Author name: Administrator

2404. Which among the following cannot be termed as an asset?

Car
Human Life
Air
House
✅ The correct answer is D.
Human Life cannot be termed as an asset. People are not assets like tangible fixed assets such as equipment. People cannot be owned. People do not depreciate. If they are assets, people are intangible assets.

2405. An interest rate which is quoted by brokers, banks and other financial institutions is classified as

annuity rate
perpetuity rate
nominal rate
external rate of return
✅ The correct answer is C.
An interest rate which is quoted by brokers, banks and other financial institutions is classified as nominal rate. Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.

2406. Relationship between risk and required return is classified as

security market line
required return line
market risk line
risky return line
✅ The correct answer is A.
Relationship between risk and required return is classified as security market line. The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM), which shows different levels of systematic, or market, risk of various marketable securities plotted against the expected return of the entire market at a given point in time.

2407. When an insurance contract can be declared void?

Innocent misrepresentation
Fraudulent misrepresentation
A & B are correct
None of the above
✅ The correct answer is C.
Insurance contract can be declared void in both Innocent misrepresentation and fraudulent misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.

2408. In adjustment issues and data collection, inflation affects the

cost driver and cost
cost object and cost
heterogeneous cost
homogenous cost
✅ The correct answer is A.
In adjustment issues and data collection, inflation affects the cost driver and cost. A cost driver is the unit of an activity that causes the change in activity’s cost.

2389. If current price increases from lower to higher then an

option value equal to one
option value will increase
option value will decrease
option value equal to zero
✅ The correct answer is B.
If current price increases from lower to higher then an option value will increase. The current price, also known as the market value, is the price at which goods are currently being sold in the market.

2390. A type of business ownership in which two or more entities join together for profit purpose is classified as

partnership
joint business
joint profit
corporate business
✅ The correct answer is A.
A type of business ownership in which two or more entities join together for profit purpose is classified as partnership. A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in some partnerships, all partners share liabilities and profits equally, while in others, partners have limited liability.
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