Administrator

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.

3236. Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as

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reduced work
spoilage
rework
scrap
✅ The correct answer is C.
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as rework. Rework refers to the correction of a product that does not initially meet an entity’s minimum quality standards.

3220. Most financial advisors are registered with the Securities and Exchange Commission as_______________.

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registered representatives
registered investor advisors
registered financial planners
registered securities consultants
✅ The correct answer is C.
Most financial advisors are registered with the Securities and Exchange Commission as registered financial planners. A financial planner is a qualified investment professional who helps individuals and corporations meet their long-term financial objectives.

3226. What-if technique, which examines changes in results if original prediction would not be achieved is called

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change analysis
original analysis
sensitivity analysis
predicted analysis
✅ The correct answer is C.
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

3224. Which of the following statements is incorrect?

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Insurance agent should indicate the scale of commission if asked by the customer
Insurance agent should share the commission by way of rebate
Insurance agent should disclose his licence on demand
Insurance agent should indicate the premium to be charged
✅ The correct answer is B.
All the options are correct, except option 3. Sharing commission with a client is illegal.