Author name: Administrator

2565. Which of the below statement is false with regards to nomination?

Policy Numbermination is not cancelled if the policy is assigned to the insurer in return for a loan
Nomination can be done at the time of policy purchase or subsequently
Nomination can be changed by making an endorsement in the policy
A nominee has full rights on the whole of the claim
✅ The correct answer is D.
A nominee doesnot has full rights on the whole of the claim. In the new insurance law, if an immediate family member such as spouse is made the nominee, then the death benefit will be paid to that person and other legal heirs will not have a claim on the money.

2567. A Piece Rate System written by ___________.

Harold Koontz
Taylor
Louis Allan
Hendry Fayol
✅ The correct answer is B.
Taylor was one of the main champions of the piece rate system in the late 19th century. Taylor’s Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies.

2569. A Bull speculator is also called as ___________.

mandiwala
tejiwala
tarawaniwalas
vaniwalas
✅ The correct answer is B.
A Bull speculator is also called as tejiwala. He is said to be a bull because just like a bull which tries to throw its victim up in the air, he expects to profit from increase in share prices.

2571. Which of the below forms first part of a standard insurance policy document?

Policy schedule
Standard provisions
Specific policy provisions
Claim procedure
✅ The correct answer is A.
Policy schedule forms first part of a standard insurance policy document. The standard policy document typically has three parts which are the policy schedule, standard provisions and the policy’s specific provisions.

2549. Business risks can be _________.

avoided
reduced
ignored
erased
✅ The correct answer is B.
Business risks can be reduced. Business owners need to take control of their companies, assess the risks inherent in both their firms and industries and determine how to best reduce these risks.

2552. In mutually exclusive projects, project which is selected for comparison with others must have

higher net present value
lower net present value
zero net present value
all of above
✅ The correct answer is A.
In mutually exclusive projects, project which is selected for comparison with others must have higher net present value. A positive net present value indicates that the projected earnings generated by a project or investment – in present dollars – exceeds the anticipated costs, also in present dollars. It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.

2553. A firm under perfect competition is

Price maker
Price breaker
Price taker
Price shaker
✅ The correct answer is C.
A firm under perfect competition is Price taker. In perfect market conditions (also called perfect competition) a firm is a price taker because other firms can enter the market easily and produce a product that is indistinguishable from every other firm’s product. This makes it impossible for any firm to set its own prices.

2554. Overall and strategic planning is done by the ___________.

Top management
Middle level management
Supervisory level management
All of the above
✅ The correct answer is A.
Overall and strategic planning is done by the Top management. Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s direction in response to a changing environment.

2556. Which is the following item is good for wealth accumulation purposes?

Bank loans
Investment in shares
Investment in Term Insurance
Investment in savings bank accounts
✅ The correct answer is B.
Investment in shares is good for wealth accumulation purposes. Individuals have financial goals which motivate them to invest in specific havens. However, the choice of investment avenue can make or break the realisation of financial dreams. It is because of the forces of inflation and taxes. These tend to reduce the purchasing power of your money and impede faster wealth accumulation.
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