Administrator

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

by
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.

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

by
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.

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

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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

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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.

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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.