzed with help of weighted average and for this purpose cost of capital is used. Capital budgeting is a company’s formal process used for evaluating potential expenditures or investments that are significant in amount.

3250. Under risk classification, _________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table.

Standard lives

Preferred risks

Sub-standard lives

Declined lives

✅ The correct answer is A.
Under risk classification, Standard lives consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table. Mortality tables are the most important basis for charging the premium.

3232. A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim?

Death claim

Maturity claim

Periodical survival claim

Surrender claim

✅ The correct answer is C.
A payment made under a money-back policy upon reaching a milestone will be classified under Periodical survival claim.

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