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2655. When a policy is said to lapse?

If premiums are paid within grace period
If premiums are paid after grace period
If premiums are not paid after grace period
If premiums are not paid within grace period
✅ The correct answer is D.
If premiums are not paid within grace period a policy is said to lapse. The typical grace period is 30 days. If the premium is unpaid even after the grace period, the policy would lapse. The process of reviving a policy varies depending on the time lapsed.

2656. The long run is a

Period of three years or longer
Period long enough to allow firms to change plant size and capacity
Period long enough to allow firm to make economic decisions
A period which affects larger than smaller firms
✅ The correct answer is B.
The period is long enough to allow firms to change plant size and capacity. The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs.

2657. In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs 3,60,000. Joint costs allocated to product A is.

Rs 1,20,000
Rs 60,000
Rs 1,80,000
None of the these
✅ The correct answer is C.
Joint costs allocated to product A is:
360000 × 30000/60000 = Rs. 180000.

246. Which of the following is the most common cause of bad debt?

Debtor refusal to repayment
Debtor left the country
Debtor committed a crime
Debtor declared to be a bankrupt
✅ The correct answer is D.
Debtor declared to be a bankrupt is the most common cause of bad debt. A bad debt is a monetary amount owed to a creditor that is unlikely to be paid and, or which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.

2641. _________ is not a tangible good

House
Insurance
Mobile Phone
A pair of jeans
✅ The correct answer is B.
Insurance is not a tangible good. Life insurance can be a very important asset to have, protecting your family against potential hardship.

2645. Stock in large companies and own by people who are not active in management is classified as

self-held stock
privately held stock
publicly held stock
enactive held stock
✅ The correct answer is C.
Stock in large companies and own by people who are not active in management is classified as publicly held stock. A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over-the-counter markets.

2626. An ISO-product slopes

Downward to the left
Downward to the right
Upward to the left
Upward to the right
✅ The correct answer is B.
An ISO-product slopes downward to the right. They slope downward because MTRS of labour for capital diminishes. When we increase labour, we have to decrease capital to produce a given level of output.

2628. Which of the following is NOT a characteristic of perfect competition?

Free entry and exit of the firms
The demand curve of firm is horizontal
The marginal revenue curve is horizontal
An individual firm can influence the price
✅ The correct answer is D.
An individual firm can influence the price is not a characteristic of perfect competition. All goods in a perfectly competitive market are considered perfect substitutes, and the demand curve is perfectly elastic for each of the small, individual firms that participate in the market. These firms are price takers–if one firm tries to raise its price, there would be no demand for that firm’s product.
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