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2550. Earnings Per Share (EPS) is equal to __________.

Profit before tax/No of outstanding shares
Profit after tax/No of outstanding shares
Profit after tax/Amount of equity share capital
Profit after tax less equity dividends/No of outstanding shares
✅ The correct answer is B.
Earnings Per Share (EPS) is equal to Profit after tax/No of outstanding shares. It is calculated by dividing the company’s net income with its total number of outstanding shares. It is a tool that market participants use frequently to gauge the profitability of a company before buying its shares.

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.

2557. A necessity is defined as a good having

A positive income elasticity of demand
A negative income elasticity of demand
An income elasticity of demand between zero and 1
An income elasticity of more than 1
✅ The correct answer is C.
A necessity is defined as a good having an income elasticity of demand between zero and 1. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good. A zero income elasticity of demand occurs when an increase in income is not associated with a change in the demand of a good.

2558. Packing cost is ________.

production cost
selling cost
administration cost
distribution cost
✅ The correct answer is D.
Packing cost is distribution cost. Packaging cost is a significant factor in pricing a product.

2560. Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

can not
can
may or may not
must
✅ The correct answer is A.
Uncontrollable costs are the costs which can not be influenced by the action of a specified member of an undertaking. For example: a foreman incharge of a tool room can only control costs pertaining to the same department and the matters which come directly under his control, not the costs apportioned to other department. The expenditure which is controllable by an individual may be uncontrollable by another individual.

2562. A standalone health insurance company is

A health insurance company which has only one office throughout the country
A life insurance company selling general insurance products like health insurance
A general insurance company which sells only health products
All of the above
✅ The correct answer is C.
A standalone health insurance company is a general insurance company which sells only health products. Stand-alone insurance refers to an insurance product that a business or individual purchases to cover a specific risk or cost.
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